IoT in oil and gas: use cases, technologies and challenges

Leveraging IoT technologies to improve efficiency of an operation, address any challenges and increase profitability is happening in numerous industries, and the oil and gas sector is no exception. What IoT in oil and gas looks like is another question. 

According to a report put out by Berg Insight earlier this year and reported on by IoT Insider, the oil and gas industries are witnessing a surge in the adoption of IoT devices. Key findings of the report show that the installed base of wireless devices including cellular, satellite and LPWA connectivity are projected to increase from 7.8 million units in 2023 to 18.8 million by 2028, and the growth in cellular device shipments is being driven by growing adoption of LTE-M and Nb-Iot technologies.

The report also showed that increasingly, oil and gas companies are relying on IIoT device data for their decision-making and as a result, need greater data volumes which can be facilitated through Edge processing capabilities.

Another report put out by GlobalData on the deployment of digital twin technology in oil and gas showed that the companies operating in these industries are looking to optimise asset performance and reduce unplanned outage; to make the operations safer while improving profitability and loweringthe carbon footprint.

Examples of IoT technologies being deployed to offer these capabilities include sensors and digital twin technology. Sensors are being applied to monitor, collect and analyse data on the environments in which oil and gas industries operate; predictive maintenance; pipeline monitoring and leak detection as well as wearables for safety and optimising logistics through tracking assets.

Digital twin technology, meanwhile, as outlined by Ravindra Puranik, Oil and Gas Analyst at GlobalData is offering, “profound insights about operational assets. They can enable oil and gas companies to streamline processes, pre-empt breakdowns, bolster safety measures, and thus, enhance overall profitability. With their ability to provide a comprehensive view of operations, digital twins assist in formulating more informed and precise decisions, rendering them indispensable tools in oil and gas operations. The eventual goal is to achieve autonomous operations at production units to boost safety and productivity.”

Use cases

Use cases for IoT technologies in the oil and gas industries demonstrate how traditional methods of monitoring, maintenance and assessment done by workers can now be replaced by utilising IoT technologies. Sensors can be applied to collect data on potential oil and gas reserves as well as during operation, by equipping drilling rigs with sensors to collect information on parameters, costs and the environmental impact.

Predictive maintenance purposes also see sensors deployed in the field to continuously monitor the health and performance of equipment such as pumps, compressors and drilling rigs. This kind of data-driven approach facilitates predicting failures or issues before they occur and deploying maintenance to reduce potentially expensive downtime. 

Because of the nature of the oil and gas industry, oil is extracted in remote, and sometimes challenging, environments. Sensors are also applied to monitor parameters such as pressure, temperature and flow rates, to ensure operations continue to run smoothly. 

Another application, asset tracking, is growing as a market. IoT-enabled tracking solutions like GPS trackers, QR codes and RFID tags can be attached to assets like pipelines, tanks and vehicles, to provide real-time location data and prevent theft or loss. RFID tags have proven especially popular as each tag is assigned a unique ID, they’re capable of withstanding harsh environments and require scanners to record data attached to them. 

Implementation challenges

The challenges related to implementing IoT devices, however, cannot be ignored in spite of the advantages they bring. Like any industry turning to deployment of IoT devices, the volume of data generated by these devices offers a tempting surface area for attacks by cyber criminals. The oil and gas industries are key sectors and may be regarded as an opportunity to disrupt operations or steal sensitive data.

The oil and gas industries continue to operate using legacy systems, meaning integrating newer technology can prove challenging and require significant investment. Additionally, the lack of standardised communication protocols can affect the chance of interoperability.

Finally, the initially high costs of implementation such as the price for sensors, communication infrastructure and data platforms, can put companies off deployment. All of these challenges need to be addressed appropriately in order to encourage widespread adoption of IoT in oil and gas.

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