• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 39 mins Shale Oil will it self destruct?
  • 2 days NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 13 hours White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 7 hours Migration From Eastern Europe Raises German Population To Record High
  • 8 hours Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
  • 19 hours Germany exits coal: A model for Asia?
  • 1 day Carrot And Stick: North Korea Suggests It Might Lift Weapons Test moratorium
  • 1 min Washington Post hit piece attacking oil, Christians and Trump
  • 1 day South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 15 hours Starlink Internet Courtesy of Tesla
  • 19 hours A Silence is heard
  • 2 days U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 1 day Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

WTI Tops $60 On Gulf Of Mexico Shut-Ins

Oil prices ended the week…

Alt Text

Iran’s Tactical Move To Skirt Sanctions

Iran is shifting focus from…

Alt Text

Why Oil Tankers In The Middle East Shouldn’t Hire Mercenaries

Shipping companies sailing through the…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

The Next Big Step In Oil And Gas Tech

The oil industry, it seems, has gone all-in on digital technology, having gotten an early taste of how much various solutions can influence its cost discipline and bottom lines. Last month, Oilprice wrote how some in the digital tech field expected artificial intelligence for the oil and gas industry to pass from theory into reality this year. But there’s another segment of digital technology that is already making a splash, and the ripples from this splash will continue to multiply this year: predictive analytics.

Knowing what to expect from the future in terms of oil fundamentals and prices, but also the environmental impact of their operations, has become vital for oil and gas companies--and data analytics service providers are only too happy to help.

“The oil and gas industry may have emerged from its last downturn, but the pressure on companies to find new capital and operating efficiencies remains unrelenting,” the chief technology officer of Lloyd’s Register told Forbes’ Mark Venables. “As in other industries, demands also grow stronger from regulators and other stakeholders to improve environmental performance and safety. Advanced data technologies such as predictive analytics offer oil and gas companies a means to navigate this increasingly complex landscape.”

Data analytics can also optimize production in the field by predicting supply and demand with a view to adjusting production, but also by predicting equipment maintenance needs that help streamlining operations and reducing costs further, according to Emerj, an AI-focused research company.

At the moment, oil and gas companies utilize two types of predictive analytics solutions: predictive maintenance ones and business intelligence ones, writes Emerj author Ayn de Jesus. The former type has to do with anything from equipment maintenance predictions to energy consumption optimization and solving particular problems such as pump failures. The latter, business intelligence, comprises solutions that help oil and gas companies set, for example, production standards, and checking if these standards can be reached and how. Business intelligence software also provides insight into the future of the industry and emerging trends by analyzing heaps of structured and unstructured data. Related: India Makes Breakthrough In Biofuel Development

Three years ago, research from Bain and Company suggested that oil and gas producers could boost field and refinery performance by between 6 and 8 percent by utilizing data analytics technology. At the time, however, the researchers warned few companies were taking advantage of all that data that analytics could offer. Now the numbers must be growing as the benefits become evident. The growth of the Internet of Things is fueling this shift as more and more devices get connected to business networks across industries.

It looks like now that predictive analytics is gaining ground in oil and gas, producers and refiners are moving closer to the next big step: prescriptive analytics. Predicting when a piece of equipment will need downtime for maintenance is good. Knowing why it will need maintenance at this precise moment is better.

Prescriptive analytics, as one software industry insider put it in an article for Offshore Technology, “tells the operator the root cause of the problem.” AspenTech’s energy industry marketing director Ron Beck goes on to explain that “It can inform them not only that the compressor is going to fail but also that its impending failure is directly linked to the leakage of liquid into the gas lines at a certain concentration or even just a slow change in the pressure recorded.”

And yet the oil and gas industry has a long way to go to realize all these potential benefits. As Forbes’ Venables notes, although over half of the 100 biggest oil industry players have demonstrated they use predictive analytics in their operations, this leaves 43 percent that have yet to do this.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play