Internet of Things (IoT) in Oil and Gas - Thematic Research

According to the publisher forecasts, global Internet of Things (IoT) revenue in the energy sector will reach $59 billion by 2025, up from $34 billion in 2019. The declining cost of IoT hardware makes digitalization an attractive option. The oil and gas (O&G) industry is becoming a more enthusiastic adopter of digital technology as it struggles to cope with several significant trends. These include fluctuating oil prices, expanding sources of supply, and increasing regulatory requirements. Many O&G companies are reducing capital expenditure to focus on their core business. As a result, they must weigh up the cost of adopting IoT technology with what many perceive as an unnecessary risk of overspending. However, IoT use cases in the sector show how instrumental digitalization is to the O&G sector.

IoT can be the backbone of digital transformation in the O&G sector. Connected devices drive more sophisticated use of other technologies, namely artificial intelligence (AI), in the automation process. It creates a tech ecosystem that eases the difficulties of working in remote, dangerous conditions and working with aging, precarious assets through cross-functional collaboration. IoT also helps to collate and manage vast quantities of data. This is instrumental to improving predictive maintenance, monitoring emissions and the surrounding environment, and providing safer working conditions. Failure to embrace these new technologies can lead to costly mistakes, with unforeseen closures and costs running into millions of dollars. The rise of the IoT has come about through improvements in the individual technologies within the IoT ecosystem. With internet connectivity being available on a larger scale and the hardware costs decreasing, the technology is a more attractive prospect for O&G companies. Ultimately, O&G companies cannot afford to bypass digitalization, with IoT being a key technology in this process.

IoT enables oil and gas companies to remotely monitor and control critical activities at production facilities. These technologies aim to boost productivity and efficiency in exploration and production (E&P) by minimizing equipment downtime and automating routine daily tasks. This is especially critical as oil and gas producers are seeking to reduce capex and opex to recover from the COVID-led energy demand shock. IoT helps reduce the need for the physical deployment of personnel on site, thereby improving worker safety. IoT, coupled with artificial intelligence (AI), predictive analytics, and visualization tools generate data-driven insights in real time to speed up decision-making processes. Predictive maintenance and industrial automation are the main use cases of IoT in the oil and gas sector.

Scope

• Overview of the emergence of Internet of Things (IoT) as a theme and its potential applications in the oil and gas industry
• Review of the recent technological advancements in IoT that could set the tone for its adoption across diverse industries
• Assessment of the strategies and initiatives adopted by oil and gas companies to gain a competitive advantage in this theme.

Reasons to Buy

• Understand the importance of IoT in oil and gas operations.
• Identify the key challenges facing the power sector, and how IoT technologies help to tackle them.
• Highlight important use cases for IoT in the oil and gas industry.
• Identify and benchmark key oil and gas companies and technology providers based on their exposure to the IoT theme across the value chain.