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The Internet of Things (IoT) has been fostering digital transformations for almost every industry across the globe. Like other industries, oil and gas (O&G) industry is also riding high on IoT wave.
Companies, which gave off the conventional old-decade vibe, are gradually identifying IoT connectivity as a significant growth driver and gradually embracing IoT development services and solutions to reshape their business smartly.
However, saying that the O&G sphere has started to adopt digitization due to the IoT emergence would be wrong. Honestly, digital transformation headwind elevated throughout this industry in the 1990s, but unluckily, failed to bring a revolution.
Coming to the present, the oil and gas sector has almost reached the pinnacle of digitization. The way it is leveraging the growth of IoT might outplay other capital-intensive industries in the process.
Below, we will discover how IoT is benefiting the oil and gas industry, study its use cases to have an idea of how it can transform the O&G sector.
Taking today’s global warming issues, volatile prices, the activity of environmental activist groups, and the difficulty in creating new energy sources into account, we can say that IoT mobile app development could be a boon for many organizations. The use of IoT to its full extent can yield below-written benefits to the oil and gas industry.
The implementation of IoT in the O&G sector can facilitate the whole process of oil and gas extraction and optimize the expenses.
Internet of Things alleviates a plethora of risks and errors that are often caused manually.
Facilitate futuristic decision making
IoT provides real-time data analytics for making data-driven decisions about the next steps in research, extraction, refinement, and logistics of the oil and gas sector.
IoT-driven O&G industry is also focused on eradicating the risks of leakage or asset damage and making the environment more friendly.
IoT automation reduces machinery downtime in case of breakdowns and crashes. With fewer human factors, the Internet of Things also decreases the chances of accidents and accounts for increased employee security.
At one fell swoop, IoT adoption helps organizations to avert accidents and disruptions, make the whole development process more predictable, increase revenue, outstand competitors, and expand market share.
Each oil and gas company adopts IoT differently, based on their business needs, perspectives, and objectives. In the case of O&G, the market segment is considered to be a decisive factor. Now, let’s explore top use cases of the Internet of Things in the oil and gas industry.
Preventive equipment maintenance
Preventive maintenance plays a significant role in O&G. Predictive analysis the most common cause of revenue loss in oil and gas companies i.e. Unproductive time. For the upstream segment, tracking equipment conditions are deemed the most pressing challenge.
Most of the oil and gas mining is done in areas that are difficult to access and usually, an onsite presence is mandatory to discover breakdowns and check if any piece of mining equipment needs repair. The Internet of Things allows companies to track the state of the machinery in real-time and avoid downtime.
Real-time tracking of tanker fleets
IoT sensors for O&G tankers monitor all the parts of the ship that are carrying products remotely and examine transportation facilities that are difficult to reach. These sensors also enable real-time location tracking of any particular tanker and increase the efficiency as well as the safety of transporting O&G products.
By employing GPS, satellites, and mobile data, IoT solutions provide live updates on the state of assets and quickly respond to any changes taking place in equipment operation.
Oil and gas is a hazardous business that is prone to massive onsite accidents. The roughnecks and drillers work in the riskiest conditions and daily subject themselves to risks and injuries. IoT meticulous inspection helps to eliminate the chances of a breakdown in the equipment. In the coming future, smart, automated machinery will carry out most of the potentially risky operations by eliminating human intervention.
Advanced data analytics
Precisely, IoT is all about garnering data and using it to obtain valuable insights. Equipped with sensors, oil and gas production sites like oil fields, pipelines, and refineries have the potential to gather, store, and analyze massive data. Some of this data is time-sensitive. For instance, leakage and equipment breakdown, which need to have a higher priority as compared to all other data types.
Earlier, the satellite was the only medium to transfer the data, which was a time-consuming process. IoT leverages low power wide area networks (LPWAN) for transmitting data and edge computing to process giant data sets. This allows IoT-enabled solution to rapidly provide insightful data to end-users in comprehensive and easy-to-read formats.
Supply chain management
IoT adoption has made the complicated procedure oil and gas extraction easier than ever. It offers unparalleled equipment for managing the supply chain. The IoT sensors collect the data, notifies the refineries about the oil types that have been delivered to enable them to make great inventory, manufacturing, and operational decisions.
In downstream O&G, IoT solutions notify distributors when clients are running out of the stock. In the United States, where many homes use heating oil, companies use IoT solutions, which inform both clients and distributors about the oil levels and refill it time-to-time. These solutions also allow distributors to keep an eye on the consumption and make a consumption plan for months in advance.
Remote inspection of equipment
Remote inspection is critical for preventing accidents. For instance, oil leakages generally result in environmental problems, substantial revenue losses, and acute damage to the company’s reputation. IoT mobile app development solutions not only detect leakages and notify the concerned person about the issue but also inspect all types of O&G machinery automatically and avert emergencies.
Companies use IoT sensors to inspect the condition of the filter, pumps, and other core components. IoT solutions also facilitate real-time inspection of pumpjacks and wellheads, allowing the business to ensure sustainability, prevent accidents, and meet international standards.
IoT solutions are helping the O&G sector, right from downhole sensors to surface control valves, to obtain real-time insights in the analytics. Also, the connected devices will touch all the bases of the oil and gas supply chain, which results in accelerating operations and creating a safer work environment for the entire O&G field. In short, IoT is not just technology anymore. It is an excellent opportunity for the legacy oil and gas industry to transform and thrive in a commoditized world rapidly.