Upstream oil and gas production operations are complex and expensive yet vital to the national economy. Improving the efficiency of these operations has long been of paramount importance but information technology, thus far, has failed to provide operators with sufficient tools to maximize these objectives.

While oil and gas producers are making strides digitalizing—that is, adding Internet of Things (IoT) to—upstream production facilities, failure to adopt the correct architecture could result in producers being left behind in the race for greater efficiency and lower production costs.

With IoT and the digitalization of oil and gas operations, it is now possible to substantially improve production efficiency while reducing operating costs. But this can only be accomplished if traditional approaches – those that tend to sacrifice large pools of available data in the name of cost containment – are left in the past. Oil and gas operators require a hybrid IoT architecture in which both edge and cloud processing are employed in order to optimize cost and accuracy. Utilizing such an approach both impacts the value of predictions, diagnostic routines, and maintenance cycles in addition to improving site efficiency to the fullest extent.

Done correctly, this digitalization enables a number of impactful IoT use cases with direct applicability to oil and gas operations. To varying extents, these use cases are designed to increase facility uptime, reduce operating costs and/or improve production yield.

For a closer look at how a hybrid IoT architecture can drive down overall production costs and lower the operational break even point, download the IoT in Oil & Gas: Don’t Get Left Behind white paper.