The use of data management to improve business operations is now a norm for every industry, the energy sector is not left out. While other sectors may have been quicker in determining the effectiveness of leveraging data, the energy sector is lagging behind. However, the energy industry’s data management market is predicted to grow more than 11% between 2021 and 2026.
Data collection may be the first step in data management, but the real value is uncovered when it is cleaned and analyzed to draw insights and conclusions that help drive future performance. As the energy industry begins to fully embrace data management, the industry is benefitting in a variety of ways.
For example, it may begin with the search for new oil sources in the field. Geologists take samples of possible new sources and record the location of the samples. The data collected is then studied and used to determine the best location for new wells. Once drilling is underway, engineering and drilling crews track the depth and analyze the location of gas and oil layers.
The energy sector, especially the oil and gas industry, is highly reliant on infrastructure and physical equipment. This is another area that benefits from data management. Analyzing data from infrastructure, such as wells and pipelines, can be an indispensable tool in predictive maintenance and can help determine if a piece of equipment is likely to fail or require repair. This helps energy companies accurately manage costs and avoid or reduce pricey, extensive repairs.
The energy industry produces a large amount of valuable data. However, there are still challenges involved with this kind of data management, including ascertaining the data to be collected, how it is processed, and how it is securely stored. Organizations also face challenges in data processing, and how to automate their systems.
For a bit of clarification on How Digitalization of Data is Changing the Energy Industry, check out the infographic attached below.
Infographic created by Resource Energy Solutions, an oil and gas software company.