IoT stands for Internet of Things. It refers to the network of devices, and other objects being embedded with sensors, software, and the Internet, allowing them to collect and exchange data.
The growing use of IoT has great benefits and is welcomed in the Oil and Gas industry. It is reported that IoT was valued at $16.19 billion in 2019, and is expected to reach $43.48 billion by 2024 in this field. Here are some uses of the IoT in the Oil and Gas industry: 1) Maintenance of Equipment using Sensors:
Sensors can be attached to oil and gas industry equipment to monitor its performance and identify potential problems before they occur. This can help to reduce downtime and improve maintenance schedules.
According to the McKinsey report, an offshore oil and gas company used advanced sensors to reduce downtime by 20%, leading to a production increase of more than 500,000 oil barrels annually.
2) Tracking and Managing assets:
The oil and gas business is all about huge equipment and industrial assets. With IoT, different sensors can save millions of dollars from loss and wastage.
A few examples of Asset tracking and managing systems include - Fleet Monitoring Solution, Leak Detection Using AI/ML Solution, and Oil well/Tanker Monitoring Solution.
3) Environmental monitoring:
With Environmental welfare awareness growing increasingly in the Oil and Gas industry, it is important to leverage IoT’s use for this cause.
Sensors can be used to monitor environmental conditions such as air quality, water levels, and soil conditions, allowing companies to minimize their environmental impact.
One use case of this is - IoT sensors which can monitor real-time weather conditions and activate heating and cooling systems based on that data, creating more efficient use of resources in direct operations, which, in turn, boosts sustainability.
4) Employee Health and safety:
Employees in this industry sometimes get to work in hazardous conditions and are constantly in danger of injuring themselves.
According to the Centers for Disease Control (CDC), between January 2015 and January 2017, Oil and Gas workers were involved in 602 incidents, 481 hospitalizations, and 166 amputations. This can be easily prevented by the use of IoT
A few examples would be - Remote sensors or drones which are reducing the need for workers to physically monitor equipment and autonomous robotic drilling that replaces humans from the drill floor etc to name a few.
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5) Supply chain optimization:
Every business needs to make critical choices about operations, inventory management, and manufacturing. The Oil and Gas industry like any other Industry spends millions on Supply chain management.
IoT makes it possible to monitor areas that are difficult to monitor due to hazardous locations and hazardous conditions without any human intervention.
According to McKinsey & Company, If transparent tracking and proactive management of material and equipment are in place, material costs will reduce by 10%
Overall, the use of IoT in the oil and gas industry has the potential to improve operational efficiency, reduce costs, and increase safety and sustainability.
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