Author: Jennifer Goforth Gregory
Date published: August 22, 2024
The oil and gas industry often operates in remote locations, making the task of obtaining and communicating accurate and up-to-date data a challenge. Internet of Things (IoT) technology offers a solution. Using IoT in oil and gas operations allows firms to deliver data in near real-time, so they can make decisions that help keep workers safe and lower operational costs.
IoT in oil and gas connects a wide variety of devices, equipment and locations. Sensors collect data continuously and in near real-time, which provides a large volume of data on a variety of metrics, enabling better decision-making, according to Deloitte. The data gives engineers a fuller picture of what is happening at that exact moment throughout the organization. And data analytics makes it possible to set up notifications to alert engineers if the data collected indicates a potential problem. For example, if a temperature exceeds the accepted threshold, the engineer is notified so they can proactively intervene before an issue occurs.
Oil and gas companies can see significant safety and operational benefits from using artificial intelligence (AI) to monitor operations via IoT devices. The types and volume of data now available make it easier to predict potential safety issues and proactively prevent problems. For example, IoT-enabled cameras or GPS devices can identify hazard locations, and IoT sensors can help keep employees safe as they no longer have to manually collect data or check gauges, reducing their exposure to unsafe situations.
Oil and gas companies can also improve operational efficiency and lower costs. For example, proper oil reservoir characterization can increase energy extraction by 20 to 25%, while preventative maintenance helps minimize costly downtime and extend the life of assets.
Because IoT devices and applications require management, many oil and gas companies turn to application management tools to improve efficiency. With an application management tool, you can access all the tools needed to build and manage IoT solutions. For example, ThingSpace, Verizon’s IoT platform, can be integrated into IoT solutions to provide near real-time visibility into equipment health or environmental conditions.
Here are four ways to use IoT in oil and gas to improve operations:
Your company's success depends on selecting profitable and operational drilling sites. Because drilling is costly and time-consuming, you want to select the best possible drilling site the first time to get the highest volume of oil. Traditional maps use historical data that may be out of date, whereas seismic sensors provide the most up-to-date and near real-time data.
IoT seismic sensors, which sense vibrations deep within the earth, can collect a high volume of data that you can use to create surface maps to aid the decision-making process. With predictive analytics, engineers can compare multiple potential site-based conditions and predicted outputs.
Your company depends on pipelines to continuously and reliably transport fuel from one location to another. However, it is impossible to physically monitor all aspects of the pipeline, such as flow, output and structural damage. Monitoring is especially challenging because areas of the pipeline are often inaccessible, such as being underwater or in remote locations.
By using IoT oil and gas sensors on the pipeline and pipeline assets, oil and gas companies can get near real-time data of what is happening in the pipeline. For example, if the flow levels are low, the engineer can proactively make adjustments. Additionally, if a fixed detector alerts the engineer to a possible structural issue, the team can send a drone to the area for additional monitoring and even repair the issue at that time to help reduce future impact.
In the oil and gas industry, design decisions have long-term and high-value impacts. Digital twins developed with IoT oil and gas sensors allow you to create a digital version of an asset or process, so you can test different scenarios before committing expensive resources. For example, digital twins can be used to compare different power plant optimization scenarios to determine which option is more efficient, then apply those learnings to the physical system. The IoT sensors collect data from connected devices, giving you near real-time data to make accurate decisions. By seeing the results of the different models using the IoT data, you can see how the different options will work in action and determine the best design or decision based on the results.
A dashboard based on the digital twin can provide near real-time updates. By combining digital twins with predictive analytics, you can determine what is likely to happen in the future based on different scenarios. For example, by modeling drilling and extractions, you can test the feasibility of equipment designs before implementation. This technology can help anticipate failures, which allows you to proactively fix issues, saving costs and downtime.
By using IoT for fleet management, you know the location of each tanker truck and piece of equipment in near real-time. In the Verizon 2024 Fleet Technology Trends Report, 70% of organizations found GPS tracking software to be extremely or very beneficial. GPS-enabled solutions allow you to monitor routes, downtime and idling to make sure drivers are using their time and fuel as efficiently as possible. Real-time AI dashcam alerts can help fleet managers to monitor and track unsafe driving practices such as tiredness, distraction, smoking, phone calls, tailgating and pedestrians ahead. Predictive maintenance actions can help minimize downtime and expensive breakdowns. Additionally, IoT oil and gas sensors can help enable geofencing, which allows you to ensure vehicles stay within a certain area or on a specific route.
The use of IoT in oil and gas operations relies on reliable and fast connectivity, which may be a challenge in the remote locations where many firms operate. Without the ability to transmit data from the sensors to the data platform, you cannot fully integrate IoT into your processes.
While IoT has been used for years in various industries, the availability of private 5G networks now makes it a reality for oil and gas. Public 5G access may be unavailable in some areas with oil and gas activity, but by turning to private wireless networks over 5G, you have the connectivity and bandwidth needed to support IoT oil and gas solutions. Because you can bring 5G to a wide range of locations, you have the connectivity when and where you need it to collect data. The low latency also provides the reliability needed to depend on data analytics for critical infrastructure and decisions.
By turning to IoT, you can transform the way you manage energy production and distribution. Learn more about how Verizon can help improve performance, productivity and more at remote sites.
The author of this content is a paid contributor for Verizon.