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One of the major challenges facing the oil and gas industry is ensuring the safety of the workers and the environment, especially during the drilling process. During extraction, employees are often at risk of being temporarily or fatally harmed by toxic emissions.
Fremont, CA: Data analysis has had a major effect on the oil and gas (O&G) industry, be it by improving ROI or facilitating safety measures. According to McKinsey's report, advanced analytics yielded 30-50 times the return on investment within a few months of being effectively introduced.
O&G is an industry that relies heavily on data to operate its operations, which has shown advanced analytics to be useful in different aspects of this industry. Exploration, drilling, production processes, analysis of seismic and microseismic data, enhanced reservoir characterization and simulation, asset management, and occupational safety are some of the main areas in which advanced analytics are commonly used to gather insights.
Given below are two major use cases of data analytics in the oil and gas industry
Ensuring Human Protection
One of the major challenges facing the oil and gas industry is ensuring the safety of the workers and the environment, especially during the drilling process. During extraction, employees are often at risk of being temporarily or fatally harmed by toxic emissions. To reduce this risk, O&G companies are now using large-scale data and predictive analytics to locate new oil and gas sources without potentially dangerous operations.
Reducing Production Cost
There are many internal and external factors, from well-drilling to pipeline operations, which have an impact on the cost of extracting oil and gas. These data can be used by massive data analytics and used in different situations to increase production quality and minimize costs. For example, rock analysis is used to determine the right position for digging oil wells; pairing down-hole drilling data with close-by good production data may help oil producers change their drilling strategy. Companies like Shell use data analytics to assess the quantity of oil and gas remaining in the reserves and the production forecast.
