The Internet of Things (IoT) is changing every aspect of our lives, including how work gets done. Every industry uses IoT to make work efficient, minimize tedious tasks, boost productivity, and cut costs. The oil and gas industry is no exception. So how is the IoT being used to optimize the O&G supply chain? In this post, we’ll take a look at how IoT is changing how the oil and gas supply chain works for the better.
What is The Internet of Things?
IoT is the connection of the physical world to the internet. We have seen the effects of IoT connectivity in our daily lives. For example, Amazon Alexa brings the digital and physical worlds together for us. Through connections with your physical environment, Alexa can help you gain control, visibility, and understanding of your world. Alexa can help you turn on the lights, see if your front door is locked, control home appliances, and more. Through the power of your voice or just a few clicks on your phone, you can control aspects of your home with simplicity and ease.
Now, let’s apply that same connectivity from IoT to the oil and gas supply chain.
How Does the IoT Optimize O&G Supply Chains?
The increased connections created by IoT improve oil and gas supply chains in several ways.
One of the most important advancements that IoT connections bring to supply chains and ops teams is visibility. Increased interconnectivity between people, machines, data sources, and more gives us the ability to see more of what is going on in operations.
For example, when it comes to project planning and site management, the ability to know which assets and vendors are used where or to see spend across all of your job sites is invaluable information. The increase in visibility through connections improves decision making, helps quickly solve problems, and keeps your project on track.
Another example of visibility gained through increased connection is the ability of a machine to communicate with humans. Through sensors, A.I., and more, IoT technology can communicate data such as when machines need maintenance or if a pump is at risk of failing. Once again, the increase in visibility helps humans make better decisions, move quickly to prevent or solve problems, and save time.
2. Access to Data
IoT technology also helps O&G professionals understand operations through access to data. Whether the IoT helps obtain new data or simply makes it easier for you to interpret or access the data, it is a crucial advancement to the oil and gas supply chain.
Access to data shared by IoT devices means a better understanding of your operations and an opportunity to make powerful improvements. Analyzing data can mean lowering risk, improving safety, understanding and lowering project costs, and so much more. Data has the power to change a company for the better.
3. Transparency and Accountability
The volatile nature of the O&G market can lead to unethical behavior in business dealings. Through the introduction of IoT, you can prevent fraudulent behavior like taking advantage of invoicing processes, manipulating employees, and misrepresenting work performed. When you apply IoT to the oil and gas supply chain, you bring transparency and accountability with it.
Better access to data brings natural and non-intrusive accountability along with it. This helps keep your team, your vendors, and your company aligned and on the right track for successful projects.
… And So Much More
IoT has so many applications in the world of O&G and specifically the oil and gas supply chain. As more IoT connections are made, there will be an increase in visibility, access to data, and accountability like we have never seen before. As we enter a new era of industrial technology and applications, the companies that embrace and apply new technology faster will find themselves ahead of the competition.
Technology Solution Revolution: What It Means for Oil and Gas
Thanks to advancements in technology due to the spread of IoT and Industry 4.0, oil and gas companies now have access to more capable and easy-to-use technology than ever before. But implementing and utilizing that technology across the organization to increase productivity and profitability is still a challenge. So we asked our experts to weigh in and walk us through the why, what, and how. In our ebook, Technology Solution Revolution: What It Means for Oil and Gas our experts will cover how industrial technology solutions have failed, why industry 4.0 matters to industrial markets, and more.