According to a BIS Research, the Internet of Things (IoT) global market for the oil and gas industry is projected to grow up to $30 billion by 2026, which is equivalent to an annual growth rate of 25% from 2017 through 2026. What does this mean for remote oilfield monitoring solutions?
While some may think that the resurgence of oil rates drives this massive opportunity – that is a misconception. The forecast is based solely on the fact that costs need to lower.
This can be done by implementing efficient processes through a more affordable commodity scenario.
Achieving growth and success comes with risks. In today’s post, we’ll talk about mitigating these risks in remote oilfield operations.
Remote oilfield monitoring solutions also tend to put emphasis on increasing the operational efficiencies while at the same time enhancing the performance of current assets, increasing capital productivity, and mitigating risks.
Risk management is essential to the daily business operations of the oil and gas sector. The industry faces risks in all aspects:
- Unpredictable commodity costs – particular global socioeconomic component (and not basic supply and demand) cause commodity prices to behave in a volatile manner.
- Safety and health – previous and recent accidents that happen due to unforeseeable mistakes no matter how much preparedness was done.
- Environmental and social impacts
- Industry image
Risks related to pollution, human injuries, asset impairment, business interruption, and property damage are inherent in day-to-day oil and gas operations. There are also risks of substantial expense overruns and non-compliance, which, unfortunately, is prevalent nowadays in the industry.
With that being said, technological solutions can help mitigate these risks. From risks in remote oilfield monitoring to other industry operations, we’ll explore the risks faced by the industry and how to best address them.
Environment, Health, and Safety (EHS)
Environment and personnel safety and protection is the top priority for the industry. Oil and gas companies are used to following stringent and rigid EHS guidelines and regulations.
These EHS guidelines span across the entirety of oil and gas activities, starting from remote oilfield monitoring, exploration, production, refinery, pipeline management, and marketing.
Not just stringent, these EHS regulations are also regularly reviewed and revised to meet the ever-changing landscape of the industry – including factoring in technological advancements, remote locations, and extreme conditions that oil and gas companies and oilfield sites operate.
Furthermore, there are expanded regulations for the unconventional resources of the industry. Fracking, or the process of extracting shale, has been in the radar of environmental groups. For instance, American companies conducting fracking are obligated to submit a report about the fluid composition in every stage of the extraction.
Managing massive oil and gas capital projects amidst the global sector is becoming more and more complex. This fact is especially true in more significant oil and gas reserves; the industry needs to drill more reduced-size wells to make up for the more significant reserves.
The oil and gas sector must come up with strategic and optimized decisions in developing their projects. This ensures that their company is performing at its best, and they are not wasting resources.
There’s also deciding on remote oilfield monitoring equipment resources. What technology is best for remote monitoring? What are the geographical challenges of the remote location?Is there going to be an equipment shortage? Do key decision makers know what to do should an unexpected failure happen at the remote site?
Because oil and gas companies work in more and more remote locations with volatile environmental conditions, high-quality remote oilfield monitoring solutions are integral to the day-to-day operations.
Ultimately, oil and gas companies utilizing remote oilfield monitoring technology have one goal: increase production as cost-effectively and efficiently possible while ensuring to follow EHS regulations.
Although there are always going to be risks associated with the oil and gas sector operations. Proper planning and correct execution are essential when mitigating these risks.
Advancements in remote oilfield monitoring can significantly mitigate operational risks in job sites. And since the industry is continually evolving, so are the monitoring solutions.
Look to a monitoring vendor that can help you check which areas of your operations have a high vulnerability. They can then give you the expert recommendations you need to operate more efficiently.