The Role of Accurate Drilling Data in Reducing Costs

It’s no surprise in the oil industry that inaccurate date is the source of all poor decisions and will always reflect badly on the ROIs of drilling activities. In the worst possible cases, these data problems might lead to full-blown catastrophes like the Deepwater Horizon explosion and at the very least it can impact efficiency to generate huge deadweight losses for the operation. For these reasons, it becomes imperative that all oil excavation projects employ proper process instrumentation to keep their operation sustainable and safe.

The Relationship Between Data and Decision-making
There is an increasing degree of awareness throughout the oil and gas industry about the role of big data in helping making better production decisions. It is observed that the use of data analytics to collect, aggregate and  analyze information from process instrumentation can help increase production by as much as  6–8%. Additionally, it is well known that investments in data analytics can help minimize costs, and significantly reduce the risk associated with oil excavation.
While these considerations are essential for all businessowners in the oil industry, there is little discussion given to how anyone can effectively implement data analytics. See, it’s quite clear that having more data can increase analytical accuracy and leads to better decisions—but the real question is how can we collect accurate data and consolidate it?

The answer to this question is answered in two parts—first, we need to install accurate process measurement instrumentation and secondly, we need to create ways to make data accessible to people.

The Importance of Process Instrumentation in Cost Reduction

Process instrumentation includes a wide range of equipment used in oil excavation. This includes pump stands, pressure gauges, weight indicators, sensors and any other type of equipment used to measure relevant metrics throughout the rig. These instruments need to be able to withstand extreme environments to cope with the loads they’ll be exposed to during the excavation process and continue delivering accurate readings throughout the process.
Furthermore, there is a need to invest in data acquisition infrastructure that can record and consolidate the information collected through the various sensors and gauges. Process instrumentation and data acquisition capabilities are fundamental determinants of operational efficiency. When combined, it gives businessowners the opportunity to develop crucial insights into existing operations, identify inefficiency and devise effective safety protocols that can ensure profitable, yet safe operations.

Invest in Oil Rig Process Instrumentation Today

Contact Instruments is a leading supplier of torque gauges & systems, weight indicators and other drilling rig instrumentation in Canada. Get in touch with the company today for more information on their products.


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