As the price of crude continues to fall and the availability of places for oil companies to store oil shrinks, oil and gas companies are looking for ways to reduce costs and preserve profits. Operational efficiency is a familiar path—one that leads to layoffs, up to 75,000 coming at companies big and small as reported by Continental Resources. At the same time, some companies are looking inward to big data as a way to make operations and exploration more efficient. We’ve written about the large potential for big data to make buildings, for example, more efficient. And it’s clear that the value of big data lies in its context.
In the case of oil and gas, it is important to keep in mind how diverse this industry is. The use of data in oil exploration and production is wholly different from its employment in oil refining, distribution, and marketing.
Down the Stream
According to the panel members of a recent Cleantech Forum panel on the digitization of the Oil and Gas industry, there’s scant consensus on data models and formats in single business units, let alone across an entire company or the industry. The spread of digitization is not universal, either. This presents a clear challenge to the industry–data analytics are only useful when the data is consistently collected and, well, analyzed. But it also presents an opportunity. Any company that can figure out how to collect, integrate, and analyze data across the oil and gas stream—from wellhead to gas pump—will be able to unlock the potential of both operational efficiency and optimization. Those gains in efficiency will save money and help the companies achieve their sustainability goals.
A few companies are already testing that promise. WellAware is looking to bring IoT Oil and Gas by providing customers a view into production, conveyance, and processing of petroleum products. The Texas-based firm deploys sensors and gathers data from existing monitors to provide visualizations and analytics on system performance. To compete with OSISoft, an incumbent in oil and gas data collection and historian services, WellAware will provide hardware and advanced analytics—two offerings that OSISoft either does not offer or outsources.
A different approach, one based on large time series data analysis, is offered by Mtelligence Corporation and MapR, a provider of the powerful open-source Hadoop solution. Called Mtell Reservoir, the solution will focus on real-time and historical sensor data analysis to provide system managers operational insight. Given the large volume of data gathered in a drilling operation and the time it takes to load and analyze data, an in-stream solution will have great value.
These big data solutions are poised to give oil and gas operators greater intelligence and insight into operations. However, they don’t close the loop on operations, removing the need for people making decisions. This is due in part to the complex nature of drilling through multifaceted substrates and processing materials of varying quality. Production technologies like directional drilling and fracking have changed the oil and gas business and are in part responsible for the current low oil prices. Data analytics may help to stem the profit losses in the near term.