Oil drilling and oil exploration rely on automated, sophisticated processes to find resources before humans and machines dig elaborate wells deep into the ground. An oil field turns into a huge mobile manufacturing operation set up by a company that extracts this resource.
Oil drilling represents a manufacturing operation with a 97 percent success rate among shale oil exploration, notes Automation World. When oil exploration first started, companies achieved success rates of around 10 percent. Lower oil prices may actually help companies innovate and automate as oil producers try to reduce costs even more so more revenue turns to profits.
Contemporary oil drilling increased the amount of crude oil in production and decreased the number of oil rigs. In the past, a decrease in the number of working rigs meant a similar decrease in oil output. Now, oil operations have become much more efficient. Despite shale oil activity's decline due to lower crude oil prices across the world, production actually rose because companies found better ways to extract the raw material.
American companies increased oil output by 70 percent from 2008 to 2014, while demand lowered thanks, in part, to better fuel efficiency of American automobiles. Lower crude oil prices, coupled with lower gasoline prices, mean lower shipping costs for everyone.
Greater production keeps oil supplies higher and gasoline prices lower. Higher stockpiles lessen the effects of unplanned supply disruptions due to weather, geopolitical forces or economic downturns. Oil field automation, similar to a manufacturing plant, drives companies to continue exploring even when the crude oil market lowers. New oil fields remain on standby for when oil prices rise and supplies lower.
Many contemporary oil companies lag behind in the automation process and still rely on manual labor. Perhaps government assistance can help smaller oil companies invest more money in research and development for oil drilling machines, sensing equipment and software to manage field operations. The so-called intelligent oil field combines higher efficiency, visibility and reliability. Meanwhile, humans represent the weakest part of a production chain. Automation improves quality without sacrificing long-term profits.
Computer hardware and software standards have finally made gains in the oil drilling industry. Data analysis, efficiency and safety integrate with machines that use wireless connections to monitor all aspects of drilling. Controllers combine with servers to let humans run offshore drills remotely, an innovation not possible 10 years ago. New automated technology triggers collision alarms, monitors pipe interlocks and integrates machines into one control platform.
Oil drilling remains an industry that could use more automation. When oil fields stay dormant due to oversupply, companies can shift more revenue to research and development since hiring decreases during slow times with low prices. That way, oil companies are ready when markets rebound in the future.
Photo courtesy of digitalart at FreeDigitalPhotos.net
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