M2M applications in Oil & Gas to reshape the industry

According to researchandmarkets.com, the number of M2M applications and devices, leveraging cellular and satellite-based M2M communication, for oil & gas management all over the world was more than 400 thousand by the end of 2013, with a compound annual growth rate of 21.4%. However, according to the same report, this number is expected to grown enormously to 1.12 million by 2018.

The oil & gas industry is primarily characterized by remote devices in hard to reach and inaccessible areas. And wireless communication such as those used for M2M applications and solutions, is the most, if not the only, viable means of transmitting information. Research and Markets said that North America is the most advanced market for M2M communication solutions in the oil & gas industry. Majority of these oil & gas companies all over the world are focused on deploying the best solutions for upstream and midstream activities. M2M specialists in the Europe like ISA and Powelectrics are put more importance on downstream activities, while prominent M2M player deliver these solutions to a wide range of industries that includes oil & gas.

M2M applications and terminals are used not just in oil & gas industries but also in various remote tracking, monitoring and telemetry solutions. However, the main drivers for the increasing adoption of M2M in the oil & gas industry are primarily safety and environmental reasons, regulatory compliance, and a higher demand for improved efficiency in operations. M2M solutions are found on most of today's monitoring and control drills, wells and pipelines, according to the report. Meanwhile, real time monitoring of pipelines is driving the midstream segment, as most wireless M2M applications are retrofitted to the existing oil & gas infrastructure and incorporated in new projects globally.

Senior analyst at Berg Insight, Johan Svanberg aid, "Booming production volumes of shale gas and tight oil in North America has increased the use of wireless M2M solutions in the upstream segment" Svanberg further added that in the downstream segment, cellular telemetry solutions have proven to be a great fit for remote monitoring of storage tanks. Furthermore, these satellite-based M2M applications have proven fit for remote monitoring for LPG tanks. Remote automation, control and monitoring solutions are key factors in making a cost-effective extraction, transportation and distribution of oil & gas products including those unconventional resources.

Meanwhile, it is known that Brazil's known oil & gas reserves are currently produced in the country's southeastern region, while 90% of the country's oil & gas production happen offshore. Some of these offshore exploits have produced great discoveries of reserves where oil and natural gas are found more than 2000 meters deep. According to apexbrasil.com, there has been a steady outset of oil & gas production in Brazil. An estimate of 50 to 80 billion barrels of high quality oil are being generated from these reserves, while production of oil & gas products outside the reserves are also expected to grow faster than other leading markets globally.

However, gaining access to these reserves can be extremely difficult thereby requiring new infrastructure and great networking and communication capabilities. Parlacom Brasil, one of the leading M2M applications and solutions provider in Brazil and the United States, believes that the oil & gas industry, especially in Brazil, can greatly benefit from technological advancement such as M2M communication.

"Old oil & gas systems are constantly plagued with technological challenges and slower speeds. Leveraging M2M applications and solutions in the oil & gas sector especially in offshore reserves will enable companies and the government to easily monitor, control and manage these remote facilities. It will not only be cost efficient, it will also be operationally efficient." Clovis Lacerda, Founder and CEO of LeadingQuest and its subsidiaries Parlacom Brasil and Datelo, said in a statement. Apart from Parlacom Brasil's highly efficient 100% cloud-based system, one of the company's primary M2M solution is Smart Utilities and Smart Meters, that has enabled local energy companies across Brazil to enjoy the benefit of a seamless, highly integrated machine-to-machine platform.