RFID for Oil & Gas

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With surging demands for oil in the global market,today’s oil rigs might easily generate over a halfmillion dollars in a single day. But this enormousrevenue potential comes with a hefty price tag.Whether in operational or leasing costs, energycompanies can spend hundreds of thousands ofdollars per day to keep the oil pumping. Since a largenumber of barrels must be pumped daily to breakeven, any unplanned downtime can have graveconsequences on the bottom line. Production lossescaused by unplanned downtime are compounded bythe high labor and operational costs incurred until therig is back up and running.

To keep the oil flowing to meet customer demand in the global marketplace, rigs, pipelines and other equipment must run at peak efficiency. In this environment, inventory accuracy is particularly critical. Overnight courier services cannot easily reach offshore or remote rigs to replace a shortage of parts needed for an emergency repair. And today’s crowded marketplace is creating further delays in obtaining replacement parts — there are more companies requesting parts, impacting the speed in which orders can be fulfilled. To minimize the detrimental impact of a parts shortage, energy companies often resort to keeping excess safety stock on hand — a costly strategy given the number and cost of these high valued parts.

From exploration and production to drilling and refining, RFID can help companies streamline business processes to better protect the health of the business by:

• Increasing employee efficiency

• Increasing the automation of product movement and supply

• Ensuring optimal use of all assets

• Reducing inventory carrying costs

• Protecting against unplanned downtime

• Ensuring cost-effective regulatory compliance

• Improving employee safety

Some of the key applications for RFID in the oil and gas industry include:

1.    Pipeline inspection/maintenance

2.    Asset tracking

3.    Equipment maintenance

4.    Personnel Tracking/Safety

Monday the 11th. PT Lean Design Electronics International
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