Internet of Things (IoT) deployment in the oil and gas industry is expected to reach $39.4 billion by 2023, according to BIS Research. In oil and gas, IoT consists of sensors that monitor everything from pump performance to air quality to inventory, plus the machine learning and artificial intelligence tools that enable companies to automate tasks. So, why are oil and gas organizations so eager to embrace IoT? Here are a few reasons:
1. IoT improves operational efficiency: IoT technologies can help ensure uninterrupted productivity in oil and gas even as knowledgeable industry veterans retire. By remotely visualizing business processes and analyzing big data, IoT can help organizations learn of new ways to optimize operations. IoT sensors enable remote insight into asset performance, reducing the need to send personnel into the field. As soon as sensors detect a potential issue, plans can be made to remedy the situation before it becomes a problem, avoiding costly shutdowns or delays in production.
2. IoT provides real-time data: Decision-making in the oil and gas industry is dependent on prompt and accurate production data. IoT incorporates advanced analytics of real-time data to help teams make better decision about operations. Rather than relying on single shift personnel’s siloed reports, IoT technologies can monitor constantly or intermittently, specific data points or metadata, across various parts of an operation, according to what the organization wants to measure. Decisions can be made more quickly and efficiently with pervasive information from IoT technologies.
3. IoT increases revenue: IoT helps companies reduce costs by identifying inefficiencies and potential alternatives. By making better predictions about demand, output and other business factors, IoT technologies can streamline processes and reduce costs, thus positively impacting a company’s bottom line.
4. IoT improves safety and reduces risk: Potential safety hazards in an oil and gas operation can be evaluated remotely with IoT technologies. IoT also reduces asset risk, enabling preventative maintenance by catching potential problems before they begin or worsen, which makes for safer working environments. Time-stamping activities with IoT can also assist with regulatory compliance, further improving safety.
5. IoT helps reduce environmental impact: The oil and gas industry faces real scrutiny when it comes to its impact on the natural environment. IoT technologies can help companies increase efficiencies that reduce energy usage, lower carbon emissions and decrease the risk of oil spills. With the help of pervasive IoT data, oil and gas companies can make better overall decisions that impact global outcomes.
Ask Aegex Technologies about our innovative IoT solutions for oil and gas.