Improving operational efficiencies in oil and gas

Presidential Policy Directive 21 identifies the energy sector as uniquely crucial because it provides an enabling function across all critical infrastructure sectors. Without a stable energy supply, health and welfare are threatened and the U.S. economy cannot function. Any interruption in oil and gas production directly impacts downstream processing plants. Abnormal situations that impact production vary from minor upsets to full shutdowns, and can be caused by a number of factors, including equipment failure, human error and severe weather conditions.[1]

To remain competitive — particularly in light of ongoing worker shortages — and minimize unplanned downtime and increase productivity, alarm management and complementary technology must be embraced. In the sprawling and intricate landscape of the oil and gas industry, ensuring the safety of personnel, protecting assets and optimizing operational efficiency are paramount concerns. Alarm management plays a pivotal role in achieving these objectives.[2]

Alarm management

A robust alarm management system enhances operational efficiency and enables timely detection of failures. A comprehensive alarm system provides actionable information to the operator and assists in taking corrective action. Research has shown that a well-managed alarm system results in production efficiency, improved product quality and better operator effectiveness.

Since 1991, alarm management standards have been published and currently the ISA-18.2 and IEC 62682 are the most widely accepted. The standards define a seven-step Alarm Management Cycle program from identification to monitoring and assessment.

A cloud-connected alarm management system provides access to real-time alarms even when working remotely to decrease response times and help reduce unplanned downtime. Alarm audits and reporting provide an efficient means to document and track the history of individual alarms, consequences, response time and the action taken to mitigate the alarms. As this rationalization is performed, continued system-level monitoring and assessment reports validate that these efforts are driving real improvement.

An effective alarm management program can help the processes get closer to an optimal operating point resulting in lower production costs, higher quality, greater throughput and eventually safer operations.[3]

Digital transformation

The need to optimize production and minimize downtime is crucial in the oil and gas industry. According to the Kimberlite report, the offshore oil and gas sector experiences on average 27 days of unplanned downtime, which amounts to $38 million annually.[4] However, leveraging digital technologies can aid in streamlining processes, improving decision-making and reducing inefficiencies.[5] The ultimate goal of adopting modern systems is to have a wholly efficient, and maybe even an autonomous process, that cuts out excess fat, ballooning costs and wasteful operations. Focus should be on end-to-end process improvement, which will, in turn, help shape collaboration within the organization. That means investing in training and education, process automation, related hardware and new tools or software.[6] 

Continuous operational improvement starts with capturing data from machine assets. This data provides immediate insights for both people and systems, enabling them to make better, faster decisions and drive automation. While accurate, real-time data is pivotal to operations, harnessing this data effectively requires advanced technology and analytical capabilities. 

Data analysis drives efficiencies

Oil and gas companies increasingly use data to drive process improvements and optimize production. Vast amounts of data are collected for environmental reporting, predictive maintenance and safety enhancements, for example, but companies may be challenged to effectively manage and analyze the data. And while monitoring and alarms can improve system efficiency, they do not automate the labor-intensive reporting process or provide much-need analytics that extract raw or summary values over a discrete time period. 

Automated third-party reporting software, however, tracks all stages of an energy pipeline supply chain. The finished reports are then distributed directly to preferred destinations, which streamlines the decision-making process and enhances operational efficiency. The ability to harness this data effectively can lead to smarter decision-making, improved processes and a competitive edge. Analyzing historical data allows operations management to identify patterns, trends and anomalies that may otherwise go unnoticed. Historical data analytics can also help companies transition from reactive to proactive planning and keep planning aligned with operations.

Remote alarm notification software

Improving efficiencies involves greater connectivity — increasing connectivity between devices, industrial networks and physical assets and the cloud. Growing connectivity allows for improved process transparency and the added potential for predictive analytics and sentinel alarm conditions. Smart oil and gas production allows potential issues to be addressed before they become problems, but only by extending that connectivity to the final hop — to the people who operate and optimize assets. Connecting devices to people and getting the right information (with increased sophistication of modeling) to the right people at the right time is the strength of remote alarm notification software.

Remote monitoring and alarm management enables operators to take on more proactive, hands-on tasks in the field or on the plant floor, without hiring additional staff. This is important because there are approximately 100,000 fewer workers in oil and gas now than before the COVID-19 pandemic. This shortage of workers and the inability to attract new ones are major challenges. However, more organizations in the industry are turning to digital solutions to help bridge the gap between the demands of consumers and the workforce capacity challenges.[7]

Historization and analytics

The convergence of advanced technologies and data-driven strategies has ushered in a new era of optimization, where historical data analysis plays a pivotal role in achieving accurate forecasting and scheduling. The ability to harness this data effectively can lead to smarter decision-making, improved processes and a competitive edge. Analyzing historical data allows operations management to identify patterns, trends and anomalies. These insights serve as the foundation for creating accurate forecasts and efficient production schedules.[8]

Reporting

Reports provide a visualization of this historized process information and correlate related process variables, compute metrics on that data, and visually graph such data for easier pattern and anomaly detection. These reports are created through third-party software that seamlessly integrates with PLCs, SCADA and historian systems. Advanced reporting solutions can even pull information from remote alarm notification software, allowing further analysis and optimization of condition response times. 

Reporting software enables oil and gas producers to turn raw process data into actionable information, thereby increasing efficiency and reducing costs. As the data is collected it is summarized as key metrics — flow totals or runtime analysis from emissions producing processes. The final output is published into a formatted document accepted by regulatory agencies.

Leveraging aggregated data offers economies of scale for managers. With a summation of performance across all machines, larger performance inefficiencies become evident, and managers can develop a deeper understanding of their machine performance, people performance and process performance.[9]

Meeting industry challenges

Cybersecurity threats, evolving government reporting regulations and worker shortages are reshaping the oil and gas industry. Trying to meet these challenges with manually intensive processes and outdated technology is difficult. However, by leveraging advanced technology such as alarm management, reporting and analytics software and remote alarm notification software, this critical infrastructure can be resilient against challenges, meet compliance regulations and maximize operational efficiencies. 

Cody P. Bann is director of engineering at Austin, TX-based SmartSights and may be reached at [email protected]. David Nolan is senior application engineer at Austin, TX-based SmartSights and may be reached at [email protected]. SmartSights, previously WIN-911 and SyTech, is a global leader in data-drive analytics, reports and notifications, serving the industrial sector. By providing comprehensive visibility into critical infrastructure management, SmartSights enables swift problem resolution, waste reduction and cost efficiencies elevating operation performance.