Challenges Faced by Oil and Gas Industry Being Tackled by Analytics
The oil and gas industry is facing many challenges as the Europe Brent crude oil price is back below $50. The CBOE Crude Oil Volatility Index, a key indicator of market expectations, and popularly known as Oil Vix, is hovering around 40.
“In the new era of low oil prices, it is pertinent that oil and gas operators are able to contain the cost of operations,” shares Nav Dhunay, CEO of Ambyint. “Analytics could help oil and gas companies improve efficiency by 10 to 15 percent.”
Nav Dhunay and many other entrepreneurs have turned to technology to solve oil and gas challenges. Analytics is an area that some companies are using in order to improve operations and project delivery. In the future, many more companies will be utilizing analytics.
Operational costs are also being addressed. Pump jack and ESPs form the majority of solutions used in the oil and gas industry, and they work efficiently thanks to maintenance personnel who have to regularly visit all the pumps to ensure they are running properly. Unfortunately, while checking in on one pump, another pump might fail, which increases labor costs and leads to equipment downtime.
Predicting when and if a pump is going to fail is the obvious solution, but the issue continues to plague the industry. This is because no two pumps experience the same set of operating conditions. Analytics can optimize ESP’s pump speed, enabling the highest production possible. Proprietary algorithms can enable reduced mechanical loadings and offer higher efficiency.
There are many other ways analytics can be used, and there has been much progress in developing new technologies and finding new solutions to solve tomorrow’s problems. Dhunay aptly sums it up by saying, “Pumps are entering the age of analytics. Buzzwords are changing constantly. In the next few years, there will be several revolutionary ideas, and it is very exciting to be on the cusp of change.”