The oil and gas industry collects a lot of data, but has a poor record when it comes to analysis. A new report from ARC Advisory Group outlines the challenges.
Global oil and gas producers are under pressure to reduce cost and risk and doing so will require new approaches to data analysis in order to improve knowledge transfer for the workforce and improve operational efficiency.
A new report from ARC Advisory Group outlines the challenges and potential solutions for data analytics in the oil and gas industry. The report, “Building Effective Analytics for Oil and Gas,” was written by ARC analyst Michael Guilfoyle. It touches on a number of data collection and analytics issues that Xerafy has written about before, and that can be addressed by applying improved Big Data analysis to the information generated by RFID and other Internet of Things (IoT) solutions used for oil and gas applications. An recent example is the case with CNOOC, China’s largest offshore oil producer, who has chosen Xerafy’s technology to support its ambitious offshore output targets.
Like many other industrial markets, the oil and gas industry faces a large number of retirements of skilled, experienced employees. How can they transfer knowledge from these departing workers as they hire new people?
“In this cost – and human resource-constrained environment, companies struggle to maintain regulatory compliance, ensure employee safety, maintain continuous uptime, and sustain varied and often far-flung and/or aging production and automation assets,” Guilfoyle writes. “Data is also at the heart of this transition: it becomes the new oil, driving value from uncovered sources of wealth.”
However, while lots of data is collected, but not much of it is analyzed.
In part, this is because the raw data has to be cleansed and organized. Poor data input leads to bad analysis results – this is the “garbage in/garbage out” principle but amplified because of the sheer scale of the data needed to fuel these analytic systems. The data is often held in siloed systems. Scale is also an issue.
According to ARC, the oil and gas industry needs modern analytics tools that include:
- Methods for end-to-end management of data challenges specific to the oil and gas industry
- Incorporation of existing models and intellectual property to accelerate time to value of analytics
- Role-based knowledge transfer tools to ensure adoption and use of analytics by a range of users, ultimately broadening the value of the data
To learn more about Xerafy’s RFID solutions for oil and gas companies, and the role RFID plays in feeding these analytics systems, visit our website.