By September 8, 2015 Read More →

Big Data, analytics set to help Texas producers lower costs

Oil patch Big Data made possible by improved sensors, more and better data

The next big thing in the Texas oil patch could be Big Data and the analytics to make sense of it to lower costs and increase efficiency, according to a new report by Lux Research.

Big DataWith plunging oil prices, large oil and gas companies are using Big Data to manage risks, cut costs, and increase revenues, according to Lux Research.

As hardware developers have brought a raft of new sensor technologies to the industry, developers have more data to work with than ever, says Colleen Kennedy, Lux Research analyst and co-author of the report titled, Big Data in Oil and Gas: The Intelligent Oilfield.

Oil and gas companies can exploit Big Data by identifying high-value use cases like reducing operational costs by anticipating bit-wear, optimizing rig utilization, and improving recovery factors.

“As growth slows, oil majors need to reduce risk in exploration and production, and the rapidly increasing volume of data collected on the oilfield provides an opportunity to do so, if companies can find the right targets,” said Kennedy in a press release.

“Big Data is becoming a critical competitive advantage, and as a result, oil and gas M&A activity will spreads from oilfield services consolidation into IT plays.”

Lux Research analysts evaluated current Big Data and related technologies in oil and gas, before identifying high-value use-cases in the industry.

Among their findings:

  • Breakthrough is in sight. Big Data is poised for a breakthrough in oil and gas because the technology for acquiring, analyzing and acting on it is coming together. Companies like Glori Energy and Environmental BioTechnologies are complementing seismic data with novel sensors while others like Silixa and HiFi Engineering are bringing hardware like connected tools and smart pumps.
  • Companies need focus. In contrast to information-based industries like telecom, oil and gas needs a targeted approach to Big Data. High-priority use cases fall into six main categories: boosting production rates, reducing nonproductive time, predicting equipment failure, decision support for project planning and trading, de-risking exploration, and regulatory compliance and early event detection.
  • Human and environmental benefits also flow from data. Several technology developers are tapping Big Data to help oil producers manage health, safety and environmental impacts. NuPhysicia, for example, offers telemedicine for workers far from health care centers.

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