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The Role of IoT in Optimizing Operations in the Oil and Gas Sector: A Review

Article in Transactions of Indian National Academy of Engineering · March 2024

DOI: 10.1007/s41403-024-00464-9

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REVIEW ARTICLE

The Role of IoT in Optimizing Operations in the Oil and Gas Sector:
A Review
Saurav Kumar Sharma1 · Aisha Rani1 · Hardik Bakhariya2 · Ranjan Kumar1 · Devansh Tomar1 · Sayantan Ghosh1

Received: 26 October 2023 / Accepted: 20 February 2024

© Indian National Academy of Engineering 2024

Abstract
A vital sector of the global economy, the oil and gas sector, faces several difficulties due to its intricate supply chain. The
demand in the oil and gas sector is growing to lower costs, boost productivity, and lessen its carbon impact. The industry
has to find creative ways to accomplish these objectives. One implementation that can potentially change the sector is the
Industrial Internet of Things (IoT). This work examines the many IoT uses in the oil and gas supply chain upstream, middle,
and downstream activities. The paper also highlights the benefits of using IoT, such as real-time monitoring, predictive
maintenance, improved safety, and environmental compliance. This work also examines the difficulties in deploying IoT
in the oil and gas sector, such as security, dependability, and data management. The paper concludes by emphasizing the
need for the industry to adapt to these technological advancements and provides recommendations for successful IoT
implementation. These recommendations include a clear IoT strategy, collaboration between IT and operations, proper data
management practices, investment in cybersecurity, and continuous improvement. The potential for further optimization by
integrating artificial intelligence and machine learning is also discussed. Overall, this paper demonstrates that IoT has the
potential to revolutionize the oil and gas industry by enabling more effective operations and enhancing safety, environmental
compliance, and overall profitability.

Keywords IOT · Oil & gas · Health & safety · Oil theft · CO2 emission

Introduction

The oil and gas industry plays a significant role in the

global economy, providing fuel, oil, and gasoline products
essential for transportation, energy production, and more. As
* Hardik Bakhariya
hardikbakhariya28@[Link] demand for these products increases, oil and gas companies
must continually innovate to improve operations, increase
Saurav Kumar Sharma
saurav.19je0756@[Link] productivity, and maintain competitiveness.
One promising technology that can help achieve these
Aisha Rani
aisha.19je0075@[Link] goals is the Internet of Things (IoT), which is based on
sensors and can gather and analyze data in real-time.
Ranjan Kumar
ranjan27.19je0687@[Link] Figure 1 shows a historic timeline of the Internet of Things.
In the oil and gas sector, IoT can improve efficiency, make
Devansh Tomar
devansh.19je0284@[Link] better decisions, and reduce risks to human health and the
environment.
Sayantan Ghosh
sayantan@[Link] For example, IoT can be used to increase the speed of
exploration and detection of oil, improve oil production,
1
Department of Petroleum Engineering, Indian Institute and identify potential equipment malfunctions or operator
of Technology (Indian School of Mines), Dhanbad 826004, errors that could pose risks to safety. By implementing IoT
Jharkhand, India
solutions, oil and gas companies can gain greater control
2
School of Engineering, UPES, Dehradun 248007,
Uttarakhand, India

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 Transactions of the Indian National Academy of Engineering

Fig. 1  A historic timeline of the

Internet of Things [Taken from
What is the Internet of Things
(Online). Available: [Link]
www.​forti​net.​com/​resou​rces/​
cyber​gloss​ary/​iot]

Table 1  Amount of data generated during various processes

Section The amount of data

Drilling data 0.3 GB per well per day

ESP monitoring 0.4 GB per well per day
Wireline data 5 GB per well per day
Fiber optic data 0.1 GB per well per day
Seismic data 100 GB per well per day
Plant process data 4–6 GB per well per day
Pipeline inspection 1.5 GB per well per day
Plant atmospheric data 0.1 TB per well per day
Plant operational data 8 GB per year
Vibration data 7.5 GB per year per customer

Fig. 2  Shows various aspects of IoT [Taken from What is Industrial

Internet of Things (IIoT)? (Online). Available: [Link]
com/​appli​catio​ns-​of-​inter​net-​of-​things-​iot/]

over their operations and make more informed decisions

based on real-time data (Fig. 2).
IoT is already used in various fields, including medicine,
agriculture, and the oil and gas industry (Abd Jalil et al. The Internet of Things (IoT) has a broad spectrum
2023). Therefore, IoT has the potential to change the world of applications in the oil and gas industry, ranging from
in various fields beneficial for man. preventive maintenance to asset integrity management
Realizing the potential of IoT in the oil and gas industry (Zanbouri et al. 2022). According to Jinhua et al. (2017),
can also help address critical social problems and improve intelligentization will not only increase labor productivity by
control development processes. Using IoT to gather and 10% but also overall field recovery by 2–6%. Major impactful
analyze data in real-time, oil and gas companies can improve applications include remote monitoring and tracking, reduced
their operations, reduce risks, and maintain competitiveness risk and high security, and real-time oil tanker management.
in a rapidly evolving market. As shown in Table 1, there is There are multiple barriers in the path to its wide-scale
large gigabytes of data that is produced at different stages of implementation, including lack of qualified workforce in the
supply chain, and IoT can make use of all this data. industry, insufficient readiness for transformation, and others.

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Fig. 3  Current digital maturity and near-term digital goal mapping for upstream operation [Taken from Slaughter et al. (2018)]

Applications 6. IoT in Drilling Management for Real-Time Data and

Analysis.
The Internet of Things (IoT) has become increasingly 7. Controlling Gas Leakage in Refineries with IoT Sensors.
popular in the oil and gas industry due to its various
applications at every level of the industry, including
upstream, midstream, and downstream operations. Figure 3 IoT for Health, Safety, and Environmental
shows the current digital maturity and goal mapping of Management in the Oil and Gas Industry
various sectors of the oil industry. This paper aims to
discuss the significant IoT applications in the industry, The oil and gas industry use of IoT for health, safety, and
focusing on the most important ones listed below. environmental management.
The three HSE-related issues are extremely important for
1. IoT for Health, Safety, and Environmental Management the Exploration and Production (E&P) sector and the society
in the Oil and Gas Industry. it services (Koppel et al. 2023) just as they are for the O&G
2. IoT in Cargo Shipping for Improved Tracking and sector. All operators and service suppliers must carefully
Logistics. follow the HSE recommendations. Conventional wearable
3. Preventing Crude Oil Theft with IoT Technology. devices and personal tracking systems have been used to
4. IoT in Smart Supply and Inventory Management on comprehend the degree of worker exposure to hazardous
Offshore Rigs. chemicals or settings. These system indicators leave it up to
5. IoT in Deepwater Oil and Gas Industry for Increased the worker or the supervisors to decide whether to abandon
Efficiency and Safety. a dangerous setting after the worker has returned from the
job location.

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Fig. 4  The world’s most disastrous oil spills [Taken from “Oil Spills” (Online). Available: [Link]

These devices have developed and improved over time gas monitors, self-contained breathing apparatuses, silent
and will continue to do so to raise labor safety. With these gesture monitors, and active motion sensors.
tools, a few problems still need to be resolved. It does not The data collected from such IoT devices through the
provide answers to issues like when the employee collapsed, connected workforce network will become an essential part
what transpired to cause the incident, whether the incident of the E&P industry in the future (Fig. 5).
could have been prevented had the analysis predictive ability Oil and gas are usually found in remote locations. These
given the employee real-time insights, etc. This is where the sites are therefore more prone to hazards. The conditions at
O&G industry IoT approach will be crucial. IoTs can help these sites can cause hazard for the staff working there which
us create a connected workforce that can reduce incidents can be depicted by Heinrich accident triangle (Fig. 6). IoT
such as oil spills (Fig. 4), improve workforce and asset solutions enable remote apparatus and operational tracking,
safety, and provide real-time or nearly real-time insights on eliminating the need for unauthorized site visits by people.
what is happening in the field for quicker and better data- The circumstance can be accurately described, and the best
driven decision-making to maintain the score for all parties action can be chosen with connected instruments and image
involved. vision. IoT in the oil and gas industry can significantly lower
Businesses will be able to gather data from different staff fatalities and injuries. Employee fatality rates in the oil
devices thanks to IoTs. Data processing can be done locally and gas industry are declining (Hussain et al. 2022), and IoT
and distantly using the dispersed design for on-site and can further decrease this number.
remote data centers, allowing for fast and informed choices. Accidents can cost companies money and damage the
Using a wearable worker black box would allow for the reputation of the organization. By adopting IoT- driven
continuous monitoring of operations and safety through a safety measures, oil and gas companies can give its
remote operation center and provide safety instructions in employees a safe working environment.
undesirable circumstances, thanks to the increased storage
capacity and processing speed of chips (Svertoka et al. Methodology
2021).
The practical effectiveness and output of IoT systems The Internet of Things (IoT) can improve health and safety
will increase with the addition of heart rate monitors, toxic in energy and gas areas. Hussain et al. (Hussain et al.

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Fig. 5  An IoT‐based health,

safety, and environment
framework in the oil and
gas sector [Taken from IoT
revolution in oil and gas
industry (Priyadarshy 2016)]

instance, a boss may receive a notification if pulse rate of

a worker rises above a predetermined level.
Make a move: Once a warning has been raised, the
necessary steps can be done to address the safety concern.
For instance, if a person falls, emergency services can be
called and dispatched to the scene.
Continual development: Finally, outdoor safety practices
and processes can be improved with the help of the data
gathered by IoT devices. For instance, actions can be taken
to lower the noise level if the data reveals that employees are
frequently subjected to high noise levels.

Results for Workers' Health and Safety

Fig. 6  Accident triangle of Heinrich [Taken from “The accident The oil and gas sector has shown that IoT technology has
triangle explained” (Online). Available: [Link] a lot of promise for improving worker health and safety
artic​les/​the-​accid​ent-​trian​gle-​expla​ined/] outcomes. The conclusions and outcomes below show how
IoT has improved health and safety in this area.
Real-time monitoring: IoT devices have the ability to
2022) provides a basic implementation strategy for IoT watch people and machinery in real-time, enabling the early
in this situation: identification of possible safety or health risks. For instance,
Determine possible dangers and risks: The first step wearable technology can track workers' vital signs like heart
is to find the dangers and perils that employees might rate and body temperature and alert supervisors if anything
encounter in oil and gas areas, such as exposure to toxic seems unusual.
chemicals or working at heights. Predictive maintenance: By monitoring equipment and
Choose the right IoT devices: Choose the right tools identifying when maintenance is required, IoT devices can
to watch and reduce the risks after the hazards and risks lower the risk of mishaps brought on by malfunctioning
have been found. Wearable devices, for instance, can track equipment.
employees’ exposure to hazardous substances or determine Remote monitoring: IoT technology makes it possible to
if a worker has fallen. watch employees, machinery, and hazardous environments
Install IoT hardware: The outdoor deployment of the without having to be personally present. Accident and injury
chosen IoT devices should happen right away. This could danger may be decreased as a result.
entail equipping employees with wearable technology or Improved communication: Faster emergency reaction
putting sensors on machinery. times are possible thanks to improved contact made possible
Data collection and analysis: Data on different factors, by IoT devices between employees and managers.
including temperature, pressure, and tremor, will be Data analytics: Trends and patterns that can be used
gathered by the IoT devices. It is possible to analyze this to enhance safety measures and practices can be found
data to find patterns and trends that might point to potential by analyzing the data gathered by IoT devices. In general,
safety concerns. IoT devices can alert staff members and the use of IoT technology can greatly enhance health and
managers if they identify a possible safety problem. For safety results for those working in the oil and gas industry.

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 Transactions of the Indian National Academy of Engineering

Shell Connected Freight Solution is an example of an

IoT solution for real-time monitoring of cargo conditions.1
The solution uses IoT sensors to monitor the condition
and location of cargo in real-time. The sensors can detect
temperature, humidity, and light changes and provide alerts
if cargo is tampered with or damaged. This helps ensure
that the cargo remains in optimal condition throughout
transportation.
Maersk Remote Container Management System is another
example of an IoT solution for real-time monitoring of
cargo conditions. The system uses IoT sensors to monitor
the condition of cargo containers, including temperature,
humidity, and shock. The system also allows for remote
Fig. 7  Picture depicting environmental effects of leakage from cargo control of the container temperature and ventilation settings,
shipping [Taken from “Gulf leak: biggest spill may not be biggest helping ensure that the cargo remains in optimal condition
disaster” (Online). Available: [Link] throughout transportation (Legchekov 2023).
dn190​16-​gulf-​leak-​bigge​st-​spill-​may-​not-​be-​bigge​st-​disas​ter/]
Supply Chain Management and Logistics Optimization IoT
IoT can assist in identifying possible safety hazards and can optimize supply chain management and logistics by real-
health risks before they materialize by offering real-time time shipment tracking and automating trade documentation
tracking, predictive maintenance, remote monitoring, better and payments. This helps improve operational efficiency
communication, and data analytics. and reduce costs.
IBM TradeLens platform is an example of an IoT solution
IoT in Cargo Shipping for Improved Tracking for supply chain management and logistics optimization.
and Logistics The platform uses IoT sensors and blockchain technology
to provide end-to-end visibility and transparency for supply
The petroleum industry is a critical part of the global chain management. The platform allows for real-time
economy, fueling transportation, heating, and power tracking of shipments and automates trade documentation
generation. The transport of petroleum products is a complex and payments, helping reduce the time and cost associated
and challenging process involving the movement of large with manual processes.2
volumes of cargo across long distances (Shaltami 2023). CargoSmart IoT solution is another example of an
The industry faces strict regulations and safety concerns, IoT solution for supply chain management and logistics
including the risk of spills and accidents (Fig. 7). optimization. The solution uses IoT sensors to monitor
IoT has emerged as a powerful tool for addressing these the condition and location of cargo in real-time, providing
challenges in transporting petroleum products. IoT involves visibility into the supply chain. The platform also uses
using interconnected devices, sensors, and software to gather machine learning algorithms to optimize logistics, helping
and transmit data about physical objects and processes. In reduce the time and cost associated with shipping.3
the petroleum industry, IoT can monitor cargo conditions,
track shipments, optimize logistics, and improve safety and Safety and Navigation Improvements IoT can be used to
navigation. improve safety and navigation in transporting petroleum

Implementation in Cargo Shipping

1
“Customer Centricity” (Online). Available: [Link]
Real‑Time Monitoring of Cargo Conditions It is essential to energy-​and-​innov​ation/​digit​alisa​tion/​digit​alisa​tion-​in-​action/​custo​
ensure that petroleum products are transported safely and mer-​centr​icity.​html.
2
efficiently. IoT sensors can monitor cargo conditions such “Hapag-Lloyd and Ocean Network Express Complete TradeLens
Integration, Join Rapidly Expanding Shipping Ecosystem to Further
as temperature, humidity, and pressure, as well as track the Enhance Trade Digitization” (Online). Available: [Link]
location and movement of cargo. ibm.​com/​2021-​06-​24-​Hapag-​Lloyd-​and-​Ocean-​Netwo​rk-​Expre​ss-​
Compl​ete-​Trade​Lens-​Integ​ratio​n,-​Join-​Rapid​ly-​Expan​ding-​Shipp​ing-​
Ecosy​stem-​to-​Furth​er-​Enhan​ce-​Trade-​Digit​izati​on.
3
“CargoSmart Launches IoT-enabled ‘CargoSmart Connected
Reefer Solution’” (Online). Available: [Link]
com/​en/​news-​relea​se/​2019/​11/​18/​19484​71/0/​en/​Cargo​Smart-​Launc​
hes-​IoT-​enabl​ed-​Cargo​Smart-​Conne​cted-​Reefer-​Solut​ion.​html.

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Transactions of the Indian National Academy of Engineering

products. IoT sensors can provide real-time data on weather (i) Improved operational efficiency: IoT can help
conditions, sea state, and other environmental factors that improve operational efficiency by providing real-time
impact shipping. This information can be used to optimize data on cargo conditions and environmental factors.
routing and improve safety. This data can be used to optimize logistics, reduce
DNV GL veracity platform is an example of an IoT downtime, and improve overall efficiency.
solution for safety and navigation improvements. The (ii) Cost savings: IoT can help reduce costs associated
platform uses IoT sensors to provide real-time data on with the transportation of petroleum products by
environmental conditions such as wind, waves, and currents. optimizing logistics and reducing downtime. IoT
The platform also uses machine learning algorithms to can also help automate trade documentation and
optimize routing and improve safety, helping reduce the risk payments, reducing the time and cost associated with
of accidents and spills.4 manual processes.
(iii) Safety: IoT can help improve safety in the
Technical Aspects of IoT Cargo Shipping transportation of petroleum products by providing
real-time data on environmental factors and
IoT in the petroleum industry involves the use of sensors, optimizing routing. This helps reduce the risk of
cloud-based platforms and analytics, machine learning accidents and spills.
algorithms, and blockchain technology.
Future Directions for Research and Development
(i) Sensors: Sensors are a critical component of IoT in
the petroleum industry, providing real-time data on There is significant potential for further research and
cargo conditions and environmental factors. Sensors development in the application of IoT in the petroleum
can monitor temperature, humidity, pressure, and industry for cargo shipping. Some of the future directions
other conditions that impact the transportation of for research and development are:
petroleum products.
(ii) Cloud-based platforms and analytics: Cloud-based (i) Integration with other technologies: IoT can be
platforms and analytics (Panwar et al. 2022) are used integrated with other technologies (Maroufkhani
to collect, process, and analyze the data generated et al. 2022) such as artificial intelligence, robotics,
by IoT sensors. This data can be used to optimize and drones, to further improve logistics and safety
logistics, improve safety, and reduce costs. in the transportation of petroleum products.
(iii) Machine learning algorithms: Machine learning (ii) Cybersecurity: With the increasing use of IoT in the
algorithms are used to analyze the data generated by petroleum industry, cybersecurity is becoming an
IoT sensors (Mittal et al. 2017) and provide insights increasingly important concern. Future research and
that can be used to optimize logistics, improve safety, development should focus on developing secure IoT
and reduce costs. Machine learning can also be used solutions that can protect against cyber threats.
to automate processes such as trade documentation (iii) Standardization: Standardization of IoT solutions
and payments. can help improve interoperability and reduce the cost
(iv) Blockchain technology: Blockchain technology is and complexity of implementing IoT in the petroleum
used to provide transparency and security for trade industry.
documentation and payments. Blockchain technology (iv) Sustainability: Future research and development
can also be used to provide end-to-end visibility for should focus on developing sustainable IoT solutions
supply chain management. for the transportation of petroleum products.
This includes reducing the environmental impact
Benefits of IoT in the Petroleum Industry for Cargo Shipping of shipping and improving energy consumption
efficiency.
The use of IoT in the petroleum industry for cargo shipping
has several benefits, including improved operational IoT technologies in the petroleum industry for cargo
efficiency, cost savings, and safety. shipping present many opportunities for increased efficiency,
cost reduction, and improved safety; there are several
challenges and limitations that need to be addressed.
Data privacy and security concerns, interoperability, and
4
standardization of IoT devices and protocols are critical
“Digitalization in the maritime industry” (Online). Available:
factors that must be considered to ensure the successful
[Link]
marit​ime-​indus​try/​smart-​opera​tions.​html. integration of IoT solutions into the petroleum industry.

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Fig. 8  Showing the application of IoT in midstream [Taken from Patel (2019) (Online). Available: [Link]
impro​ving-​the-​funct​ioning-​of-​the-​oil-​and-​gas-​indus​try-​with-​iot-​82bc8​72805​b7]

Preventing Crude Oil Theft with IoT Technology human life. Thieves use various methods to steal oil from
pipelines, including drilling holes into them, which often
Oil prices play a vital role in the trade of crude oil. If go undetected due to the lack of real-time alarm systems
the prices are high, the theft of crude oil can be seen as and inadequate preventive measures. The low maintenance
a lucrative opportunity by some individuals. With the cost costs also contribute to the problem. If a thief drills into a
of the stolen oil being nearly negligible, the illegal sale of pipeline with high pressure, it can result in an explosion
it can bring in substantial profits. Despite advancements in that causes severe damage to the environment and people.
information technology and detection techniques employed The pollution caused by such an incident can affect fields,
by oil companies, stopping this illegal activity remains a fishponds, drinking water sources, rivers, and even oceans
challenge (Fig. 8). (Ivanov 2021). It is crucial to invest in real-time alarm
systems and effective preventive measures to curb this
Analysis of the Conduct in Crude Oil Theft problem and protect the environment and human life.

Oil theft is a significant challenge faced by oil companies in Challenges and Complications in Preventing Crude Oil Theft
the transportation and storage of crude oil. The theft of crude
oil can lead to significant economic losses, estimated at over Crude oil theft remains a persistent problem in the oil
US$133 billion per year,5 and poses risks to human lives and and gas industry (Hunt et al. 2022), causing significant
security. Oil theft can occur at any stage of transportation, financial losses and environmental harm. In response,
including pipelines, tanks, railways, and ships. various measures have been introduced to prevent oil theft,
Oil theft is a serious issue that can occur at any stage of including the use of different detection techniques such
transportation. Thieves steal crude oil from oil tank trucks, as the acoustic traveling method, pressure point analysis,
pipelines, and other modes of transportation, resulting in thermal and electro-optical methods, the acoustic pipeline
significant economic losses and posing risks to human lives leak detecting system (ADS-PLDS), and long-distance
and security. In the case of oil tank trucks, the theft is made monitoring systems (Ivanov 2021). However, despite the
possible by pumping devices that replace the stolen oil with implementation of these measures, crude oil theft continues
water. Thieves are often oil truck drivers or employees of to pose a significant challenge to the industry. This is
the oil factory who can easily access the oil. In some cases, mainly due to the complexities and difficulties involved
employees at the oil well site may even report false oil in monitoring oil leakages from pipelines, particularly the
volumes or neglect to use seals, enabling the theft to occur extended distances of crude oil pipelines. Undetected leaks
more easily. can cause substantial environmental damage in remote areas.
Theft from crude oil pipelines is a serious problem Furthermore, pipelines complicated geography in areas at
that poses a significant threat to both the environment and high risk of natural hazards such as earthquakes, mudflows,
and other geologic events can result in significant human
casualties and oil disasters, particularly in densely populated
5 regions.
“Global oil theft: impact and policy responses” (Online).
Available: [Link] Additionally, aging pipelines can lead to various
impact-​and-​policy-​respo​nses. problems, such as drilling accidents, explosions, fires, gas

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Fig. 9  The process of transporting goods from loading to unloading [Taken from Guo and Wu (2013)]

Fig. 10  Components of the anti-

theft alarm system [Taken from
Sun et al. (2016)]

diffusion, corrosion, erosion, weld or joint failure, and small, the oil tank lid or any abnormal changes in the oil
hard-to-detect leaks (Ivanov 2021). volume, thereby preventing oil theft.
  The anti-theft alarm system provides a
Design and Planning of a Smart Crude Oil Theft Prevention comprehensive solution to oil theft by recording the
System Using IoT Technology entire transportation process of oil tank trucks. It
generates data such as the volume and composition
The IoT has proven to be an effective and efficient of crude oil and monitors compliance with license
solution for detecting leaks. Its ability to monitor different plate numbers, driver facial features, and fingerprints.
parameters, provide accurate data, and reduce response time Equipped with various systems such as GPS, Beidou
has made it an essential tool in preventing leaks (Sun et al. satellite positioning and navigation, and video
2016). As the technology continues to advance, IoT's role in monitoring, the system sends real-time warning
detecting leaks is only set to become more critical, providing signals to relevant departments or personnel upon
a reliable and efficient solution to an ongoing problem. any unauthorized activity. The system standardizes
monitoring processes, providing data for better
(i) Anti-theft alarm system for oil tank trucks: decision-making and enhancing business operations.
  The transportation of crude oil from oil factories The anti-theft alarm system (Sun et al. 2016) is a
via oil tank trucks involves various steps, as shown valuable tool in addressing the issue of oil theft
in Fig. 9. However, the risk of oil theft during this and improving transportation processes (shown in
process is a common occurrence, as noted by Guo and Fig. 10).
Wu (2013). The culprits responsible for such thefts (ii) An intelligent anti-theft system based on the Internet
may include the oil tank truck driver or disgruntled of (loT) for crude oil pipelines:
employees. To address this issue, an anti-theft alarm   The current anti-theft monitoring system for crude
system can be installed. This system promptly alerts oil pipelines in companies relies heavily on pressure
intelligent terminals of any unauthorized opening of detection using sensors at the entry and exit points.

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Fig. 11  Intelligent anti-theft

system based on IoT: a three-tier
architecture [Taken from Sun
et al. (2016)]

However, in cases of oil theft, the system can only application enhances user interaction with the environment
detect pressure decreases at the exit and is often and enables efficient system operation.
unable to promptly identify the precise location of
the theft. This limitation allows "oil mice" to steal Applications IoT in Smart Supply and Inventory
crude oil without detection (Sun et al. 2016). To Management
overcome these challenges, a more sophisticated
anti-theft system based on the Internet of Things One of the most important sectors of the global economy is
(IoT) is being developed. This system aims to prevent the oil and gas sector, which has complex and interconnected
theft in advance by detecting illegal activities such as supply chains with a wide range of players, including
digging or drilling. The architecture of this intelligent suppliers, manufacturers, distributors, and end users. To
anti-theft IoT system is depicted in Fig. 11. maintain the reliable and secure functioning of oil and gas
exploration, production, and transportation, these supply
chains must be managed effectively. Also, effective inventory
The anti-theft system (Sun et al. 2016) employs a management is essential to guarantee that the appropriate
combination of wired and wireless networks, sensor tools and materials are accessible when and where they
technology, databases, and smart terminals to monitor the are required, without overstocking or stock shortages. The
crude oil pipeline. Sensors, cameras, and RTUs capture oil and gas industry can benefit greatly from the use of IoT
signals, images, and videos at the sensor level. RFID tags in supply and inventory management, including greater
identify objects, and readers monitor them in real-time. efficiency, decreased costs, improved safety, and higher
Abnormal activities are immediately detected and warned sustainability.
by the monitoring center through an addressing system.
Sensor data is transmitted to the server and application Real‑Time Tracking Using IoT
system via wired and wireless networks, with WAN and
Field Bus used for long and short-distance communication, IoT sensors and devices can be used to track assets, goods,
respectively. At the application level, data storage, and materials in real time, giving important information
analysis, and system application are performed using the about the movement of materials and things. As a result,
SCADA system and artificial intelligence algorithms. businesses are better able to comprehend the whereabouts,
Data analysis and management are facilitated by data condition, and movement of items and commodities. So, we
warehousing, mining, and business intelligence. The IoT can use a real-time tracking system to track the location of

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Fig. 12  Representing the steps for designing a real-time tracking system [Taken from Barak et al. (2020)]

the transport vehicle in case of onshore or Platform supply the GSM module. Jumper wires will be used to link
vehicle (PSV) in case of offshore (Lee et al. 2014). each component to the others.
The accomplishment of these six goals is necessary for (iii) Writing business logic with the Arduino software
the development of a real-time tracking system (Barak et al. (IDE):
2020). By means of which, we can follow the location of a   In order to obtain the current location of a transport
transport vehicle/PSV in real time and show that location vehicle/PSV, we write the business logic (Arduino
on a Google Map. On a web portal that will be deployed on Programming) for the device using GPS, which gives
the cloud platform (Microsoft Azure/AWS), the end-user/ us the precise position of the transport vehicle/PSV,
rig staff will be able to monitor the real-time position of the and then GSM sends it over GPRS to the ThingSpeak
transport vehicle. We will also design a web app/Android server. The code is uploaded to the Arduino Uno that
app that will show the same real-time position on their communicates with the GPS and GSM modules.
computer screen, making it simple to use. (iv) Using APIs:
The process for developing a functional prototype   To show the position on a map, we will be utilizing
(Fig. 12) of a real-time tracking system can be outlined as google map APIs and google map direction services,
follows (Lee et al. 2014): which is also the fastest way to get to the transport
vehicle/PSV.
(i) Gathering the real-time tracking system components: (v) Design of web portal and android application:
  In order to construct a real-time tracking system,   We will create a web portal with two frames,
hardware modules and sensors are necessary to one of which will use google map APIs to display
obtain a real-time position. We can use an Arduino the current location of the transport vehicle/PSV.
Uno board (3.3V or 5V), a GPS module (Sim 28M), Another frame will display the Google Direction
a GSM module (Sim 900A), a battery (12V | 1A), services fastest four routes to the vehicle. We will
a power bank, an antenna, a GPS receiver, jumper use HTML, CSS, JavaScript, PHP, and Python to
wires, the ThingSpeak APIs, and a Microsoft Azure/ code the website. We will also create an android
AWS subscription. So, gathering or purchasing these application with the same capabilities as the web
parts or subscriptions must come before moving on portal application to go along with it. For user
to the following stage. convenience, we can release the android application.
(ii) Constructing the device: (vi) Device testing:
  The gadget will be put in the transport vehicle/PSV   Following the creation of the real-time tracking
so that its location can be tracked in real time, and system, we will carry out the testing. We will
it may subsequently be used for analytics, mapping, subject the gadget to a variety of test cases to see
or directions. Transporter can follow the transport how effective, reliable, and accurate it is. We will
vehicle using 3 ThingSpeak cloud APIs. GPS module also check the gadget's performance in challenging
is used to get the precise location of the supply environments like high/low humidity and high/low
vehicle. The latitude and longitude coordinates will temperature.
be sent over GPRS to the ThingSpeak channel using (vii) Web portal deployment on Microsoft Azure/AWS:

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IoT-enabled inventory management systems may

automate. As a result, there is less need for manual
intervention, increasing total effectiveness.
(iv) Cost savings: By removing the need for human work
and lowering the possibility of inventory loss or
damage, automated inventory management systems
may assist organizations in cutting expenses. Also,
businesses may save a lot of money by avoiding
overstocking and understocking.

The following stages are involved in creating a predictive

inventory management system utilizing IoT technology:

1. Collecting requirements

Fig. 13  Representing the impacts of IoT on Inventory Management

[Taken from “IoT in Inventory Management: Impact and Benefits” (i) A system design
(Online). Available: [Link] (ii) Installation of sensors
tory-​manag​ement-​impact-​and-​benef​i ts]
(iii) The gathering and transmission of data
(iv) Data evaluation
  When the real-time tracking system has been (v) Running of the algorithm for inventory
tested, the web portal will be deployed on a cloud management decisions
platform, which may be Amazon Web Service or (vi) Performance assessment
Microsoft Azure app service. By moving our web (vii) System improvement
portal application to cloud technology, which offers
a pay-per-use business model to the oil company, it The system must be versatile and flexible in order to
will cost significantly less and be simple to use. satisfy the requirements of various enterprises. To increase
performance and adapt to the changing demands of the
Predictive Supply and Inventory Management: business, the system should be regularly improved.

A key component of inventory management in companies

is stock management. When performing predictive stock IoT in Smart Supply and Inventory Management
maintenance, data analysis tools and formulas are used to on Offshore Rigs
forecast when stock maintenance is necessary. Utilizing this
method enables businesses to increase revenue, optimize Effective supply chain management is essential for the
supply levels, and lower loss and spoilage—the Internet of reliable and secure functioning of the oil and gas industry.
Things (IoT). IoT can enhance inventory management, reducing costs
As shown in Fig. 13, the following advantages come with and improving efficiency, safety, and sustainability in the
using IoT for inventory management (Barak et al. 2020): complex and interconnected supply chains of this sector
(Fig. 14).
(i) Continuous Inventory Tracking: Real-time The Regular requirements on the drilling rigs involve
information on the location, amount, and state drilling mud, powdered cement, diesel fuel, potable and non-
of inventory is available through IoT sensors. potable water, and chemicals used in the drilling operation,
Businesses may remotely access this data to keep an while some other chemicals must be brought back to land
eye on inventory levels from any location at any time. for proper recycling or disposal. Other than that, tools and
(ii) Decreased Over- and Understocking: Real-time equipment like drill and casing pipes, drill bits and many
inventory monitoring enables firms to prevent replacements for faulty rig equipment are always required
overstocking or understocking of products. By doing on the oil rig (Mashayekhy et al. 2022). So, there is a
this, the danger of missed sales or excess inventory is requirement to handle the material during transportation
decreased, and the appropriate quantity of inventory and storage on the rig site.
is always accessible when needed. Following are the steps to create an inventory
(iii) Enhanced Effectiveness: Ordering, tracking, and management system on offshore rigs (Norouzi and Fani
replacing inventory are just a few of the tasks that 2020):

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Fig. 14  Representing the application of IOT at different steps along the Supply chain [Taken from “IoT Solution to Transform Oil and Gas
Industry | Biz4Intellia” (Online). Available: [Link]

(i) Active tracking of materials on the oil rig: to the Pressure Safety Valves (PSVs) for immediate
  Weight sensors are being used in the drilling mud action.
and cement storage facilities to monitor and control   To ensure data security, encryption and file transfer
the weight of materials being loaded or unloaded, protocols are employed for secure data transfer. The
preventing overloading and reducing the risk of rig control panel should have complete control over
accidents. the data transfer to hide sensitive information from
  QR code-based tracking of tools and equipment unauthorized access. The data transfer to PSVs and
is being used to keep track of inventory and reduce storage facilities must be in sync with the control
the chances of losing or misplacing tools. Fluid level panel, ensuring that all data is up-to-date and
sensors are being used to monitor and manage fuel accurate. These measures enable the oil and gas
and chemical storage tanks, helping to avoid stock industry to securely transfer data (Norouzi and Fani
shortages and reduce environmental risks. 2020) and ensure their facilities' reliable and safe
  Smart counting sensors on the fingerboard are operation.
being used to automatically count the number (iii) Frontend interface
of connections made during drilling operations,   Efficient management of material supply is
enabling better monitoring and control of drilling crucial for the smooth functioning of the oil and
processes. These IoT-enabled sensors and devices are gas industry. The use of software to display data in
transforming the oil and gas industry by increasing a simple interface enables the PSVs and onshore
efficiency, reducing costs, and improving safety. storage facilities to have easy access to the data.
(ii) Data collection and data transfer: (iv) Future prediction using AI&ML
  The secure and efficient transfer of data is crucial   Machine learning and artificial intelligence
in the oil and gas industry. To achieve this, the (AI) algorithms can be trained to predict future
control panel computers transfer data through a Wide material demand accurately. These algorithms
Area Network (WAN). The rig control panel filters can provide early alerts to the PSVs and storage
the data and sends only the necessary information facility, allowing them to take proactive measures

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Fig. 15  IoT system at deepwater drilling platforms [Taken from “Improving the functioning of the oil and gas industry with IoT” (Online).
Available: [Link]

to meet future demand. Based on the available data, This method is highly inefficient and exposes workers to
these algorithms can suggest a proper supply plan, significant on-site hazards and hazards. Wired infrastructure
streamlining the supply chain and reducing costs. is ideal for real-time monitoring tasks, but it is not designed
for collecting data for remote monitoring. Cellular
By leveraging software and advanced AI algorithms, the connectivity is weak and almost non-existent in the ocean.
oil and gas industry can efficiently manage material supply, Due to its transparency and ubiquity, satellite connectivity
ensuring the uninterrupted and reliable operation of their has been the most common choice for wireless deployment
facilities. at sea. However, its high cost makes its use critical and
limited.
IoT in Deepwater Oil and Gas Industry for Increased
Efficiency and Safety IoT Applications in the Deepwater Oil and Gas Industry

IoT has transformed the offshore operations of the oil and Drones and robots play a vital role in IoT applications
gas by enabling continuous monitoring of equipment and in the oil and gas supply chain. Whether it is site survey,
parameters, optimizing efficiency and safety, and reducing data collection, 3D site mapping or offshore tasks such as
costly downtime industry (Alakberov and Hashimov 2018). underwater inspections or maintenance, it improves process
Unlike traditional communication solutions that are limited, efficiency and withstands harsh conditions as shown in
expensive, and complex, IoT offers a more efficient and cost- Fig. 16.
effective solution (Fig. 15) that improves performance at Sensor Diving Suit can help scuba divers conduct
every stage, from production to the drilling rigs. underwater operations with minimal risk, seamlessly linking
them to base and even increasing crew capabilities. As depth
Offshore Operations Challenges increases, almost all of the light is absorbed underwater.
Divers operate in near-zero visibility, which greatly reduces
Without cost-effective and scalable communications their capabilities and efficiency (Ijiga et al. 2020).
solutions, oil and gas companies rely heavily on manual data A thermal sensor can be integrated into a diver mask to
reading and visual inspection to monitor their operations, help distinguish other divers, power lines, and other objects.
equipment and facilities. Smart bracelets and helmets will allow them to constantly

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Transactions of the Indian National Academy of Engineering

Fig. 16  Application of EC in
Oil and Gas Exploration [Taken
from Ijiga et al. (2020)]

monitor the status of divers and provide timely advice, complex procedures and visualize data collected
notifications or warnings. from IoT sensors.
(vi) Energy Harvesting: Energy harvesting technologies
Future Aspects can be used to power IoT devices in remote locations,
reducing the need for frequent battery replacements
Future aspects and possibilities for the use of IoT in the and improving overall device reliability.
deepwater oil and gas industry:
IoT in Drilling Management for Real‑Time Data
(i) Artificial Intelligence (AI) Integration: The and Analysis
integration of AI and IoT can enable predictive
analytics and machine learning algorithms to predict The productivity and safety of drilling activities can be
future failures and identify patterns that can improve increased using Internet of Things (IoT) technology.
overall industry efficiency. Drilling tools can be equipped with IoT components like
(ii) Edge Computing: Edge computing can be used sensors and webcams to collect information about vibration,
to process data on the device itself rather than temperature, and pressure. This data can be used to monitor
relying on a centralized cloud. This reduces latency the condition of the equipment and detect potential problems
and increases data security, especially in remote before they become significant. Additionally, cameras can
locations. monitor drilling operations remotely, allowing real-time
(iii) Autonomous Underwater Vehicles (AUVs): The monitoring of the drilling process and quick responses to
use of AUVs equipped with IoT sensors could any issues as shown in Fig. 17.
revolutionize industry surveillance capabilities.
These vehicles can carry out autonomous inspections Oil Giants Using IoT for Drilling Management
of underwater equipment, collect data and send it
back to the control center in real time. BP: BP has implemented IoT-based predictive maintenance
(iv) Blockchain technology: The use of blockchain solutions to monitor drilling equipment and optimize
technology in the oil and gas industry can ensure maintenance schedules. The system uses machine learning
data integrity and reduce the risk of data tampering. algorithms to predict equipment failures and prevent
The technology can create tamper-proof records downtime.6
of equipment maintenance, inspections and other
critical data.
(v) Augmented Reality (AR) and Virtual Reality (VR): 6
“BP is Reimagining Fuel Stations with Machine Learning and IoT”
AR and VR technologies can be used to create (Online). Available: [Link]
virtual environments for training purposes, simulate bp-​reima​gining-​fuel-​stati​ons-​machi​ne-​learn​ing-​iot/.

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Fig. 17  IoT system flow chart

at drilling rig [Taken from
Priyadarshy (2016)]

Schlumberger: Schlumberger has developed an IoT- must ensure its reliability, security, scalability, and resilience
based system that uses data analytics to optimize drilling to failures. He must possess a deep understanding of drilling
performance. The system gathers information from processes, equipment, IoT technologies, data analytics, and
numerous sources, including drilling machinery and offers cloud computing. Working closely with drilling engineers,
in-the-moment perceptions into drilling operations.7 data analysts, and stakeholders, the architect ensures that the
Halliburton: Halliburton has developed an IoT-based IoT system meets business needs and delivers value.
system that uses sensors to monitor drilling equipment
and optimize maintenance schedules. The system provides Methods for Drilling Management Using IoT
real-time data on equipment performance, which helps to
improve drilling efficiency and reduce downtime.8 (i) Sensor-based monitoring: This technique employs a
ExxonMobil: ExxonMobil has implemented an IoT- variety of sensors to gather information on drilling
based system that uses sensors to monitor the performance activities, including flow rate, temperature, pressure,
of drilling equipment and detect issues early. The system and vibration. By controlling subsurface drilling sites
provides real-time data on equipment performance, which to find new drilling opportunities and maximize
helps to optimize drilling operations and reduce downtime.9 the production of existing sites, individual IoT
sensors connected by fiber optic cables support oil
Architect of IoT in Drilling Management exploration. Drilling equipment and other crucial
components might have sensors installed to collect
The architect of the Internet of Things (IoT) infrastructure real-time data for monitoring and decision-making.
that allows data gathering, analysis, and real-time decision- (ii) Predictive analytics: IoT can collect and analyze
making during drilling operations is in charge of developing data to predict future events like equipment failures.
and deploying it in the oil and gas industry (Salam et al. Companies can take preventative maintenance and
2019). The goal is to optimize the drilling process, increase repair measures by using predictive analytics to spot
efficiency, and reduce costs while maintaining safety and possible problems before they arise (Falco 2023).
minimizing environmental impact. (iii) Remote monitoring: With IoT, drilling operations can
The IoT architecture for drilling management (see Fig. 18) be monitored remotely from a central location. This
in the Oil and Gas Industry involves the use of various allows for real-time monitoring of drilling equipment
sensors and devices to collect data from rig sensors, drilling and processes, which can help detect issues early and
equipment, including mud pumps, drill bits, and drilling reduce downtime (Foote 2021).
fluids. This data is wirelessly relayed to a central center for (iv) Condition-based maintenance: IoT can collect data on
analysis, guiding drilling-related decisions (Gooneratne et al. the condition of drilling equipment and components.
2019). The architect responsible for designing this system This data can determine when maintenance is
required, reducing the need for preventative
maintenance and minimizing downtime.
7
TIM SHEA, “Schlumberger Finds Efficiency in IIoT-enabled Data
By leveraging these methods, companies can optimize
Analytics” (Online). Available: [Link]
mberg​er-​effic​iency-​iiot-​enabl​ed-​data-​analy​tics. their operations, increase efficiency, and reduce costs while
8
“Petrobel Selects Halliburton Landmark to Design and Deliver maintaining safety and minimizing environmental impact.
Cloud Solution for E&P Applications” (Online). Available: [Link]
www.​halli​burton.​com/​en/​about-​us/​press-​relea​se/​petro​bel-​selec​ts-​halli​ Algorithms and Systems Used for Drilling Management
burton-​landm​ark-​design-​deliv​er-​cloud-​solut​ions-​ep-​appli​catio​ns.
9
“Applying digital technologies to drive energy innovation”
(Online). Available: [Link]
The Oil and Gas industry uses various algorithms and
techn​ology-​and-​colla​borat​ions/​digit​al-​techn​ologi​es. systems for drilling management, many of which incorporate

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Transactions of the Indian National Academy of Engineering

Fig. 18  High-level schematic of the components of an IoT network on a drilling rig [Taken from Priyadarshy (2016)]

IoT technology to improve efficiency and safety. The before they become serious proactively. This can reduce
most commonly used algorithms and systems for drilling downtime and prevent costly equipment failures (Foote
management are: 2021).
(iii) Automated drilling systems: These systems use
(i) Real-time monitoring systems: Uses IoT sensors to machine learning algorithms to automate drilling
track and analyze data in real-time, providing real-time operations, reducing the need for manual intervention
updates on drilling conditions, equipment performance, and improving efficiency. They can also be used to
and safety parameters. This helps operators make faster optimize drilling parameters based on real-time data,
and more informed decisions about drilling operations, improving overall drilling performance.
reducing the risk of accidents and optimizing (iv) Decision support systems: These systems use data
productivity (Falco 2023). analytics and machine learning algorithms to provide
(ii) Predictive maintenance algorithms: These algorithms decision support for drilling operations. They can help
use IoT data to predict when equipment will require operators identify the best drilling locations, optimize
maintenance, allowing operators to address issues

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drilling parameters, and make real-time decisions about IoT‑Based Solutions for Carbon Emission Monitoring
drilling operations. and Management
(v) Digital twins: A digital twin is a made-up image of
a real thing, such as a piece of drilling equipment. The oil and gas (O&G) industry supply chain globally is
Operators may simulate many scenarios and test responsible for approximately 41% of greenhouse gas
various parameters to optimize drilling operations by (GHG) emissions, both directly and indirectly (Lyons
using IoT sensors to gather data from the physical asset et al. 2021). Major contributors to these emissions include
and input that data into the digital twin (Foote 2021). activities such as flaring, heat and power consumption, and
the transportation of crude oil.
IoT technology in drilling management can help the Oil However, a more complex challenge lies in addressing
and Gas industry reduce costs, increase safety, and improve emissions associated with transportation, consumption, and
efficiency. disposal, which account for over 90% of the total emissions
footprint (Lyons et al. 2021). Effectively managing these
Factors Affecting Drilling Management Using IoT emissions necessitates sophisticated analytical approaches,
including establishing emission baselines and collaborating
(i) Data quality: IoT relies on data to make decisions about with suppliers and customers to mitigate environmental
drilling operations. The quality of the data can have a impact. Within the oil and gas supply chain, carbon
significant impact on the accuracy of these decisions. emissions can arise from various factors, including
Factors affecting data quality include the sensor's equipment malfunctions, pipeline damage, and inadequate
reliability, data accuracy, and the effectiveness of data route planning.
cleaning and processing algorithms. To monitor and control these emissions effectively,
(ii) Network connectivity: IoT devices rely on network IoT technology provides a practical solution. By utilizing
connectivity to transmit data to central hubs for telematics devices, sensors, and accelerometers, IoT
processing and decision-making. Poor connectivity can enables the tracking and collection of data on emissions-
lead to delays or even loss of data, which can impact the related parameters (Smith 2019). For instance, IoT devices
effectiveness of the IoT system. can function as carbon dioxide detectors, similar to the
(iii) Cybersecurity: IoT systems are vulnerable to cyber- application of IoT technology in carbon monoxide detection
attacks, which can compromise data privacy, system (Abdulla et al. 2021). The data collected by IoT devices and
integrity, and safety. Ensuring the cybersecurity of stored in the cloud can be leveraged to identify issues in
IoT systems is critical to maintaining the safety and real-time and optimize processes by addressing equipment
reliability of drilling operations. malfunctions and reducing fuel waste.
(iv) Infrastructure complexity: IoT systems for drilling Integrating IoT into the monitoring and management
management can be complex and require significant of carbon emissions in the oil and gas industry facilitates
infrastructure, including sensors, networks, data the tracking of emissions from diverse sources, enabling
processing systems, and user interfaces. Ensuring the proactive measures to minimize environmental impact.
reliability and scalability of this infrastructure can be
challenging.
(v) Regulatory compliance: The oil and gas industry has Conclusion
numerous regulations governing safety, environmental
impact, and reporting. IoT systems for drilling The application of IoT in the oil and gas sector will be
management must comply with these regulations, transformative. IoT has enabled monitoring operations
which can add complexity and cost to the system. remotely, gathering and analyzing data in real time, and
increasing efficiency and safety while cutting costs. IoT
Overall, the factors that affect drilling management in the technology has made it feasible for the industry to transition
oil and gas industry when using IoT are varied and complex. to predictive maintenance, making it possible to find and fix
Successful IoT implementation requires careful consideration problems before they cause downtime.
of these factors and a deep understanding of the drilling Moreover, improved operational visibility has resulted
process, data analytics, and cybersecurity. from IoT integration in the oil and gas sector, facilitating
better risk management and decision-making. The use
of IoT technology in the oil and gas industry can have
a significant impact on various aspects of the industry,
including cargo shipping, oil theft prevention, inventory
management, HSE, and drilling operations. As a result,

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oil and gas production has been better optimized with Hussain RF, Mokhtari A, Ghalambor A, Salehi MA (2022) IoT for
improved safety and environmental compliance. smart operations in the oil and gas industry: from upstream to
downstream. [Link]
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machine learning, there is the possibility for further emergent configurations in the industrial internet of things for
automation and optimization in the usage of IoT in the oil and gas explorations: a survey. Electronics (switzerland)
oil and gas sector in the future. The industry will need 9(8):1–35. [Link]
Ivanov D (2021) Supply chain viability and the COVID-19
to adapt to stay up with these technological advances, pandemic: a conceptual and formal generalisation of four major
but the benefits of IoT will surely make it worth the adaptation strategies. Int J Prod Res. [Link]
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of things (WF-IoT), Mar 2014. IEEE, pp 353–358. [Link] oi.o​ rg/​
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financial interests to disclose. scm-​and-​logis​tics
Lyons M et al (2021) The AI angle in solving the oil and gas emissions
challenge (Online). Available: [Link] ​ ww.b​ cg.c​ om/p​ ublic​ ation​ s/​
2021/​ai-​in-​oil-​and-​gas-​emiss​ions-​chall​enge
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