//IoT Impact on the Oil and Gas Industry

IoT Impact on the Oil and Gas Industry

Accidents in the oil and gas industry have been largely growing over the recent years. This has
taken its toll on companies that are now struggling to make amends for these accidents to blunt
the huge impact this will have on the future of many companies. Luckily, the Internet of things
(IoT) has provided the oil and gas industry with different ways of handling such issues.
The IoT is the practice of capturing, analyzing, and acting on data generated by networked
objects and machines. The IoT has four different cornerstones, which are Sensors, Networks,
Storage and Big Data Analytics. Here is how these four components work together:
A sensor is an electronic device that produces electrical, optical, or digital data derived from a
physical condition or event. The information that the sensors collect has to be communicated
and collected at a particular location. This involves transmission of data via networks. Every
second, sensors also generate huge amounts of data that are communicated through networks
and are stored. The collected data must be analyzed to give some insight on the working plans.
Applications of the IoT in the oil and gas sector are endless. The upstream industry loses billions
of dollars every year due to nonproductive time (NPT). The IoT could be used to help reduce
NPT events by using real-time data to predict breakdowns and schedule preventative
maintenance. Huge amounts of reservoir data can be integrated with real-time field data to
plan well placement and flow rates.
The IoT is the next step in the evolution of the oil and gas industry. Data will have to flow in real
time and seamlessly from fields to boardrooms. This will enable better decision-making, better
optimization of the process, and a safer working environment in an industry that spends
trillions of dollars every year on exploration, development, and maintenance of assets.