10 ways the oil and gas industry can leverage digital twin technology

The oil and gas industries have been the backbone of the global economy for decades. However, market volatility, environmental concerns and operational inefficiencies have also challenged these industries to adapt and innovate. The use of digital twins is one such innovation.

In the era of digital transformation, digital twins are emerging as a potent solution to energy production challenges. Digital twin technology, an advancement stemming from the Industrial Internet of Things (IIoT), is reshaping the oil and gas landscape by helping providers streamline asset management, optimize performance and reduce operating costs and unplanned downtime.

What is a digital twin?

A digital twin is a dynamic, virtual representation of a physical object or system that simulates its behavior in real-time. By integrating real-time operational data, historical information and advanced algorithms into a comprehensive digital model, a digital twin can predict future behavior, refine operational efficiency and enable unprecedented insights into the real-world counterpart’s behavior. 

Digital twins in oil and gas

Digital twins were first used by NASA to prepare space missions, but their use cases run the gamut, especially for oil and gas operators. Digital twin technology facilitates the following:

1. Predictive maintenance: One of the most beneficial applications of digital twins in the oil and gas industry is predictive maintenance (PdM). In this context, a maintenance team would create a digital twin of a piece of equipment or machinery. The twin will continuously collect data from the physical asset and use predictive analytics and machine learning (ML) algorithms to predict future performance. By constantly monitoring equipment performance and comparing it to virtual counterparts, operators can predict potential failures or breakdowns.

2. Efficient and safe operations: Digital twin technology can significantly improve operational efficiency. A digital twin can simulate various operational scenarios, helping teams understand how different operating parameters affect performance. They can then use the information to optimize operations, improve efficiency and boost productivity. For example, a digital twin of an oil extraction process can help operators identify bottlenecks and optimize extraction rates.     

3. Asset optimization: Digital twins allow operators to fully leverage critical oil and gas assets. A digital twin of an oil reservoir can help operators better understand reservoir behavior and plan extraction strategies more effectively. This approach results in higher extraction rates and increased profitability for businesses.

4. Safety and emergency preparedness: Safety is a significant concern in the oil and gas industry, but digital twins can enhance safety in myriad ways. Digital twins will simulate a range of scenarios to help operators optimize operational procedures and mitigate potential hazards. For example, a digital twin of an oil pipeline system can help foresee potential leaks or ruptures, enabling operators to repair the pipeline before a dangerous malfunction. Digital twins can also be used for employee training, realistically simulating dangerous situations in a risk-free environment so that staff can learn new skills and procedures and know how to respond to safety emergencies.        

5. Sustainability: The oil and gas industry is under increasing pressure to reduce its environmental impact. Digital twins are an invaluable tool in this effort. By simulating operations and their environmental impact, businesses can develop strategies to reduce emissions, manage waste and comply with environmental regulations. Digital twins can also simulate the impact of new regulations and/or technologies, helping the industry continue to adapt as technology advances and proliferates.   

6. Drilling operations optimization: Drilling operations are complex and costly. Digital twins can help streamline these operations by simulating various drilling scenarios and providing insights into the best strategies. A digital twin of a drilling operation, for instance, can identify the optimal drilling speed and direction, improving overall drilling accuracy.

7. Reservoir management: By creating a digital twin of an oil reservoir, operators can visualize reservoir behavior, optimize drilling strategies and maximize extraction. This not only optimizes extraction rates but also prolongs the reservoir’s lifecycle.

8. Supply chain optimization: Oil and gas supply chains are very complex. Maintenance teams can use digital twins to simulate the entire supply chain, providing in-depth visibility into operations and logistics and identifying potential bottlenecks.

9. New system design and testing: Designing and testing new equipment and systems can be a costly, labor-intensive process. With digital twins, engineers can design, test and perfect new systems in a virtual environment before they spend time and money building them. Using digital twins in this way can significantly shorten the development cycle and improve the final product’s performance.

10. Training and skill development: Digital twins can serve as a practical training tool for industry personnel. For example, a digital twin of a complex oil refinery—when integrated with VR technology—can provide a realistic environment for personnel to train and hone their skills, enhancing safety protocols and the overall quality of products and processes.

The future of digital twins in the oil and gas industry

As the industry continues to embrace digitalization, the role of digital twins is expected to grow exponentially. And the increasing adoption of technologies like artificial intelligence (AI), machine learning and IoT will only further enhance the capabilities of digital twins. Moreover, with the advent of cloud computing—which provides the benefits of digital twin technology without the substantial upfront investment in IT infrastructure—implementation of digital twins is becoming more feasible for a broader range of companies.

Looking forward, we know that digital twins will play a crucial role in process automation. Integrating digital twins with robotics and autonomous systems, as one example, could lead to fully automated drilling operations. Similarly, digital twins could enable the development of smart grids in gas distribution networks, resulting in more efficient and reliable supply chains.

As the industry grapples with increasingly urgent calls for sustainable environmental practices, digital twins could also underpin the transition to cleaner, more renewable sources of energy. Digital twins of wind turbines, solar panels or entire renewable energy grids have the potential to improve overall performance, making these energy sources more competitive with fossil fuels.

And in the realm of exploration, digital twins can revolutionize the way companies search for new oil and gas reserves. With a digital twin of the Earth’s subsurface, oil and gas companies could accurately predict the location of new natural gas and oil fields, reducing the costs and risks associated with exploration. 

To fully realize these possibilities, however, the industry must overcome several barriers. Companies will need to invest in digital skill development for their workforce and navigate complex issues around data ownership, privacy and security. They will also need to foster a culture of innovation and agility, as the digital revolution will bring significant changes to traditional ways of working.

Despite these challenges, the potential benefits of digital twins are too significant to ignore. As the oil and gas industry navigates the path toward digitalization and sustainability, digital twins promise to be a powerful tool in its arsenal. By providing a window into the future, they can help the industry anticipate, prepare for and shape the changes that lie ahead.

Use IBM Maximo Application Suite to help you manage digital twin technologies

The era of digital twins in the oil and gas industry is just beginning. By providing a real-time link between the physical and digital worlds, they enable operators to understand, predict and produce systems like never before.

However, managing digital twins can be a complex process, requiring advanced software solutions like IBM Maximo Application Suite. IBM Maximo is an integrated platform that helps service providers optimize asset performance and streamline day-to-day operations. Using an integrated AI-powered, cloud-based platform, Maximo offers CMMS, EAM and APM capabilities that produce advanced data analytics and enable smarter, more data-driven decision-making in oil and gas production facilities.   

As exciting digital technologies continue to evolve, digital twins are set to redefine the industry’s future. With IBM Maximo, your business can leverage digital twin technology to build a more efficient, sustainable and prosperous tomorrow.

Source: ibm.com

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Five industries benefiting from drone inspections

The use of commercial drones to conduct inspections can significantly improve business operations across industries. These inspections increase precision, provide safer options for the workforce and drive efficiency. According to Quadintel, the global drone inspection and monitoring market was $7.47 billion in 2021 and will grow to $35.15 billion by 2030. This blog examines five industries that benefit from the fast-growing technology of commercial drone usage.

1. Infrastructure and construction

Infrastructure is critical for a society and an economy, but some of the world’s most industrialized countries face crumbling infrastructure, especially aging bridges. In the US, 1 in 3 bridges needs repair or replacement. In Japan, the number of aging bridges that restrict traffic tripled between 2008 and 2019. In the UK, over 3,200 bridges need repairs.

Traditional bridge inspections are tedious and require extensive human effort, but the use of drones piloted with artificial intelligence has the potential to save our crumbling infrastructure. Drones simplify the challenging task of inspecting and maintaining critical structures like bridges. In the construction industry, drones can validate that construction is in line with blueprints, and they can measure, transmit and store data for civil or structural surveys. Infrastructure managers can use drones to create a digital twin of the building or infrastructure to allow for faster decision-making and communication between various departments in large construction projects.

2. Search and rescue operations

Time is of the essence when searching for people who are injured or lost in the wilderness. Drones equipped with thermal imaging, zoom cameras, and lights can fly quickly over large distances to find lost hikers and guide them home. The Mountain Rescue Association of North America estimates that 80% of its members use drones as a critical tool in the search-and-rescue process.

3. Energy, utilities, and resources

Oil and gas enterprises and utility firms traditionally use helicopters to inspect refineries, offshore rigs, and power lines. Replacing helicopters with drones makes these tasks more cost-effective and sustainable. Many renewable energy companies use drones and zoom cameras to inspect solar panels and wind turbines. The mining industry now sends drones to inspect open stopes, which reduces the risk to human life. In these industries, drone usage is a part of business operations that increases efficiency and safety.

4. Insurance claims

When natural weather conditions devastate people’s homes and properties, drones can help insurance companies manage the deluge of claims. For example, a drone can inspect a home before the insurance company sends an adjustor to assess a roof damage claim. This streamlined process saves time and money for insurance companies. In a connected use, individuals who provide roof repair services can use drone imagery to show the owner the condition of their roof and to discuss plans for restoration.

5. Agriculture and agribusiness

Before drones, farmers manually inspected their fields, which could take days. Hundreds of acres of crops were at risk of damage during this lengthy process. With drones, farmers can now get an instant view of crop problems and focus on the remedy. Similar to utility and energy firms, large agricultural businesses can monitor their assets from above to ensure that shutdowns for repairs can be reduced to a minimum.

As commercial drones are deployed across the globe for inspections, drone relevance grows across multiple industries. Drone inspections increase accuracy, drive efficiency and protect the workforce. We can expect more industries to adopt these tools to maximize their business operations as drone technology progresses in the coming years.

Source: ibm.com

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Save energy, decarbonize and transition to renewables while operationalizing sustainability

Recent political and climate-related environmental events have impacted energy sourcing, supply and costs. The resulting energy crisis impacts all countries, industries, sectors and societies across Europe. Combined with imminent reporting requirements from the European Commission, saving and securing energy sustainably and moving to renewable energy sources equitably is imperative.

The immediate energy crisis coincides with the equally crucial long-term journey to sustainability. A traditional management mindset could see this imperative as an onerous obligation that could cut into profitability. But evidence shows that sustainability efforts unlock value and innovation throughout the organization. Numerous reports cite a direct correlation between sustainable practices, share prices and business performance. According to a recent IBV report, 83% of CEOs expect sustainability investments to produce improved business results in the next five years.

Meeting the needs of energy saving and security, regulatory compliance, cost savings and sustainability requires technological solutions paired with a reconsideration of business processes throughout the entire enterprise.

We see five key functional areas IT and operations executives can assess for transformation:

1. Asset and facility management

Integrated asset management helps organizations minimize the environmental impact of their operations across the asset lifecycle and extend asset life through predictive maintenance and condition monitoring. More accurate replacement planning can help companies minimize and consolidate technician visits, reducing use and saving energy.

Intelligent integrated workplace management software can help organizations infuse sustainability into their real estate and facilities management operations. Criteria for sustainability (such as ISO 14000) can easily be specified for space acquisition or leases, and for construction and renovation projects. Carbon footprints can be reduced through space optimization and planning, and by extending asset life through improved maintenance and assessment.

2. IT: infrastructure and code

The global power capacity of data centers has grown by 43% since 2019. Data centers can account for a large portion of an organization’s energy use, making environmentally sustainable computing more critical. This year’s generation of servers can reduce energy consumption by up to 75%, space by 50% and the carbon emissions footprint by more than 850 metric tons per year, compared to x86 servers under similar conditions.

Hybrid cloud is also a critical enabler of green IT, facilitating increased visibility, greater integration and enhanced capabilities across the cloud estate. Moreover, running workloads in a container platform instead of classically deployed virtual machine environments can reduce annual infrastructure costs by 75%, thanks in part to increased energy efficiency.

The choice of code matters too. Using the right language for the right workload can reduce computing power, and therefore energy usage. Switching from one programming language to another can reduce the energy consumption of an application by up to 50%.

3. Sustainable supply chain and circularity

Through intelligent workflows and automation, companies can reduce waste and improve circularity. Making shipping and routing more efficient and trackable reduces costs and warehouse space, and thus reduces the carbon footprint. It also helps organizations ensure provenance. With 80% of consumers saying sustainability is important to them, and 60% willing to change their purchasing habits based on environmental impact, such assurance can improve consumer loyalty.

Intelligent order management software also marries sustainability to customer satisfaction by allowing companies to consolidate shipments into fewer packages. Integration with carbon-accounting engines allows carbon savings to be shown to online shoppers as they make their shipping choices.

4. Transitioning to sustainable energy sources

Becoming a sustainable enterprise requires a rigorous strategy and roadmap. It encompasses all areas of the organisation right through to enabling customers. It includes ESG reporting and finance, climate risk assessment and adaptation, responsible computing and green IT, a circular supply chain and decarbonization and clean energy transition.

Decarbonization and clean energy transition alone spans many areas including distributed energy, grid resilience, alternative fuels and emissions, flexible energy, new energy systems, mobile energy and low-carbon customers. Moving to a low carbon physical infrastructure, low carbon energy markets, EV platform enablement and digital product business for consumers are among the tactics that can be deployed.

Few organisations have a complete portfolio of these capabilities. Working with partners who can co-create these strategies using proven, repeatable methods, and leveraging extensive partner ecosystems can accelerate realization times on an organization’s journeys to net zero.

5. ESG and risk management

ESG platforms can help organizations build a single system of record that delivers auditable, finance-grade ESG and sustainability data. They enable efficient monitoring of energy demand, consumption and emissions across organizations by capturing data from utility bills, interval meters and renewable assets. When combined with weather and facility information, they can provide a granular data foundation for use with enterprise asset management software, improving predictive insights. ESG platforms also enable organizations to meet increasing regulatory reporting requirements.

Effective use of these platforms can help corporations take the right actions at the right time, reducing corporate risk and the financial and environmental impact of disasters.

Embodying sustainability

IBM leads the way for clients because we embody innovation in sustainability within our organization. We have set precedents for environmental and social commitments for over 50 years, starting with our first corporate policy on environmental affairs, enacted in 1971. Our 21 current environmental commitments include achieving net-zero GHG emissions by 2030 and diverting 90% of nonhazardous waste (by weight) from landfill and incineration by 2025, which we report on annually in our ESG Report, IBM Impact. We also promote environmental justice programs such as the IBM Sustainability Accelerator and Call For Code, enabling organizations and communities to tackle environmental issues.

Proven methods, comprehensive solutions

IBM helps customers save and secure energy sustainably while complying with increasing regulatory demands. We operationalize sustainability end-to-end with data-driven innovation through a comprehensive and growing portfolio of industry-leading consulting and technology capabilities. With an ecosystem of partners, we co-create solutions to uncover new opportunities while finding cost efficiencies, without trade-offs or compromising profitability.

Source: ibm.com

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Harnessing the power of data and AI to operationalize sustainability

Companies are under mounting pressure from regulators, investors, and consumers to progress toward more sustainable and socially responsible business operations — and to demonstrate these measures in a robust and verifiable way. In fact, corporate responsibility and environmental sustainability risks tied as the third highest concerns for organizations, as ranked by large corporations in a 2021 Forrester report. However, the various types of data that companies need to understand and report on sustainability initiatives remains highly fragmented and difficult for all relevant parties to access.

To help organizations respond to these challenges, IBM has acquired Envizi, a leading data and analytics software provider for environmental performance management. Envizi complements IBM’s growing portfolio of AI-powered software — including IBM Maximo asset management solutions, IBM Sterling supply chain solutions and IBM Environmental Intelligence Suite — to help companies assess the impacts of the environment on business and of business on the environment.

Sustainability innovation is building momentum

As Envizi founder David Solsky pointed out during our recent sit-down, when it comes to sustainability, executives around the world have changed their attitudes dramatically over just the past two years. Today’s leaders are excited and energized by the chance to reimagine business and commerce with a sustainability-first mindset. The response to the COVID-19 pandemic during this same time has shown the power of the enterprise to adapt and thrive in adversity, and the rapid development of new vaccines has shown the power of technological transformation.

Sustainability is now a boardroom issue with a visible effect on the bottom line. Today teams have the proper resources and leadership buy-in to accomplish ESG goals and meet the moment.

But when organizational leaders step back to assess how to tackle sustainability, a common modern-day challenge becomes clear: getting, applying and managing the data. Much of the crucial data for sustainability improvements — for example, energy data across fragmented markets — is difficult to capture and track. While acquiring this data is likely to remain a challenge, we’re working to reduce the burden of acquisition by unifying key systems of record.

IBM with Envizi will accelerate the journey

Supply chain and asset management hold some of the most significant opportunities for environmental improvement and innovation, since they often form the bulk of an end-to-end operating footprint. And it’s the operating systems that already drive these, and other areas of business, which hold the information needed to improve sustainability.

Up to now, IBM and Envizi have represented two halves of the ideal approach: operation-specific improvements through IBM solutions; and ESG-related data collection, analysis and reporting through Envizi. Now we’re bringing them together.

IBM’s portfolio of solutions already helps organizations reduce environmental impact and improve sustainability as part of ongoing business: increasing supply chain visibility with IBM Sterling; enabling intelligent asset management, monitoring and maintenance with IBM Maximo; and enabling intelligent facility management with IBM TRIRIGA. IBM also helps organizations manage direct climate risks with the IBM Environmental Intelligence Suite. With this software, an energy company can automate the scheduling of tree-trimming near power lines, intelligently assign workers to a new location, or optimize the repair and replacement of critical equipment.

Meanwhile, Envizi offers a comprehensive software to drive performance management related to all these activities and systems. Envizi also brings 13 years of experience in sustainability management, including a deep knowledge of greenhouse gas (GHG) emissions reporting, which is critical to helping organizations address regulatory and voluntary reporting needs.

Now IBM will integrate Envizi with its existing solutions, helping automate the feedback loop between corporate-level reporting and critical operational endpoints. This will bring together day-to-day operations and sustainability data and strategy to create a turnkey solution that allows organizations to move faster and achieve their goals.

Best of all, Envizi and IBM already share a common value: innovation that matters, for our companies and for the world. That became obvious as we worked together in recent years to streamline data management toward our own emissions reduction commitments. Now we’re excited to combine the power of Envizi with IBM’s existing suite and share it with the world.

A sustainable future

This is exciting news for those of us with a passion for building sustainable business and an innovation mind-set. With integrated business solutions, organizations can embed sustainability goals more cleanly into their daily operations and make huge strides toward building more resilient, sustainable businesses.

Source: ibm.com

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Use AI to take “maintain, repair and restore” to the next level and create a more resilient utilities operation

Our world is powered by utility companies. Under normal circumstances, it is a constant and delicate balance to maintain these essential infrastructures. When faced with extraordinary times, the pressure on these utilities can be staggering. The new principle is resiliency, and that resiliency includes embracing technology with AI to help ensure equipment reliability, reduce costs and drive smarter decisions.

Use AI to extend operations to preventive, predictive, and prescriptive actions

Historically, utilities have used a three-pronged approach to operations: maintain, repair and restore. They’ve relied on past information, available weather data and a general understanding of their territories to make critical decisions. Now new technologies, like high-resolution satellite, aerial imagery and AI, can significantly increase operational efficiency. These allow companies to take preventative, predictive and prescriptive actions – crucial steps that help maintain equipment, optimize performance and avoid downtime.

Consider vegetation management. There is seldom enough budget to address vegetation management needs across the whole service area. Decisions about where scarce resources are spent have to be made based on risk mitigation and knowing the impact of servicing one region versus another, or deferring maintenance altogether. The best way to make these critical decisions is to have vegetation insights at scale, across the entire service territory, along with a way to aggregate and handle these insights. With that information, you can reimagine your operational approach.

From maintenance to prevention

Power lines and trees – or anything that grows near them – do not mix well. Millions of miles of wires and 300,000 types of vegetation mean constant vigilance. But it is often difficult to know where the growth is encroaching and how soon its overgrowth will pose a risk. To mitigate and prevent problems, power companies can use technologies to map where vegetation encroachment lies, evaluate the risk, contract and dispatch resources.

From repair to prediction

There will always be repairs to be made but there is a difference between planned maintenance to address aging assets and unexpected maintenance that’s based on weather or other environmental factors. Utilities can address the first with predictive maintenance. That alone can reduce costs by 15% – 20%, improve asset availability by up to 20% and extend the lives of assets by years. For unplanned events, utilities can use weather data and predictive capabilities to better understand where the storm damage is likely to be. Then the appropriate crew levels and skills can prepare to be dispatched to the right locations. They’re ready to respond more quickly to improve restoration time.

From restore to prescriptive

Restoring service is critical, but beyond that, restoring the most critical circuits that feed hospitals, police, fire, commercial operations and large sub-divisions can be assessed and prioritized for the highest impact.  For example, mobile apps equipped with remote assistance and AI guidance can help crews restore service faster.

Use insights for smarter, operational workflows

Utilities are continuously under pressure to achieve better outcomes at a lower cost. Now, they can use advanced technologies to generate insights. When these insights are mapped back into the operational workflows and translated to work orders, materials and crew adjustments, then organizations can contain costs, improve the customer experience, and improve safety. Utilities have never had insights like this before, nor have they ever needed them more. Yet it’s how they are able to drive a smarter business.

Ensure efficient and reliable equipment operations

Insights from connected assets and untapped data sources are critical to understanding the preventive, predictive, and prescriptive actions needed to maintain equipment, optimize performance, and avoid downtime. Fortunately, IBM possesses the essential combination of software, services, and industry expertise to build intelligent workflows that respond to rapidly changing conditions. Wherever you are in your digital journey, we will partner with you to deliver the AI-powered insights and consultative services required for more resilient business operations.

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