5 Ways the Oil & Gas Industry Can Use Technology to Reduce Development Costs

by Engineering Geek Expert in industrial engineering including piping,

Leaders in the Oil & Gas industry are constantly looking for ways to lower costs with business process management. It includes surveying components of a large refinery project that offers the best opportunities for cost-cutting. Firstly, it requires substantial manpower which is costly. Secondly, if the surveying takes longer, it can delay the entire project timeline, which in turn, extends the wait time for the project to become profitable.

Fortunately, there are advanced technologies that can be leveraged to drive time and cost-efficiencies in the surveying process. In this article, I’ll take a look at 5 technologies that can be used to reduce development costs:

1. Drones & Robots

Drones can conduct aerial inspections of expansive areas and hard-to-reach equipment remotely. They are easy to operate, more efficient than humans, and greatly reduce the risk while ensuring the safety of workers.

The use of unmanned aerial vehicles or remote-controlled robots eliminates the need to employ humans for supervision and cuts down on the travel time while improving accuracy and productivity. They can also be used to accomplish risky or tedious tasks much faster.

For instance, robots can conduct inspections and connect the drill pipes in oil rigs within a matter of few days as opposed to the rope-access technicians who take weeks to complete the same task manually. This can save a lot of time and considerable human effort while greatly reducing the possibility of costly mistakes and time-consuming rectifications.

2. Artificial Intelligence

Artificial Intelligence can be easily incorporated into the traditional equipment used at oil rigs. An AI-powered rig that can forecast weather conditions integrates computational abilities and other features to boost operational efficiency ensures higher reliability and safety.

It also triggers advanced warnings in case of issues that can lead to lost wells or result in equipment downtime. The high productivity levels of intelligent rigs allow Oil & Gas companies to use fewer rigs in the first place and save considerably on purchasing, installing, and maintaining equipment.

Another application of AI in oil rigs is the use of smart bits. Their multidimensional cutter technology makes drilling much faster and more efficient. Plus, the smart bits can easily detect different rock layers and adapt to any job, whether it is onshore or offshore. They are relatively more stable with their rate of penetration and have a longer lifespan, which means big savings on repair and replacement costs.

3. Natural Language Processing

Another opportunity to reduce expenses revolves around eliminating some of the biggest disruptors of oil and gas operations. Invisible lost time & non-productive man-hours can roughly cost billions of dollars in lost revenue for an offshore rig.

The invisible lost time can have an even bigger impact on the bottom line if the processes are not in place. Even small inefficiencies can accumulate and eat away at the profit margins. Fortunately, natural language processing can be used for end-to-end analysis of activity logs to maximize production.

NLP generates actionable insights that rig operators can use to understand how the time, effort, and resources are being spent. This technology can efficiently classify rig activities and label each with a code for quick and easy analysis that is more accurate when sorting through information.

When a complex and labor-intensive process is automated, operators can shift their focus to other more important tasks and help the company reduce cost and accelerate production. While NLP does not eliminate the need to employ human operators, it surely brings significant productivity gains.

4. Cloud Computing

Cloud computing has changed the way oil & gas companies handle their data, by giving users any time, anywhere access to information. This easy access is especially helpful to operators who need to supervise all the workflow that does not take place under the same roof and can be costly to monitor.

With cloud computing, all the data can be securely stored for analysis and accessed from any device. Your team can stay on top of the production process from their smartphones and address issues on site, with all the data they need to make informed decisions.

This level of transparency and accuracy enables them to complete the work faster and optimize the production process. Having all the vital data at their fingertips, without having to visit every project site makes it much easier to streamline supervisions and equipment maintenance.

5. 3D CAD Modeling

The importance of 3D CAD modeling cannot be understated when it comes to the operations & maintenance of oil and gas projects. Given the increasing competition, fluctuating energy prices, and escalating costs, there is immense pressure on Oil & Gas companies to increase profits with leaners costs and faster turn-around times. This is where 3D CAD Services can help you create a competitive edge.

It helps reduce iterations with highly accurate pipeline design and instrument diagrams. With better visualization, it enables the project teams to make the right decisions and avoid costly rework. From ensuring compliance with applicable codes to delivering high-quality designs at a tight deadline, 3D Cad Services facilitate every stage of development from conceptualization and planning to design and documentation.

Building a model empowers project leaders to implement a plan that saves time and ensures optimum use of resources while reducing rework and cost.

To Conclude

The Oil & Gas industry must innovate in these unprecedented times and take swift actions to cut costs and stay competitive. Technology can prove to be a vital tool for strategic cost savings and increased efficiency. Working with an experienced partner that provides 3D CAD Services can help you gain an end-to-end view of the project and take advantage of the powerful technologies mentioned above.