The oil and gas industry is in the midst of turbulent times. The price of crude oil is on a roller coaster ride. Companies are finding it harder to predict their business plans, and the focus has been toward increasing operational efficiency and maintaining existing infrastructure. Exploration has taken the backseat for a while. In addition, there is an aging manpower base with almost a majority of them set to retire in the next 5–10 years.
To add to the worries of the oil and gas companies, environmental regulations are becoming tougher. Accidents have become very expensive and companies can no longer afford them; even small accidents now severely impact the future of the company. The industry is adapting to these new realities. Changes have already begun in the field installations, in the corner office, and across the oil and gas value chain—the change is called the Internet of Things (IoT).
What is IoT?
IoT is the practice of capturing, analyzing, and acting on data generated by networked objects and machines. The Internet, which was introduced to connect people, is now connecting objects to people and is constantly collecting, analyzing, and communicating data. It is becoming a sort of sixth sense for humans. The key drivers in adaptation of IoT are sensors, networks, storage, and big data analytics.