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The impact of global technological advancements in the oil and gas industry

As a member of the oil and gas industry, you've probably heard of the many advancements being made in the industry. Truth be told, the industry has seen huge changes thanks to today’s digital innovations. Unlike other industries that have opened up, the sector has been lagging behind for several years now.

ContentsUnderstanding the Oil and Gas Supply ChainChallenges in the Oil and Gas IndustryTechnology AdvancementsAutomationScalable LogisticsFleet Management TechnologyIoT (Internet of Things)Communication SolutionsCloud Computing SolutionsConclusion

The potential brought by the information revolution has been duly noted and, in some industries, actualized. This potential fuels the oil and gas sector, tackling issues such as environmental pollution and global warming. Any oil and energy company in the sector that effectively leverages the power of the digital revolution will gain a major competitive advantage over its competitors, and you are no exception to this. You can also check digitaloilgas. solutions.

This article details the challenges and technological advances in the oil and gas sector while defining how these elements have contributed to the digitization of the industry. Enjoy!

Understanding the oil and gas supply chain

Crude oil undergoes a long process when it is transformed into various products that it willingly represents. The oil and gas supply chain is divided into five parts;

  • Exploration; this is where a team of professionals set out to drill in search of the most lucrative place to extract oil.
  • Production; once the location has been found and the well drilled, the next logical step is to extract the oil from the other.
  • Refining; Consumable energy materials are refined from crude oil.
  • Marketing; The products are then advertised for sale. If successful
  • Sale of Products; On the successful ad, the product is then sold to the consumer.

Challenges in the oil and gas sector

Due to the unique nature of the oil and gas industry, the challenges in operating such a business are vast and unique, as we are sure you will can testify to that. In fact, it would be an understatement to conclude that the oil and gas industry is unlike any other. A multitude of unique issues and concerns emerge, including:

  • Large infrastructure capacity :The infrastructure required at each stage of the supply chain is enormous. Every piece of infrastructure, from drilling equipment to pipelines, distribution networks, compressor and meter stations, and storage facilities, is huge in cost and scale.
  • Access to remote areas :Currently, every part of the globe is examined for potential energy production. Underwater, in the arctic or other harsh environments, suitable places can be used very well.
  • Security Issues and Compliance Challenges :Oil and gas companies, operating in one of the most regulated industries on the planet, must be more concerned about safety and enforcement issues than the average company. There would be consequences from authorities and consumers if an accident occurs and proper procedures and protocols are not followed.

Technological progress

The impact of global technological advancements in the oil and gas industry

Automation

Robotics and other digital systems have advanced to the point that they can perform high-risk tasks like pipeline pigging more efficiently than humans. Automated drilling, for example, would reduce overhead, improve employee safety and make drilling on smaller sites economically viable.

The automated factory also plays an important role in safety and compliance concerns. To maintain production efficiency, you only need to purchase and install pressure vessels, heaters, storage tanks, trunnion ball valve pumps, compressors, among other equipment for your automated refinery. After that, the automated system will do the least safe job for you.

Scalable logistics

There are inefficiencies in every aspect of the supply chain that can be fixed. A company has created a rig that uses an automated injection system to prevent the formation of hydrates, making extraction more efficient. Other research indicates that the use of metal-organic structures in oil and gas transportation could fundamentally change the industry by removing the need to evacuate hazardous materials during travel.

Fleet Management Technology

It has never been easier to monitor employees and equipment. Important data can now be captured and viewed almost instantly, even in the most remote areas, thanks to GPS monitoring. An organization will always know where all their expensive equipment is and will be notified if something is missing.

IoT (Internet of Things)

Machines that are always connected have the most recent information. This will help oil and gas companies predict equipment failures and minimize downtime.

Since a single pump failure can cost a company hundreds of thousands of dollars, knowing the status of pumps in real time allows replacements to be prepared for those that are considered vulnerable to failure. Real-time data like this would help the management team make smarter, more informed decisions.

Communication solutions

For both onshore and offshore teams, effective communication plays a key role in a company's productivity. With the introduction of online communication platforms for video conferencing, work and equipment tracking, audio communication, etc., productivity has increased. This made it possible to keep only the necessary employees in one place.

Cloud Computing Solutions

The capability of the internet cloud has been touted for years for data-driven businesses, but the oil and gas industry has only just caught up. Here are some of the potential benefits of cloud computing in industry:

  • Real-time data analysis.
  • Improved marketing and advertising effectiveness
  • Cloud computing offers opportunities for the preservation of the environment. This is reflected in the energy efficiency of cloud computing networks.

Conclusion

It's no wonder the technology has become more mainstream over the past decade. According to the World Economic Forum, a digital revolution in the oil and gas sector could unlock $1.6 trillion in value for the industry and its customers. So whether you're a long-time player in the oil and gas industry or just starting out, the technology guarantees improved efficiency at scale.