In this post we will be looking at the meaning of technology, Importance of technology in oil and gas industry, benefits of technology in oil and Gas industry.
INTRODUCTION
The oil and gas sector are undergoing a huge change thanks to digital innovations. Compared with other industries in which companies have openly embraced the technology and information revolution, oil and gas has lagged a bit. That means tech solutions have enormous potential when it comes to improving communications and addressing the industry’s unique environmental challenges. Any oil and gas company in the sector that efficiently draws on the power of the digital advancements can gain a significant competitive advantage over rivals. The Nigerian economy is currently supported by oil, which is the major non-renewable energy source.
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Technology plays an important role in increasing productivity and efficiency in many sectors of the economy. With the expectation of high oil prices, the question arises as to whether increased production and more equitable distribution of useful oil and gas energy resources are possible, through the use of modern technology. This applies mostly to developing countries like Nigeria. Oil exporting countries try to maximize the advantages of using ICTs, while oil importing countries are interested in using oil and gas more effectively. Thus, determining the impact of technology in the oil and gas sector can be used to better access the future economic development of developing countries. Technology provides a means to improve both upstream operations (crude oil production and exploration) and downstream operations (transportation, refining of crude-oil and distribution of oil products).
Oil companies in particular adopt technology to improve the efficiency and effectiveness of their operations, as well as to aid management decision making. This helps to strengthen their competitive positions in rapidly changing environments. Environmental, organizational, and technological factors are creating a highly competitive business environment in which customers are the focal point. Furthermore, these factors can change very quickly. Thus, the growth of any company is tied to retaining loyal customers, improving productivity, reducing costs, increasing market share, and providing timely organizational response.
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Technology, is a major tool for dealing with these issues. Due to the degree of uncertainty in today’s competitive oil industry, oil companies in Nigeria are operating under increasing pressures to produce more with minimum resources. In order to succeed in this dynamic environment, oil companies must undertake innovative activities such as improving operational processes and continuously reviewing competitive strategies. Technologies has a high impact in oil and gas operations. For example, in upstream operations ICTs and related technologies may provide possibilities for expanding proven crude oil reserves, improving the rate of crude-oil extraction from existing wells, and providing further means to discover new wells.
WHAT IS TECHNOLOGY?
Technology is the application of scientific knowledge to the practical aims of human life or, as it is sometimes phrased, to the change and manipulation of the human environment.
IMPORTANCE OF TECHNOLOGY IN OIL AND GAS INDUSTRY
The oil and gas industry provides almost 55% of the energy need in the world. Apart from providing energy, it comes in many other purposes to make our life easy and comfortable. The oil and gas industry are amongst the important industries of the country as it highly affects the country’s economy. Technology has been serving for years in the oil and gas industry to make more effective in producing hydrocarbons in the global world. The development of the oil and gas industry directly or indirectly depends upon the technology for its growth and development. The development of technology has immensely helped in fulfilling the need for energy in a cost-effective, safer environmentally friendly manner. In the past decade, technology has shown its worth in providing the advancement of the oil and gas industry in the following was:
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- The invention of technologies for drilling, transportation, cleaning, inspection, etc. has made the extraction and conversion of hydrocarbon molecules and their supply to the different parts of the country and across the world easier.
- There are many technologies working in this industry. For identifying the oil residing areas ariel sensing technologies are being used to combine with 2d and 3d imaging for more clear visualization. This technology helps in finding the places where there is the possibility of the existence of the oil.
- The tanks are made by using techniques where there is less risk of accidents and have less environmental risk. The invention of carbon capture and storage is that example of the safer modern technique tank. There is a technology for cleaning the tanks in a safer way and environment-friendly way.
BENEFITS OF TECHNOLOGY IN OIL AND GAS INDUSTRY
Oil and gas companies operate in a resource-intensive, competitive, yet strictly regulated environment, creating challenges around asset management, operations, supply chains and maintenance. Companies are leveraging mobile technologies as they strive to boost productivity and minimize costs. Mobile solutions ensure workforces collaborate effectively and execute duties remotely through devices such as phones, tablets and other handheld computers. Expenditure on mobile technologies for the oil and gas industry is anticipated to reach $22.95 billion by 2026. Mobile devices continue to evolve, adopting technology to become smarter and more reliable in the field. New generation devices run on artificial intelligence (AI)-based software and feature expanded bandwidths with capabilities to accommodate high-speed networks. Beyond improving connectivity, investing in mobile technologies contributes to safety and profitability, as well as other benefits.
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- Real-Time Field Data Collection & Validation: Oil and gas operations are data-intensive activities that require lots of fieldwork executed by multiskilled teams. Traditionally, datasets were acquired and analyzed manually, resulting in production backlogs. Modern oil and gas systems use mobile supervisory control and data acquisition (SCADA) systems that rely on a network of sensors to collect, transmit and analyze data. Through field data analysis, operators can execute adjustments to production assets to meet desired targets. Field employees rely on mobile devices to gather and store data on critical aspects like pump flow rates, mud-tank capacities, drilling speeds, weather conditions, etc.
- Collaboration & Workforce Management: Oil and field companies are complex organizations that require communication between field and office teams that are typically in different locations. Mobile applications ensure that dispersed teams receive prompt communications from management regarding work schedules, rotations, policy changes, production targets and skill requirements. Field workers use mobile devices to track and store work records, expenditures and report field incidences in real time. These devices are crucial in establishing transparency and visibility by tracking the locations of workers. Live data collected by mobile devices are used to predict market demands, optimize supply chains and plan for deployment of additional production resources.
- Asset Tracking, Maintenance & Monitoring: Oil and gas companies own assets that are crucial for exploration, drilling, refining and supply of products. An increase in a company’s asset base results in a spike in activities related to inspection, maintenance and live tracking. Unique barcodes are fixed on equipment to simplify tracking and identification. Specialized mobile devices are used to conduct environmental impact assessments and to inspect critical infrastructure (drilling rigs, pipelines and refineries). Field equipment is fitted with Global Positioning Systems (GPS), geographic information systems (GIS) and radio frequency identification (RFID) devices for accurate location tracking. Location data provides insights to optimize supply chains, manage fuel consumption of moving assets and evaluate order fulfillment.
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- Materials Management: Intensive planning is required to ensure all departments have sufficient resources to support production. These resources include office supplies, safety equipment, spare parts and tools. This is an error-prone and time-consuming activity. To address this, companies have rolled out enterprise resource planning (ERP) and enterprise asset management (EAM) solutions that expedite functions like procurement, departmental material transfer and stock taking. Warehouse and store managers rely on software to track material issuance. The solutions automatically update in-house stocks and generate alerts when levels fall below a predetermined mark. The system allows employees to request new materials and conduct tool audits in a process that eliminates tedious paperwork. Through mobile devices, teams can perform quality inspections, thus verifying the quality and origin of leased or newly procured materials. This improves safety, as defective or low-quality materials are identified and removed from stock batches.
- Workplace Safety & Security: Oil and gas companies have strict operational guidelines owing to the precarious nature of products and working environments. Mobile devices have the potential to improve workflows while limiting on-site incidents. Field personnel can view field data with updates on accidents or potential hazards; individuals can report and file evidence of accidents. Organizations have created interactive maps that can be easily accessed on mobile devices. These maps provide secure mobility routes to be used when conducting fieldwork, individuals or institutions to contact during an emergency and suitable mitigation measures in case of accidents or safety threatening incidents. Mobile devices that rely on proximity sensors are used to authorize access to restricted sites in facilities and steer remote-controlled inspection devices that conduct checks on hazardous locations, protecting individuals from harm.