With the tumultuous market lately, it really shouldn’t be shocking to learn that companies are striving to find new ways to save money while keeping up production and revenues.
Of course, one huge strain for companies is equipment maintenance, specifically on-site human maintenance for storage and hydraulic fracturing-chemical facilities. The cost of hiring someone, giving them a company truck, and sending them out to the site to manually update the asset’s wellbeing… Things can get very costly costly.
In fact, the Energy Information Administration reported that these operating expenses reached $50 billion last year. The Society of Petroleum Engineers added that downtime for facilities being manually monitored was about 10%.
This kind of expenditure is not cost-effective with oil prices as low as they are now.
Enter WellAware, a two-year-old company that offers data collection hardware, wireless connections to data points, and data analyzing software.
Smart meters have been applied to numerous oil and gas facilities over the past few years, but WellAware is tackling another major problem with this Internet of Things spread: how to get the information back to the company.
You see, wireless data travel calls for cellular radios that send signals. Unfortunately, many of the most prolific shale plays do not have decent reception.
So WellAware is partnering with On-Ramp Wireless, a long-range connectivity provider. This company has plans to install long-range receivers over more than 55,000 square miles of the country’s most active plays, and the system will provide 99.9% data accuracy and capacity.
The increase in visibility for oil and gas companies will not only save them in labor and transportation costs, but also down-time for facilities and loss of production when facilities break down.
The oil and gas industry also stands to gain from private equity companies who will be more willing to invest in producers who are consistent and predictable in their returns.
The Internet of Things will be driven forward by industry, and the oil and gas markets will be more than happy to contribute.
To continue reading…
Click here to read the Rigzone article.
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
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