Tag Archives: blockchain

How Digitization Impacts Oil and Gas Industry

It is hard to imagine how the oil and gas industry operates with all its complex, critical processes involved. And it’s even harder to think of all the challenges it faces in the modern, every-changing world. The oil and gas sector is experiencing major shifts and transformations, and its all because of digitization.

Why digitization matters to oil and gas?

The Internet of Things (IoT), artificial intelligence, blockchain and big data are all terms that are prevalent among many industries, and the energy industry is no exception. More and more companies are seeking innovative, data-driven solutions for production efficiency and workforce stimulation. Technology today is the main efficiency booster in oil and gas, which can reduce costs and escalate decision making. Although it is not clear enough for some businesses how exactly digitization transforms into financial profit, the right application of technology can take the company’s performance to an entirely new level.

How digitization benefits oil and gas companies?

Digitization opens a vast variety of benefits for oil and gas companies.

  • Improving the performance of oil and gas assets and equipment. With the help of connected devices like IoT (Internet of Things), remote condition monitoring of well-site equipment is possible. Sensor technology lets companies track and gather data about equipment usage and maintenance. This data analysis, consequently, gives the potential to define waste operations and optimize production. Reviewing equipment can also mitigate its failure, and therefore contribute to better safety and health conditions for site workers.
  • Faster decision making. The energy industry is very complex and requires useful, well-thought decisions to be made on a daily basis. In such a huge industry, it’s hard to make accurate predictions and choices. Big data analysis is believed to be a key solution for decision making in the oil and gas industry. The concept behind this technology is simply gathering large volumes of data, sorting it properly and making an advanced analysis. Conclusions give companies invaluable insights, lets experts make decent forecasts and defines gaps in business models.
  • Reducing costs. All the technologies mentioned above can significantly cut your operational costs. As the usage of IoT and big data lets companies detect gaps and anomalies in the production, the elimination or reformation of waste processes will lead to cost savings. Also, innovations bring improved efficiency, which results in more profit.
  • Attracting the workforce. Recruiting is one of the most underestimated benefits of digitization. Oil and gas companies constantly struggle to attract young, tech-savvy talents to the industry, and digitization is a very promising solution for the issue. The 2018 Global Energy Talent Index (GETI) report stated that opportunities for remote and flexible jobs are in-demand for young employees and 48 percent of respondents referred it as an attractive feature of job in the oil and gas sector. Apart from the flexibility and new workplaces, digitization can offer employees possibilities for growth and development.

Final thoughts

Digitization is believed to transform the oil and gas industry in many ways. It can impact every stage of production, boost efficiency, reduce costs and make the sector more attractive for a young and talented workforce. Oil and gas companies should pay more attention to technology-enabled solutions in order to develop their brand image and improve performance.

If you need help with the transportation of oil and gas equipment, assets or materials, check our Energy Services page or contact us now!

A Look into 2019 Logistics

A Look into 2019 Logistics

2018 has brought some major changes to the logistics industry. We can expect to see a continued focus on technology and innovations, which will bring the most significant changes in the upcoming year.

The Influence of Big Data Will Grow

Companies try to incorporate IT resources into their supply chain to increase productivity, efficiency, and safety, and this trend will continue to grow in 2019. Technology allows small and midsize businesses to compete with larger players and take their performance to the next level. Apart from blockchain, big data is estimated to play the most significant role in improving logistics and supply chain management. The deployment of big data and data-centered innovations like IoT has already gained significant popularity within the industry. Data analysis and proper interpretation enable logistics managers to figure out gaps in the supply chain and implement working strategies to boost the company’s performance. Big data deployment is a huge step towards reaching freight visibility and understanding how to eliminate waste from the supply chain. In combination with IoT, it allows companies to track and analyze freight conditions, truck characteristics and other important measures that impact transportation. The experts forecast almost a three times growth in connected devices usage from 2018 and estimate it to reach 75 billion. This means the Internet of Things and big data will become game changers in the logistics industry in 2019. Apart from big data and IoT, other technology like blockchain and AI will also invade the transportation industry.

The Driver Shortage and Capacity C May Become a Permanent Problem

In 2018, there has been a lot of talk about the capacity crunch and issue of the driver shortage. There’s no wonder that shortage problem is still in effect as the demand for drivers increases and the core of trucking workforce plans to retire in 10-15 years. According to the World Bank of Data, the United States’ import and export traffic almost doubled between the years 2000 and 2016, but the number of truck drivers didn’t. As the global economy is growing faster, the problem of the shortage will become permanent despite the fact that solutions are coming to help. Driverless trucks and new technology for route optimization will roll into 2019 to eliminate the pain from the capacity crunch and shortage.

Improved Payment Systems and Cybersecurity

In the new age of digitalization, logistics companies need to provide more flexibility and transparency into payment systems. Blockchain technology and the usage of cryptocurrency lets companies simplify the process of sending and receiving payments and provide protection for online transactions. Increased attention to cyber security is another predicted trend in the industry for 2019. As digitalization continues to effect various industries and businesses, it is especially important for logistics and transportation companies to steer towards increased safety of their databases and websites. The devastating ransomware in Maersk in 2017 has shown that even industry giants are in jeopardy of cyber attacks.

Consolidation Among Companies

Competition between companies becomes fiercer every year. In 2018, many shipping giants have joined forces and formed the alliances, and the rate of consolidation will be even higher in throughout 2019. The trend of consolidation is especially popular among ocean shipping companies. For instance, A.P. Moller Maersk, CMA CGM, Hapag-Lloyd, MSC and Ocean Network Express (ONE) recently confirmed their plan to set a global association. The main point of merging is to balance prices on the market and let smaller businesses operate.

To sum it up, 2019 will be a year full of technology and optimization. Improved supply chain and inventory management, data analysis, technology, better freight visibility and a focus on cyber security will be the main game changers in the logistics industry.

How Blockchain Impacts the Logistics Industry

There are many new technologies affecting the logistics industry, and one of the most promising among new technology is blockchain. Blockchain can be used successfully in many different industries that have nothing to do with cryptocurrency. Technology like blockchain is believed to dramatically change company’s supply chains and save billions of costs on operations.

What is blockchain?

Blockchain is a digital register with advanced encryption mechanisms that lets companies track and record transactions and securely store data, making it almost impossible to steal, delete or change information. Every transaction or record is a single block, and after verification, it becomes a part of the sequence. This technology allows companies to keep every transaction, documentation and any manipulation made on an object in one place. This allows companies to have complete transparency on every single action or data unit, as well as protection from ransomware and cyber attacks.

How can blockchain be used for supply chain needs?

A supply chain is a very complex structure with hundreds of transactions and modes of communication involved. Verifying and maintaining information that flows through the supply chain can be time-consuming and expensive. Blockchain technology allows companies to immediately verify and lock each data unit, which supplies robust protection against data stealing, deleting or unwanted modifications. In a nutshell, blockchain provides transparency on every transaction and manages the data in a systemized and easily accessible way. Any manufacturer, auditor or supplier can access required data or payment in no time, which makes operations processes much faster and more efficient. The difference in supply chain performance could potentially be incredible after the blockchain contribution, as it drastically reduces extra interactions, increases data security and authenticity, apart from significant time and cost savings.

How it affects the logistics industry?

Apart from supply chain needs, blockchain can be utilized for many other needs of the logistics industry. Temperature-sensitive shipments often suffer from delays and temperature deviations, and lots of them may become damaged during transit. It happens because of poor temperature tracking, customs delays and more. Blockchain can help solve these problems, as it allows fast access to any data and transaction on a certain shipment. When combined with connected devices (Internet of Things), the data from trackers is transmitted to the blockchain, where it is stored and used for analysis.

In conclusion, blockchain is one of the most up-and-coming innovations to grow, develop and enhance the performance of the logistics industry. Companies that invest in such technologies would certainly be ahead of the competitors and will save a significant amount of money.