Transforming operations with IoT: A look at the impact of connected technology in the oil and gas industry (2023)

FAQs

How does IoT affect the oil and gas industry? ›

The Internet of Things (IoT) is used in the oil and gas industry to collect, transfer, and analyze raw data in real time to get a clear picture of processes at the facilities, improve operational efficiency, reduce energy consumption, and drive profitability.

The global iot in oil and gas market is expected to grow from USD 11.34 billion in 2022 to USD 22.24 billion by 2029 at a CAGR of 10.1% during the forecast period.

The Oil & Gas industry is increasingly using AI and data science for complex problems in the upstream, midstream, downstream and upstream operations. AI-enabled platforms enable decision-making using insights from cognitive, predictive, and prescriptive analytics.

Advancements, such as multi-well pad drilling, multiple fracture stages, and improved well and pipe design, have already boosted drilling efficiencies significantly. Producers also are using fewer rigs to extract more oil and gas in less time, which keeps costs down.

IoT's Impact on Manufacturing

IoT is one of the driving forces behind the Industry 4.0 movement, as it will enable enhanced automation, data collection, and analytics, in addition to optimizing workflows and processes.

Healthcare

The Healthcare sector has started making optimum use of IoT technologies. IoT technology in Healthcare is represented by tracking systems and real-time health systems and is responsible for improving patient treatment, diagnosis, medical and diagnostic equipment maintenance, and remote surgeries.

Internet of Things (IoT) Oil & Gas Market expected to reach up to USD 55.48 billion in 2029 from 10.59 billion in 2021 at CAGR of around 23 Percent during the forecasted period.

The biggest benefit of IIoT is that it gives manufacturers the ability to automate, and therefore optimize their operating efficiency. Robotics and automated machinery can work more efficiently and accurately, boosting productivity and helping manufacturers streamline their functions.

One study found that IoT implementation at scale helped contribute to improved levels of engagement from employees, leading to: Improved productivity. Improved job satisfaction. Improved performance and better serviced customers.

What is considered the biggest benefit or possibility of IoT? ›

Lower operating costs

They can be integrated into larger systems to optimize operational efficiency and help reduce costs. For example, smart building systems can track, monitor and control HVAC systems to monitor building usage and adjust them to take advantage of lower time-of-use costs, which saves money.

IoT in manufacturing has proven to boost efficiency by supporting inventory management, asset maintenance, workforce management, and field service. As IoT provides better visibility into a business's supply chain, manufacturers can monitor locations, product conditions in transit, and transit schedules.

Advantages include improved connectivity, safety and reliability. Oil and gas companies operate in a resource-intensive, competitive, yet strictly regulated environment, creating challenges around asset management, operations, supply chains and maintenance.

HDS technology is set to become the new global standard for pipeline monitoring. HDS uses specialized fiber optics (not to be confused with telecom fiber optics) fully distributed along the pipeline to sense every centimeter so operators can know exactly where a leak occurred or where there's potential for a leak.

Ransomware is the most significant and most prolific ongoing threat to ONG companies for the ONG industrial sector. According to Dragos data, between 2018 and 2021 the number of ransomware attacks on industrial control systems (ICS) increased over 500 percent, with five percent of attacks impacting oil & gas entities.

The digital transformation in upstream oil and gas

Industries are embracing technology to reshape their operating landscape and reap the benefits of improved productivity, higher efficiency, and increased cost savings.

There is a need for oil and gas companies to invest in emerging technologies to reduce risks, increase productivity and reduce costs. Some of these include robotics, IoT, drones, data analytics, artificial intelligence and other hardware and software tools.

Oil toxicity: Oil consists of many different toxic compounds. These toxic compounds can cause severe health problems like heart damage, stunted growth, immune system effects, and even death. Our understanding of oil toxicity has expanded by studying the effects of the 2010 Deepwater Horizon oil spill.

Use of IoT is also exploding in the consumer sector. Dishwashers, refrigerators, smart TVs, smart watches, cars and trucks, heating and cooling systems, fitness machines and trackers are examples of IoT-enabled products with which you may have personal experience!

Examples of how we use Internet of Things in our everyday lives include: Smart appliances (stoves, refrigerators, washers and dryers, coffee machines, slow cookers) Smart security systems, smart locks, and smart doorbells. Smart home hubs (that control lighting, home heating and cooling, etc.)

How IoT is changing industry? ›

The IoT offers manufacturers a new level of visibility, insights and control. This technology has the potential to revolutionize the manufacturing industry by optimizing production processes, reducing downtime, improving workplace safety and enabling predictive maintenance.

Tampering with IoT devices: One of the most common ways to exploit IoT devices is to tamper with their firmware, which can result in data being lost or corrupted.

The IoT market will be getting it $2.5 trillion in 2022, as the experts expect. So, the Experts predict a $15 trillion global business impact by 2025 with 120 billion networked gadgets. Regulators can promote IoT adoption by safeguarding customer and network security.

The US has the biggest natural gas pipeline infrastructure in the world, covering a distance of 333,000 km. The outlook of pipelines under construction and pre-construction is also bright as China is working on increasing its natural pipeline coverage by nearly 30,000 km.

The United States and China are the top largest consumers of oil in the world, totaling 18.7 million and 15.4 million barrels per day, respectively.

Organizations are leveraging the benefits of IoT (Internet of Things) in many different ways today — such as improving efficiency and safety, monitoring remote and hard-to-access equipment, automating processes, reducing the environmental impact of operations, ensuring equipment and goods maintain regulatory compliance ...

The pros of IoT include easy access, smart cities, increased productivity, ease of communication, and money-saving. The cons of IoT include complexity, compatibility, privacy concerns, lesser employment, and technology addiction.

Save time: As it reduces the human effort then it definitely saves out time. Time is the primary factor which can save through IoT platform. Enhance Data Collection: Improve security: Now, if we have a system that all these things are interconnected then we can make the system more secure and efficient.

IoT enables companies to automate processes and reduce labor costs. It also cuts down on waste and improves service delivery, making it less expensive to manufacture and deliver goods, as well as offering transparency into customer transactions.

How IoT is useful in real life? ›

A few examples of IoT devices are laptops, smartphones, refrigerators, coffee machines, Apple watches, Google Home, Fitbits, etc. Devices equipped with an Internet connection and sensors can be used for IoT applications. IoT generates huge quantities of information, which becomes the characteristic of Big Data.

Over the past few years, IoT has become one of the most important technologies of the 21st century. Now that we can connect everyday objects—kitchen appliances, cars, thermostats, baby monitors—to the internet via embedded devices, seamless communication is possible between people, processes, and things.

The future of IoT has the potential to be limitless. Advances to the industrial internet will be accelerated through increased network agility, integrated artificial intelligence (AI) and the capacity to deploy, automate, orchestrate and secure diverse use cases at hyperscale.

Security and Privacy

The principal idea for IoT is to have an innovative, secure system through which billions of devices can automatically communicate with each other.

Advances such as shared mobility, smart meters, real-time monitoring of pipelines and other transportation systems are helping to reduce costs, improve safety and increase the sustainability of all systems within the energy industry.

There are a few new technologies that will make conditions safer in the oil and gas industry beginning in 2020. These technologies include drones, the internet of things, artificial intelligence, big data analytics, and electronic monitoring.

Digital oilfield technology uses digital technology to improve the efficiency and safety of oilfield operations. It involves using real-time software and data from sensors on devices like pumps, valves, and pipelines to get a clear picture of what's happening in an oil or gas well.

What are the 3 types of pipelines that carry oil? ›

There are essentially three major types of pipelines along the petroleum transportation route: gathering systems, crude oil pipeline systems, and refined products pipeline systems.

With a heavy reliance on technology and information systems to operate, a successful cyberattack against an oil and gas company could have serious consequences, such as operational disruptions, economic losses, reputation damage and even environmental harm.

Internet of Things (IoT) Industry Segmentation

The internet of things (IoT) market is segmented by component (hardware, software/platform, connectivity, and services), end user industry (manufacturing, transportation, healthcare, retail, energy and utilities, residential, government, and insurance), and geography.

The Internet of Things (IoT) is digitally transforming the Energy and Utilities sector, offering efficient, low-energy solutions to global energy challenges. The U.S. Energy Information Administration (EIA) projects that by 2050, world energy usage will increase by nearly 50%.

IoT in the chemical industry connects all the sensors and other devices to machines to deliver quick and efficient service. It helps in the production of chemicals efficiently.

The industrial internet of things (IIoT) refers to interconnected sensors, instruments, and other devices networked together with computers' industrial applications, including manufacturing and energy management.

Dishwashers, refrigerators, smart TVs, smart watches, cars and trucks, heating and cooling systems, fitness machines and trackers are examples of IoT-enabled products with which you may have personal experience!

The internet of things is a technology that allows us to add a device to an inert object (for example: vehicles, plant electronic systems, roofs, lighting, etc.) that can measure environmental parameters, generate associated data and transmit them through a communications network.

What is IoT 5 examples? ›

IoT makes it possible to build completely autonomous energy plants or oil drills. As mentioned above, smart sensors can be used to monitor the system's performance in real time, and as a result, automatically adjust its efficiency using machine learning and AI.

Unbeknownst to them, they had created the world's first IoT device. In 2023, the most common examples of the Internet of Things (IoT) are wearable health monitors, connected home appliances, home security systems, autonomous farm equipment, smart factory solutions, and logistics tracking technologies.

The IoT Gas Leakage System makes the detection of the gas and its prevention much easier. The system sends alert notifications to the user and the user responds accordingly with the help of the connected devices like a smartphone from any location.

Answer: There are several top devices in the market. Smart Mobiles, smart refrigerators, smartwatches, smart fire alarms, smart door locks, smart bicycles, medical sensors, fitness trackers, smart security system, etc., are few examples of IoT products.