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Addressing the Retrofit and Greenfield Opportunities |
NEWS |
In the last few years, LoRaWAN and Sigfox have witnessed substantial global growth in their network footprint. Supporting both private and public network deployment models, LoRaWAN has networks in over 55 countries and is supported by a wide array of operator-grade outdoor gateways and cost-efficient indoor gateway solutions from Cisco, Kerlink, Multitech, Laird, and Tektelic. On the other hand, Sigfox has been a proponent of public networks for Internet of Things (IoT) applications using outdoor base stations. In mid-2018, Sigfox introduced Connectivity as a Service (CaaS) solution for regions where the nationwide network is currently not available. Further, in the first quarter (Q1) of 2019, Sigfox introduced the Access Station Micro, a US$450 gateway that provides Sigfox network coverage on demand with an option to use fixed line, cellular, or low-bandwidth satellite for data backhaul. While there has been significant interest and market demand for LPWA network solutions such as Sigfox, LoRaWAN, Narrowband (NB)-IoT, and Long-Term Evolution for Machines (LTE-M), there have been few devices and solutions in the market that could address the market’s needs.
This insight provides a snapshot of the various noncellular Low-Power, Wide-Area (LPWA)–enabled devices and solutions that are available today for the oil and gas market.
The Ecosystem of Devices and Solutions |
IMPACT |
Asset Tracking and Stock Replenishment. The oil and gas industry uses a number of industry-specific, high-value equipment and machine parts that are regularly shipped to remote locations. This equipment requires asset tracking and inventory management at its place of use—on an offshore drilling rig or a refinery or a plant located in remote areas. The following solutions are a few using LPWA technologies.
Condition Monitoring Solution. The following LPWA IoT solutions can also help monitor pipelines, storage systems, and industrial equipment.
Noncellular LPWA Device Ecosystem Takes the Lead |
RECOMMENDATIONS |
The traditional oil and gas industry is going through digital transformation by building sustainable digital capability using data-driven solutions that will help optimize the process, increase machine uptime, and improve overall safety. In the past, connectivity for the oil and gas market based on the application has been served by a mix of connectivity solution where Programmable Logic Controllers (PLCs) using wired connectivity has had the largest share, followed by Bespoke proprietary RF Solutions and data backhaul by satellite and cellular connectivity. In September 2018, Chevron Corporation, in collaboration with Microsoft, announced plans for a large-scale pilot in 2019; by 2024, it will connect most of its high-value equipment with sensors to predict maintenance problems in oil fields and refineries to prevent the breakdown of crucial equipment.
In the last few years, there have been advancements in the quality and affordability of sensors, connectivity technologies, and cloud-based platforms that gather data and analyze multiple streams of data from devices in the field. LPWA solutions help the oil and gas industry to easily retrofit a distributed wireless sensor network to monitor industrial equipment and distribution infrastructure across multiple sites with minimal disruption to day-to-day operations. The wireless sensor network allows platforms to gather additional data points to enable new insights to improve production, reduce equipment downtime, enhance operations, and detect and prevent health and safety issues. Although proprietary LPWA solutions have been used in the past for remote monitoring of assets in the oil and gas industry, device OEM and solution vendors are increasingly adopting technologies such as Sigfox, LoRa, LTE-M, and NB-IoT that are driven by the commoditization of connectivity hardware. Enterprises will need to leverage the connectivity technology that best addresses the application requirements and offers the strongest business case. That said, noncellular LPWA technology solutions, Sigfox and LoRa have been early to market with devices that adhere to strict regional regulatory requirements and certifications such as C1D1, ATEX, IECEx, or AEx for operation in explosive environments. Noncellular LPWA solutions will continue to play a critical role in IoT solution enablement. An early lead by noncellular LPWA technologies in both adoption and device access is a good indicator of their value and continued use.