Digitalization and technological innovation are transforming virtually every industry that they come in contact with. The oil and gas industry is not an exception to this rule. With the improvements to technology (both software and hardware), the efficiency of the entire industry is increased. This happens both directly and indirectly in more than one way. All in all, here are several major ways in which technology is changing the oil and gas industry for the better.
1.The overhead costs of the industry
The oil and gas industry requires a lot of precision when it comes to measurements, data harvesting, sensors and internet connections. The thing is that a lot of companies are spending fortunes in order to be ahead in every single one of these fields. However, what if it were possible to pay less and get more (or, at the very least, the same)? With the help of new technology, you can reduce the cost of data processing by a factor of 60, while reducing the cost of sensors by 50 percent. The biggest difference comes in the cost of data which can be improved by a factor of 1,000. All in all, the savings are massive.
2.Equipment vendors and IoT
Machine learning is one of the most reliable ways to improve the manufacturing of equipment. Why? Well, because it makes harvesting data a lot easier, which means that this system is much more effective at discovering flaws. So, why is this so important for vendors? Other than a brief review or formal feedback, vendors often have no idea how their equipment is being used once it has left their possession. While some may not see this as that big of a deal, the truth is that this knowledge can help them improve the design phase of the next generation of products. This can improve the industry as a whole.
3.Global availability of equipment
The age of the internet has introduced so many changes to the oil and gas industry. Namely, the transparency of technological advancements in the field of oil and gas extracting equipment is one of them. It’s easier than ever for an executive of an oil company to find proper oilfield equipment as a replacement for the equipment that malfunctioned. With the use of various tools, they can measure the performance of one set of equipment against another. The online community, review system and the chance to contact other buyers is another major hit.
4.3D printing and sensor technology
Another issue worth discussing is the introduction of sensor technology and 3D printing into the mix. The thing is that 3D printing can be used for various purposes in this industry. First of all, it can create a ton of low-cost models for training purposes. This way, the potential cost of the training process is reduced, while its efficiency increases. Other than this, with the help of some outstanding new materials and precise 3D printing technology, you can replace some of the traditional tools and parts. This is particularly useful in remote areas where the delivery of these parts would be a particularly complex matter.
While on the topic of technology in the industry, it’s important to mention that digital transformation introduces some major upgrades and upsets to the field. For starters, you need to think about performance forecasting, which is really the thing that keeps the entire project together. Accurately predicting the drilling process, as well as being able to predict the maintenance are just some of the things that can easily put one drilling company ahead of its competitors. This kind of enhanced asset security is also something that can attract a lot of investors.
6.Higher safety and security
Previously, we’ve talked about the maintenance of the equipment as a means of protecting company assets, however, it goes further than this. First of all, safety when it comes to equipment also ensures the safety of the crew operating and inspecting it. Other than this, Wi-Fi and location-based technologies can ensure that there’s a response team every time there is an incident. A timely response is often the best way to avert a full-blown disaster.
Other than the aforementioned, it’s important to note that there are some hidden perks of the improvements to the oil and gas industry as well. First of all, more efficient drilling causes less pollution, which may not sound like much but can definitely make a difference. Other than this, greater efficiency benefits the global economy and strengthens the global market. In these uncertain times, this is a major boost indeed.