Ebook Oil And Gas Challenges

Overcoming Oil & Gas Industry Challenges with Hardened IIoT Technologies With concerns on safety, security and the bottom line, oil & gas companies are feeling the pressure. How can emerging IIoT technologies help move the industry forward while helping to overcome every day challenges?

Intelligence at the Network Edge

challenges facing the oil & gas industry Whether dealing in upstream exploration and production or downstream refineries, pipelines and oil companies are feeling the pressure to implement new networking technologies—especially as other industries are utilizing these new connectivity technologies to improve and stay competitive. Innovations from the push of the Industrial Internet of Things (IIoT) have the ability to bring cost savings, streamlined operations, overall increased business visibility and much more, but the hesitation to transform is real. The concept of connected oil fields and pipelines does indeed present new challenges in security and system implementation, but these challenges don’t outweigh potential benefits for today and the future. Simply put, the IIoT offers the ability to integrate sensing, communications and analytics capabilities. As network connectivity solutions continue to grow and advance, the benefits of edge devices, wireless technologies and more cannot be ignored. Advances in safety, security, affordability and maintainability now enable organizations and businesses to take full advantage of wireless technologies, especially in challenging industrial environments, such as those in oil and gas. The promise of the IIoT for the Oil & Gas Industry (O&G) isn’t necessarily in directly managing existing assets, but more on a new asset: information on all elements of the business and operations. According to Forbes, major O&G companies are already taking steps to increase overall growth and mitigate future risks by harnessing the power of these IIoT technologies onshore. With the power of big data analytics, these companies are increasing productivity of wells and personnel. This increase in productivity is helping contribute “to global supply adequacy with stable oil and gas prices as they did from 1945 (when the U.S. was last the largest international oil producer) through 1970.” (https://www.forbes.com) Implementing a network modernization strategy will enable O&G companies of all sizes to overcome daily challenges and meet future challenges successfully— while also improving company agility and taking a competitive stance in the industry. Through legacy system modernization and real-time analytics and monitoring, companies big and small can leverage advanced digital technology to drive efficiencies and open new opportunities. This could mean utilizing data analytics to optimize production, remote monitoring for predictive maintenance, virtual simulations for improved efficiency and much more.

how much does downtime cost oil & gas companies?

$8 Billion per year

This is the estimated loss per year in non-productive time as engineers spend 70% of their time searching for and manipulating data, according to Teradata* *https://www.teradata.com/Industries/Energy-and-Natural-Resources

prevention and planning benefits of automated and secure operations Oil and gas operations are asset-rich in remote, hazardous environments, making equipment and personnel safety and reliability especially important. In this complex operations environment, leveraging industrial big data and automation allows for a simplified infrastructure combined with visibility into every day operations. With this visibility, it’s now possible to cost-efficiently manage all systems across private, public and multi-cloud environments. This shift to information-based value — in addition to the availability of cost-effective sensors, advanced LTE and wireless networks and more — has collectively opened the doors for Big Data that the industry can swiftly collect and analyze. Some of the top benefits of implementing IIoT networking technologies include the following: 1.

The option of predictive maintenance (PdM) in remote locations

PdM relies on the continuous monitoring of asset performance through sensor data that can provide advanced warning of equipment problems and failures. According to research by the ARC Advisory Group, only 18 percent of asset failures had a pattern that increased with use or age (www. arcweb.com, 2015). This means preventative maintenance, such as regular equipment upkeep and maintenance checks, is not sufficient on its own. A more advanced approach, such as PdM, is necessary to avoid operations downtime and maintain on-site safety. We’re shifting from time-based preventative maintenance to condition-based maintenance strategies. 2.

The cost of equipment failures $10 Billion Lost Per Year in Fuel Leaks This is the approximate annual loss due to fuel leaks and thefts in the U.S., according to Ayata Prescriptive Analytics based on a customer profile (https://ayata.com/industries/oilgas/)

Lower costs when you streamline operations

Utilizing advancements — such as smart sensors, LTE gateways, wireless monitoring, wireless mesh networking, big data and more — companies can increase active operations time, making improvements in efficiency. These small improvements aren’t trivial; they can make a notable economic difference. The data to make these decisions is also prompt and more accurate than previous methods due to its timeliness. With IIoT integration, the oil production can be captured in real-time through embedded sensors and the right automation of data communications systems. Companies can gather information from assets anywhere and make informed decisions. In addition to technical advantages, having diverse sets of data can help gain insights into all aspects of the business that can help uncover areas of needed improvements. 3.

More focus on the business, less on operations

With predictive maintenance and analytics in place, as well as available data showing the ins and outs of every day operations, less time needs to be spent on day-to-day issues. With remote monitoring, it also helps avoid having to constantly be on-site: less travel and less potential dangerous work for personnel. Additionally, leveraging the capabilities of IIoT can reduce troubleshooting time from days to minutes, which leaves more time to spend on other operational aspects of the business. 4.

A true competitive advantage

Facing bottom-line challenges, such as lower oil prices and inefficient approaches to maintain assets, the O&G industry is beginning to see the IoT’s importance to future success: lower operation costs, business streamlining, increased safety, predictive and business analytics, etc. According to Oxford Economics, industry-wide adoption of IIoT could increase the global GDP by as much as 0.8 %, or $816 billion in the next decade (www.oxfordeconomics.com). The financial gains of cost reduction and saved time will be invaluable as the industry becomes even more competitive.

do you need class 1, division 2 rated devices? Class I, Division 2 safety certification is a mandated requirement for devices in many industrial applications, and for good reason. A Class I, Division 2 (C1D2) hazardous location is defined as an area in which flammable gases, vapors or liquids may potentially be present. Various hazardous applications may include: oil field drilling; pump station monitoring; chemical plants; oil pipeline monitoring; tank storage monitoring; fuel station management and more. When it comes to these hazardous areas, all networking technology devices need to be manufactured and designed for the rugged environment. Make sure to look for the C1D2 rating. Class I, Division 2 locations are those where: 1.

In which volatile flammable gases, flammable liquid — produced vapors, or combustible liquid — produced vapors are handled, processed, or used, but in which the liquids, vapors, or gases will normally be confined within closed containers or closed systems from which they can escape only in case of accidental rupture or breakdown of such containers or systems or in case of abnormal operation of equipment, or

2.

In which ignitable concentrations of such gases or vapors are normally prevented by positive mechanical ventilation and which might become hazardous through failure or abnormal operation of the ventilating equipment, or

3.

That is adjacent to a Class I, Division 1 location, and to which ignitable concentrations of such gases or vapors above their flash points might occasionally be communicated unless such communication is prevented by adequate positive- pressure ventilation from a source of clean air and effective safeguards against ventilation failure are provided.

use cases at a glance Oil Fluid Monitoring with LTE Technology The Challenge: Commercial oilfield production sites, with their uniform tanks and neat rows of piping, look deceptively simple. Within and beneath these systems there is an incredibly dynamic chemical environment which, if un-checked, will quickly lead to premature equipment wear, lost productivity and potentially lethal poisonous gas. Until recently, fixed rate or “one size fits all” chemical application methods have been used to address oilfield fluids with fluctuating chemistries, which negatively impacts well production and equipment longevity.

The Solution: By integrating on-site monitoring and data collection and cloud-based analytics within a robust hardware package, ReStream’s ProStream Production Monitoring Platform automates the chemical application process based on what is happening at each site. The on-site monitoring and precision chemical dosing relies on a rock-solid network connection, which is why ReStream relies on B+B SmartWorx LTE routers for the link between remote ProStream systems and cloud application. The SmartStart’s on-board Wi-Fi radio provides a local connection for on-site technicians and in some cases, an access point for monitoring equipment spread throughout a well site. With a reliable LTE connection from B+B SmartWorx, ReStream delivers on its commitment to gather more data, identify more problems, and offer more solutions.

Monitoring Oil & Gas Equipment in Hazardous Environments with Wireless Mesh Sensing The Challenge: A major oil company was looking for a non-invasive way to monitor equipment in its terminals, such as large tanks, pumps and other outdoor equipment. The company needed to monitor tank conditions, pump status and additional equipment all with little disruption to existing process controls to maintain safety and avoid process downtime. Additionally, the company needed the data sent to its OSI PI database. The outdoor monitoring area presented additional challenges. All sensors and associated monitoring equipment needed to be non-invasive, be easily installed and utilize wireless communications. Other environmental challenges included outdoor areas with large, metal obstructions throughout. Communications to and from sensors needed to be extremely reliable. To meet safety requirements, all monitoring devices also had to be rated for outdoor and hazardous environments.

The Solution:

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To meet the challenges of the application, the company decided to utilize the Wzzard Wireless Mesh product family from Advantech B+B SmartWorx. The Wzzard Wireless Mesh solution provided a stable, wireless platform to connect sensors to an Advantech B+B SmartWorx SmartSwarm Gateway. The Gateway seamlessly runs third-party data connector software to send data to the company’s OSI PI server. Wzzard’s SmartMeshIP wireless mesh provides a stable, reliable connection even in difficult RF conditions. All Wzzard Industrial Nodes are rated Class 1, Division 2 for hazardous locations, rated IP67 for outdoor use and UL listed. Advantech B+B Smartworx supplied clamp-on current sensors, thermocouples and vibration sensors for monitoring condition of pumps, motors and gearboxes. Additional sensors, such as pressure, flow and tank level, were provided by third-party vendors and easily connected to the Wzzard nodes. The Wzzard Wireless Mesh product family is the only monitoring solution available on the market that combines the reliability of SmartMeshIP with a rugged, industrial-rated enclosure. Additionally, the entire solution is easy to install, utilizing non-invasive sensors. Another perk is Wzzard’s battery operation option; devices don’t require electricians and expensive wiring to operate. If the sensors themselves require power, there are also solar options available. These advantages, along with a versatile SmartSwarm Gateway, provided a complete IoT solution that met all of the customer’s requirements.

Cost-Effective Remote Monitoring Designed for Rotating and Reciprocating Equipment Many Industrial IoT solutions focus on monitoring either extremely expensive equipment, or equipment that requires material replenishment: specialized gases, packaging material, even carwash detergent. Unfortunately, this means a large portion of industrial machinery misses out on the analytics, maintenance and workforce optimization that IIoT applications provide. Fortunately, Windrock’s Spotlight Monitoring System allows operators to create an affordable, easy-to-install monitoring system specifically designed for rotating and reciprocating equipment. The system is composed of: •

Spotlight Peripheral Universal Connection (or PUC) magnetic mounted sensors send data over wires to the:

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Spotlight Controller that acts as the central nervous system and transmits communicates over Wi-Fi with the:

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Spotlight Gateway, based on the B+B SmartWorx SmartFlex LTE router, which connects to the Spotlight dashboard and other Windrock analytics tools over LTE.

The SmartFlex LTE router acts as a Wi-Fi hotspot for the Spotlight PUC sensors. It was an ideal choice for the Windrock Spotlight System for the following reasons: 1.

Carrier-flexibility means the SmartFlex operates on all major networks in North America

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C1D2 and ATEX certification enables the SmartFlex to be used in hazardous oil and gas environments

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SmartFlex is an open, Linux-based system designed to host custom software applications

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SmartFlex uses an industrial temperature rated Wi-Fi radio which supports in harsh industrial environments

5.

Microsoft Azure certification ensures sensitive data is protected

solutions for oil & gas industry networking Throughout energy production and distribution infrastructures, Advantech B+B SmartWorx is there. We have experience serving the full spectrum of energy industry applications, whether upstream exploration and production or downstream refineries, pipelines and local gas stations. We bring wired and wireless networking expertise into all types of harsh and hazardous environments. Whether you’re building a new system or expanding or reorganizing an existing one, Advantech B+B SmartWorx can help you envision a new network configuration and install the right data communication solutions and products.

We offer M2M solutions for oil and gas industry applications for trouble-free connectivity and data communications: • Class 1, Division 2-rated products • LTE routers • Wireless radio modems and remote I/O • Wi-Fi routers, bridges, serial servers, embedded modules, access points • Ethernet switches, routers, extenders • Ethernet wserial servers, gateways • Ethernet media converters, chassis products • Serial converters, repeaters, isolators, surge protectors, cards • USB converters, hubs, isolators, surge protector • Turn-key and custom engineered solutions

SmartFlex: a flexible, class 1/division 2 LTE router ideal for oil & gas The SmartFlex LTE-WiFi Gateway from Advantech B+B SmartWorx provides secure, carrier-flexible connectivity for devices and LANs via LTE networks. The gateway can be used to provide automatic wireless failover for wired networks, wireless connectivity for mobile assets, and wireless connectivity for devices in remote locations where cable connections are impractical. SmartFlex is rated Class 1/ Division 2, meeting requirements for hazardous environments. These features and more are making SmartFlex the ideal solution for many Industrial IoT applications focusing on monitoring either extremely expensive equipment or equipment that requires material replenishment. A secure Web interface allows users to configure and manage the SmartFlex from remote locations. The router can also upgrade its configuration and firmware from the operator’s central server, allowing for simultaneous mass reconfiguration of every router on the network. Users may insert Linux scripts and they can create multiple configurations for the same router. Users may switch from one configuration to another at any time.

Designed and Manufactured Tough The SmartFlex is designed and manufactured for use in tough environmental conditions. Specifications include wide operating temperature ranges from -40°C to +75°C (-20°C to +60°C LTE450 module). It accepts input voltage ranges from 10 V DC to 60 V DC and is equipped with sleep mode for reducing electrical consumption.

Safe and Secure •

Real-time data encryption and the creation of VPN tunnels using IPsec, OpenVPN and L2TP

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Support for DHCP, NAT, NAT-T, DynDNS, NTP, VRRP, control by SMS and numerous other functions

Powerful •

Full support for LTE

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256 MB flash memory, 512 MB RAM and 128kB M-RAM

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Upload speeds of up to 50 Mbit/s and download speeds of up to 100 Mbit/s

want to learn more? visit us online at http://advantech-bb.com/SmartFlex

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