Like so much of the global economy, the offshore industry has always been driven by boom and bust cycles and the technical challenges of locating and extracting from reservoirs thousands of feet below the surface of the Earth. Advancements in the sector have helped the space industry build suits for astronauts, and medical experts to better understand the human brain.
Innovation isn’t new in offshore work, but today, digital transformation, technological developments outside the sector, and increasing demand for renewable energy is set to push the field even further. The changes won’t only be confined to R&D, but will also sweep across the business management side of offshore work.
Big changes are on the horizon. Below, we explore some of the most interesting emergent trends, from blockchain to an expanding gig economy.
Improving Transparency with Blockchain
The oil and gas industry has always been technologically forward thinking. The business side, in comparison, lags behind a bit. Transactions upstream, midstream, and downstream are still processed through a tangled web of Excel sheets, emails, and legacy applications. Information is typically walled in behind the insular databases of companies and independent contractors.
Blockchain, as an immutable and open record, offers an elegant way out of the tangle. The technology creates a way for stakeholders to have a uniform, clear view into every transaction made along the pipeline. This makes for far better trust and accuracy, which is invaluable when you’re moving many millions of pounds in product and equipment.
The industry needs to decide on a platform, and get everyone on it. Blockchain’s potential can only be realised when the entire supply chain participates on the same network. Promising projects are already being carried out by developers like Data Gumbo. But for the next couple of years, the work lies in driving adoption.
The IoT will edge into offshore work...
Offshore refineries are a hub of data-generating machines. Several operating parameters like pipe pressure and flow velocity need to be closely monitored for efficiency and safety around the rig. However, some equipment aren’t readily accessible to technicians, which means it can be difficult to feed back data in real time.
This is where edge-computing will shine, as it already does in many manufacturing sectors. Internet-enabled smart sensors can significantly optimise predictive maintenance, prolonging the lifespan of extremely expensive equipment. And more importantly, these devices can prevent catastrophic failures and downtime from faulty machines.
...and will be maximised by AI
The offshore sector is no stranger to crunching large volumes of data. But IoT sensors will introduce a new, constant stream of information for analysis and action, one that will look different from seismic or oceanographic figures. And the expertise pool for analysing it is shallow. Only about 4 percent of companies have the analytics capabilities to leverage big data, according to Bain & Company. Offshore rigs may find themselves in stiff competition for qualified analytics experts.
However, they may not have to try so hard at all. Artificial intelligence (AI) can help bridge the skill gap. The technology is already making its way into the workflows of offshore work. SparkPredict, a machine learning platform, can alert technicians about equipment failure long before they happen. A couple of companies are teaching machines to foresee and prevent dangerous situations by “seeing” and analysing human-equipment interactions around the rig.
We can only expect to see more use cases in the near future–AI in oil and gas production is forecasted to become a £6.1 billion industry by 2025.
Smart Wearables for Smarter Safety Practices
Offshore rig workers are constantly exposed to hazardous situations. Rigs are built in harsh environments regularly buffeted by extreme weather. Handling heavy machinery and deadly gas are all in a day’s work.
Safety should be paramount. Yet practices on-site are far from perfect–the Health and Safety Executive recently reported the highest number of injuries in the offshore sector since 2015.
Wearable technology has gone a long way since pedometers. In the offshore sector, we’re seeing wearables that can detect gas leaks, which is one of the most common causes of injury onsite. Motion sensors can also be used to recognise when technicians have fallen unconscious.
Remote Pilots for Deeper Exploration
Autonomous Underwater Vehicles (AUVs) and Remotely Operated Vehicles (ROVs) are integral for reducing maintenance costs and safety risks. Usage is on the rise, driven by improved models that can stay longer underwater. Some systems on the bleeding edge of development will even allow units to recharge on the ocean floor, enabling a deeper push into more remote areas.
But perhaps one of the most exciting developments in the field is the degree to which a vessel can be controlled remotely. Traditionally, ROVs are piloted by crews topside, connected to the robot via an umbilical cord of cables. But future pilots may be located farther than a few thousand metres above the ROV–an entire continent away, to be exact. Untethered, companies can reduce the use of manned vehicles or offshore personnel. It also opens up a wider pool of talent for a highly specialized position.
Gig Workers will become Essential
Contractuals have always been central for cost-efficiency within the offshore industry. When much of the work is project-based, it makes more financial sense to hire temporarily. The need has created a robust freelancing field–the majority of personnel on a site are typically hired by contractors.
The current, unprecedented health crisis will see that number rise even higher. Global prices have plummeted to the lowest they’ve been in 30 years. This, coupled with fewer people going into oil and gas, will exacerbate the need for skilled workers and flexible work arrangements in the coming months.
New Demands from Renewable Energy
Renewable energy is on the rise. And even if it won’t sound the death knell for gas and oil anytime soon, project timelines in the energy sector are long. The trend is already creating new demands in the area of offshore work, specifically in the realm of offshore wind.
Offshore wind accounted for 10 percent of global wind capacity in 2019, but industry experts expect that to double by 2025. The growth is predicted to create a need for 77,000 thousand trained site workers in the next 4 years.
Digital transformation, the evolving nature of work, and the ever unpredictable demand for energy will see the sector leveraging technology and more flexible work arrangements. These trends point to a new chapter of operational efficiency, safety, and cost-reduction for the offshore industry.
