7/3/2018 How IIoT solution is changing the Oil and Gas industry

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AUTHOR : Hardik Gohil  
Newsletter
POSTED : Jan 11th, 2018  

Asset Monitoring   IoT     SUBMIT

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7/3/2018 How IIoT solution is changing the Oil and Gas industry

Asset-intensive industries and their challenges

Companies in asset-intensive industries, including oil and gas, mining,
construction, utilities, energy, healthcare, rail, and logistics, share a
unique set of challenges that must be addressed to improve reliability,
boost operational performance, and achieve production objectives. For
these companies, the overall performance relies on their assets; while
assets are out of order, the company is not making any money. On the
other hand, these companies substantially require large capital
expenditures and their nancial performance is largely dependent on
return on assets (ROA). Monitoring the performance of every asset and
proactively managing the activities around each asset that is spread
across a wide geographic area is another big challenge.

Major challenges that an asset-heavy company faces:

No synergy across di erent processes throughout the supply chain

Productivity loss due to unexpected breakdown or low asset

utilization

Warranty or recall costs from defective products released to the

market

Revenue loss due to operational downtime

Imbalance between demand and supply

Customer churn due to delayed service delivery

Why do we care?
We care because monitoring assets and making sure that they are
operating to their full potential is the key to:

Minimizing downtime and increasing productivity,

Achieving production targets,

Controlling costs,

Increasing transparency across di erent processes, and

Meeting organizational and corporate goals.

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7/3/2018 How IIoT solution is changing the Oil and Gas industry

IoT-enabled asset
monitoring!

Webinar agenda
Introduction
Types of assets
Current challenges in asset monitoring
IoT-enabled asset monitoring
Business use cases
Chatbots bene ts for enterprises
Realizing value with IoT
Demo
Q&A

ON DEMAND

Asset monitoring in oil and gas – it’s critical

because…
Oil and gas is one such industry wherein asset monitoring is very critical.
It is essential during exploration to ensure expensive rigs are not out of
order, while parts are sourced and corrective maintenance is performed.
The production phase also requires asset management to minimize
downtime, cut operational costs due to interruptions, and keep the oil
pumping.

Right from when O&G rms start exploration, they need to track materials
and services that are purchased; besides they need to maintain existing
equipment and comply with health and environmental regulations.
Gathering data turns out to be useful during the transition from
exploration to production and the information (e.g., inventory,
maintenance and safety functions, etc.) can be used to maintain and
increase operational e ciency. In general, an O&G rm has to record
every detail of its assets and proactively manage the activities around
each asset to maintain and maximize overall site productivity asset
performance.

The Internet of Things in the oil and gas industry

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7/3/2018 How IIoT solution is changing the Oil and Gas industry

Forward-looking oil & gas companies believe in grabbing an opportunity

provided by new technologies to increase process e ciency and gain a
competitive advantage. For example, in the Eagle Ford region of North
America, a new suite of technologies and improved drilling techniques
enable oil rigs to produce 18 times more e ciently than in 2008, and 65%
more e ciently than in 2013. New drilling techniques powered by the
Internet of Things enable O&G rms to become digital and gaining more
by achieving a new level of operational e ciency.

Cisco’s survey ndings clearly show that IoT focuses on three major areas
– 1) Data, 2) Process, and 3) People to drive digital transformation. If a
company has more information on hand when needed, it can make
decisions that are more e ective. Although O&G rms have made
signi cant investments in operational technology, many of them are not
fully leveraging real-time operating data to improve business and
functional capabilities. The survey shows that 48% of respondents think
that “data” is the area where they need to improve and the next
important area is “process”.

A global study by consultants Deloitte and

the MIT Sloan Management Review has
stated the oil and gas sector one of the
least “digitally mature”.

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7/3/2018 How IIoT solution is changing the Oil and Gas industry

Deploying sensors and other devices throughout operations can help

rms collect data and gain rich insights to maximize business and
operational bene ts. Increasing amounts of machinery packed with
sensors make machines visible online and enable the analysis of critical
information in a way that allows O&G rms to reduce capital
expenditures by up to 20%.

Data gathered from sensors and smart assets not only helps O&G rms
become more reliable and e cient, but also helps create new value that
ranges from dealing with unexpected well outages to increasing the
amount of reserves that can be recovered from wells. An IoT-enabled
asset monitoring solution can provide visibility across operations and
enable rms to monitor asset performance so that they can investigate
accidents remotely and eliminate unscheduled downtime. IIoT enables
supervisors to identify performance and safety issues so that they can x
them before any problem a ects the production in existing and new
wells.

No more expensive gushers

Source : www.oilandgasiq.com

Remember this iconic image of oil drilling? We all have seen how oil
strikes with a fountain high into the air! An oil well blowout has always
been an expensive a air because it not only destroys equipment but also
injures workers. Besides, it depends on the pressure which normally
reduces with time. It means that getting oil out of the well that does not
contain enough pressure requires some kind of arti cial lift. In fact, a

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7/3/2018 How IIoT solution is changing the Oil and Gas industry

plunger used in arti cial lift has now become smarter as it comes with
sensors that enable O&G rms to monitor important parameters and
increase production.

We are going to discuss more about plunger lift in our webinar on smart

asset monitoring.

Visibility down the well

Sensors provide unprecedented visibility down the well by allowing site

engineers to monitor leakage, vibration, intake and discharge pressures,
vibration, and intake and winding coil temperatures. These are important
parameters to monitor as a little deviation in their values can lead to
severe damage and failure. Moreover, machine learning algorithms can
be applied to data to derive patterns and develop predictive capabilities.
Empowered by the IIoT, O&G rms can receive near real-time information
about their entire operation, which is very di cult in case of fairly
extreme environments where there are very little existing
communication networks available. It ultimately helps rms reduce
maintenance and operational costs while meeting compliance
regulations and increase productivity.

Major bene ts of using IoT in the oil and gas industry

Increases the performance of assets and production e ciency

Minimizes asset failure and downtime, thus saving costs

Increasing the utilization of assets

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7/3/2018 How IIoT solution is changing the Oil and Gas industry

Improves asset maintenance

Creates location intelligence

Enhances worker safety, production, and operations

Enhances ecological footprint

Leads to uninterrupted production process

Predictive analytics capabilities enable to be proactive

Enhances supply chain planning

It takes a lot…

So just adding sensors to assets is not enough; you need to have a clear
idea of what you are trying to achieve and how an IoT application is going
to solve speci c problems. While there are certain challenges the
industry must overcome, connecting assets with IoT appears to be a
necessity to maintain a competitive advantage in the global marketplace.

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7/3/2018 How IIoT solution is changing the Oil and Gas industry

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