How The Internet Of Things Is Changing Oil & Gas Right Now
In some asset-intensive industries, a quiet revolution is currently being conducted,
mainly due to the advent of the Internet of Things (IoT). The modern oil and gas
industry is one of the largest beneficiaries of all the asset-intensive sectors in the
The Internet of Things has become an essential tool for innovative businesses and
critical sectors, such as power, oil, and gas production, in recent years. This allows
companies to develop innovative solutions while enhancing the experiences of
By adopting IoT applications, the upstream oil and gas could benefit significantly
from IoT. Such activities were responsible for the discovery of deposits, the
drilling of wells, and the recovery of geological raw materials. However, this
essential sector also involves related services such as feasibility studies, rig
operations, chemical supply extraction, and renting of machinery.
With IoT, the upstream exploration and production companies would be able to
improve safety and amplify productivity simultaneously as well as extracting
resources from more complex and challenging environments. Deep drilling is one
of the oil and gas sectors that need improved technology for the discovery of oil
and gas. It is worth mentioning that deep rigs are used to drill hard-to-reach
resources. Hence, the deeper a rig goes, the more dangerous it can become.
This is the reason plant managers must be accurate with their measurements during
the drilling process.
Radio Frequency Identification (RFID) and IoT can help reduce both risk and non-
productive time while executing complicated operations with conventional tools.
For example, after comparing reliable real-time downhole drilling data with
information from nearby well output, companies can easily adjust their drilling and
According to Bain & Company, such high transparency and reliability will help oil
and gas companies boost production by 6% to 8%. Never the less, since gradually
moving to cloud data generation enables the number of possible transactions to be
carried out throughout the supply chain to be expanded, most companies need a
well-designed IoT platform to help them turn vast quantities of data into relevant
and useful information.
In this regard, the great benefit of the pump-off controllers of the oil and gas
companies today, which can talk out of outdated protocols to take part in IoT and
to benefit entirely from contemporary web service.
Digitalization of drilling, testing, distribution, and production systems helps IoT to
expands both the control and the remote implementation of different functions that
can reduce oil and gas operational costs.
The automation of certain high-cost features like drilling is much closer to
optimum defined conditions. Thanks to the virtually zero unforeseen downtimes
together with running oilfield equipment.
Many IoT cases that generate the most value now for many petroleum and gas
companies focus on reducing non-productive time (NPT). The NPT has a
significant impact on revenue, accounting for about 10 to 20 percent of drilling