How Technological Advancements are boosting Growth in Oil Industry
The oil industry is moving towards digitalization in order to modernize strategies.
Since oil outlooks remain uncertain for 2021, companies are looking for new technology and innovation to move the industry forward after a tumultuous 2020. When thousands lost their employment in the oil sector in 2020, it became apparent that energy producers had to accept the transition in order to continue modernizing oil strategies into the new era.
The long-established oil industry is increasingly moving toward the concept of digitalization, the adoption of new technology, and, in essence, everything that can carry it into the future out of the 2020 trench.
Fortunately, businesses in these sectors also have time to rethink their activities and step forward to the contemporary playground. Through analyzing the challenges plaguing oil and gas, as well as the technical developments that have the chance to evolve things around, all businesses operating in conventional verticals will learn how to rekindle change within their industries.
According to Oilprice.com, “In Houston, several start-ups have jumped at the chance to provide innovative solutions for oil majors who before would not have given them the time of day. Tachyus, a Silicon Valley startup that transferred many staff to Houston last year, is a tech company that aims to optimize energy production. Another firm, GoExpedi, aims to procure industrial energy equipment, using a digital inventory system to track and manage all equipment. Digital services and blockchain networks have also been cropping up across the U.S. in support of the modernization of the energy sector.”
Top innovations that have been implemented in other sectors, but have been reluctant to incorporate into the oil and gas industry are the following:
Artificial Intelligence: AI helps businesses in the oil and gas sector to discover patterns that detect and forecast inefficiencies. Making every part of the organization more effective and profitable is leveraging AI to enhance performance operations from C-level to field worker, automate processes, streamline manual business operations, and connect with IoT devices.
Cloud Computing: Cloud computing will prove to be a strong mechanism as oil and gas undergo this tremendous transition to digital infrastructure. A large number of data companies can leverage and analyze further through automation, reduce operating costs, minimize well times, and mitigate losses. This will enable field staff to maximize production as more oil and gas firms adopt cloud computing.
Robotics: A lot of dull and risky aspects of drilling have been made safer by robotics. Linking and unplugging drill pipes, for example, is an important part of the drilling process, but an incredibly hazardous activity for the men and women who have done it. Today, technology such as the Iron Roughneck robot automates this operation, completely taking the risk of human life out of the system. Robot snake arms may also conduct critical inspections in restricted areas.
According to Offshore Technology, “One technology set to transform the oil and gas sector is blockchain. In fact, the blockchain revolution is starting here and now. The real task for the oil and gas sector is how quickly it can move to take advantage of the many opportunities that blockchain will bring.
For oil and gas businesses, data has gone from an asset to a burden. Companies are drowning in data and urgently need a way to control and authenticate information. Blockchain has enormous potential to reduce the risk of fraud, error, and invalid transactions in energy trading, make financial transactions more efficient, facilitate regulatory reporting requirements, and enable interoperability.”