Technology and energy are becoming intertwined as corporations attempt to meet a growing demand for energy in countries around the world while also reducing carbon emissions. The energy industry is already making a concerted effort to integrate sensing, communications and analytics tech into core operations as the cutting-edge advancements are seen as key to cost savings and driving productivity. In the oil and gas sector, for example, big data and analytics could potentially save “millions of dollars” for each company by boosting output and eliminating a large percentage of unplanned well outages.
The move towards tech-driven processes is highlighted in recent research published by Ernst & Young, which found that more than two thirds of large oil and gas enterprises have already invested more than $100 million in data and analytics since 2015, while three quarters are planning to allocate up to ten percent of their total capital budgets to various forms of digital technology. That is an indication that tech is now playing a very significant role in the energy industry and will continue to do so during the next decade as newer forms of tech, such as the Cloud and artificial intelligence, mature.
Sensors and IoT
The Internet of Things and the use of a complex network of sensors for data collection, surveillance and geoanalytics is one area where tech has been deployed liberally during the last five years. While autonomous vehicles, 3D printing, and e-fuels are predicted to transform various aspects of the energy industry in the near future, IoT is having an impact right now. Corporations in the petroleum, gas, electrical and renewable energy industries are now accessing advanced sensory data using wireless devices. The devices empower real-time functionality for surveillance of operations, which allows employees to make interventions and changes to drive value for the business.
Visual analytics
“Data-driven” is a concept that the energy industry is now embracing wholesale. IoT and other forms of software are supporting predictive models and visual analytics for use with activities ranging from drilling optimization to environmental health and safety. In the oil and gas industry, data virtualization tech is being used to leverage information including temperature, surface pressure and electrical parameters from sensors on Electrical submersible pump (ESP) systems to identify problems such as degradation and non-productive time. Analytics can, therefore, optimize production, so that the maximum amount of oil is produced at all times.
Reduce risk and transaction costs
Technology promises to disrupt more than production and manufacturing methods in the future. Blockchain is a digital ledger capable of storing huge volumes of records in a transparent, shared database. That could fundamentally change how energy is traded and supplied, while also helping corporations to drive down transaction costs and reduce operational risks. Corporations and consumers would be able to use cryptocurrencies such as Bitcoin to facilitate payments rather than needing to transact through a bank, which is a potential game-changer in fuel retailing. However, problems with scalability and security will need to be addressed for blockchain to really take off.
Renewable energy
A piece about the impact of tech on the energy industry would not be complete with a closer look at the rise of renewable forms of energy. Corporations are under increasing pressure to meet clean energy targets and other regulations and compliance associated with green energy. Wind tech has been a primary focus for renewables, and it is set to be the single fastest-growing energy source during the next two decades. BP emerging technology team leader, Dan Walker Charles Brush, adds: “Wind energy has become a mainstream, competitive and reliable power technology in recent years. Technology improvements have continuously reduced energy costs, especially on land. Efforts are now focusing on improving performance, reliability and overcoming the technical challenges of large-scale offshore installations. Unconventional methods of wind energy harvesting are also being investigated.”
Wastewater biotech
Wastewater has also emerged as a leading sustainable and clean energy source as biotechnology can be used to gather heat and electrical energy during its treatment. Jan Berkowitz, a veteran energy executive with three decades worth of experience in the industry, has been at the vanguard of research and development into wastewater biotechnology. Berkowitz has already spearheaded a major project to manufacture equipment and commercial facilities around the world, and he continues to use his expertise in logistics, finance and risk management to support initiatives that could drive new advances in the area. The EU has already set a target of 20 percent of final energy consumption from renewable sources by the end of this decade, so the use of renewables, ranging from hydro and tidal to solar and geothermal, continues to assume greater importance.
Next-gen tech is also on the horizon. In addition to blockchain, self-driving vehicles and the use of 3D printing for production are among a wave of new digital innovations. It is fair to say that tech adoption has skyrocketed since 2010 and all the signs indicate it will be invaluable as the energy industry attempts to meet the sheer scale and scope of challenges it faces during the coming years.