Looking Ahead: Kicking Off 2018 with Industrial IoT
As we face a quickly approaching 2018, it is shaping up to be a busy year! We are building a line-up of presentations at leading industry conferences to share our findings, innovation and expertise on the trends we’re seeing around Industrial IoT, the intelligent edge, and all the markets we have a presence in – oil/gas, military, unmanned systems, government, and utilities (to name a few). This year, we will be kicking off 2018 with a presentation at an Industrial IoT event in January hosted by TMC and Crossfire Media. This week, show organizers released details about the Industrial IoT Conference program being held January 22-25, 2018 at Disney’s Contemporary Orlando, Fla., and we are thrilled to be a part of the event. Here’s what we learned from their news: “The event will focus on the IoT technologies and solutions increasing the productivity and efficiency of manufacturing and production processes. The Industrial IoT Conference is collocated with IoT Evolution Expo which in its 19th iteration is the leading education and networking forum for the enterprise looking to understand how to develop and implement IoT Solutions.” The event is also going to offer a blend of keynotes, breakout sessions, panels and special events. FreeWave to Present in Orlando During the event, Scott Allen, the CMO of FreeWave Technologies, will have the pleasure of joining the Industrial IoT (IIoT) breakout sessions as a panelist in “IoT on the Factory Floor.” The session, featuring top IIoT experts and business leaders, will look at how IOT is being deployed on the factory floor and how it improves the management of production. Panelists will also answer important questions, such as: Have we gotten to the point where Programmable Line Cards are taking advantage of connectivity or are gateways making human intervention easier? Where is the promise of IoT for manufacturing being delivered and how? See the full event schedule here. Manufacturing & IoT in the News Recent reports indicate IoT in the manufacturing market is expected to grow at a CAGR of almost 30 percent. As manufacturing businesses work to reduce costs and innovate, while dealing with a transitioning workforce, the report predicts rapid growth in IoT investments. A recent Forbes article highlights the opportunity for app development as many in the manufacturing industry head towards retirement. As indicated by the rapid adoption of IoT, the “IoT on the Factory Floor” session in Orlando will certainly offer timely insight. We recently covered some big headlines in manufacturing, read the blog post to see which news stories caught our attention: https://www.freewave.com/iiot-headlines-manufacturing-big-data-predictive-maintenance-remote-access/ As we head towards the new year, we are in awe of the innovation and disruption that we often found ourselves in the middle of in 2017. We have some bold thoughts on what’s to come for IIoT in 2018 – so keep an eye out for that! Be sure to look for us in Orlando if you’re attending the Industrial IoT conference in January! We hope to see you there.
Know Before You Buy: How to Find Secure IoT Devices
As the number of IoT devices skyrockets, we are seeing the amazing powers of connected networks. Businesses are able to transform as they approach operations with smart, informed decisions. In the industrial sectors, IT decision makers have visibility into the OT networks and are now able to execute logic locally at the edge devices and transport critical data globally – enabling intelligent command and control of the network. We are starting to see glimpses of a connected world we never knew possible just a few years ago. As adoption of IoT rapidly expands, the Achilles Heel of these devices continues to be security – at least in the minds of end-users and consumers. A Recent report circulating around IoT news outlets states that 90 percent of consumers lack confidence in the security of IoT devices. Yet more than half of these consumers own one or more IoT devices. The report, based on a survey conducted by Gemalto, revealed other concerning and somewhat astonishing statistics that have been reported in recent articles, including: 60 percent of respondents say their main fear is hackers taking control of their devices. 54 percent are concerned about personal information being accessed. 54 percent of the consumers surveyed said they own an IoT device but only 14 percent said they knew enough about how to protect it. Only 11 percent of manufacturers and service providers total IoT budget is spent on securing devices. Two thirds of organizations use encryption as their main means of security, with 62 percent encrypting data as soon as it hits the device and 59 percent as it leaves it. Only 50 percent of IoT companies have adopted a security-by-design approach. 92 percent of companies reported an increase in sales or product usage after devices have been made more secure, demonstrating a link between security and adoption 61 percent of businesses said regulation needs to be greater to specify who is responsible for security and data at each stage of its journey. 55 percent said safeguards are needed for ensuring non-compliance with security. 86 percent of businesses and 90 percent of consumers believe governments should handle regulation of the sector. Smart Device Selection Despite security concerns, adoption of IoT devices continues to rapidly expand. For industrial IoT (IIoT) networks, future business success is going to depend on connecting those edge networks in order optimize operations, drive production, reduce downtime, and create a safer work environment. When decision makers choose the IoT devices that will be deployed in their networks, it is critical to find products that meet the security and operating standards of the business. This can be determined through a careful evaluation of options. Are you looking to purchase IoT devices for your IIoT network? Consider carefully reviewing and answering these questions before you make your decision: What are your requirements? Must haves versus Nice to haves? Are there any regulatory considerations? What is the M2M communications technology controlling or automating? Is it essential that it operates without failure? What data is being collected and/or transmitted with this technology? Is it time sensitive and/or mission critical? What technology solutions have a proven track record for the applications being served? What external factors might impact the reliable transmission and receipt of critical data from one point to another? How does this M2M communications technology address challenges such as data encryption, network access control and signal interference? Can the vendor describe the security mechanisms? Can you understand them? Will this be secure even if everyone knows the security measures? (The right answer is yes, otherwise keep looking) Do we need this technology solution to be fail-safe, in order to prevent or eliminate catastrophic damage from occurring? What are the threat vectors I’m most concerned about? Is cyber security or physical security a greater concern for this deployment? What vulnerabilities have the Information Security community identified in the type or category of IIoT equipment I use? What is the right tradeoff between features, ease of use and security for my installation? Do I have a testing or evaluation plan in place? What ongoing improvements do I expect? While device security is going to be a lingering concern – especially as the lines between the IT and OT networks blur – companies have the power to prioritize security in their networks and make informed decisions when it comes to selecting their devices. Until there are more government guidelines in place, it is up to the IIoT decision maker to find these options in their quest for connectivity.
Node-RED: The IoT Programming Language No One is Talking About
Sussing out the key pieces of the Internet of Things is usually accompanied by caveats ranging from the established uncertainty of the future, the security problems of the present, and the legacy system integrations of the past. Industry gurus and thought leaders predict growth in the billions – dollars, devices, deployments, Cloud applications, etc. Networking experts waffle on standardization. Hardware providers sprint to keep up. But one of the critical pieces of the Industrial IoT is something you won’t find jumping off front-page headlines – yet: Node-RED, the programming tool for wiring together hardware devices developed by IBM, is the power behind the IoT throne, and no one is really talking about it. Lost amid the noise about ‘smartifying’ the world is the practical reality that unless you can figure out a way to seamlessly connect the hardware devices that comprise a smart network, you are essentially relying on the Cloud to run an overwhelming number of disparate applications – and that is assuming your network is near invincible. Since the Industrial IoT relies, in theory, equally upon Cloud and Edge device processing, developing software applications that can effectively run in both settings is crucial. This is where Node-RED comes in. According to Nodered.org, the open-source Node-RED ” … provides a browser-based editor that makes it easy to wire together flows using the wide range of nodes in the palette that can be deployed to its runtime in a single-click … [making it] easy to wire together flows using the wide range of nodes in the palette.” The essence of this tool is that engineers and operating technicians can create and configure applications easily, in real time, on Edge devices. Ideally, the pieces of code being used to create programs are reusable, meaning that the process can be learned by field operators without the need for a degree in computer science. The code is built on Node.js, the JavaScript runtime that frequently pops up on Raspberry Pi platforms due to its ease of use. So, if it is so easy, and so important, why is no one talking about it? The ongoing problem for the IIoT is the Wild West mentality: the no-holds-barred land grab has resulted in disparate hardware and software products that often require a combination of proprietary and open-sourced solutions. As a result, the actual mechanisms that drive the building of an IIoT network are often less talked about than the tangible pieces that come together to build that network. There are several considerations to keep in mind. First, the idea of IT/OT convergence has only just started to gain traction, so legacy solutions (especially in certain industries) haven’t quite crossed the threshold of multi-function. Second, the changing demographic of the workforces in the industrial sector means that the traditional gatekeepers, often not versed in software or computer programming, have been loathe to adopt solutions that require a whole new skill set. The result is that the idea of programming between devices and Cloud applications is in a relative infancy. Third – and still related to the workforce demographic – creating an entire workforce of people versed in both hardware engineering and computer programming is impractical. Those factors, along with several others related to the need for network functionality and data analytics, means that a solution like Node-RED is still not completely understood, and perhaps even more pertinent, still not widely adopted by industry leaders on both the hardware and software side. But it also means that it is more necessary than ever.
International IIoT Perspectives: Precision Agriculture
In the United States, precision agriculture is one of the largest industries by both operational scale and economic impact. The technology utilized is typically on the cutting edge, especially for automation and control. Things like sensors, programmable radios and generally more complex software applications have allowed that industry to evolve, domestically, to a point where land and other resources are used optimally. Internationally, although there have been ‘smart’ or ‘precision’ practices in certain sectors of agriculture, many countries are just now starting to adopt the technology to its fullest extent, including the ability to innovate via start-ups and new practices. India & the Digital Agriculture Revolution According to an article in India Times (image credit), the country is aiming to secure a 20 percent stake in the IoT market share in the next five years through its ‘Digital India’ initiative. While many might look at India and think of the sprawling and diverse urban environments that could offer some potential complications for IoT, it is rural areas seeing the most interesting developments. There has been a noticeable growth in tele-medicine operations, which can allow patients in remote areas to interact with doctors for consultation, eliminating the need to get to a city, or vice versa. Perhaps an even greater area of growth lies in the agricultural realm. According to the article, agriculture employs 50 percent of the country’s population, so the potential for a digital revolution is high. Farmers are just starting to implement sensor technology, automation hardware, and even leading-edge tools like voluntary milking systems the allow cows to be milked on an automated machine according to biological needs. Israel’s Precision Ag Start-Up Community In Israel, where IoT technology is starting to mature, the name of the game is data collection and analytics. Mobile applications, sensor data collection hardware, and advanced analytics software are three areas that Israel is seeing significant market growth, according to Israel21c: Israel stands out in precision-ag subsectors of water management, data science, drones and sensors, says Stephane Itzigsohn, investment associate at OurCrowd. … “Multiple startups are aiming toward the same goal — providing good agricultural data — but approaching it from slightly different angles,” Itzigsohn tells ISRAEL21c. “One might use satellite images or aerial photography; another might use autonomous tractors. Not all will get to that peak in the long journey of farming becoming more efficient.” For example, CropX, an investor-backed advanced adaptive irrigation software solution, can be placed throughout a farming area and synced with a smart phone, allowing the operators to receive real-time data updates on things like soil and weather conditions. CropX is based in both Tel Aviv and San Francisco, indicating that the technology may be poised for wide international adoption in the future. Analytics Drive Italy’s Drought Recovery Italy is perhaps best known for a single agricultural export: wine. However, many would be surprised to find out that it is one of the top corn producers in the European Union, producing more than 7 million tons of corn in 2015, according to an RCR Wireless report. In 2016, the EU’s total corn output dropped noticeably due to year-long droughts affecting production. In Italy, start-up companies collaborated with industrial ag operations develop and deploy widespread soil sensor and water automation technology to help streamline farming practices and create a more efficient system for resource use. The technology allowed farmers to get a comprehensive look at their operations and identify high and low yield areas in order to better utilize the available space. Precision Agriculture and the Industrial IoT The continued maturation of IIoT technology is enabling countries around the globe to better utilize resources like water, energy, and land area to create better agricultural operations. As populations continue to expand, and food production becomes even more important, being able to connect these technologies across the globe could become a key factor in optimizing crop output in critical areas. Imagine the above farm in Italy being able to send its data to data scientists in Germany or the Eastern Europe who could in turn analyze it and provide actionable feedback. Or an industrial farm in Israel managing its yields sending that information in real-time around the country. These possibilities are not far off, and as the networks, hardware and software continue to be adapted, the future of precision ag internationally, will become the present.
Autonomous Tech and Self-Driving Cars Dominate the Headlines
The autonomous tech industry is poised to explode, driving job growth and technological innovation. Everything from self-driving vehicles to automated infrastructure is sitting on a precipice of advancement that can be a truly momentous step into the era of the connected world. This week, we are focusing on some of the industry news surrounding autonomous vehicles, including the manufacturing aspect, their space in a smart city, and how major metropolitan areas initially resistant to the technology are starting to come around. In Japan the Race is On for Self-Driving Cars IMAGE by Takashi Aoyama According to a recent study by the Boston Consulting Group, fully autonomous vehicles are expected to account for a quarter of all new cars by 2035 — a slice of the auto industry totaling around $77 billion. While automakers across the globe are racing to become a leader in this new tech, no where is the competition more intense than in the auto-manufacturer rich island nation of Japan. This recent article from the San Francisco Chronicle notes that Toyota, Nissan and Honda have all made significant investments in developing autonomous tech. The autonomous vehicle race is particularly impactful because of the major implications to not only car OEMs who have to fundamentally change the way they approach their product, but to the hardware and software companies building the technology that will support these highly sophisticated (and regulated) vehicles. Could Owning an Autonomous Car Make You “Traffic Elite”? IMAGE courtesy ZDNet If you end up being an early adopter of new autonomous tech, you may find your commute becomes shorter. ZDNet explains that a recent proposal from UC Berkeley grad students suggested the creation of a “Hyperland” — a special traffic lane reserved just for self-driving vehicles. If you want to be in the Hyperlane, you better not mind a brisk ride as the special lanes would allow for speeds over 100mph. The traffic on the Hyperlane would be controlled by a central computer that monitors traffic congestion, speed, and other variables through advanced sensor arrays and keeps traffic flowing freely. The project will cost a cool $11.4 per mile of road, so travel will likely come with a toll to ease the financial burden. Self-Driving Cars Job Market Booming IMAGE by Gene J. Puskar, AP With so much emphasis on autonomous driving, cities are rushing to cash in on the movement. According to the Detroit Free Press, the advanced driver assistance systems and autonomous vehicle market was around $5 billion in 2015. It’s projected to grow to $96 billion by 2025 and a staggering $290 billion by 2035. This massive market growth has led to a number of cities across the country pitching their location as the “place to be” for autonomous tech. From Austin to Pittsburgh, automakers, OEMs and even government officials are pushing for their city as the best spot for innovation in the autonomous vehicle space. So will it be Detroit or Silicon Valley? Or one of a host of other cities vying for a slice of this massive cash cow? Time will tell. Better Late than Never: New York Easing Up on Laws for Driverless Vehicles Back in 1971, New York passed a state law insisting all motor vehicles have a driver with at least one hand on the wheel at all times. Back then, this seemed that a pretty standard rule — but with the advent of self-driving cars, the rules of the game have changed. A recent article from the Democrat and Chronicle noted that until recently, New York was the only state the explicitly banned driverless cars from its roadways. However, the state has now approved a pilot program to allow the testing of driverless vehicles under certain conditions. State Senator Joe Robach was a vocal advocate for the new change. “While the technology for fully driverless cars is in the future, consumers certainly appreciate the automated technology that is currently in cars, including lane assist, self-braking, hands-free park assist and collision avoidance,” he said. “The legislation that was passed earlier this year ensures that driverless cars can be tested on the roads that future consumers in our state will use them on and are tested responsibly.” Audi of America is the first automaker to get approved for the new program, with other manufactures expected to jump on board in the coming months.
Smart Border Protection
Plans for “The Wall” at the U.S./Mexico border appear to be driving forward. Recent reports indicate that building the border protection wall could cost upwards of $22 Billion. However, news coverage suggests that there is a more cost-effective solution in using drones to create a ‘virtual wall.’ Time will tell whether the current administration will consider replacing all or parts of the physical wall with modern drone technology to intelligently monitor rural and desolate parts of the border. In fact, some are reporting that it’s a possibility. On the other hand, several companies have already been selected to build prototypes of the border wall. Perhaps the final solution will be some combination of both, as The Department of Homeland is actively seeking border monitoring solutions in drones for Border Patrol. Drones at the Border In 2014, it was reported that Predator drones were patrolling nearly half the U.S./Mexico border. These drones were used to monitor rural areas for illegal immigrants, human traffickers and drug cartels – covering parts of the border where there are no US Customs and Border Patrol (CPB) agents, camera towers, ground sensors or fences. The Predator drones used for these purposes were designed for the battlefield, and unfortunately a report from December 2014 found that they did not achieve the intended results. Today, The Department of Homeland Security is looking to use smaller drones with facial recognition as part of its Silicon Valley Innovation Program – a program created to, “cultivate relationships with technology innovators, particularly non-traditional performers, from small start-ups to large companies, investors, incubators, and accelerators.” A contractor solicitation notice that was issued last summer (and closed on April 27, 2017) by DHS requested specific requirements for these border patrol drones. According to NBC News, the Department of Homeland Security was “flooded with bids” for these smaller drones. Here’s a small sampling of what the solicitation was requesting (see the full solicitation for the detailed list of requirements): Functional across a variety of weather conditions and times of day Ability to detect the following items of interest within required detection range: humans traveling on foot (alone and in groups), humans traveling on animals (e.g., horseback), and moving ground conveyances (e.g., All Terrain Vehicles, motorcycles, automobiles, and trucks Easy to navigate and operate Sophisticated sensors, with advanced capabilities – such as infrared and facial recognition capabilities sUAS capabilities (sUAS typically applies to smaller consumer-grade drones under 55 pounds) Hypothetical natural language voice command system While the request includes a broad range of desired capabilities, an article in The Verge suggested that, “the greatest challenge facing contractors is how to stream data from the devices, since much of the border lacks conventional cellular service.” Connecting Where Cellular Can’t From a technology standpoint, consumer-grade drones for border patrol are going to need secure, reliable and rugged command-and-control (C2) links. There are a number of secure wireless data communications solutions available that enable reliable C2 links. These solutions have been trusted by the government and defense industry for years, offering secure, reliable links with more than 60 miles Line of Site (LOS). There are C2 solutions providers that have operated in unmanned systems for millions of flight hours in some of the harshest weather conditions without a single broken communication link. Drone manufacturers also should consider these types of C2 solutions because they offer secure wireless data communication by leveraging data encryption capabilities that adhere to FIPS and AES standards. Some non-cellular solutions are also proven to be reliable and secure in nature which further boosts the overall data security scheme. Frequency-hopping techniques, for example, leverage coordinated, rapid changes in radio frequencies that “hop” in the radio spectrum, evading detection and the potential of interference. Some wireless products also deliver multiple user-defined cryptography keys (as many as 32 user-defined keys in some cases), providing a more robust link security by allowing the automatic and frequent changing of cryptographic keys. As drones are deployed more frequently for mission critical operations at our borders, it will be imperative to leverage secure C2 links that can support modern data needs in real-time while keeping the links secure. With the comfort of these powerful C2 links, Border Patrol agents can effectively monitor, assess and act upon threats in the most efficient manner possible.
The Wireless Oilfield
As the Industrial IoT (IIoT) drives connectivity everywhere, wireless technology has become a mainstay in the energy landscape. Modern oil and gas companies rely on wireless communication solutions to control, monitor and transfer critical data for the most critical field operations. As technology decision makers continue to seek new ways to connect the oilfield, they are inundated with options. However, if they desire networks that will remain relevant as technology rapidly changes, they need to be focused on finding wireless solutions that can handle modern data needs. Wireless I/O solutions In the oilfield, different applications have different needs. For example, many assets are operating in hazardous environments where explosive gas is present. The technology operating in these environments needs a C1D1 certification for safe operations. The good news is that there is wireless technology designed and certified to perform in these environments. C1D1 wireless Input/output (I/O) technology can perform to the standards that ensure both safety and connectivity for the modern oilfield. When wireless I/O is incorporated into small field networks, medium plant operations and/or large SCADA systems, operators can receive wireless sensor measurements, physical control and communications between remote controllers from a single device. In the simplest of terms, wireless I/O is wire replacement, where the wireless communications link emulates wire in an existing application. No changes are required to the system architecture. Rather, wireless links are used to transmit the same data that the physical wire once carried. With a C1D1 certification, wireless I/O solutions offer a much needed hard wire replacement for extremely remote assets in hazardous environments. Wireless Oilfield Applications As more sensors are added along the wireless oilfield, there are many different applications that can be pulled into the wireless network. New C1D1 wireless I/O communication technology also is designed to provide the communication link for the IIoT network in order to achieve the level of connectivity needed for today’s IoT driven-marketplace. There are a number of applications that can be leveraged by the wireless communication network including: Separator: monitoring of flow, high level alarm, pressures and temperatures Production tanks: C1D1-cerfied measurement and high level alarm Backhaul: data collection and transport from the wellhead to SCADA system Wellhead: pressure monitoring, including – casing, tubing and surface pressures. Additional applications include, flow, plunger lift, valve actuator, and arrival sensor Control Panel: wirelessly connect PLC/RTU/Flow computer to sensors, link to IIoT, I/O expansion Flarestack: monitor flares, temperature and thermocouple Chemical injections: monitor tank level and temperatures Compressor: monitoring of pressures temperatures and monitor/control on/off statuses. These are some of the many applications that can be connected with modern wireless technology. As the oil and gas industry continues to embrace wireless technology, special attention needs to be paid to the solutions that will still be relevant years down the road. A C1D1 certified wireless radio solution that connects to the IIoT network is an ideal solution that not only supports field assets, but is designed with the future of wireless communications in mind.
IT/OT Convergence – The Impact from the Industrial Internet of Things
Without question, the number of connected sensors and devices on your IIoT network are going to increase, and also without question, the volume of data created by these devices on your IIoT network are going to increase as well. Both increases are intended to improve operational efficiency and streamline business processes. As a result, your Information Technology (IT) and Operational Technology (OT) departments will likely need to adopt new strategies. An increasingly popular strategy is IT/OT convergence. The Bandwidth Burden For many industries, SCADA and M2M networks have historically used serial communications for operational networks. This has changed and is changing for many. As networks transition from serial to Ethernet communications, data is now freed for routing to any business system. There is a new twist for SCADA, M2M and now IIoT networks that have limited bandwidth capabilities. With more business systems needing critical data to improve business process, utilization of bandwidth on networks with already-limited bandwidth is also increasing based on the traditional Poll/Response or Request/Response model. To reduce the bandwidth burden, systems are now transitioning from Poll/Response operation to a Publish/Subscribe model. There are several benefits to the Publish/Subscribe model. Sensors or devices in bandwidth limited networks can publish data when events change or select criteria are met. This reduces the demand for network bandwidth in two ways; 1) there is no prerequisite Poll message, and 2) devices publish when needed. Publish data is routed to a Broker or Publish/Subscribe server that operates on networks where network bandwidth is not a limitation so any number of subscribers can subscribe needed data without burdening the IIoT network. While the Publish/Subscribe model is a significant improvement to IIoT network efficiency, it is not a panacea for all operational information. Network monitoring systems, e.g. SNMP based systems, will still need to poll devices to gather operational, performance and prescriptive data; essential for proactively maintaining an efficient and operational IIoT network. Secure Devices to Support Convergence Newer sensors and devices are also being designed with security in mind because no legitimate manufacturer wants their IIoT device to be part of a DDoS attack, as we saw in 2016 with the Mirai DDoS attack. While IIoT device security services and features are rapidly improving, it is still incumbent on OT and IT organizations to: Train personnel on network security because the human element can still be the weakest part of any network, e.g. phishing emails, Deploy networks with Defense in Depth so there are numerous barriers to obstruct and deter entry with timely audit trails to identify entry, and Perform periodic Risk Assessments and implement action plans. SCADA, M2M and IIoT networks are operating more as IT networks thanks to the close work between OT and IT groups and their convergence. Want to learn more on this topic? Join my presentation at the ENTELEC conference on Thursday, April, 27, 2017 at 2 p.m.
A Very Thankful Time of Year in IIoT
Thanksgiving is the time of year where we reflect on the accomplishments of the prior year and to be thankful for all that we have
Guest Post: Keep the Data Flowing in Oil and Gas
By Joyce Deuley, Sr. Analyst and Director of Content at James Brehm & Associates LLC State of the Industry This year has proved challenging for oil and gas companies: falling prices, crackdowns from environmental regulations, growing concern about the destabilization of land due to fracking, as well as an increasing gap between jobs and skilled engineers to name a few issues. Royal Dutch Shell, for instance, recently terminated its plans to drill off the Arctic coast of Alaska for the “foreseeable future”—this is after $7 billion dollars and more than five years spent on exploratory drilling (with disappointing results) and the purchase of costly leases and permits for the privilege to do so (Daily Mail). The Arctic Circle has been viewed by many as a “holy grail” in terms of rich oil and gas reserves—the largely untapped Great White North, if you will. Initiatives in the Baltic have also come under discussion lately, as Russia negotiates the political quagmire it has found itself in concerning territorial disputes. Still, it isn’t all doom and gloom. Our reliance on oil and gas for manufacturing, shipping, transportation, energy, and more hasn’t dissipated—rather, it will continue to increase with the rising population and result in rapidly expanding urbanization. More food will need to be shipped globally, more cars will be driven, more homes will be heated, more materials will need to be made, etc., providing rich opportunities for oil and gas companies to invest in scalable solutions, as well as to firmly root themselves as valued players in the market. Investors, and other interested parties, are paying close attention to the oil and gas markets to better determine how best to mitigate depleted reserves and improve overall productivity and efficiency: keeping their bottom lines low and profit margins high. To pull back from an environmental and global perspective on the state of the industry, let’s instead bring it into a sharp focus with its current business challenges. Problems with efficiency include legacy pipeline and refinery infrastructure that hasn’t been updated or modernized in decades, a shortage of skilled labor as qualified engineers approach retirement, the need for increased monitoring and control across remote areas, and the mission-critical need for the aggregation, interpretation and management of unprecedented amounts of data. But, effectively managing that data can present major challenges for oil and gas providers: with so many devices at the edge, they are practically drowning in the seemingly endless flood of information that is collected. The need to find reliable data management platforms that help remove complexities associated with data visualization is critical for these companies’ ability to identify and enact valuable business decisions. What to Do About It It is no secret that the Internet of Things (IoT) has proven to be disruptive across a myriad of markets. While the technologies and principles of the IoT have been around for decades, predominantly within the manufacturing and processing industries, its relatively nascent presence within the consumer electronics and wearables markets has helped rebrand the IoT with a level of “sexiness” it previously lacked. But at the heart of the IoT is a near-obsessive desire to decrease operational and deployment costs, meet compliance regulations and to dramatically increase productivity and efficiencies. The oil and gas industry happens to be one of the largest growing areas for IoT deployments and has found many ways to benefit from connected solutions, such as pipeline and wellhead monitoring. Oil and gas pipelines can span across hundreds of miles of rugged terrain. The ability to monitor such a territory can be challenging, as harsh winters and debilitating droughts, forest fires and or heavy rains can put stress on the integrity of a pipeline, plus the remote nature of its location can prevent technicians from being able to regularly service it. Another challenge is knowing when and specifically where a problem occurs. For instance, if there is a malfunction that results in a leak along one of the more remote sections of a pipeline and there is no sensor to alert someone, we could be looking at a nightmare of a situation: environmental damages, not to mention untold amounts of costly clean up, repairs and definitive losses to the oil and gas company at large. By utilizing connected sensors along the lengths of their pipelines, oil and gas companies can overcome these challenges and monitor flow, pressure, integrity of the pipeline and more. Empowered by the IoT, oil and gas providers can receive near real-time information about their entire operation, enabling decision makers to better manage their technicians, as well as improve overall production and reduce maintenance and operational costs. As oil and gas companies wait for the stock market to pivot from $50 a barrel, they need to look seriously at implementing business solutions that are going to help them weather this lull. The IoT provides many opportunities for oil and gas providers to tighten their belts by increasing efficiencies and production, ultimately reflecting in a more cushioned bottom line. Pipeline monitoring and control applications can help reduce non-productive times by up to 30%, which is just one small example of how dynamic transformations could be made by the IoT. About Joyce Deuley As Sr. Analyst and Director of Content, Joyce researches and interprets market trends, locates opportunities for growth, and researches the current happenings in the M2M and IoT space, providing our clients with up-to-date and actionable information. Joyce specializes in technical communication, translating complex data into layperson-accessible presentations, articles, and white papers. Additionally, Joyce manages, contributes, edits, and designs our newsletter, The Connected Conversation. She currently offices out of, and is a founding member of Geekdom, a tech accelerator-like co-working space in San Antonio, TX. Previously, Joyce worked as a Secondary Researcher at Compass Intelligence, learning the M2M markets alongside James Brehm. While at Compass Intelligence, she gained experience in market research, competitive analysis, content strategy, as well as qualitative research. Joyce graduated with a B.A. in English, focusing on Professional and Technical Communication, from the University of the Incarnate Word (UIW) in San Antonio. She
