The Oil and Gas industry is going through ‘the Great Crew Change’ which means the dominant experienced generation will pass on the baton to the millennials over the next few years. Premiums are placed on a newer generation to assume increasing job responsibilities without compromising on the safety and quality. However, the traditional approach of classroom sessions and on-the-job training will not be enough to deliver in-sync to the expectation. The training must be amplified with advanced technologies like Augmented Reality (AR) and Virtual Reality (VR) that enhances the workforce's knowledge and confidence.
Visualization is one of the greatest abilities of humankind, and with the advancement of computing technology, this concept has been translated as Augmented and Virtual Reality. In the high-risk setup like construction, military, aviation or energy, the visualization techniques can combat the future risks and can even save lives.
The oil and gas industry has introduced AR/VR Immersive Training Systems, which is a 3D engineering tool that connects control room operators, maintenance, and field personnel in a single realistic simulated learning environment. The system also allows to capture and retain operational knowledge and technical expertise during the replacement of the experienced operators with the new workforce. It ensures safety and unhindered plant operation and performance.
Augmented Reality (AR) in the oil and gas sector provides a visual view of the system along with the digital information. It provides graphics, real-time data, and feedback. Field engineers can also perform maintenance task by using AR informative graphics, resulting in the better assessment of the issues and reduced downtimes. It can also be used in the monitoring of the critical equipment for preventive and corrective maintenance in rigs, exploration and production units. It is a great tool for on-the-job training and keeping your workforce updated with latest learnings.
Virtual reality (VR) simulation mimics the real-world scenario. The user can interact with the elements and can even perform tasks virtually through sensory experience. This is one of the best learning tools for the upcoming generation. It enables them to learn about the oil reservoir, rigs, and other equipment in a life-like setting, without being physically present in the hazardous environment. They can also learn about the possible hiccups and the ways to combat them. By using 3D immersive technology, one can zoom in and zoom out the viewing model and can compare the expected system with the actual to learn more about the deviation. Even the real-life mock-ups can be created to train the workforce better.
Benefits of training
· Fast commissioning and start-up time
With the real-world plant training of the operators, supervisors, managers, field engineers, and maintenance staff the company can minimize the project risk considerably and prevent delays due to plant commissioning and start-up.
· Save cost on Infrastructure
The cost of training your personnel in real setup means a huge expenditure for the company in providing the facility, training staff, and equipment. However, with simulations, the personnel can easily learn to operate, manage and maintain the equipment without any expenses on infrastructure. The technology can also assist in case-study of oil drilling platforms, processing plants, rigs, refineries, which comprises of the most complex machinery and process.
· Fast and efficient training
The real-time training requires long duration due to a mix of the classroom session, on-the-job training, plant or site visit. However, VR offers the same level of training without much movement and expenditure in considerably less time. Thus the simulated learning system makes the training process highly reliable, sustainable, efficient, effective, and pocket-friendly.
· Compliance with safety parameters
3D models simulate the real work conditions and enhance the understanding level of the workers and equip them to deal with any risks or unsafe situations and ensure adherence to the safety compliances.
· Improve first-time fix rates
The upstream segment is usually located in the remote or offshore location which means the cost of installation and maintenance is high due to accessibility issues. The technicians can be trained about the facilities in advance before reaching to perform periodic maintenance and first-time fixes.
· Conduct primary diagnosis
AR/VR platform aided with the integration from the sensor's operating system can provide historical data about the facilities and help to conduct training that enables the technician to make an informed decision. The engineer learns to conduct a first-level diagnostic and ascertain the extent of the problem before reaching the site.
The future of Augmented and Virtual reality is moving beyond the ‘virtual view’ to a more ‘data-oriented virtual view’. The idea is to obtain relevant historical and real-time data via enterprise system or IoT- based system to deal with any system error or failure. When the personnel is trained using the simulation and 3D models they are better equipped to deal with real-time situations and can help in creating innovative solutions at a fraction of cost.
The real time training requires long duration due to a mix of classroom session, on-the-job training, plant or site visit. However, VR offers the same level of training without much movement and expenditure in considerably less time. Thus the simulated learning system makes the training process highly reliable, sustainable, efficient, effective, and pocket-friendly.
3D models simulate the real work conditions and enhances the understanding level of the workers and equips them to deal with any risks or unsafe situations and ensures adherence to the safety compliances.
The upstream segment is usually located in the remote or offshore location which means the cost of installation and maintenance is high due to accessibility issues.The technicians can be trained about the facilities in advance before reaching to perform periodic maintenance and first-time fixes.
AR/VR platform aided with the integration from operational system can provide historical data of the facilties and help to conduct training that enable the technician to make informed decision. The engineer learns to conduct a first-level diagnostic and ascertain the extent of problem before reaching the site.
The future of Augmented and Virtual reality is moving beyond the ‘virtual view’ to a more ‘data-oriented virtual view’. The idea is to obtain relevant historical and real-time data via enterprise system or IoT- based system to deal with any system error or failure. When the personnel are trained using the simulation and 3D models they are better equipped to deal with real-time situations and can help in creating innovative solutions at a fraction of cost.
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Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
Headlines of the week
Midstream & Downstream
Global liquid fuels
Electricity, coal, renewables, and emissions
2018 was a year that started with crude prices at US$62/b and ended at US$46/b. In between those two points, prices had gently risen up to peak of US$80/b as the oil world worried about the impact of new American sanctions on Iran in September before crashing down in the last two months on a rising tide of American production. What did that mean for the financial health of the industry over the last quarter and last year?
Nothing negative, it appears. With the last of the financial results from supermajors released, the world’s largest oil firms reported strong profits for Q418 and blockbuster profits for the full year 2018. Despite the blip in prices, the efforts of the supermajors – along with the rest of the industry – to keep costs in check after being burnt by the 2015 crash has paid off.
ExxonMobil, for example, may have missed analyst expectations for 4Q18 revenue at US$71.9 billion, but reported a better-than-expected net profit of US$6 billion. The latter was down 28% y-o-y, but the Q417 figure included a one-off benefit related to then-implemented US tax reform. Full year net profit was even better – up 5.7% to US$20.8 billion as upstream production rose to 4.01 mmboe/d – allowing ExxonMobil to come close to reclaiming its title of the world’s most profitable oil company.
But for now, that title is still held by Shell, which managed to eclipse ExxonMobil with full year net profits of US$21.4 billion. That’s the best annual results for the Anglo-Dutch firm since 2014; product of the deep and painful cost-cutting measures implemented after. Shell’s gamble in purchasing the BG Group for US$53 billion – which sparked a spat of asset sales to pare down debt – has paid off, with contributions from LNG trading named as a strong contributor to financial performance. Shell’s upstream output for 2018 came in at 3.78 mmb/d and the company is also looking to follow in the footsteps of ExxonMobil, Chevron and BP in the Permian, where it admits its footprint is currently ‘a bit small’.
Shell’s fellow British firm BP also reported its highest profits since 2014, doubling its net profits for the full year 2018 on a 65% jump in 4Q18 profits. It completes a long recovery for the firm, which has struggled since the Deepwater Horizon disaster in 2010, allowing it to focus on the future – specifically US shale through the recent US$10.5 billion purchase of BHP’s Permian assets. Chevron, too, is focusing on onshore shale, as surging Permian output drove full year net profit up by 60.8% and 4Q18 net profit up by 19.9%. Chevron is also increasingly focusing on vertical integration again – to capture the full value of surging Texas crude by expanding its refining facilities in Texas, just as ExxonMobil is doing in Beaumont. French major Total’s figures may have been less impressive in percentage terms – but that it is coming from a higher 2017 base, when it outperformed its bigger supermajor cousins.
So, despite the year ending with crude prices in the doldrums, 2018 seems to be proof of Big Oil’s ability to better weather price downturns after years of discipline. Some of the control is loosening – major upstream investments have either been sanctioned or planned since 2018 – but there is still enough restraint left over to keep the oil industry in the black when trends turn sour.
Supermajor Net Profits for 4Q18 and 2018
- 4Q18 – Net profit US$6 billion (-28%);
- 2018 – Net profit US$20.8 (+5.7%)
- 4Q18 – Net profit US$5.69 billion (+32.3%);
- 2018 – Net profit US$21.4 billion (+36%)
- 4Q18 – Net profit US$3.73 billion (+19.9%);
- 2018 – Net profit US$14.8 billion (+60.8%)
- 4Q18 – Net profit US$3.48 billion (+65%);
- 2018 - Net profit US$12.7 billion (+105%)
- 4Q18 – Net profit US$3.88 billion (+16%);
- 2018 - Net profit US$13.6 billion (+28%)