How predictive, data-based approach helps in minimizing unplanned downtime in the oil and gas industry.

For the oil and gas industry, the business environment is always changing, with the cost of crude, for example, ranging from a low of less than $20 in inflation adjusted currency to a high of $120-$160 and back again more than once over the years. What has not changed is the need to maximise asset performance and return on investment. Achieving this requires getting the most out of technology for those concerned with upstream, midstream, or downstream oil and gas resources. 

Automation and Industrial Internet of Things (IIoT) technology solutions provide a way to attain these goals while addressing market volatility, safety, and regulatory issues. Technology can help optimise resources by improving equipment reliability and uptime, as well as extending the effectiveness of the workforce.

The key to success is to follow best practices, which can be broken down into three steps: 

• Have the right workforce – this category includes management and company staff, as well as a technology partner that can supply needed expertise.

• Have the right plan – this step involves a realistic assessment of the current situation and a strategy to get to the desired destination.

• Have the right equipment – this phase centers on the hardware, peripherals, and other gear that will support the workforce when executing the plan.

Following these steps can lead to a successful technology rollout and some major competitive advantage.

Use cases and benefits of predictive maintenance and remote monitoring

Before getting into such aspects, though, it helps to examine what the benefits can be, thereby providing an answer to the question of: “Why implement automation technology?” The payback breaks down into a number of different areas: 

• Improved maintenance

• Increased productivity by avoiding downtime

• Real-time production data, leading to data-driven solutions

• Reduced production costs, and

• Optimised and protected assets.

The impact of these areas varies depending on which part of the oil and gas industry is being discussed. Also, the various categories have some overlap. Take, for instance, the first three, which play a role in results of a study from Kimberlite International Oilfield Research. 

The international oil and gas market research and consulting firm found that offshore oil and gas organisations experienced a $38 million hit annually due to about 27 days of unplanned downtime. 

The worst performers saw a bottom line drag of more than $88 million as a result of even higher levels of downtime. 

Part of the reason for this performance is the result of another nugget from the Kimberlite research: about three fourths of organisations surveyed were engaged in reactive or time-based maintenance. Companies that took a reactive approach waited until something broke to fix it, a tactic that maximises unplanned downtime when it occurs. The companies following a time-based approach replaced gear on a schedule. However, according to research from the ARC Advisory Group, only 18 percent of asset failures are due to increased use or age. So, this method only somewhat reduced downtime and likely resulted in higher equipment expenditures. 

Predictive maintenance, in contrast, collects data from pumps and other assets to spot impending equipment failure before it happens. Sensors and analytics, for example, can identify pumps that are on the path to failure by picking up minor changes in machine vibration characteristics, which can appear weeks or months before failure. 

Operators who used a predictive, data-based approach, the Kimberlite study found, saw unplanned downtime drop by 36 percent as compared to those engaged in reactive tactics. This led to an average $34 million boost to the bottom line annually

More use cases and a more complete discussion of the benefits of a predictive approach can be found in Advantech’s eBook “Overcoming Oil & Gas Industry Challenges with Hardened IIoT Technologies.” What is clear is that the power of predictive maintenance and remote monitoring makes the implementation of automation technology well worth the investment.

Readmore:https://advantechfiles.blob.core.windows.net/cms/31edbbcd-788e-4848-97a2-6d2173c962a7/eCatalog%20PDF%20File/eBook---Best-Practices-for-Automation-in-the-Oil-Gas-Industry---reduced-file-size.pdf

References

1. https://www.macrotrends.net/1369/crudeoil-price-history-chart

2. https://www.kimberliteresearch.com/
______________________________________________________________________________________________

For a deeper dive into the dynamic world of Industrial Automation and Robotic Process Automation (RPA), explore our comprehensive collection of articles and news covering cutting-edge technologies, robotics, PLC programming, SCADA systems, and the latest advancements in the Industrial Automation realm. Uncover valuable insights and stay abreast of industry trends by delving into the rest of our articles on Industrial Automation and RPA at www.industrialautomationindia.in