The oil & gas industry has been capable of collecting and storing countless amounts of data for many years, however, much of the data is never actually used. After studying sensor rigs around the world, a management consulting firm found that less than one percent of the information being collected from about 30,000 separate data points was being used to make decisions.
But now, new advances in cloud computing technology are bringing major benefits of business analytics and data to the energy industry, allowing the data we’ve been collecting/storing for years to actually be relevant.
In the simplest of terms, cloud computing allows companies in the energy industry to use a system of remote servers hosted on the internet, or the ‘cloud’, to store, manage, and filter data. This advancement allows oil & gas companies to examine an abundance of data at a low cost. However, information about an energy company’s development, exploration, and production is sensitive material, which has raised some concern about using servers. This has then limited the adoption of cloud computing in the past, but now times have changed! Today’s data can be stored on a virtual ‘hub’ rather than local servers, which allows cloud services to be applied more securely. Studies now show that 70% of oil executives are expected to invest in digital technologies with data storage and services, proving this to be the top priority.
Another major benefit of cloud computing is efficiency. The North American shale industry has been one of the quickest adopters of data-led services, hosted on the cloud. Thousands of wells are drilled every year and because the of the scalable nature of the cloud, the growing amount of data from these sites has been used to make significant advancements in the industry. BP has recently used an optimization model that raised production at 180 oil wells by 20%.2 By improving data analysis and efficiency, energy companies can improve the way they manage processes and make big decisions.
Reduce Your Impact
Energy companies are heavily scrutinized when it comes to environmental damage or harm, so most companies are consistently looking for ways to keep operations greener. With cloud computing, the virtualization of it can help increase server efficiency up to 80%, and higher efficiency leads to less energy and electricity use.
Building a virtual data center in the cloud is an easy way for companies in the oil & gas industry to reduce their carbon footprint. Migrating the data from just 50 servers and then replacing those servers with a virtual environment, is the equivalent of planting 450 trees. Now that’s some green!
The Bottom Line
Cloud computing at its simplest is a scalable, cost-effective and user-friendly replacement for in-house data centers and servers. By implementing additional computing resources, energy companies can experience some powerful benefits including growth of customer relationships, flexible business reactions, and real-time data. If you would like to gain a competitive edge, contact us so our team can evaluate your business and begin the steps to implementing a new way to manage and store your data.
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