It’s time to digitalize the Oil and Gas industry. And, one such attempt at a major level is being worked upon, the Digital Rig. However, such attempts still find it hard to occupy an accepting space in the already digital-phobic industry. Let us understand from this blog why Digital Rigs are not a premature talk, it’s an idea whose time has come.
One knows well that these digital rigs are the representative off-shore expression of the real-time data collected at the site (On land or Sea) during the E&P activity.
Drilling operation is often reduced to this phrase, ‘a game of chance’. However, we can actually visualize the news possibilities of reducing the risks and look as to where the opportunities lie in terms of exploration with the help of Digital Rig. It helps to reduce the rig downtime and also enhances the operation by using the simulated data which presents a clear picture of the site under operation and especially the real-time data collected indicates the feasibility of continuing further. But it is observed that ‘Digital Rig’ is taking time to adjust in the O&G industry which is already struggling with digital reluctance.
Digital twining, making augmented reality possible
Digital twinning is referred to as the virtual simulation of a process or a structure. It embodies in its concept the augmentation of the physical world and the virtual world. A great advantage of Digital Twinning is that it knocks off problems even before they’re surfaced leave alone causing a threat to the service in the middle of operation consequently enhancing the efficiency by reducing the downtime of the product, service or machinery.
The technology was very much in presence but it turned out to be a practical and profitable venture only after the widespread incorporation of Internet of Things (IoT). It basically works as a simulator which gathers the real-time data preferably via sensors through the difference in position, temperature, displacement, and speed. Such data is integrated and is used to predict the opportunities, problems or feasibility of a project, product, service etc.
After pairing this technology with the Oil & Gas industry, it will turn out to be of unparalleled advantages which are listed below:
First of all, after the collection of real-time data from rigs, these can be used to chart out the future activities and exploration opportunities in the area of interest.
Secondly, Remote connectivity and communication is no longer a problem. A fixated rig can be sent feedback say through an auto-deployable VSAT and the work there can be stopped if simulation results are not favorable and if they are, it can be pursued aggressively.
To know the importance of data analytics in the oil and gas industry, click here
Cost Effectiveness with and without Digitization of O&G
In comparison to the non-digitized O&G industry dealing with traditional drilling, digitized drilling rigs are cost-effective. The premise of the argument is that the transport and shifting of the structure or rig platform is much more weighted to the incorporation of the technology. VSATs for transformation of data is cost-effective hence in this department technology win the comparison. When we look in a broader way, seismic analysis, drilling opportunities, 3-D imaging etc. are the tools and techniques which are reducing cost and effort in order to increase the efficiency and have a better ROI to offer against the traditional outdated models of business.
Industries which embraced technology and about time
Unlike other industries which embraced the technology, O&G has been a little flummoxed to incorporate this change. But there are a few exceptions here. Companies like Accenture and Atos Energy are incorporating digitization into their daily operations. Atos is already running digitally automated oilfield operations.
Digitization in oilfield operations not only helps in reducing human effort and increasing the precision of work through innovative and state-of-the-art technology. It is imperative that we understand that the advantages of integrating the oilfield operations with the digital innovations.
Why this digital reluctance?
The digital space started to grow in the O&G industry in the late 1980s but surprisingly the digital phobia, if it explains the reluctance of the companies to subsume the technology and pave a way towards new heights in the realm of O&G innovations.
The primary reason is that one is not equipped with the technology. The separate uses of a physical infrastructure and the IT sector’s unique handling are the key which can explain the constant refusal of O&G companies to inculcate technology in business. As an O&G subject matter expertise noted that “there’s a gap between the IT and OT but with IoT, the gaps between them can be reduced”.
The gravity of the comment is that there’s a skill gap which can be filled but the firstly it should be accepted, the idea to embrace technology. Remaining aloof is no option also what is more
important is that with the more we use a technology the more we can get familiar with it not otherwise.
Hence it is imperative to understand and respect the need of the hour which is to embrace technology in the industry. Another reason for the same is that many experts believe that the use of technology to the likes of Internet of Everything (IoE) can help improve the profit by 11%.
Hare and Tortoise Race: Should we rest or take the lead?
As we have by now realized that there’s an apprehension to incorporate technology in the O&G industry but the marriage of two can also produce some unprecedented results.
But the point here is that we are well aware of the fact that how marketing has taken a new form in the digital world and also that Social Media has been used as a tool which is giving it a much-needed boost. Then why should a particular industry sideline itself, why should an industry not try and be willing to enter the level playing field and lead from the front. There’s nothing which is missing except the adaptability, the ability to reinvent itself and to thrive for innovative solutions to problems with the use of technology.
In conclusion, it can be said that every industry must reinvent and evolve itself; like every generation does, like a species does and in the same manner, an industry should also evolve itself.