The Industrial Internet of Things (IIoT) is the future of the oil and gas industry. As the Internet of Things’ (IoT) network of devices, sensors and software brings about change in consumers’ daily lives, this particular industry is lagging behind.
Oil and gas have been facing challenges, largely attributed to the antiquated and inefficient approach that many companies take to maintain assets and collect data.
Below are five different ways IIoT will revolutionize the oil and gas industry:
1. Improved Operational Efficiency
According to Rigzone, the oil and gas industry will be facing losses in the next couple of years as the Baby Boomer-aged workers begin to retire and there are less people with industry expertise to assume the vacant roles. Big data analysis and remote visibility will help companies better manage their assets and use their findings to optimize production. Leveraging the capabilities of IIoT can reduce troubleshooting time from days to minutes, which leaves more time to spend on other operational aspects of the business.
The industry has a major impact on the global GDP: According to Oxford Economics, industry-wide adoption of IIoT could increase the global GDP by as much as 0.8 percent, or $816 billion in the next decade.
With lower oil prices being the new normal, profit margins have tightened and oil and gas companies must take this opportunity to invest in innovative technologies rather than conduct knee-jerk cost cutting. The financial gains of cost reduction and saved time will be invaluable as the industry becomes even more competitive.
3. Real-Time Data
Big data is not new to the oil and gas industry: Data is crucial for the success of this industry, in particular. Efficiency and accuracy is highly valued in the oil and gas industry almost more than any other industry.
Small improvements in efficiency can make a notable economic difference. Profit in the oil and gas industry is dependent on prompt and accurate production data. With IIoT integration, the oil production can be captured in real-time through embedded sensors and the right automation of data communications systems, enables companies to gather information from assets anywhere and make informed decisions.