Market Outlook for the Digital Oilfield Vertical

Digital Oilfield- Oil and Gas Industry

Digital oilfield is the concept that combines business process management and digital technologies. Systematic technology automates workflow and maximizes productivity. Through this technological development the overall risk of oil and operation has been optimized. The inclusion of digital oil fields is expected to increase the competitiveness and stability associated with the oil and gas industry.

The performance of an oilfield can be replicated through a digital twin typically designed to upgrade the upstream sector. The technology aims to improve the attractiveness of the oil and gas sector by transforming information technology and operational technology. The integration of ICT-based solutions into industrial processes is then expected to optimize outputs associated with the manufacturing system. A digital oilfield is primarily used in a low oil price environment. digital oilfield technology is an amalgamation of iot (Internet of Things) as well as AI (Artificial Intelligence).

Digital oilfield technology enables information to be relayed from onfield operations to remote locations. Hence, marginal reduction in human intervention within refineries is expected due to adoption of digitization. The technology allows users to collect, analyze, and conduct operations based on the information gathered by a network of IoT-based sensors.

Advances in technology, sensing and connectivity and data analytics have driven the growing digital oilfield technology. According to research, this technology has been rapidly adopted in the last 15 years. The growing need for workflow automation and digitization within the oil and gas sector is expected to fuel the growth associated with this market.

Digital oilfield technology allows the end user to achieve productivity gains through improved reservoir understanding. Remote monitoring of other operations such as drilling is also expected to fuel the trend of automation within the oil and gas sector. However, digitization within refineries is limited due to lack of well-defined workflows and processes. Data capture from all production assets is further complicated by the reliance of legacy systems as well as remotely dispersed oil and gas fields.

The end users, i.e. oil and gas companies as well as service providers constitute the overall digital technology market. Companies such as BP, Shell, Chevron and Equinor are some of the end users of digital oilfield technology. Oil-field service providers such as Schlumberger, Halliburton, Baker Hughes and Weatherford are attempting to develop process optimization issues within refineries through increased investment in R&D.

Incorporation of this technology is expected to increase production and subsequently reduce operating costs. This is mainly due to low maintenance costs due to unplanned shutdown of process equipment.

Challenges facing the oil and gas industry

The bimodal age distribution of the workforce is considered one of the major ongoing challenges within the oil and gas sector. Many high complexity tasks are associated with a high operating cost. Therefore, digital oilfield technology replaces the existing manpower employed for certain tasks with digital solutions that increase overall process efficiency.

Future Trends Within the Digital Oilfield Chemical Market

Some of the key foundations for achieving digital oilfields are planning, designing and implementing these solutions to develop cheap and automated alternatives. Remote monitoring solutions help oil and gas producers visualize their operations through real-time sensing. This in turn marginally reduces the number of on-site operands. In terms of safety standards, the safety associated with each employee within a plate operation is increased as the number of operators on site is reduced.

Rapid pace of digitization and introduction of Industry 4.0 are expected to be one of the key drivers of this market. The inclusion of these industrial aspects is expected to bring new opportunities and challenges to this market. For example, obtaining usable data from equipment wells and facilities was perceived as a market challenge. This was mainly due to the enormous amount of data relayed by a system of sensors and computational equipment within a process.

The start of the data revolution creates new types of models and data-driven proxy models that enable engineers to understand and predict system behavior. This is mainly because reliable physics-based solutions are time intensive or non-existent in the case of some data-driven design complexities.

Automation is expected to be one of the major industry trends. The spread of digitization is anticipated to fully automate manufacturing processes within the chemical industry. Oilfield chemical industries are increasingly adopting solutions that increase the rate of adaptation within industries. On studying trade-offs, it is observed that automation-based solutions reduce the OPEX associated with an operational process.

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