We are no stranger to the technology innovations brought on by Industry 4.0. Recent advancements in technology continue to improve our day-to-day lives at home and work. As Zach Holmquist, CPO at Hitched, writes in Industry 4.0: Why It Matters for Industrial Markets:
“Industry 4.0 is the current industrial revolution spurred on by the advancements in technology. Similar to how steam power was the driver behind the first industrial revolution, or how the assembly line and electricity caused the second, the ability to connect the physical to the digital world has created new possibilities in the way we work and live...
The connection between the digital and physical worlds can be applied to something as simple as turning off your lights when you are away from home or applied to artificial intelligence, biotechnology, 3D printing, and so much more.”
As Zach explained, Industry 4.0 is all about connecting and making sense of the digital and physical world, which brings with it a huge amount of data. As we create better connections, more information is available from every connected source. This abundance of data makes analytics a powerful and necessary part of operations.
The Power of Analytics
The combination of advanced analytics and Industry 4.0 tech is helping revolutionize many industries, including oil and gas. By using data-driven models and decision processes, O&G companies can assess supply and demand easier, bypass human error and bias, improve operations, optimize asset use, and so much more.
Even though there have been advancements in technology and, in turn, more data and opportunities available, companies are not using the new data to their advantage. As a recent McKinsey article explains, the oil and gas industry has plenty of data to analyze, but not a lot of it is being used. In fact, O&G companies are using less than 1 percent of the available data.
So, what can companies do to take advantage of the power behind data analytics?
- Start determining what insights would be the most beneficial for your company. Look at what data will drive value or are the top priorities for your organization.
- Optimize the process of collecting, organizing, and storing data. By making all your data easy to access, collected in real-time (or as close to real-time as possible), and digitized, the process of analyzing and collecting insights is much easier.
- Build out your team with experts. Whether you bring analysts in-house or use consultants, having experienced data analysts will help your company get the best insights possible.
- Be prepared to move away from the traditional way of doing things. The whole reason to analyze data is to make improvements. It is important to get all your stakeholders on board and establish trust in the data to make the necessary changes.
Analytics Advancements in Well Production
Optimizing well production is a top priority on every O&G company’s list, and using analytics can help. For many companies, inside and out of the industrial markets, it is normal to follow the way things are traditionally done in your industry. But relying on existing practices, previous experiences, and traditions can only get your company so far. Combining analytics, data, and your team’s expertise is the best possible approach to take your company a step further.
For example, with the use of Industry 4.0 tech and analytics, a machine can communicate when it needs maintenance, or even better, predict and prevent maintenance before it is needed. With advanced analytics, O&G companies can keep running their well as smooth and precise as possible at every stage. This advanced level of connectivity saves money and prevents delays.
There are innumerable ways that analytics can improve well production. But overall, the more data and analytics your company has access to, the more visibility you have into operations. With this visibility, you can identify inefficiencies, prevent roadblocks, and so much more.
Analytics Advancements in the Back-Office
Applying analytics to back-office tasks also adds incredible value to O&G operations. Tasks like managing job sites, sourcing equipment, tracking quotes, and more haven’t seen the same attention to innovation as other areas of oil and gas technology solutions. But now, with Industry 4.0 technology and the wealth of data that comes with it, O&G companies have the potential to innovate and apply analytics to back-office tasks.
For example, using site management software that centralizes all your approved and preferred vendor information can help automate the quote process, find the best provider and price for the job, and track quote history. As a result, you can eliminate the manual part of this task and be confident you're making the best possible choice when it comes to your vendors.
When advanced technology and analytics are applied to back-office tasks, you optimize operations, improve efficiency, and make your well as profitable as possible.
Visibility is Revolutionizing Oil & Gas
Total visibility into your operations is the only way to make data-driven decisions that increase efficiency and improve operations. And the only way to gain total visibility is through implementing Industry 4.0 technology and putting the data that comes from it to good use.
If you are ready to talk through the possibilities that come from the utilization of tech, data, and analytics, we'd love to chat with you about Hitched.