Digital oilfields allow oil and gas businesses and oilfield service providers to monitor and control production facility operations remotely.
FREMONT, CA: The most recent thematic research from GlobalData, titled 'Digital Oilfield,' presents a thorough analysis of the rising significance of digital oilfield technology in the oil and gas industry.
Digital oilfields allow oil and gas businesses and oilfield service providers to monitor and control production facility operations remotely. These technologies increase exploration and production (E&P) productivity and efficiency by minimizing equipment downtime and enhancing hydrocarbon recovery. This is especially critical in the current situation, where oil and gas companies are attempting to reduce costs to recover from the Covid-driven energy demand shock. Digital oilfields also eliminate the requirement for physical human deployment on-site, enhancing worker safety.
In 2020, the Covid-19 pandemic compelled enterprises to remove afflicted workers from manufacturing platforms, disrupting the availability of labor. This emphasized the necessity for remote monitoring of oilfield equipment, encouraging the oil and gas industry to prioritize digitization. Asset management to maximize investment returns is the primary focus. Companies are expected to employ digital twins and other technology to monitor every stage of the asset lifecycle to assure its longevity.
With the emergence of the Internet of Things (IoT), digital oilfield technologies have accelerated. To expedite decision-making processes, they leverage artificial intelligence (AI), predictive analytics, and visualization tools to generate data-driven insights in real-time. The adoption is most evident in hydrocarbon extraction projects that employ the most recent technologies and equipment. Companies seek to automate as many procedures as possible to avoid operational risks and labor hazards, which could result in long-term cost benefits.
The competitive environment of the digital oilfield is controlled by oilfield service providers and industrial equipment manufacturers that offer digital solutions and services to solve complicated business problems. Major oil companies such as BP, Shell, and Equinor have amassed a wealth of knowledge in developing digital oilfield technologies.