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The oil and gas industry is feeling the pressure of depressed prices. Profit margins are being squeezed tighter and tighter. To counter this loss in profit, there is an increasing need to find cost savings wherever possible. Automation is one-way many oil and gas companies are trimming their costs.

How Automation Saves Money

A few decades ago, automation had no place in the oil and gas industry. Everything was manual and required a great deal of labor. However, times have changed and the cost of all that labor is draining the already slim profit margins in the oil and gas industry. Automation is an increasingly popular solution to reducing costs and the need for so much labor.

• Real time measurement and monitoring. It used to be that a well would require a human visitor once a day to ensure it was working properly and that there were no problems. With automation, there is no need for a daily visit. The condition and output of the well can be monitored with SCADA and transmitted to a central location, reducing labor needs.

• Quicker alerts and response to problems. The real-time data received from each well makes it possible to detect a problem almost immediately and to send a response unit to manage it. This can minimize spills and well downtime.

• Historical information to show past performance and normal operating conditions. Knowing how a well is supposed to be working makes it possible to monitor for changes. It is possible to set up alerts that will alarm when something changes. This allows for a quick response to changes in order to maximize output and lower costs.

• Access to information from multiple locations. Leveraging the ability to connect the SCADA data to a network makes it possible to monitor and manage wells through just about any connection to the Internet. This allows personnel to be out and about doing what needs to be done, while still being able to monitor the field, further reducing labor costs and downtime.

• Reduction in well downtime. Automation can detect minor problems that could cause well downtime if allowed to become major. Finding and fixing these problems early helps keep the well flowing.

Automation is the answer to reducing costs in most oil and gas operations. It offers a way to keep on top of production problems without the need to send out someone to physically monitor the system every day. Proactive monitoring also helps increase the production of wells, increasing profit levels.

Champion Automation is a leader in the measurement and automation services for the oil and gas industry. Give us a call today.