If you work in the petroleum or natural gas industries, you know that equipment staying online and operating at peak efficiency is critical to production. The failure of a single pump in an offshore rig can bring oil and gas operations to a grinding halt and rack up hundreds of thousands of dollars in lost production in a single day.
Collecting and analyzing data from critical equipment and systems can help identify pending failures before they happen and trigger actions to avoid unplanned downtime. Take the example of a compression system engine that is overheating. An IoT system can pinpoint the source of the failure, slow the engine to keep it online until a technician can be dispatched, and identify the parts needed for repair.
Yet McKinsey recently observed that only 1% of 30,000 data points on a typical oil rig are even being used, and when they are, it’s limited to process control and monitoring. Constructing an IoT system that uses all the data available from critical equipment can drastically reduce unplanned well outages and boost production.
What many organizations don’t realize is that adopting IoT creates a whole new asset – one that may become the most important asset in the company. That asset is information. IoT systems can provide valuable insight, but they can also overwhelm an organization with data. To make the most of information generated by business-critical systems and equipment, O&G organizations must take a strategic and organized approach to their digital innovation strategies and IoT implementations. But it can difficult to know where to start.
Take a look at our new eBook, Industrial IoT: From Concept to Business Reality to learn how you can take a phased approach to IoT adoption that can help you gain control of your vital information asset and turn it into measurable business value.