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Transactions of the Indian National Academy of Engineering
https://doi.org/10.1007/s41403-024-00464-9
1
23
REVIEW ARTICLE
The Role ofIoT inOptimizing Operations intheOil andGas Sector:
AReview
SauravKumarSharma1· AishaRani1· HardikBakhariya2 · RanjanKumar1· DevanshTomar1· SayantanGhosh1
Received: 26 October 2023 / Accepted: 20 February 2024
© Indian National Academy of Engineering 2024
Abstract
A vital sector of the global economy, the oil and gas sector, faces several difficulties due to its intricate supply chain. The
demand in the oil and gas sector is growing to lower costs, boost productivity, and lessen its carbon impact. The industry
has to find creative ways to accomplish these objectives. One implementation that can potentially change the sector is the
Industrial Internet of Things (IoT). This work examines the many IoT uses in the oil and gas supply chain upstream, middle,
and downstream activities. The paper also highlights the benefits of using IoT, such as real-time monitoring, predictive
maintenance, improved safety, and environmental compliance. This work also examines the difficulties in deploying IoT
in the oil and gas sector, such as security, dependability, and data management. The paper concludes by emphasizing the
need for the industry to adapt to these technological advancements and provides recommendations for successful IoT
implementation. These recommendations include a clear IoT strategy, collaboration between IT and operations, proper data
management practices, investment in cybersecurity, and continuous improvement. The potential for further optimization by
integrating artificial intelligence and machine learning is also discussed. Overall, this paper demonstrates that IoT has the
potential to revolutionize the oil and gas industry by enabling more effective operations and enhancing safety, environmental
compliance, and overall profitability.
Keywords IOT· Oil & gas· Health & safety· Oil theft· CO2 emission
Introduction
The oil and gas industry plays a significant role in the
global economy, providing fuel, oil, and gasoline products
essential for transportation, energy production, and more. As
demand for these products increases, oil and gas companies
must continually innovate to improve operations, increase
productivity, and maintain competitiveness.
One promising technology that can help achieve these
goals is the Internet of Things (IoT), which is based on
sensors and can gather and analyze data in real-time.
Figure1 shows a historic timeline of the Internet of Things.
In the oil and gas sector, IoT can improve efficiency, make
better decisions, and reduce risks to human health and the
environment.
For example, IoT can be used to increase the speed of
exploration and detection of oil, improve oil production,
and identify potential equipment malfunctions or operator
errors that could pose risks to safety. By implementing IoT
solutions, oil and gas companies can gain greater control
* Hardik Bakhariya
hardikbakhariya28@gmail.com
Saurav Kumar Sharma
saurav.19je0756@pe.iitism.ac.in
Aisha Rani
aisha.19je0075@pe.iitism.ac.in
Ranjan Kumar
ranjan27.19je0687@pe.iitism.ac.in
Devansh Tomar
devansh.19je0284@fme.iitism.ac.in
Sayantan Ghosh
sayantan@iitism.ac.in
1 Department ofPetroleum Engineering, Indian Institute
ofTechnology (Indian School ofMines), Dhanbad826004,
Jharkhand, India
2 School ofEngineering, UPES, Dehradun248007,
Uttarakhand, India
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over their operations and make more informed decisions
based on real-time data (Fig.2).
IoT is already used in various fields, including medicine,
agriculture, and the oil and gas industry (Abd Jalil etal.
2023). Therefore, IoT has the potential to change the world
in various fields beneficial for man.
Realizing the potential of IoT in the oil and gas industry
can also help address critical social problems and improve
control development processes. Using IoT to gather and
analyze data in real-time, oil and gas companies can improve
their operations, reduce risks, and maintain competitiveness
in a rapidly evolving market. As shown in Table1, there is
large gigabytes of data that is produced at different stages of
supply chain, and IoT can make use of all this data.
The Internet of Things (IoT) has a broad spectrum
of applications in the oil and gas industry, ranging from
preventive maintenance to asset integrity management
(Zanbouri etal. 2022). According to Jinhua etal. (2017),
intelligentization will not only increase labor productivity by
10% but also overall field recovery by 2–6%. Major impactful
applications include remote monitoring and tracking, reduced
risk and high security, and real-time oil tanker management.
There are multiple barriers in the path to its wide-scale
implementation, including lack of qualified workforce in the
industry, insufficient readiness for transformation, and others.
Fig. 1 A historic timeline of the
Internet of Things [Taken from
What is the Internet of Things
(Online). Available: https://
www. forti net. com/ resou rces/
cyber gloss ary/ iot]
Fig. 2 Shows various aspects of IoT [Taken from What is Industrial
Internet of Things (IIoT)? (Online). Available: https:// www. rfpage.
com/ appli catio ns- of- inter net- of- things- iot/]
Table 1 Amount of data generated during various processes
Section The amount of data
Drilling data 0.3GB per well per day
ESP monitoring 0.4GB per well per day
Wireline data 5GB per well per day
Fiber optic data 0.1GB per well per day
Seismic data 100GB per well per day
Plant process data 4–6GB per well per day
Pipeline inspection 1.5GB per well per day
Plant atmospheric data 0.1TB per well per day
Plant operational data 8GB per year
Vibration data 7.5GB per year per customer
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Applications
The Internet of Things (IoT) has become increasingly
popular in the oil and gas industry due to its various
applications at every level of the industry, including
upstream, midstream, and downstream operations. Figure3
shows the current digital maturity and goal mapping of
various sectors of the oil industry. This paper aims to
discuss the significant IoT applications in the industry,
focusing on the most important ones listed below.
1. IoT for Health, Safety, and Environmental Management
in the Oil and Gas Industry.
2. IoT in Cargo Shipping for Improved Tracking and
Logistics.
3. Preventing Crude Oil Theft with IoT Technology.
4. IoT in Smart Supply and Inventory Management on
Offshore Rigs.
5. IoT in Deepwater Oil and Gas Industry for Increased
Efficiency and Safety.
6. IoT in Drilling Management for Real-Time Data and
Analysis.
7. Controlling Gas Leakage in Refineries with IoT Sensors.
IoT forHealth, Safety, andEnvironmental
Management intheOil andGas Industry
The oil and gas industry use of IoT for health, safety, and
environmental management.
The three HSE-related issues are extremely important for
the Exploration and Production (E&P) sector and the society
it services (Koppel etal. 2023) just as they are for the O&G
sector. All operators and service suppliers must carefully
follow the HSE recommendations. Conventional wearable
devices and personal tracking systems have been used to
comprehend the degree of worker exposure to hazardous
chemicals or settings. These system indicators leave it up to
the worker or the supervisors to decide whether to abandon
a dangerous setting after the worker has returned from the
job location.
Fig. 3 Current digital maturity and near-term digital goal mapping for upstream operation [Taken from Slaughter etal. (2018)]
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These devices have developed and improved over time
and will continue to do so to raise labor safety. With these
tools, a few problems still need to be resolved. It does not
provide answers to issues like when the employee collapsed,
what transpired to cause the incident, whether the incident
could have been prevented had the analysis predictive ability
given the employee real-time insights, etc. This is where the
O&G industry IoT approach will be crucial. IoTs can help
us create a connected workforce that can reduce incidents
such as oil spills (Fig.4), improve workforce and asset
safety, and provide real-time or nearly real-time insights on
what is happening in the field for quicker and better data-
driven decision-making to maintain the score for all parties
involved.
Businesses will be able to gather data from different
devices thanks to IoTs. Data processing can be done locally
and distantly using the dispersed design for on-site and
remote data centers, allowing for fast and informed choices.
Using a wearable worker black box would allow for the
continuous monitoring of operations and safety through a
remote operation center and provide safety instructions in
undesirable circumstances, thanks to the increased storage
capacity and processing speed of chips (Svertoka etal.
2021).
The practical effectiveness and output of IoT systems
will increase with the addition of heart rate monitors, toxic
gas monitors, self-contained breathing apparatuses, silent
gesture monitors, and active motion sensors.
The data collected from such IoT devices through the
connected workforce network will become an essential part
of the E&P industry in the future (Fig.5).
Oil and gas are usually found in remote locations. These
sites are therefore more prone to hazards. The conditions at
these sites can cause hazard for the staff working there which
can be depicted by Heinrich accident triangle (Fig.6). IoT
solutions enable remote apparatus and operational tracking,
eliminating the need for unauthorized site visits by people.
The circumstance can be accurately described, and the best
action can be chosen with connected instruments and image
vision. IoT in the oil and gas industry can significantly lower
staff fatalities and injuries. Employee fatality rates in the oil
and gas industry are declining (Hussain etal. 2022), and IoT
can further decrease this number.
Accidents can cost companies money and damage the
reputation of the organization. By adopting IoT- driven
safety measures, oil and gas companies can give its
employees a safe working environment.
Methodology
The Internet of Things (IoT) can improve health and safety
in energy and gas areas. Hussain etal. (Hussain etal.
Fig. 4 The world’s most disastrous oil spills [Taken from “Oil Spills” (Online). Available: https:// www. pinte rest. com/ pin/ 28148 18490 531305/]
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2022) provides a basic implementation strategy for IoT
in this situation:
Determine possible dangers and risks: The first step
is to find the dangers and perils that employees might
encounter in oil and gas areas, such as exposure to toxic
chemicals or working at heights.
Choose the right IoT devices: Choose the right tools
to watch and reduce the risks after the hazards and risks
have been found. Wearable devices, for instance, can track
employees’ exposure to hazardous substances or determine
if a worker has fallen.
Install IoT hardware: The outdoor deployment of the
chosen IoT devices should happen right away. This could
entail equipping employees with wearable technology or
putting sensors on machinery.
Data collection and analysis: Data on different factors,
including temperature, pressure, and tremor, will be
gathered by the IoT devices. It is possible to analyze this
data to find patterns and trends that might point to potential
safety concerns. IoT devices can alert staff members and
managers if they identify a possible safety problem. For
instance, a boss may receive a notification if pulse rate of
a worker rises above a predetermined level.
Make a move: Once a warning has been raised, the
necessary steps can be done to address the safety concern.
For instance, if a person falls, emergency services can be
called and dispatched to the scene.
Continual development: Finally, outdoor safety practices
and processes can be improved with the help of the data
gathered by IoT devices. For instance, actions can be taken
to lower the noise level if the data reveals that employees are
frequently subjected to high noise levels.
Results forWorkers' Health andSafety
The oil and gas sector has shown that IoT technology has
a lot of promise for improving worker health and safety
outcomes. The conclusions and outcomes below show how
IoT has improved health and safety in this area.
Real-time monitoring: IoT devices have the ability to
watch people and machinery in real-time, enabling the early
identification of possible safety or health risks. For instance,
wearable technology can track workers' vital signs like heart
rate and body temperature and alert supervisors if anything
seems unusual.
Predictive maintenance: By monitoring equipment and
identifying when maintenance is required, IoT devices can
lower the risk of mishaps brought on by malfunctioning
equipment.
Remote monitoring: IoT technology makes it possible to
watch employees, machinery, and hazardous environments
without having to be personally present. Accident and injury
danger may be decreased as a result.
Improved communication: Faster emergency reaction
times are possible thanks to improved contact made possible
by IoT devices between employees and managers.
Data analytics: Trends and patterns that can be used
to enhance safety measures and practices can be found
by analyzing the data gathered by IoT devices. In general,
the use of IoT technology can greatly enhance health and
safety results for those working in the oil and gas industry.
Fig. 5 An IoT‐based health,
safety, and environment
framework in the oil and
gas sector [Taken from IoT
revolution in oil and gas
industry (Priyadarshy 2016)]
Fig. 6 Accident triangle of Heinrich [Taken from “The accident
triangle explained” (Online). Available: https:// www. quent ic. com/
artic les/ the- accid ent- trian gle- expla ined/]
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IoT can assist in identifying possible safety hazards and
health risks before they materialize by offering real-time
tracking, predictive maintenance, remote monitoring, better
communication, and data analytics.
IoT inCargo Shipping forImproved Tracking
andLogistics
The petroleum industry is a critical part of the global
economy, fueling transportation, heating, and power
generation. The transport of petroleum products is a complex
and challenging process involving the movement of large
volumes of cargo across long distances (Shaltami 2023).
The industry faces strict regulations and safety concerns,
including the risk of spills and accidents (Fig.7).
IoT has emerged as a powerful tool for addressing these
challenges in transporting petroleum products. IoT involves
using interconnected devices, sensors, and software to gather
and transmit data about physical objects and processes. In
the petroleum industry, IoT can monitor cargo conditions,
track shipments, optimize logistics, and improve safety and
navigation.
Implementation inCargo Shipping
Real‑Time Monitoring ofCargo Conditions It is essential to
ensure that petroleum products are transported safely and
efficiently. IoT sensors can monitor cargo conditions such
as temperature, humidity, and pressure, as well as track the
location and movement of cargo.
Shell Connected Freight Solution is an example of an
IoT solution for real-time monitoring of cargo conditions.1
The solution uses IoT sensors to monitor the condition
and location of cargo in real-time. The sensors can detect
temperature, humidity, and light changes and provide alerts
if cargo is tampered with or damaged. This helps ensure
that the cargo remains in optimal condition throughout
transportation.
Maersk Remote Container Management System is another
example of an IoT solution for real-time monitoring of
cargo conditions. The system uses IoT sensors to monitor
the condition of cargo containers, including temperature,
humidity, and shock. The system also allows for remote
control of the container temperature and ventilation settings,
helping ensure that the cargo remains in optimal condition
throughout transportation (Legchekov 2023).
Supply Chain Management andLogistics Optimization IoT
can optimize supply chain management and logistics by real-
time shipment tracking and automating trade documentation
and payments. This helps improve operational efficiency
and reduce costs.
IBM TradeLens platform is an example of an IoT solution
for supply chain management and logistics optimization.
The platform uses IoT sensors and blockchain technology
to provide end-to-end visibility and transparency for supply
chain management. The platform allows for real-time
tracking of shipments and automates trade documentation
and payments, helping reduce the time and cost associated
with manual processes.2
CargoSmart IoT solution is another example of an
IoT solution for supply chain management and logistics
optimization. The solution uses IoT sensors to monitor
the condition and location of cargo in real-time, providing
visibility into the supply chain. The platform also uses
machine learning algorithms to optimize logistics, helping
reduce the time and cost associated with shipping.3
Safety andNavigation Improvements IoT can be used to
improve safety and navigation in transporting petroleum
Fig. 7 Picture depicting environmental effects of leakage from cargo
shipping [Taken from “Gulf leak: biggest spill may not be biggest
disaster” (Online). Available: https:// www. newsc ienti st. com/ artic le/
dn190 16- gulf- leak- bigge st- spill- may- not- be- bigge st- disas ter/]
1 “Customer Centricity” (Online). Available: https:// www. shell. com/
energy- and- innov ation/ digit alisa tion/ digit alisa tion- in- action/ custo
mer- centr icity. html.
2 “Hapag-Lloyd and Ocean Network Express Complete TradeLens
Integration, Join Rapidly Expanding Shipping Ecosystem to Further
Enhance Trade Digitization” (Online). Available: https:// newsr oom.
ibm. com/ 2021- 06- 24- Hapag- Lloyd- and- Ocean- Netwo rk- Expre ss-
Compl ete- Trade Lens- Integ ratio n,- Join- Rapid ly- Expan ding- Shipp ing-
Ecosy stem- to- Furth er- Enhan ce- Trade- Digit izati on.
3 “CargoSmart Launches IoT-enabled ‘CargoSmart Connected
Reefer Solution’” (Online). Available: https:// www. globe newsw ire.
com/ en/ news- relea se/ 2019/ 11/ 18/ 19484 71/0/ en/ Cargo Smart- Launc
hes- IoT- enabl ed- Cargo Smart- Conne cted- Reefer- Solut ion. html.
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products. IoT sensors can provide real-time data on weather
conditions, sea state, and other environmental factors that
impact shipping. This information can be used to optimize
routing and improve safety.
DNV GL veracity platform is an example of an IoT
solution for safety and navigation improvements. The
platform uses IoT sensors to provide real-time data on
environmental conditions such as wind, waves, and currents.
The platform also uses machine learning algorithms to
optimize routing and improve safety, helping reduce the risk
of accidents and spills.4
Technical Aspects ofIoT Cargo Shipping
IoT in the petroleum industry involves the use of sensors,
cloud-based platforms and analytics, machine learning
algorithms, and blockchain technology.
(i) Sensors: Sensors are a critical component of IoT in
the petroleum industry, providing real-time data on
cargo conditions and environmental factors. Sensors
can monitor temperature, humidity, pressure, and
other conditions that impact the transportation of
petroleum products.
(ii) Cloud-based platforms and analytics: Cloud-based
platforms and analytics (Panwar etal. 2022) are used
to collect, process, and analyze the data generated
by IoT sensors. This data can be used to optimize
logistics, improve safety, and reduce costs.
(iii) Machine learning algorithms: Machine learning
algorithms are used to analyze the data generated by
IoT sensors (Mittal etal. 2017) and provide insights
that can be used to optimize logistics, improve safety,
and reduce costs. Machine learning can also be used
to automate processes such as trade documentation
and payments.
(iv) Blockchain technology: Blockchain technology is
used to provide transparency and security for trade
documentation and payments. Blockchain technology
can also be used to provide end-to-end visibility for
supply chain management.
Benefits ofIoT inthePetroleum Industry forCargo Shipping
The use of IoT in the petroleum industry for cargo shipping
has several benefits, including improved operational
efficiency, cost savings, and safety.
(i) Improved operational efficiency: IoT can help
improve operational efficiency by providing real-time
data on cargo conditions and environmental factors.
This data can be used to optimize logistics, reduce
downtime, and improve overall efficiency.
(ii) Cost savings: IoT can help reduce costs associated
with the transportation of petroleum products by
optimizing logistics and reducing downtime. IoT
can also help automate trade documentation and
payments, reducing the time and cost associated with
manual processes.
(iii) Safety: IoT can help improve safety in the
transportation of petroleum products by providing
real-time data on environmental factors and
optimizing routing. This helps reduce the risk of
accidents and spills.
Future Directions forResearch andDevelopment
There is significant potential for further research and
development in the application of IoT in the petroleum
industry for cargo shipping. Some of the future directions
for research and development are:
(i) Integration with other technologies: IoT can be
integrated with other technologies (Maroufkhani
etal. 2022) such as artificial intelligence, robotics,
and drones, to further improve logistics and safety
in the transportation of petroleum products.
(ii) Cybersecurity: With the increasing use of IoT in the
petroleum industry, cybersecurity is becoming an
increasingly important concern. Future research and
development should focus on developing secure IoT
solutions that can protect against cyber threats.
(iii) Standardization: Standardization of IoT solutions
can help improve interoperability and reduce the cost
and complexity of implementing IoT in the petroleum
industry.
(iv) Sustainability: Future research and development
should focus on developing sustainable IoT solutions
for the transportation of petroleum products.
This includes reducing the environmental impact
of shipping and improving energy consumption
efficiency.
IoT technologies in the petroleum industry for cargo
shipping present many opportunities for increased efficiency,
cost reduction, and improved safety; there are several
challenges and limitations that need to be addressed.
Data privacy and security concerns, interoperability, and
standardization of IoT devices and protocols are critical
factors that must be considered to ensure the successful
integration of IoT solutions into the petroleum industry.
4 “Digitalization in the maritime industry” (Online). Available:
https:// www. dnv. com/ marit ime/ insig hts/ topics/ digit aliza tion- in- the-
marit ime- indus try/ smart- opera tions. html.
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Preventing Crude Oil Theft withIoT Technology
Oil prices play a vital role in the trade of crude oil. If
the prices are high, the theft of crude oil can be seen as
a lucrative opportunity by some individuals. With the cost
of the stolen oil being nearly negligible, the illegal sale of
it can bring in substantial profits. Despite advancements in
information technology and detection techniques employed
by oil companies, stopping this illegal activity remains a
challenge (Fig.8).
Analysis oftheConduct inCrude Oil Theft
Oil theft is a significant challenge faced by oil companies in
the transportation and storage of crude oil. The theft of crude
oil can lead to significant economic losses, estimated at over
US$133 billion per year,5 and poses risks to human lives and
security. Oil theft can occur at any stage of transportation,
including pipelines, tanks, railways, and ships.
Oil theft is a serious issue that can occur at any stage of
transportation. Thieves steal crude oil from oil tank trucks,
pipelines, and other modes of transportation, resulting in
significant economic losses and posing risks to human lives
and security. In the case of oil tank trucks, the theft is made
possible by pumping devices that replace the stolen oil with
water. Thieves are often oil truck drivers or employees of
the oil factory who can easily access the oil. In some cases,
employees at the oil well site may even report false oil
volumes or neglect to use seals, enabling the theft to occur
more easily.
Theft from crude oil pipelines is a serious problem
that poses a significant threat to both the environment and
human life. Thieves use various methods to steal oil from
pipelines, including drilling holes into them, which often
go undetected due to the lack of real-time alarm systems
and inadequate preventive measures. The low maintenance
costs also contribute to the problem. If a thief drills into a
pipeline with high pressure, it can result in an explosion
that causes severe damage to the environment and people.
The pollution caused by such an incident can affect fields,
fishponds, drinking water sources, rivers, and even oceans
(Ivanov 2021). It is crucial to invest in real-time alarm
systems and effective preventive measures to curb this
problem and protect the environment and human life.
Challenges andComplications inPreventing Crude Oil Theft
Crude oil theft remains a persistent problem in the oil
and gas industry (Hunt etal. 2022), causing significant
financial losses and environmental harm. In response,
various measures have been introduced to prevent oil theft,
including the use of different detection techniques such
as the acoustic traveling method, pressure point analysis,
thermal and electro-optical methods, the acoustic pipeline
leak detecting system (ADS-PLDS), and long-distance
monitoring systems (Ivanov 2021). However, despite the
implementation of these measures, crude oil theft continues
to pose a significant challenge to the industry. This is
mainly due to the complexities and difficulties involved
in monitoring oil leakages from pipelines, particularly the
extended distances of crude oil pipelines. Undetected leaks
can cause substantial environmental damage in remote areas.
Furthermore, pipelines complicated geography in areas at
high risk of natural hazards such as earthquakes, mudflows,
and other geologic events can result in significant human
casualties and oil disasters, particularly in densely populated
regions.
Additionally, aging pipelines can lead to various
problems, such as drilling accidents, explosions, fires, gas
Fig. 8 Showing the application of IoT in midstream [Taken from Patel (2019)(Online). Available:https:// medium. com/ softw eb- solut ions- inc/
impro ving- the- funct ioning- of- the- oil- and- gas- indus try- with- iot- 82bc8 72805 b7]
5 “Global oil theft: impact and policy responses” (Online).
Available: https:// www. wider. unu. edu/ publi cation/ global- oil- theft-
impact- and- policy- respo nses.
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diffusion, corrosion, erosion, weld or joint failure, and small,
hard-to-detect leaks (Ivanov 2021).
Design andPlanning ofaSmart Crude Oil Theft Prevention
System Using IoT Technology
The IoT has proven to be an effective and efficient
solution for detecting leaks. Its ability to monitor different
parameters, provide accurate data, and reduce response time
has made it an essential tool in preventing leaks (Sun etal.
2016). As the technology continues to advance, IoT's role in
detecting leaks is only set to become more critical, providing
a reliable and efficient solution to an ongoing problem.
(i) Anti-theft alarm system for oil tank trucks:
The transportation of crude oil from oil factories
via oil tank trucks involves various steps, as shown
in Fig.9. However, the risk of oil theft during this
process is a common occurrence, as noted by Guo and
Wu (2013). The culprits responsible for such thefts
may include the oil tank truck driver or disgruntled
employees. To address this issue, an anti-theft alarm
system can be installed. This system promptly alerts
intelligent terminals of any unauthorized opening of
the oil tank lid or any abnormal changes in the oil
volume, thereby preventing oil theft.
The anti-theft alarm system provides a
comprehensive solution to oil theft by recording the
entire transportation process of oil tank trucks. It
generates data such as the volume and composition
of crude oil and monitors compliance with license
plate numbers, driver facial features, and fingerprints.
Equipped with various systems such as GPS, Beidou
satellite positioning and navigation, and video
monitoring, the system sends real-time warning
signals to relevant departments or personnel upon
any unauthorized activity. The system standardizes
monitoring processes, providing data for better
decision-making and enhancing business operations.
The anti-theft alarm system (Sun etal. 2016) is a
valuable tool in addressing the issue of oil theft
and improving transportation processes (shown in
Fig.10).
(ii) An intelligent anti-theft system based on the Internet
of (loT) for crude oil pipelines:
The current anti-theft monitoring system for crude
oil pipelines in companies relies heavily on pressure
detection using sensors at the entry and exit points.
Fig. 9 The process of transporting goods from loading to unloading [Taken from Guo and Wu (2013)]
Fig. 10 Components of the anti-
theft alarm system [Taken from
Sun etal. (2016)]
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However, in cases of oil theft, the system can only
detect pressure decreases at the exit and is often
unable to promptly identify the precise location of
the theft. This limitation allows "oil mice" to steal
crude oil without detection (Sun etal. 2016). To
overcome these challenges, a more sophisticated
anti-theft system based on the Internet of Things
(IoT) is being developed. This system aims to prevent
theft in advance by detecting illegal activities such as
digging or drilling. The architecture of this intelligent
anti-theft IoT system is depicted in Fig.11.
The anti-theft system (Sun etal. 2016) employs a
combination of wired and wireless networks, sensor
technology, databases, and smart terminals to monitor the
crude oil pipeline. Sensors, cameras, and RTUs capture
signals, images, and videos at the sensor level. RFID tags
identify objects, and readers monitor them in real-time.
Abnormal activities are immediately detected and warned
by the monitoring center through an addressing system.
Sensor data is transmitted to the server and application
system via wired and wireless networks, with WAN and
Field Bus used for long and short-distance communication,
respectively. At the application level, data storage,
analysis, and system application are performed using the
SCADA system and artificial intelligence algorithms.
Data analysis and management are facilitated by data
warehousing, mining, and business intelligence. The IoT
application enhances user interaction with the environment
and enables efficient system operation.
Applications IoT inSmart Supply andInventory
Management
One of the most important sectors of the global economy is
the oil and gas sector, which has complex and interconnected
supply chains with a wide range of players, including
suppliers, manufacturers, distributors, and end users. To
maintain the reliable and secure functioning of oil and gas
exploration, production, and transportation, these supply
chains must be managed effectively. Also, effective inventory
management is essential to guarantee that the appropriate
tools and materials are accessible when and where they
are required, without overstocking or stock shortages. The
oil and gas industry can benefit greatly from the use of IoT
in supply and inventory management, including greater
efficiency, decreased costs, improved safety, and higher
sustainability.
Real‑Time Tracking Using IoT
IoT sensors and devices can be used to track assets, goods,
and materials in real time, giving important information
about the movement of materials and things. As a result,
businesses are better able to comprehend the whereabouts,
condition, and movement of items and commodities. So, we
can use a real-time tracking system to track the location of
Fig. 11 Intelligent anti-theft
system based on IoT: a three-tier
architecture [Taken from Sun
etal. (2016)]
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the transport vehicle in case of onshore or Platform supply
vehicle (PSV) in case of offshore (Lee etal. 2014).
The accomplishment of these six goals is necessary for
the development of a real-time tracking system (Barak etal.
2020). By means of which, we can follow the location of a
transport vehicle/PSV in real time and show that location
on a Google Map. On a web portal that will be deployed on
the cloud platform (Microsoft Azure/AWS), the end-user/
rig staff will be able to monitor the real-time position of the
transport vehicle. We will also design a web app/Android
app that will show the same real-time position on their
computer screen, making it simple to use.
The process for developing a functional prototype
(Fig.12) of a real-time tracking system can be outlined as
follows (Lee etal. 2014):
(i) Gathering the real-time tracking system components:
In order to construct a real-time tracking system,
hardware modules and sensors are necessary to
obtain a real-time position. We can use an Arduino
Uno board (3.3V or 5V), a GPS module (Sim 28M),
a GSM module (Sim 900A), a battery (12V | 1A),
a power bank, an antenna, a GPS receiver, jumper
wires, the ThingSpeak APIs, and a Microsoft Azure/
AWS subscription. So, gathering or purchasing these
parts or subscriptions must come before moving on
to the following stage.
(ii) Constructing the device:
The gadget will be put in the transport vehicle/PSV
so that its location can be tracked in real time, and
it may subsequently be used for analytics, mapping,
or directions. Transporter can follow the transport
vehicle using 3 ThingSpeak cloud APIs. GPS module
is used to get the precise location of the supply
vehicle. The latitude and longitude coordinates will
be sent over GPRS to the ThingSpeak channel using
the GSM module. Jumper wires will be used to link
each component to the others.
(iii) Writing business logic with the Arduino software
(IDE):
In order to obtain the current location of a transport
vehicle/PSV, we write the business logic (Arduino
Programming) for the device using GPS, which gives
us the precise position of the transport vehicle/PSV,
and then GSM sends it over GPRS to the ThingSpeak
server. The code is uploaded to the Arduino Uno that
communicates with the GPS and GSM modules.
(iv) Using APIs:
To show the position on a map, we will be utilizing
google map APIs and google map direction services,
which is also the fastest way to get to the transport
vehicle/PSV.
(v) Design of web portal and android application:
We will create a web portal with two frames,
one of which will use google map APIs to display
the current location of the transport vehicle/PSV.
Another frame will display the Google Direction
services fastest four routes to the vehicle. We will
use HTML, CSS, JavaScript, PHP, and Python to
code the website. We will also create an android
application with the same capabilities as the web
portal application to go along with it. For user
convenience, we can release the android application.
(vi) Device testing:
Following the creation of the real-time tracking
system, we will carry out the testing. We will
subject the gadget to a variety of test cases to see
how effective, reliable, and accurate it is. We will
also check the gadget's performance in challenging
environments like high/low humidity and high/low
temperature.
(vii) Web portal deployment on Microsoft Azure/AWS:
Fig. 12 Representing the steps for designing a real-time tracking system [Taken from Barak etal. (2020)]
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When the real-time tracking system has been
tested, the web portal will be deployed on a cloud
platform, which may be Amazon Web Service or
Microsoft Azure app service. By moving our web
portal application to cloud technology, which offers
a pay-per-use business model to the oil company, it
will cost significantly less and be simple to use.
Predictive Supply andInventory Management:
A key component of inventory management in companies
is stock management. When performing predictive stock
maintenance, data analysis tools and formulas are used to
forecast when stock maintenance is necessary. Utilizing this
method enables businesses to increase revenue, optimize
supply levels, and lower loss and spoilage—the Internet of
Things (IoT).
As shown in Fig.13, the following advantages come with
using IoT for inventory management (Barak etal. 2020):
(i) Continuous Inventory Tracking: Real-time
information on the location, amount, and state
of inventory is available through IoT sensors.
Businesses may remotely access this data to keep an
eye on inventory levels from any location at any time.
(ii) Decreased Over- and Understocking: Real-time
inventory monitoring enables firms to prevent
overstocking or understocking of products. By doing
this, the danger of missed sales or excess inventory is
decreased, and the appropriate quantity of inventory
is always accessible when needed.
(iii) Enhanced Effectiveness: Ordering, tracking, and
replacing inventory are just a few of the tasks that
IoT-enabled inventory management systems may
automate. As a result, there is less need for manual
intervention, increasing total effectiveness.
(iv) Cost savings: By removing the need for human work
and lowering the possibility of inventory loss or
damage, automated inventory management systems
may assist organizations in cutting expenses. Also,
businesses may save a lot of money by avoiding
overstocking and understocking.
The following stages are involved in creating a predictive
inventory management system utilizing IoT technology:
1. Collecting requirements
(i) A system design
(ii) Installation of sensors
(iii) The gathering and transmission of data
(iv) Data evaluation
(v) Running of the algorithm for inventory
management decisions
(vi) Performance assessment
(vii) System improvement
The system must be versatile and flexible in order to
satisfy the requirements of various enterprises. To increase
performance and adapt to the changing demands of the
business, the system should be regularly improved.
IoT inSmart Supply andInventory Management
onOffshore Rigs
Effective supply chain management is essential for the
reliable and secure functioning of the oil and gas industry.
IoT can enhance inventory management, reducing costs
and improving efficiency, safety, and sustainability in the
complex and interconnected supply chains of this sector
(Fig.14).
The Regular requirements on the drilling rigs involve
drilling mud, powdered cement, diesel fuel, potable and non-
potable water, and chemicals used in the drilling operation,
while some other chemicals must be brought back to land
for proper recycling or disposal. Other than that, tools and
equipment like drill and casing pipes, drill bits and many
replacements for faulty rig equipment are always required
on the oil rig (Mashayekhy etal. 2022). So, there is a
requirement to handle the material during transportation
and storage on the rig site.
Following are the steps to create an inventory
management system on offshore rigs (Norouzi and Fani
2020):
Fig. 13 Representing the impacts of IoT on Inventory Management
[Taken from “IoT in Inventory Management: Impact and Benefits”
(Online). Available: https:// www. analy ticss teps. com/ blogs/ iot- inven
tory- manag ement- impact- and- benefi ts]
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(i) Active tracking of materials on the oil rig:
Weight sensors are being used in the drilling mud
and cement storage facilities to monitor and control
the weight of materials being loaded or unloaded,
preventing overloading and reducing the risk of
accidents.
QR code-based tracking of tools and equipment
is being used to keep track of inventory and reduce
the chances of losing or misplacing tools. Fluid level
sensors are being used to monitor and manage fuel
and chemical storage tanks, helping to avoid stock
shortages and reduce environmental risks.
Smart counting sensors on the fingerboard are
being used to automatically count the number
of connections made during drilling operations,
enabling better monitoring and control of drilling
processes. These IoT-enabled sensors and devices are
transforming the oil and gas industry by increasing
efficiency, reducing costs, and improving safety.
(ii) Data collection and data transfer:
The secure and efficient transfer of data is crucial
in the oil and gas industry. To achieve this, the
control panel computers transfer data through a Wide
Area Network (WAN). The rig control panel filters
the data and sends only the necessary information
to the Pressure Safety Valves (PSVs) for immediate
action.
To ensure data security, encryption and file transfer
protocols are employed for secure data transfer. The
rig control panel should have complete control over
the data transfer to hide sensitive information from
unauthorized access. The data transfer to PSVs and
storage facilities must be in sync with the control
panel, ensuring that all data is up-to-date and
accurate. These measures enable the oil and gas
industry to securely transfer data (Norouzi and Fani
2020) and ensure their facilities' reliable and safe
operation.
(iii) Frontend interface
Efficient management of material supply is
crucial for the smooth functioning of the oil and
gas industry. The use of software to display data in
a simple interface enables the PSVs and onshore
storage facilities to have easy access to the data.
(iv) Future prediction using AI&ML
Machine learning and artificial intelligence
(AI) algorithms can be trained to predict future
material demand accurately. These algorithms
can provide early alerts to the PSVs and storage
facility, allowing them to take proactive measures
Fig. 14 Representing the application of IOT at different steps along the Supply chain [Taken from “IoT Solution to Transform Oil and Gas
Industry | Biz4Intellia” (Online). Available: https:// www. biz4i ntell ia. com/ iot- in- oil- gas/]
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to meet future demand. Based on the available data,
these algorithms can suggest a proper supply plan,
streamlining the supply chain and reducing costs.
By leveraging software and advanced AI algorithms, the
oil and gas industry can efficiently manage material supply,
ensuring the uninterrupted and reliable operation of their
facilities.
IoT inDeepwater Oil andGas Industry forIncreased
Efficiency andSafety
IoT has transformed the offshore operations of the oil and
gas by enabling continuous monitoring of equipment and
parameters, optimizing efficiency and safety, and reducing
costly downtime industry (Alakberov and Hashimov 2018).
Unlike traditional communication solutions that are limited,
expensive, and complex, IoT offers a more efficient and cost-
effective solution (Fig.15) that improves performance at
every stage, from production to the drilling rigs.
Offshore Operations Challenges
Without cost-effective and scalable communications
solutions, oil and gas companies rely heavily on manual data
reading and visual inspection to monitor their operations,
equipment and facilities.
This method is highly inefficient and exposes workers to
significant on-site hazards and hazards. Wired infrastructure
is ideal for real-time monitoring tasks, but it is not designed
for collecting data for remote monitoring. Cellular
connectivity is weak and almost non-existent in the ocean.
Due to its transparency and ubiquity, satellite connectivity
has been the most common choice for wireless deployment
at sea. However, its high cost makes its use critical and
limited.
IoT Applications intheDeepwater Oil andGas Industry
Drones and robots play a vital role in IoT applications
in the oil and gas supply chain. Whether it is site survey,
data collection, 3D site mapping or offshore tasks such as
underwater inspections or maintenance, it improves process
efficiency and withstands harsh conditions as shown in
Fig.16.
Sensor Diving Suit can help scuba divers conduct
underwater operations with minimal risk, seamlessly linking
them to base and even increasing crew capabilities. As depth
increases, almost all of the light is absorbed underwater.
Divers operate in near-zero visibility, which greatly reduces
their capabilities and efficiency (Ijiga etal. 2020).
A thermal sensor can be integrated into a diver mask to
help distinguish other divers, power lines, and other objects.
Smart bracelets and helmets will allow them to constantly
Fig. 15 IoT system at deepwater drilling platforms [Taken from “Improving the functioning of the oil and gas industry with IoT” (Online).
Available: https:// www. softw ebsol utions. com/ resou rces/ imple menti ng- iot- in- oil- and- gas- indus try. html]
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monitor the status of divers and provide timely advice,
notifications or warnings.
Future Aspects
Future aspects and possibilities for the use of IoT in the
deepwater oil and gas industry:
(i) Artificial Intelligence (AI) Integration: The
integration of AI and IoT can enable predictive
analytics and machine learning algorithms to predict
future failures and identify patterns that can improve
overall industry efficiency.
(ii) Edge Computing: Edge computing can be used
to process data on the device itself rather than
relying on a centralized cloud. This reduces latency
and increases data security, especially in remote
locations.
(iii) Autonomous Underwater Vehicles (AUVs): The
use of AUVs equipped with IoT sensors could
revolutionize industry surveillance capabilities.
These vehicles can carry out autonomous inspections
of underwater equipment, collect data and send it
back to the control center in real time.
(iv) Blockchain technology: The use of blockchain
technology in the oil and gas industry can ensure
data integrity and reduce the risk of data tampering.
The technology can create tamper-proof records
of equipment maintenance, inspections and other
critical data.
(v) Augmented Reality (AR) and Virtual Reality (VR):
AR and VR technologies can be used to create
virtual environments for training purposes, simulate
complex procedures and visualize data collected
from IoT sensors.
(vi) Energy Harvesting: Energy harvesting technologies
can be used to power IoT devices in remote locations,
reducing the need for frequent battery replacements
and improving overall device reliability.
IoT inDrilling Management forReal‑Time Data
andAnalysis
The productivity and safety of drilling activities can be
increased using Internet of Things (IoT) technology.
Drilling tools can be equipped with IoT components like
sensors and webcams to collect information about vibration,
temperature, and pressure. This data can be used to monitor
the condition of the equipment and detect potential problems
before they become significant. Additionally, cameras can
monitor drilling operations remotely, allowing real-time
monitoring of the drilling process and quick responses to
any issues as shown in Fig.17.
Oil Giants Using IoT forDrilling Management
BP: BP has implemented IoT-based predictive maintenance
solutions to monitor drilling equipment and optimize
maintenance schedules. The system uses machine learning
algorithms to predict equipment failures and prevent
downtime.6
Fig. 16 Application of EC in
Oil and Gas Exploration [Taken
from Ijiga etal. (2020)]
6 “BP is Reimagining Fuel Stations with Machine Learning and IoT”
(Online). Available: https:// www. wired. com/ wired insid er/ 2019/ 12/
bp- reima gining- fuel- stati ons- machi ne- learn ing- iot/.
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Schlumberger: Schlumberger has developed an IoT-
based system that uses data analytics to optimize drilling
performance. The system gathers information from
numerous sources, including drilling machinery and offers
in-the-moment perceptions into drilling operations.7
Halliburton: Halliburton has developed an IoT-based
system that uses sensors to monitor drilling equipment
and optimize maintenance schedules. The system provides
real-time data on equipment performance, which helps to
improve drilling efficiency and reduce downtime.8
ExxonMobil: ExxonMobil has implemented an IoT-
based system that uses sensors to monitor the performance
of drilling equipment and detect issues early. The system
provides real-time data on equipment performance, which
helps to optimize drilling operations and reduce downtime.9
Architect ofIoT inDrilling Management
The architect of the Internet of Things (IoT) infrastructure
that allows data gathering, analysis, and real-time decision-
making during drilling operations is in charge of developing
and deploying it in the oil and gas industry (Salam etal.
2019). The goal is to optimize the drilling process, increase
efficiency, and reduce costs while maintaining safety and
minimizing environmental impact.
The IoT architecture for drilling management (see Fig.18)
in the Oil and Gas Industry involves the use of various
sensors and devices to collect data from rig sensors, drilling
equipment, including mud pumps, drill bits, and drilling
fluids. This data is wirelessly relayed to a central center for
analysis, guiding drilling-related decisions (Gooneratne etal.
2019). The architect responsible for designing this system
must ensure its reliability, security, scalability, and resilience
to failures. He must possess a deep understanding of drilling
processes, equipment, IoT technologies, data analytics, and
cloud computing. Working closely with drilling engineers,
data analysts, and stakeholders, the architect ensures that the
IoT system meets business needs and delivers value.
Methods forDrilling Management Using IoT
(i) Sensor-based monitoring: This technique employs a
variety of sensors to gather information on drilling
activities, including flow rate, temperature, pressure,
and vibration. By controlling subsurface drilling sites
to find new drilling opportunities and maximize
the production of existing sites, individual IoT
sensors connected by fiber optic cables support oil
exploration. Drilling equipment and other crucial
components might have sensors installed to collect
real-time data for monitoring and decision-making.
(ii) Predictive analytics: IoT can collect and analyze
data to predict future events like equipment failures.
Companies can take preventative maintenance and
repair measures by using predictive analytics to spot
possible problems before they arise (Falco 2023).
(iii) Remote monitoring: With IoT, drilling operations can
be monitored remotely from a central location. This
allows for real-time monitoring of drilling equipment
and processes, which can help detect issues early and
reduce downtime (Foote 2021).
(iv) Condition-based maintenance: IoT can collect data on
the condition of drilling equipment and components.
This data can determine when maintenance is
required, reducing the need for preventative
maintenance and minimizing downtime.
By leveraging these methods, companies can optimize
their operations, increase efficiency, and reduce costs while
maintaining safety and minimizing environmental impact.
Algorithms andSystems Used forDrilling Management
The Oil and Gas industry uses various algorithms and
systems for drilling management, many of which incorporate
Fig. 17 IoT system flow chart
at drilling rig [Taken from
Priyadarshy (2016)]
7 TIM SHEA, “Schlumberger Finds Efficiency in IIoT-enabled Data
Analytics” (Online). Available: https:// www. arcweb. com/ blog/ schlu
mberg er- effic iency- iiot- enabl ed- data- analy tics.
8 “Petrobel Selects Halliburton Landmark to Design and Deliver
Cloud Solution for E&P Applications” (Online). Available: https://
www. halli burton. com/ en/ about- us/ press- relea se/ petro bel- selec ts- halli
burton- landm ark- design- deliv er- cloud- solut ions- ep- appli catio ns.
9 “Applying digital technologies to drive energy innovation”
(Online). Available: https:// corpo rate. exxon mobil. com/ who- we- are/
techn ology- and- colla borat ions/ digit al- techn ologi es.
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IoT technology to improve efficiency and safety. The
most commonly used algorithms and systems for drilling
management are:
(i) Real-time monitoring systems: Uses IoT sensors to
track and analyze data in real-time, providing real-time
updates on drilling conditions, equipment performance,
and safety parameters. This helps operators make faster
and more informed decisions about drilling operations,
reducing the risk of accidents and optimizing
productivity (Falco 2023).
(ii) Predictive maintenance algorithms: These algorithms
use IoT data to predict when equipment will require
maintenance, allowing operators to address issues
before they become serious proactively. This can reduce
downtime and prevent costly equipment failures (Foote
2021).
(iii) Automated drilling systems: These systems use
machine learning algorithms to automate drilling
operations, reducing the need for manual intervention
and improving efficiency. They can also be used to
optimize drilling parameters based on real-time data,
improving overall drilling performance.
(iv) Decision support systems: These systems use data
analytics and machine learning algorithms to provide
decision support for drilling operations. They can help
operators identify the best drilling locations, optimize
Fig. 18 High-level schematic of the components of an IoT network on a drilling rig [Taken from Priyadarshy (2016)]
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drilling parameters, and make real-time decisions about
drilling operations.
(v) Digital twins: A digital twin is a made-up image of
a real thing, such as a piece of drilling equipment.
Operators may simulate many scenarios and test
various parameters to optimize drilling operations by
using IoT sensors to gather data from the physical asset
and input that data into the digital twin (Foote 2021).
IoT technology in drilling management can help the Oil
and Gas industry reduce costs, increase safety, and improve
efficiency.
Factors Affecting Drilling Management Using IoT
(i) Data quality: IoT relies on data to make decisions about
drilling operations. The quality of the data can have a
significant impact on the accuracy of these decisions.
Factors affecting data quality include the sensor's
reliability, data accuracy, and the effectiveness of data
cleaning and processing algorithms.
(ii) Network connectivity: IoT devices rely on network
connectivity to transmit data to central hubs for
processing and decision-making. Poor connectivity can
lead to delays or even loss of data, which can impact the
effectiveness of the IoT system.
(iii) Cybersecurity: IoT systems are vulnerable to cyber-
attacks, which can compromise data privacy, system
integrity, and safety. Ensuring the cybersecurity of
IoT systems is critical to maintaining the safety and
reliability of drilling operations.
(iv) Infrastructure complexity: IoT systems for drilling
management can be complex and require significant
infrastructure, including sensors, networks, data
processing systems, and user interfaces. Ensuring the
reliability and scalability of this infrastructure can be
challenging.
(v) Regulatory compliance: The oil and gas industry has
numerous regulations governing safety, environmental
impact, and reporting. IoT systems for drilling
management must comply with these regulations,
which can add complexity and cost to the system.
Overall, the factors that affect drilling management in the
oil and gas industry when using IoT are varied and complex.
Successful IoT implementation requires careful consideration
of these factors and a deep understanding of the drilling
process, data analytics, and cybersecurity.
IoT‑Based Solutions forCarbon Emission Monitoring
andManagement
The oil and gas (O&G) industry supply chain globally is
responsible for approximately 41% of greenhouse gas
(GHG) emissions, both directly and indirectly (Lyons
etal. 2021). Major contributors to these emissions include
activities such as flaring, heat and power consumption, and
the transportation of crude oil.
However, a more complex challenge lies in addressing
emissions associated with transportation, consumption, and
disposal, which account for over 90% of the total emissions
footprint (Lyons etal. 2021). Effectively managing these
emissions necessitates sophisticated analytical approaches,
including establishing emission baselines and collaborating
with suppliers and customers to mitigate environmental
impact. Within the oil and gas supply chain, carbon
emissions can arise from various factors, including
equipment malfunctions, pipeline damage, and inadequate
route planning.
To monitor and control these emissions effectively,
IoT technology provides a practical solution. By utilizing
telematics devices, sensors, and accelerometers, IoT
enables the tracking and collection of data on emissions-
related parameters (Smith 2019). For instance, IoT devices
can function as carbon dioxide detectors, similar to the
application of IoT technology in carbon monoxide detection
(Abdulla etal. 2021). The data collected by IoT devices and
stored in the cloud can be leveraged to identify issues in
real-time and optimize processes by addressing equipment
malfunctions and reducing fuel waste.
Integrating IoT into the monitoring and management
of carbon emissions in the oil and gas industry facilitates
the tracking of emissions from diverse sources, enabling
proactive measures to minimize environmental impact.
Conclusion
The application of IoT in the oil and gas sector will be
transformative. IoT has enabled monitoring operations
remotely, gathering and analyzing data in real time, and
increasing efficiency and safety while cutting costs. IoT
technology has made it feasible for the industry to transition
to predictive maintenance, making it possible to find and fix
problems before they cause downtime.
Moreover, improved operational visibility has resulted
from IoT integration in the oil and gas sector, facilitating
better risk management and decision-making. The use
of IoT technology in the oil and gas industry can have
a significant impact on various aspects of the industry,
including cargo shipping, oil theft prevention, inventory
management, HSE, and drilling operations. As a result,
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oil and gas production has been better optimized with
improved safety and environmental compliance.
With the application of artificial intelligence and
machine learning, there is the possibility for further
automation and optimization in the usage of IoT in the
oil and gas sector in the future. The industry will need
to adapt to stay up with these technological advances,
but the benefits of IoT will surely make it worth the
expenditure. Futuristic technologies, such as edge
computing, autonomous underwater vehicles, blockchain,
augmented & virtual reality, and energy harvesting will
become crucial for the oil and gas sector, enabling more
effective operations, enhancing safety, and improving
environmental compliance & overall profitability.
Acknowledgements Thanks to IIT(ISM) Dhanbad for facilitating this
project.
Funding No funds, grants, or other support was received for this work.
Declarations
Conflict of interest The authors have no relevant financial or non-
financial interests to disclose.
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