Internet of Things (IoT) and Asset Monitoring in the Oil and Gas Industry
Updated: Jun 4, 2022
The need for oil
Electric vehicles account for less than one percent of all vehicles on the road today. We expect the number to increase; however, the vast majority of vehicles will continue to run on petroleum products. As the need for oil rises, so will the risks associated with drilling deeper and farther. The difficulties in operating the machine, as well as environmental and health regulations, will make drilling more challenging.
IoT in the Oil and gas industry
The Internet of Things (IoT) reshapes the oil and gas industry. IoT helps businesses run more efficiently. IoT is a network of connected physical objects, wearable gadgets, vehicles, equipment, and buildings that have electronics, software, sensors, and network connectivity built-in to them. The oil and gas industry uses the internet of things to improve productivity, safety, economy, and overall efficiency.
Oil and gas companies are among the leading adopters of IoT across all industries. IoT works on low-power wide-area network (LPWAN) connectivity. IoT helps us monitor a range of applications, including fluid management, on-site asset tracking, geofencing, asset monitoring, etc. Using IoT sensors, we can track and manage assets such as equipment in wells, pumps, compressors, tank batteries, pipelines, storage facilities, vehicles, offshore installations, rigs, etc.
Importance of Using IoT in the O&G Industry
Most oil is found in far-flung places. The extraction sites include massive machinery that requires continual monitoring and maintenance inspections. IoT technology allows us to track machines from afar, reduces the cost of equipment maintenance, and assures that resources are available at all times to deal with problems.
The Internet of Things (IoT) is transforming the oil and gas industry by connecting assets and enabling smart management. The petroleum industry is being influenced more by the growing use of mobile devices and computer systems. Management can have a better understanding of the plant's operation and production, thanks to connected smart devices. With a single click on their IoT dashboards, management can have all the information to make better business decisions.
What is Asset Monitoring and How does IoT help asset monitoring in oil and gas?
We can't imagine a world without petroleum. Petroleum is, however, drilled out from the most hostile situations. Companies have deployed enormous assets in remote locations to dig out oil. One of the most important jobs in the oil and gas industry is to improve operational efficiency through managing assets. The machinery must be maintained and checked regularly because of heavy industrial use. In the oil and gas business, several types of assets must be managed and contributed to make it a profitable business process such as pumping equipment, heat exchangers, tanks and containers, air coolers, evaporators, etc.
IoT helps management to make intelligent decisions about oil and gas equipment maintenance and health. It lowers overall maintenance costs by using advanced analytics and predicting maintenance problems.
In the oil and gas industry, how does Asset Management work?
Asset management relies primarily on asset tracking and monitoring. Asset tracking and monitoring are critical in the oil and gas industry so that maintenance can be planned on time and we can enhance equipment availability without causing substantial production loss.
IoT, with its predictability and automation capabilities, makes asset management much easier. With the support of IoT technologies and asset management programs, we can secure assets while enhancing production. Simple installation, easier maintenance via a single dashboard, and strong algorithms for maintenance prediction are key advantages of IoT. IoT extends the life of equipment, improves operational agility, lowers maintenance costs, and predicts outcomes. IoT helps automate asset management, which helps schedule the downtime of assets and makes things more predictable.
Benefits of Asset Management in the oil and gas industry
The major advantage of asset management to the oil and gas industry is that it emphasizes increasing the efficiency of every process and operation. IoT devices, such as sensors and actuators, are used to track and track the performance of every asset. They also predict the future working capability of main assets under standard conditions to make the required modifications to prevent any kind of damage.
Real-time Asset Status: The crucial information displayed on the IoT dashboard provides real-time asset status. It helps with efficient business production strategy, which leads to greater possibilities and growth.
Geofencing: Geofencing is a technology that allows you to establish a digital boundary in a certain area, and provides information about the asset that is within a specific boundary. An IoT-powered asset monitoring solution keeps a close eye on company assets in any region, such as trucks and ships, and provides vital info about their readiness and capacity. Wearables and biometrics can find employees in case of emergency, and to further protect them by broadcasting and alerting them about potential dangers.
Data-based Predictive Assessment: The IoT-enabled asset monitoring solution offers clever algorithms that warn us of asset conditions. As a result, it's easier to foresee changes in existing quality or machine downtime and take appropriate action.
Security: An IoT-powered asset monitoring solution provides real-time alerts and enhanced features that not only protect assets but also save lives in the Oil and Gas industry. Besides delivering real-time data from the assets to the cloud, the sensors also transmit quick alerts when there is an emergency, such as a leak in a pipeline.
Remote Operability: Maintaining a good active state of assets in the oil and gas industry is an enormous challenge because oil and gas equipment is mostly located in remote places, making manual operation difficult and dangerous. However, with the help of IoT technology, you can manage the O&G sector from afar. You can monitor the assets' real-time performance from a distance by adding sensors and networking devices. You may examine the performance of each asset separately using IoT and configure it according to your needs.
A large inventory of equipment is inherent in the oil and gas industry. We can use the IoT and data analytics tools to increase profits and reduce environmental impact during the refining process. By anticipating problems, we can avoid causing harm to not only your equipment but also your entire refinery. Using IoT, we can have better operational visibility and automate processes. A real-time view of drilling processes is possible with IoT technology, reducing downtime and improving asset performance. The technology checks pipes for corrosion, pressure cycles, and other problems. Using workwear, GPS, and geofencing, workers can be tracked and alerted if an incident occurs.