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Internet of Things in Oil and Gas Industry: What’s the Need?

The Oil and gas price seems to be on a roller coaster ride, with no motive to decline at any point. Don’t you feel the same whenever you hear about the price hike?Oil and Gas Industry 1

While there are many factors behind this price escalation, the prime reason is growing imbalance between the resources availability and demand. The oil and gas firms are finding it tough to envisage their business plans, enhance their operational efficiency, maintain the existing infrastructure, and ultimately make the two ends meet. On the top of it, the nature exploitation and industrial accidents have made the situation even worse. So, what’s the solution? Is there any end to this price hike?

For a diverse industry like Oil and Gas, there’s no exaggeration to saying that there is no one-size-fits-all solution. But one technology that is bringing fruitful outcomes in this arena is IoT.

Internet of Things (IoT) – the technology that we often know because of the idea of Self-driving cars, Smart Home and Smart cities – is said to be revolutionizing the O&G sector. The technology is helping the industry in multiple ways, some of which are:

Faster Processing

IoT is empowering the Oil and Gas firms to automate their processes. With the help of the technology, it is easier for them to handle the processing of thousands of wells across a region and keep an eye on multiple pieces of equipment at the same time, making it possible for them to optimize their processing for higher productivity.

Easy Repair and Maintenance

Keeping the right pace of processing and mitigating the risk of spills, emergency shutdowns and regulatory issues in the remote areas remained a challenge for the Oil and Gas industry. It was quite difficult for them to monitor each and every machine/tool involved and repair them on time. But with IoT technology, it is quite easier now. The technology helps the firms to predict the upcoming challenges and situations, and work upon the maintenance process. This way, it overcomes the industrial accidents and other hazardous situations.

Higher Safety and Accuracy

When talking about Oil and Gas industry, the team has to deal with explosive liquids and gases. A minor mistake or delay in the process can result in a hazardous situation, or in loss of money and time. To overcome this situation, the IoT technology is used. It empowers the team members to interact with the machines via mobile apps and take the required step at the right time. It helps them gain accurate knowledge at every point and employ the data for optimizing the tank replacement and refilling scenario so as to avoid shortages, prevent accidents as well as loss of oil/other products produced.

Better Communication

With the Internet of Things, the oil and gas firms are able to communicate with each other and machines, collect real-time data and thus, make better decisions. At a broader scale, the IoT and IoT app development technology helps the machines and team member to access the data and information in real-time.

Asset Optimization

The unawareness of the working status of a particular machine/tool often results in process delay or higher investment. However, IoT is here to help. With a mere click, it let the team members know about the availability of any machine/instrument and take the further decision, which eventually makes the process less expensive for the industry.

Profitable Marketing

With Big data, the Internet of Things enable the oil and gas companies to collect real-time market data and make a successful marketing strategy. It opened the new doors to connect the end users, understand their requirements and advertise their brand in a better manner. Besides, the technology has leveraged the industry with an advantage to make changes and implement them in real-time, which reduced the loss of time, efforts, money, and resources.

Real-Time Tracking

Not only in the manufacturing process, the Internet of Things is also helping the O&G firms in tracking their products in the journey to reach the end users. Through sensors and IoT web and mobile apps, the technology lets the company determine where and how the oil and gas reach to the customer, what are their feedback and how can they enhance their experience along with dealing with frauds.

With the implementation of data-based predictive analytics, the IoT technology is empowering the Oil and Gas companies to make better business plans, optimize their processes, provide safety to their workers, eliminate the fraud risk, exchange the information in real-time, and maintain a transparency in the process, which eventually is helping it to grow. More and more companies are embracing the technology, and this can be signified by Bis Research’s new report according to which the IoT in Oil and Gas market is expected to cross $30.57 billion by 2026.

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