The oilfield industry has gotten an upgrade by using innovative technology. Although new, the concept has already proven itself beneficial in many ways. From easing day-to-day operations to generating more profits, digital oilfield is the future for many investors.
The term “digital oilfield” refers to a sector of the world’s energy industry that utilizes data analysis and advanced software. Digital oilfield uses these two elements to provide better profitability for the business owner and improve output. It involves the use of downhole tools in Oklahoma and other locations. The oilfield industry first adopted this concept in the early 2000s.
The digital oilfield industry is a suite of complementary and interactive technologies that enable companies to collect and interpret data throughout the job site. It incorporates “intelligent wells” that have fiber-optic sensors embedded in the drilling apparatus. It can be operated manually by laborers on the surface. It can also be controlled automatically via a closed-loop information system.
It has brought the following benefits ever since:
Understand the advantages
Oil companies now have data supplied by their IT experts. This data will be helpful in increasing the return of investment. Aside from that, the gathered data will also help oil companies stay ahead and rival with its competitors. This will also determine whether they need more downhole tools for their operations or not.
Fast Transfer of Data
In this age where internet is everywhere, it’s only fitting that the oilfield industry makes use of it. The fast transfer of data makes it easy for one oilfield site to communicate with another. This minimizes the need for people to travel in cases where inspection is necessary. In addition, most pieces of information can be delivered in real time. This helps managers in making on-the-spot decisions and minimizes the various problems often encountered by laborers.
If an oilfield company requires people to oversee or inspect downhole tools, it can be done without travel expenses.
Improve Efficiency and Reduce Costs
The fast transfer of data will translate to reduced costs. Digitalization will also help improve productivity and increase the return of investment. This also reduces cycle time, which is highly appreciated in any business.
Digital oilfield is fairly new, but it has already done so much for business owners and employees alike. Even if most digital oil field technologies are particular to the oil industry, this rich-in-data approach could be relevant in any sector driven by engineering, especially those that experience similar labor crisis.
The digital oil field is a necessary catalyst for the industry. Without it, gas and oil companies will be caught in between the growing demand for oil and the opposing pressures of a shrinking labor force. This system is not a panacea, but it can be another way to develop innovations. It can help companies reach previously off-limits reserves safely and inexpensively in order to meet the universal demand.
One of the biggest hurdles when implementing the digital oil field or other similar systems is getting the employees to embrace the new operating method. If you want to know more about the industry, start by learning the tools they use in day-to-day operations.