In this paper, we discuss these avenues as well as explore opportunities for operating IoT on an IP network to enhance operational efficiencies and improve processes.
Top Challenges in the E&R Industry
The global energy sector is characterized by complex and geographically dispersed operations, as well as an arduous work environment.
Companies need to focus on ensuring higher operational efficiencies to reduce uncertainty and risk in the future. There is also a growing need to further develop and transform the energy system due to unsustainable pressure on natural resources and high energy prices.
Companies are increasingly trying to control production costs as these further burden the end-users, making internal efficiency even more vital. Also, strict health and safety regulations have made ensuring worker safety and health a top priority.
Growing Focus on Technology Investments
There is evidence of wide ranging technological innovation in the E&R sector, previously considered a conservative and slow-moving industry. The investment and focus is now on new areas such as Big Data, cloud computing, mobility and sensor technologies with the objective of ensuring system reliability, reducing costs, and driving efficiencies.
Leveraging the Internet of Things to Improve Efficiencies
Recent trends indicate that E&R companies are addressing these challenges by leveraging the Internet of Things (IoT). The IoT operates through IP-connected sensors powered by a Big Data based analytics framework and wireless networks and is hosted on a cost effective cloud solution. It offers completely new ways to enhance productivity.
- Managing ownership transfers
- Ensuring road transport efficiency and safety
- Monitoring asset performance and usage
- Detecting gas leaks
IoT has the potential to improve the productivity of the E&R organization. Its ability to support remote operations and real time vigilance enhances efficiency, operational safety, and environmental responsiveness. Real time information exchange and on-sensor or device analytics promise to deliver tremendous business value. Factors such as decreasing sensor cost and low cost cloud hosting solutions serve as further impetus for the E&R industry. They allow industry players to go beyond M2M systems and leverage IoT to devise cost effective and efficient solutions to their biggest challenges.