Big oil companies turns to big data as oil prices plunge

With plunging oil prices, large oil and gas companies are using big data to manage risks, cut costs, and increase revenues, according to Lux Research. With hardware developers bringing in a raft of new and existing sensor technologies to the industry, developers have more data to work with than ever. Oil & gas majors can exploit big data by identifying high-value use cases like reducing operational costs by anticipating bit-wear, optimising rig utilisation, 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. Big data is becoming a critical competitive advantage, and as a result, oil & gas M&A activity will spreads from oilfield services consolidation into IT plays,” said Colleen Kennedy, Lux Research analyst and co-author of the report titled, ‘Big data in oil and gas: The intelligent oilfield’.
 
According to Lux Research analysts, evaluating current big data and related technologies in oil & gas, big data is poised for a breakthrough in oil & gas because the technology for acquiring, analysing 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.
 
In contrast to information-based industries like telecom, oil & gas needs a targeted approach to big data. High-priority use cases fall into six main categories: boosting production rates, reducing non-productive time, predicting equipment failure, decision support for project planning and trading, de-risking exploration, and regulatory compliance and early event detection.
 
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 centres.