$250 billion in the oil and gas industry to be unlocked by satellite connectivity.
The oil and gas industry is no exception to digitalization. For years, the industry has faced challenges such as falling prices, geopolitical uncertainties, and greater demands for climate action. Today, the oil and gas industry is moving towards a more digitized and connected future to overcome obstacles.
Satellite connectivity is emerging as a game-changer, with the potential to unlock up to $250 billion in value for the industry's upstream operations by 2030, according to McKinsey.
The same study also indicates that Low-Earth orbit (LEO) satellites and 5G technologies will have a major impact of $70 billion on the oil and gas industry.
In 2020, offshore operations contributed to a quarter of oil and gas production, yet many onshore sites remain inadequately connected with outdated technology covering 40% of production. The lack of IoT connectivity affects as well, mature oil and gas producers like the Middle East or Mexico, leaving three-quarters of the world's oil and gas with connectivity challenges.
Nils Compier, Sateliot’s Head of Roaming: “The oil & gas industry is facing many challenges: They need to meet a growing number of more stringent environmental regulations; manage the reliability of equipment, and reduce and control spill, just to name a few. The use of IoT technologies is pivotal for dealing with these challenges. At the same time, minimizing costs to remain competitive is key.”
In the pursuit of a digitized future, cellular-connected devices play a pivotal role. Internet of Things (IoT) devices gather data from diverse sources, enabling real-time analysis for better-informed decision-making and safer work environments. The adoption of IoT in oil and gas is inevitable, requiring robust connectivity solutions to support devices, regardless of their location.
The implementation of 5G satellite technology across the entire value chain has the potential to optimize and automate processes.
So, how are IoT applications transforming operations in the oil and gas industry?
- Sensor-Based Tank Monitoring:
Cloud-based dashboards monitor real-time equipment performance and inventory levels. Automatic dispatch of trucks based on tank levels improves efficiency and reduces downtime costs.
- Acoustic Operations Monitoring:
Inexpensive IoT acoustic sensors continuously analyze oil composition and flow rates, reducing equipment use and enhancing operational planning.
- Seismic Exploration Sensors:
Fiber optic-connected IoT sensors aid oil exploration by mapping subsurface drilling sites and optimizing operational output.
- Drilling Optimization:
Integration of IoT devices reduces drilling costs by half through advanced analytics and semi-automated field operations. Real-time monitoring and predictive maintenance enhance drilling efficiency and equipment lifespan.
- Pipeline Asset Management:
IoT-driven solutions improve asset management, predictive planning, and risk management, offering a competitive edge.
Does any of these IoT applications relate to your business?
Sateliot's 5G satellite connectivity emerges as a key enabler of oil and gas data-driven approaches promoting sustainability through long-term resource management strategies. Book a free trial of our service!
