For the past two decades oil and gas has been adapting to the changing landscape of IIoT. In many ways, this industry has been an IIoT pioneer, since it has deployed some of the most expansive networks to millions of geographically dispersed assets for many years. That’s why this week’s IIoT top news is focused on oil and gas. Over time, oil and gas has added sensors, automation equipment, and real-time wireless data communications. Business has been good for many years, especially when the price of oil was well over $100 per barrel. Today though, times have changed. The cost of oil has dropped dramatically, yet the fixed and variable operational costs are still high. Oil and gas has continued to incorporate new IoT and M2M technology, even though the gap between IT and OT isn’t closing fast enough. The industry would agree that change is critical, and “digitalizing” the oil fields of today is requiring new implementations, integrations and processes that need to happen at a faster pace in order to remain competitive. Will more rigs have to close before things can improve? Hopefully not, and here’s why:
The great “digital oil and gas” debate continued to pick up steam this week, starting with wireless technology bringing salvation to the offshore rigs, while big data and IoT progressed in helping the industry operations as we know it. Yet, it seems that more wireless I/O is being adopted in the oilfield service sector (OFS) so that producers don’t have to rely on miles of wires to connect their sites. Some even went as far as claiming that oil and gas may not survive the digital age. A Forbes article gave four separate claims as to why the oil and gas industry could fail in our big data world.
Regardless of how you think the industry will change, there were a lot of good news items around the industry. Hope you enjoy this week’s selection!
Wireless to the rescue offshore (OE Offshore Engineer)
As the cost of oil drops in the U.S. down to $45 dollars per barrel, now is the time to configure more efficient, reliable, cost effective wireless solutions on the oil rig. They suggest that, “sensor networks embedded within the physical equipment configuration of a facility allowing real-time 24/7 signal transfer between an identified set of units will have major contributions on the technical and safety integrity assurance processes.”
In the digital oilfield, “no wires” is a no-brainer (World Oil)
The digital progression of our world seems only fitting we would find IoT in the oil field. The question we must ask is: “Why, in 2015, has wireless I/O not overtaken hardwired infrastructure as the industry standard throughout the OFS sector?”
Big Data, Internet of Things transforming oil and gas operations (Rigzone)
Analytical movement has increased as the cost of oil continues to drop, therefore forcing the oil industry to gravitate towards more big data and IoT. It has been said that, “the amount of data generated by oil and gas operations is starting to explode as real-time information from sensors is being collected at a rate of 4 milliseconds.”
Four reasons oil and gas companies will fail in a big data world (Forbes)
Big data has merged east, west, overseas, and around the globe in nearly every industry, yet oil and gas still creeps along only partially into the big data world. Irving explained, “If – as I suspect – oil companies are not willing to show up and take part, there is a strong chance that the big data technologies that emerge the winners will not meet their needs.”
Time on Tool: A Potential Untapped Reserve for Efficiency Gains and Cost-Cutting (OGI)
In a time when efficiency and cost-cutting are becoming necessary in the oil and gas industry, a new potential untapped reserve tool offers hope in the field. They say that, “because the unconventional energy market is so new and the supply chain support system is evolving rapidly, logistics costs can be a much higher proportion of overall production costs.”