Imagine a world where your home thermostat automatically lowers the temperature when you leave the house and raises it the moment you return. The “Internet of Things” (IoT) refers to a world where various devices are connected to the internet with a view to automating more of our lives, saving energy, making industrial processes run more efficiently, etc.
Oil prices have traversed a period of low prices and the financial strain has forced Oil and Gas (O&G) companies to implement innovative ways to lower costs and deploy investment efficiently. The typical approach is to stay ahead of the curve through cutbacks on operational expenses and labor. In recent years, O&G companies have been pressed to utilize advancing technologies and innovative business models.
The implementation of IoT on a wider scale has undoubtedly caught the attention of numerous O&G companies. IoT is a technology that provides O&G companies with an opportunity to drive operational efficiencies in a low oil price environment. Due to the flexibility of IoT, there is an array of applications being utilized across the sector, including predictive maintenance at remote sites, risk detection in oil pipelines, detection of behavioral anomalies, and rig diagnostics bots, among many more.
For example, Shell Nigeria implemented such a system, connecting oil field devices and equipment such as wellhead monitoring and pipeline surveillance within the Niger Delta, and captured remote field data that was analyzed and used to form actionable insights. From the use of cheap sensors, valuable information regarding pipeline pressures, flow rates, and temperatures was captured. Shell was able to save over $1 million in a short space of time thanks to a relatively modest IT investment.
We are still early in this technology cycle. As yet, there are no common standards, so it is difficult to predict any long-term winners and losers. However, executives need to understand the Internet of Things because it will soon morph into a mega theme. The report "Internet of Things in Oil & Gas - Thematic Research", offers a framework in which to look at IoT, summarizes the important trends, and identifies the key players.
Companies Mentioned: Akamai, Amazon, Apple, ARM, Atmel, AlertMe, Arqiva, Arrayent, August, Ayla Networks, BP, Balyo, Belkin, BigBelly, Broadcom, Chevron, Canary, CalAmp, Cisco, DroneShield, Electric Imp, Evrythng, Ericsson, Fitbit, F5 Networks, General, Electric (GE), Google, IBM, Infoblox, Intel, Libelium, Microchip, Microsoft, Neul, NXP/Freescale, Nordic Semiconductor, Oort, Qualcomm, Saudi Aramco, Schlumberger, Shell, Statoil, Samsung, SAP, Software AG, Splunk, Total S.A., Tado, Thingsquare
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