The oil and gas industry is undergoing a revolution with the introduction of modern technology. Artificial Intelligence (AI) is being used to automate tasks, improve decision-making, and identify potential problems. This can help increase efficiency, safety, and environmental performance. To make the most of new technologies in production, a commitment to resources, collaboration, teamwork and leadership is essential. In the early stages, there is a need to increase security measures and better manage risks as operating costs continue to rise.
Every sector of the oil and gas industry has its own challenges, and how these challenges are addressed will determine where technology can be most beneficial. For instance, energy efficiency measures alone have the potential to reduce carbon emissions from reach 1 and 2 by about 20 percent, and most energy efficiency levers have a positive net present value, even before considering the potential cost of carbon taxes. Digital transformation has the potential to have a significant impact on the oil and gas industry, just as it has in many other sectors. However, few oil and gas companies have implemented digital technologies at the scale necessary to introduce significant improvements in the performance indicators that matter most to them. The global energy transition is likely to result in the closure of a significant number of assets across the oil and gas value chain in the coming decades, while all facilities are under pressure to improve efficiency and reduce their direct carbon emissions. Computerized systems on manned platforms can detect even small leaks in oil pipelines and monitor oil pressure and flow from command centers that operate 24 hours a day.
Oil and gas companies see opportunities to apply a wide range of technologies that are maturing rapidly, such as enterprise cloud computing, virtual and augmented reality, drones, and blockchain-based data sharing. The application offers daily questionnaires for team members and tracks their daily performance and compliance with new digital operating procedures. In Orange County, California, an oil spill believed to have come from a damaged pipeline connected to an oil platform off the coast has caused oil to reach the shoreline. Companies that make the conversion are expected to realize the greater efficiency offered by digital technology, as well as the benefits for the health and safety of their employees, as well as for the environment. The Pipeline and Hazardous Materials Safety Administration (PHMSA) focuses on oil pipelines and spills while an independent body - the Office of Safety and Environmental Control - is tasked with regulating offshore oil and gas installations and pipelines in the United States. The beach had been closed after an oil spill off the coast of Orange County but authorities allowed it to reopen starting Monday. Digital innovations are also being used to build, operate and maintain refinery resources more safely and effectively.
These problems have persisted despite programs that aim to reduce these concerns such as the Centers for Disease Control's National Institute for Occupational Safety (NIOSH) Oil and Gas Extraction Program.