“Data is just like Crude. It’s valuable, but if unrefined it cannot really be used.”- Michael Palmer (marketing commentator)
The above statement by Michael Palmer is a powerful one and holds true at all times, for all the industries. And the oil and gas industry is no exception. In fact, the oil and gas industry has gigantic volumes of data and the best way to put it to use is by identifying, aggregating, analyzing, and perfecting the data. But it doesn’t end here. In current times, where the oil prices have dropped considerably and industry is struggling to cope up, the need is to quickly forecast the potential information and keep the cost low to actualize success without having to lose much.
And this can be achieved by adopting big data technologies. It is good to see the oil and gas industry slowly paving its way towards big data. Oil and gas production analyticscan help companies to manage risks and increase the overall revenue. With the help of analytics, the areas requiring improvement can be identified and the results can be achieved more efficiently.
Benefits of Analytics in Oil and Gas Industry-
As per a study conducted, a tech-driven oil field is expected to tap into 125 billion barrels of oil. With this step affecting 20000 companies, it is a real game changer for the industry as a whole. Thus, to remain competitive companies need to integrate oil and gas production analyticswith the oil and gas lifecycle.
1. Predictive Maintenance– With the help of advanced analytics, the equipment and tools used in drilling can be checked for maintenance after each job. Since drilling is a long process, the machines and tools need to work for hours together. The equipment and machinery are fitted with sensors that collect data about its performance. This helps in timely replacement and maintenance of parts to avoid untimely breakdowns and loss of revenue.
2. High Accuracy in Drilling and Oil Exploration- The entire oil and gas industry is dependent mainly on the drilling and exploration process. And hence, the application of analytics in this area is a real boon. Big data analytics aid in an optimized subsurface mapping of the best drilling locations and indicate where and how to steer the drill. One of the few advantages of big data analytics is new oil drilling locations and new ways to stimulate shale oil. If applied extensively, the entire oil and gas industry can achieve great success in no time.
3. Highly Cost Effective– It is a very well-known fact that oil and gas companies generate huge volumes of data and at a rapid speed. Handling such volumes of data can be really expensive and affect the financial performance of the companies. But, with data to the rescue, companies can cut data handling cost and at the same time generate real-time data. This can also improve production by 6-8%. But the benefits of analytics are much beyond this. Storage of large data, near real-time alerts, real-time visualizations are the main advantages associated with it.
4. Better Decision Making and Reduced Risks– Each region is geographically different and hence the layers of rocks vary from one place to another. The lessons learned from the area can be applied in other similar areas. Unstructured data in huge volumes is stored in various databases and it requires a lot of time and effort. With the help of advanced analytics, a lot can be learned about each subsystem and this can help in reducing the risk and taking accurate decisions.
The application and popularity of analytics across various industries have gained momentum. Application of analytics has helped managers to efficiently handle data relating to drilling logs, operational parameters, frack performance and so on. Oil and gas companies need to segregate data on the basis of its importance and store the relevant data. Companies need to keep restructuring the locations and techniques on a regular basis.
The application of Big Data Analytics can change the way things were done traditionally and help to increase efficiency and improve productivity. With reduced costs and improved production, the Oil and Gas industry is sure to rise up and secure a competitive place for itself in the Global Market.