Here is a guest post from Jake Goodman, freelance writer for online technology magazines.
With all the issues that have been surrounding global energy, a huge amount of pressure has been placed on the oil and gas industry to find new fields to explore as well as fully extract fossil fuels from wells. Regulations on production are constantly changing because of the rapid advances in the technology for extraction, and the demand for environmental protection is at an all-time high. In order for these companies to make well-informed decisions, high volumes of data need to be collected and analyzed, and from there they’ll be able to figure out what strategies to implement.
Data mining has become extremely important for oil and gas firms, with Drillinginfo’s director of data inventory John Fierstien even claiming that no one else has collected more data than the oil and gas industry, in terms of both volume and detail.
Recently, Norwegian company Ziebel announced that they gathered 1,708 terabytes of data over a period of eight months, a record breaking collection and transfer of data in global fossil fuel production. Using their unique Z System, the data compiled gave them insight on various business segments that were “applicable to well flow optimization, integrity risk control, reservoir modeling, and enhanced oil recovery, with interruption in production kept to a minimum.”
At the Offshore Technology Conference (OTC) in Houston that occurred early May, GE shared with fellow participants that had spent $1 billion over the last three years on a software center in California, where they learned how to optimize efficiency in equipment usage. They also explained to fellow participants the amount of potential that derives from big data, saying that big data analytics could foster the extraction of 80 billion barrels, which is equivalent to three years’ worth of global crude production.
Although more firms around the world are utilizing big data to give themselves a competitive edge, data mining isn’t commonly practiced in the Middle East. Three power plants are currently being built for South Oil Company in Iraq which could benefit from data mining as it would minimize obstacles in operations while preventing negative environmental impact. Adopting big data would also address future staff shortages and counteract the volatility of oil price, in turn increasing production by 8 percent, according to consulting firm Booze Allen Hamilton.
As the former business and technology editor of his university paper and a graduate of a prestigious computer science program, technology has always been his passion. He is currently freelancing with several online technology magazines while he waits for his internship to start in the fall.
Updated July 12th.