In the dynamic world of upstream oil and gas, exploration and production (E&P) companies face their own unique challenges.
Because of the nature of upstream oil and gas, E&P operations are often located in remote and harsh environments. This can pose logistical complications, limited connectivity, security risks, and more.
Furthermore, the oil and gas industry is facing unprecedented challenges following the COVID-19 pandemic, including an increased microscope on ESG (Environmental, Social, and Governance), labor shortages, stricter regulatory requirements, and increased market volatility.
These challenges demand innovative solutions. As we delve deeper into the myriad of challenges E&P companies face, we’ll also take a look at the technological advancements in the oilfield and how robust SCADA systems can address some of these tricky obstacles.
Challenges Faced by Many Remote E&P Operations:
1. Health And Safety
As mentioned earlier, upstream oil and gas operations are often based in rural, harsh environments. These locations can pose significant health and safety risks to onsite operators and employees. Because of the remote nature of many E&P sites, employees can spend hours just traveling to and from the facilities.
The harsh environments often associated with upstream activities can also cause their own set of issues. Extreme heat, storms, deserts, etc. can impact operations, equipment reliability, and worker safety.
In addition to the oil and gas industry’s growing pressure to protect the environment, the reasons listed above are a few reasons upstream companies must be especially diligent in ensuring they’re implementing and compliant with ESG standards and requirements. Exploration and production companies must adhere to strict environmental regulations and ensure responsible practices to minimize the impact on fragile ecosystems, wildlife, and worker safety.
Many oil and gas companies are responsible for implementing these policies internally. Why? Obviously many companies want to ensure they’re protecting both the environment and their employees to the best of their ability, but there is also a financial incentive. Cleaner, safer practices often recruit more investments.
That being said, the lack of immediate response capabilities and environmental monitoring power can make adhering to ESG standards and policies more difficult. Remote operations can lead to limited regulatory oversight and delayed responses to potential spills and other hazards.
2. Logistics And Infrastructure Concerns
Those often-time long commutes can pose some logistical nightmares too. Limited transportation options, rough terrains, and long distances can make it challenging to transport personnel, equipment and supplies and can significantly increase costs.
3. Remote Workforce Management
Managing a remote workforce can be demanding and time-consuming. Not only do companies need transparent and efficient communication channels, they need robust safety protocols for employees working in remote areas. Not to mention, maintaining morale can be difficult for employees who are isolated on-site for weeks at a time.
This challenge can also contribute to ESG concerns. In remote areas, where power generation and transportation are often less efficient, achieving emission reduction targets can pose particular problems.
4. Data Connectivity
How well does your phone work when you’re on a road trip in a deserted area? Probably not great. Remote areas often lack internet connectivity, hindering real-time data transmission and analysis. Limited access to this crucial information and the state of your operations can affect efficiency, decision-making, and the ability to respond to alerts or other changing conditions.
Not to mention, the harsh environments can cause connectivity issues and power outages as well.
Addressing these challenges requires careful planning, risk management, and the utilization of advanced technologies.
Addressing Concerns With Technology
According to Offshore Magazine, many E&P companies implemented remote operation systems and SCADA solutions. At the time, these tools were considered as nice add-ons. Now they’re critical to addressing the aforementioned challenges while maximizing profit and saving time.
So how does advanced technology address some of these critical challenges E&P companies face day-in and day-out?
1. Remote Monitoring And Control
Robust SCADA systems allow you to take a peek into your operations at any time and from anywhere. This can address a number of concerns for E&P companies. Remote capabilities allow users to visualize and adjust equipment and setpoints from anywhere, ensuring the operations are running efficiently without actually costing personnel a trip to the site.
Those employees who were once needed on-site can primarily do their jobs remotely, allowing them to focus on more productive tasks. These remote abilities not only save time and money, but minimize safety risks associated with travel and potentially dangerous rig sites.
Rather than viewing strict ESG standards or regulations as a hurdle, E&P companies can utilize SCADA and other smart technologies to embrace the environmental, social, and governance concerns as an opportunity to promote safer and more efficient work environments. Cut back on harmful emissions by reducing travel and responding to dangerous work conditioners remotely.
2. Alarm Management And Notification
Multi-faceted SCADA systems include alarm management capabilities that allow operators to set up customizable alarm thresholds. If breached, the system pushes notifications to users oftentimes via text message, email, or phone call. Partnered with the remote control abilities, users can respond to those alarms in a timely manner.
This alert management feature promotes a safer work environment by ensuring equipment is operating at ideal levels. Companies can prevent equipment failure, reduce downtime, and maintain operational continuity.
3. Data Acquisition
Modern, versatile SCADA systems should also include their own in-depth data and analysis acquisition. The access to real-time data allows users to make informed, timely decisions that promote the efficiency of the operations.
The ability to capture and store historical data also allows E&P companies to perform in-depth analysis and generate insightful reports that show operational trends over time. This enables operators to pinpoint inefficiencies and adjust accordingly to maximize productivity. Robust data collection and sorting helps optimize regulatory compliance, providing transparency for ESG concerns.
4. Security
E&P operation sites are not immune to the growing concerns of both physical on-site security and cybersecurity. The United States Federal Bureau of Investigation now ranks cybercrime as one of its most important law enforcement activities. In a statement from the United States Department of Energy, “In addition to the general problems associated with cybercrime, critical infrastructure related to energy production, manufacturing, water supply and other systems have come under attack.”
Aging technology implemented into critical infrastructure can make it more susceptible to cyber attacks. However, SCADA systems with strong security can not only recognize bad actors, but also deter and prevent them from hacking a system in the first place. It’s crucial for operations to incorporate secure technology to protect their operations and data.
According to a study conducted by PwC, the main barrier of the implementation of changes provided by digitalization are due to knowledge and skill barriers. However, there are technological advancements that do not require the hiring of a developer, engineer, business analyst, SCADA director, etc.
Modern SCADA To Streamline E&P
Companies like SitePro operate on a drag-and-drop no-code platform. This is exactly what you think it means: you don’t need to know how to write code to make changes to your software and thus, your operations. There is no need to make additional hires or contract third-party developers or engineers strictly to operate your SCADA system. Furthermore, our customer success team trains you to use the software on your own with confidence (but we’re here to help if you need us.)
SitePro’s unique software system has one goal in mind: to make our customers’ lives easier by revolutionizing the way they see, control, and analyze their operations. It puts your employees and business at the forefront. Check your operations over your morning cup of coffee and rest assured everything is operating efficiently. And if it’s not? Our patented remote control capabilities partner perfectly with that visibility so you can make changes ASAP. No need for unnecessary travel.
Increased safety and efficiency? Check.
Furthermore, our alarm management system will notify you in real-time if pre-set thresholds are breached. Partnered with that patented remote technology, you can quickly make adjustments to reduce downtime and potentially costly hazards.
Improved uptime? Also check.
SitePro’s data and analytics feature gives an inside look at what’s happening within your operations in real-time. Make quicker, more accurate responses and see how your site is trending over time.
That data storage and our pre-made regulatory templates make reporting a breeze.
Hello, ESG transparency.
In addition to a digital twin of your operations in our software, we’ve created a security surveillance system that’s synced with our technology so you can have a physical view of your operations as well. And our award-winning security protects your infrastructure from attack.
We want to help your E&P operations optimize efficiency while decreasing costs. Contact us today to learn more about how our all-in-one platform can help your oil and gas operations maximize profitability, safety, and efficiency.
Still need to learn more about us? Download our free one-pager to see how SitePro works with E&P companies to optimize their operations.