The Oil & Gas industry is experiencing a tough environment, as costs escalate and operational processes are in want of refinement. Finding, extracting, and producing Oil & Gas is getting even more challenging as oil companies turn towards advanced technologies in a bid to tide over these challenges.
Advances in software tools are creating scope for Oil companies to better their operations and production processes. An enormous amount of data is transmitted and collected through logging tools and sensors and yet, as per McKinsey report, less than 1% of this data is used for making informed decisions, literally showcasing a huge untapped opportunity.
Advanced Analytics has the potential to improve operational process across the Oil & Gas value chain. From exploration to production, processing, retail, distribution, and back-office operations. Oil and Gas analytics will usher in a new wave of operational efficiency and help save on efforts, time, and costs. Let’s observe 5 ways they can ensure a competitive advantage.
1. Real-Time Information Delivery
Drilling a well on the seabed is a task that is quite complex and requires a high degree of planning, precision, and execution. Advanced Analytics help in Well Bottom Communication (while drilling a well, there is a constant need for continuous communication process in real-time).
Valuable information is passed on to the experts and crew executing the drilling process, helping them understand the situation and to be updated on the drilling process. This sort of information warns the teams of impending issues and helps avert these problems even before they occur. Another advantage of Advanced Analytics is its ability to transmit relevant information in real-time and directly help monitor the drilling process remotely.
2. Prescriptive Analysis of Runs
Steering and logging tools are used during downhole operations. These tools are embedded with IoT sensors that can relay data on the status of downhole operations.
Advanced analytical platforms help analyze data derived from numerous runs (logging runs) that contain thousands of observations. All of which can help predict the chances of success of any given operation. This analysis further helps understand what operational conditions increase the chances of failure.
3. Predictive Maintenance
The various tools and equipment used in drilling can store and transmit data through IoT sensors. Advanced analytics can help predict these maintenance requirements through a thorough analysis of their condition after each job. Analytics also help assess the cumulative exposure and subsequent condition of any tool or equipment. This helps teams to take care of predictive maintenance well in advance.
4. People and Asset Security
Location-based technologies coupled with advanced analytics facilitate the monitoring of people working in potentially dangerous environments. This provides greater chances of preventing risks and accidents. Advanced Analytics, with the help of sensors, aid assess the conditions of assets and also protecting them.
For example, the problem of hydrocarbon shrinkage through leakage can be identified and tracked through logistics analytics.
5. AI-based Analytics
An enormous amount of data floats across the systems of Upstream Oil companies, but, sadly, they do not completely capitalize on that data. AI-based analytics help companies automate the process of gathering, segregating, and classifying data and content so that they can be used across departments.
This data and knowledge help companies enhance productivity levels by minimizing redundancies and ensuring access to important data at arm’s length. AI-based analytics also help increase the speed of production and to reduce risks at well site development.
The unpredictable political environment will continue to play a key role in the direction of the Oil & Gas industry. But having said that, forward-looking Oil companies will now concentrate on what can be done internally to sustain the cascading effect of external factors.
Embracing Oil and Gas production analytics is one solid move for these companies. They look to turn the tide in their favor through greater efficiencies in exploration, operations, and production.
There is no doubt that advanced analytics coupled with IoT will bring in several advantages and help the Oil companies have that competitive edge. Increased production and oil recovery rates, optimized operations, innovations in exploration, and predictive maintenance are among a host of benefits of advanced analytics. As the Oil & Gas industry inches towards the closure of the second millennial decade.