Empowering the Gas and Oil Industry Using the Internet of Things (IoT)
The Internet of Things (IoT) has constantly transformed several industries over the last few decades. Whether retail, logistics, education, or transformation, IoT solutions have benefited almost every vital market sector. Currently, IoT is helping transform the gas and oil industry in several ways.
As per the BIS Research, the global IoT in the gas and oil market was valued at $ 13.35 billion in 2019. However, the global market of IoT in gas and oil industry is expected to grow and reach better heights by 2024, with a CAGR of
21.86%.
Let’s understand the use of IoT and the gas and oil industry challenges that can be solved using IoT technology.
What is the Internet of Things (IoT)?
The Internet of Things (IoT) refers to networks of the objects connected using software, sensors, and various other technologies to gather and pass the information to different devices using the internet. These IoT-based devices range from daily household things to industrial tools. Similarly, the adoption and the use of IoT in the oil and gas industry are increasing day by day.
Use of Internet of Things (IoT) in the Oil and Gas Industry
Following are some common usages of IoT technology in the oil and gas industry.
- Remote monitoring
Oil and gas production often occurs in locations where the network is poor, and communication is difficult. Thus, it is challenging for the experts to properly read the pressure, temperature, and other machinery-related factors.
However, with the use of IoT technology, such issues can be solved easily. The oil and gas industry is investing its money to get the IoT technology to get accurate updates of machinery and pipelines deep inside the water.
The IoT sensors help provide accurate information about the deviations and malfunctions with the pipeline or other machinery.
- Gas and oil cargo shipping
Gas and oil cargo shipping is also one of the zones where the role of IoT technology is highly beneficial. Most of the time, cargo shipping faces many connectivity issues because of the poor network. Due to this, the ship faces several challenges while reaching specific locations and failing to detect the discrepancies or faults in the path.
Nonetheless, with IoT technology, problems like these are also solved and free of errors. Smart IoT-based connectivity devices provide accurate data related to pressure, temperature, and other conditions that can lead to mishaps or major accidents.
With the help of IoT solutions, gas and oil companies can reduce the chances of risks and save their precious assets from unforeseen accidents.
- Refinery monitoring
Setting up the proper refinery in sites producing oils is the most challenging task for gas and oil companies. Several measures must be taken by companies that need time, huge costs, and resources. While in this entire process, a small error by the human can result in huge losses. However, with the help of IoT technology, this can be done more safely.
IoT in the gas and oil industry can provide information related to pressure, temperature, volume, and other such factors. It can also help control the flow rates and other machine-related things using smart sensors. This will make the refinery run at much more capacity with less involvement of human interference.
- Effective management of supply chain
Having efficient and precise inventory planning is a crucial need for every industry. However, due to the dynamic nature of the gas and oil industry, it becomes challenging to make planning in advance. Nevertheless, the adoption of IoT solutions can resolve this issue.
IoT-based applications use smart devices and sensors in the best possible manner to predict the status of the inventory level in advance. It can help companies get information about the type of oil stored or the type of oil coming for storing. With the collected data, one can easily calculate the expenses and stream the supply chain more effectively.
Challenges in Gas and Oil Industry
The gas and oil industry is divided into three categories, namely, upstream, midstream, and downstream. Each of these streams has got different tasks to perform. Following are the challenges each stream faces and solutions IoT technology can provide.
- Upstream
The common problem that occurs upstream is the maintenance of costly and complicated equipment. The deep surface of the water for the search of gas and oil is explored using advanced and heavy technologies, which require huge maintenance.
Implementing IoT technology can help the upstream gas and oil industry to inspect remotely by preventing malfunctions, providing accurate rack schedules, and passing warnings in unseen situations.
- Midstream
In the beginning stage, the gas and oil industry did the physical inspection to scan the complexities and problems. However, with the adoption of IoT, the gas and oil industry can quickly check the problems causing malfunctions in the system. Moreover, IoT technology is helping to transport products most safely and more efficiently.
- Downstream
The most challenging tasks faced by gas and oil companies are cooling water, cleaning harmful wastes, and recovering oil solvents. With IoT downstream, companies are using the energy in a better and more effective manner while having better control over the entire process of operations.
Future of IoT Technology in Gas and Oil Industry
Currently, the gas and oil industry has been witnessing substantial digital transformation over the last few years. With the adoption of IoT sensors, the oil and gas industry is moving toward a better future and opening doors for more opportunities. The information being generated using IoT sensors provides help for the business in cutting their operations costs and helping in the growth of the business and brand name.
Conclusion
The Internet of Things is helping the oil and gas industry in better monitoring, generating more revenues, and improving resources management, among others. With the adoption of IoT, the gas and oil industry is expected to improve and grow more in the coming years.
