The sensors continuously relay real-time data to the receiver. Preventive maintenance (PM) is continuously monitoring certain parameters of the equipment, like vibration, temperature, oil levels and those parameters which are critical to the operation of the equipment, through sensors. This in itself is a huge field of application of IoT. IoT could be used to help reduce NPT events by using real-time data to predict breakdowns and schedule preventative maintenance. The O&G industry loses billions of dollars every year due to non-productive time (NPT). From the trillions of dollars that are spent every year on exploration and production (E&P), a very small investment in IoT will reap huge benefits to the entire chain of petroleum operations. Basically, IoT covers the entire value chain of the Oil and Gas industry right from pinpointing the location and exploration of oil wells to refining crude oil to the transportation of oil through pipelines and trucks.
O&G companies around the world are now focussing on IoT to increase overall efficiency and decrease non-productive time as well as costs. It will play a significant role in lower operating expenses and increase the reliability of the complete production plant. IoT is the next step in the evolution of the oil and gas industry. In fact, refineries that have incorporated IoT in their operations are known as Smart Refineries. With the use of IoT, refineries can plan their shutdowns, minimize their downtime, and improve safety record. Refinery shutdowns, handling various grades of crude oil, and changing environmental regulations are pushing gross refining margins down to a bare minimum. Events such as these force the O&G companies to restructure their upstream, midstream and downstream operations. Currently, the oil price is hovering around $70/barrel. Since the last quarter of 2014 oil prices have plummeted from $100/barrel to less than $30/barrel in 2016.