Path breaking technology in Oil and Gas Industry

Technology is opening up a myriad of opportunities. It is simplifying the processes, increasing efficiency, and profitability across the industries. And, technology in oil and gas industry is changing the ball game altogether. It is taking us far and fast – unlocking the differentiated capabilities which each of the oil and gas companies has.

Let us take a glance at the tools which we have in hand; 5 technologies which are creating an impact on the industry:

1. Blockchain

What is Blockchain?

Blockchain means maintaining a ledger of transactions which are cryptographically secured. It is an append-only ledger i.e. new blocks/details/transactions can be added without editing/deleting/removing the previous ones. Hence, it becomes a series of interconnected blocks.

How it can help the oil and gas industry?

Distributed ledge technology or Blockchain can verify the transactions almost immediately. The oil and gas industry can actually revamp its supply chain by inviting all oil and gas companies spread across the world to embrace new agreements with vendors and/or suppliers to enhance record keeping and manage financial transactions. It can help reduce cost, streamline management and increase efficiency. There shall be no room of elimination or breaching of transactions and data given that transactions are secured.

2. Internet of Things

What is Internet of Things?

Simply put, the everyday objects which we use follow a two-way communication. Each device has Internet and each device is being handled or in control of a user. With the Internet of Things, the idea is to hook up everyday devices on the Internet. What is the use of it? It can help you control the devices via your phone or laptop. Say, you can switch on the coffee maker once you got up from bed or control the lights of your living room while you’re away, in your study or on the terrace.

How it can help the oil and gas industry?

For the oil and gas industry, it can be a major game changer. We all know that the industry incorporated thousands of sensors offshore, each of them collects a lot of data and this data can be communicated across the supply chain to manage the operations better. This can increase the standards of safety and help minimising industry hazards. It has an immense scope in the industry: leak detection, minimising unplanned downtime, optimising flow rates, addressing environmental challenges to name a few.

3. Data Analytics

What is Data Analytics?

Data Analytics means gathering data, clubbing or making clusters, identifying meaningful information from them and then making an informed decision.

How it can help the oil and gas industry?

In a report by McKinsey & Company, it was mentioned that only 1% of the collected data in the oil and gas industry is being used in decision-making. And, it is alarming as data is the ‘new oil’. Searching for oil is not easy. But making sense of the data in hand and then searching for it makes it meaningful and an intelligent approach. Not only that advanced analytics can yield 30-50 times return on investment if fully implemented in the oil and gas industry. Even a slight percentage improvement in the production can lead to an impact. In the same study, it was revealed that more than $200 billion of performance gap can be eliminated. And, the industry can prosper.

4. Machine Learning

What is Machine Learning?

Machine Learning is the process in which a machine is allowed to learn by itself without being explicitly programmed.

How it can help the oil and gas industry?

When a machine is empowered to make a decision, can there be more exciting idea than this one? Data Scientists have revealed that the unplanned pressure spikes – slugging – can be minimised and it can help capture more than 1% gain in production from production wells if Machine Learning is incorporated. Using automation by ML we can address maximum problems at the production level and it can have a huge impact on the upstream sector.

5. Drones

What is Drones?

Drones or Unmanned Aerial Vehicles (UAV) Technology is an aircraft that can be navigated without a human pilot. They can be remotely controlled and is equipped with cameras, can provide relevant data and visuals.

How it can help the oil and gas industry?

Constant monitoring and surveillance are required in the oil and gas industry. And, data place a quintessential role in this process. Drones can effectively reduce surveillance cost and by collecting meaningful information of the site of exploration or determining the valuable insights about the oilfield, for example, can play a detrimental role in the industry.

Progression is never linear, we are bound to face problems and hit the floor flat on our faces sometimes. And, the reducing oil prices, 2014’s oil slump and the natural calamities have already hit the industry hard. And embracing technology is the only viable solution that can help us survive and progress, as an industry, at a fraction of cost.

We are in it together. Let us know of your thoughts!