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We are seeing a massive digitalization wave taking place across industries with reliable and secure connectivity serving as the foundation. In this article, we talk about how connectivity is benefiting the Oil and Gas sector as well as the mining sector globally.
The oil and gas (O&G) industries are under immense pressure to improve operational efficiency, productivity, worker safety; maintain cybersecurity; and, at the same time, reduce environmental impact. To solve these challenges, oil and gas companies are accelerating their digital transformation. As they adopt use cases around automation, smart safety and environmental monitoring, the oil and gas sector is increasingly looking to advanced cellular connectivity to help drive efficiencies, while being more environmentally sound. The industry<\/a> is expected to meet the global goal of net zero carbon by 2050.
According to a McKinsey Study, the use of advanced connectivity to optimize drilling and production throughput and improvements in maintenance and field operations could add up to USD 250 billion of value for oil and gas upstream operations by 2030.
Gaining efficiencies with cellular connectivity
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Digitalization enabled by cellular connectivity can change the outlook for oil and gas companies in many ways. With high performance, low-latency private cellular networks, the oil and gas industry can leverage Industrial IoT (IIoT) to meet its challenges. Oil and gas facilities are complicated operations and will likely always have a mix of technologies. A strong cellular 3GPP-based network, on 4G or 5G<\/a>, can act as the primary network, supporting and linking things like Wi-Fi or hard-wired systems together into a cohesive unit.
Cellular networks are cost effective and scalable, while providing superior coverage. Thus, reliable, secure connectivity will accelerate innovation in the sector. Connected devices like phones, tablets, and sensors, as well as wearables, will allow workers to have up-to-the-minute information like schematics and maintenance records at their fingertips, enabling them to complete jobs faster. Sensor networks powered by private cellular networks can prevent environmental hazards by tracking fugitive emissions, methane leaks and corrosion
According to an Ericsson<\/a>, Arthur D. Little Study digitally enabled workforce is 8.5% more productive and there is 48% less loss from health and safety incidents. Overall, companies experience an 8% reduction in operational spend due to the increased effectiveness of a digitally enhanced worker. Conducting manual site inspections of oil platforms is one of the most hazardous tasks in the industry.
With cellular network to provide increased performance and reliability, high-resolution video drones and automated guided vehicles (AGVs) can easily perform surveillance tasks with maximum precision and accuracy and remove humans from potential danger. Drones can reduce inspection times by 90% and downtime costs caused by manual inspections by 65%. Health and safety incidents also decrease, resulting in 35% less cost to the operator, according to an Ericsson Study.
Digital transformation will harness cellular connectivity to optimize business operations of oil and gas industry through data-driven insights for a safer and efficient use of existing resources. To transform the oil and gas industry, networks need to be reliable, powerful, and secure. Ericsson’s private cellular network solutions for the oil and gas industry are enabling major safety and efficiency improvements and uncovering business value for the oil and gas sector.
Smart Mining:<\/strong> With revenues in excess of USD 500 billion, the mining industry represents a major component of the global economy. Rising demand for fuel and rare minerals needed for our technology is igniting expansion in the industry. Along with higher productivity, though, mining organizations are under pressure to achieve better safety, improve sustainability, lessen environmental impact and reduce operational costs.
Solving these multiple challenges is driving the evolution to the “Smart Mine,” that harnesses data, automation, autonomous machines and advanced technologies to achieve new efficiencies and capabilities. The realization of the vision of the Smart Mine, though, requires a strong foundation: ubiquitous mobile connectivity. Ericsson’s connectivity solutions for the mining industry have been enabling major productivity improvements and uncovering business value for both the mining industry and mobile telecom service providers.
Our 5G-ready private networks have been successfully deployed by mining companies around the world. I would like to cite a couple of examples:
Boliden Aitik mine research project: <\/strong>Ericsson, mining giant Boliden and other partners collaborated to co-create the mine of the future at Aitik. Ericsson high performance mobile communications enabled Boliden to automate drill rig operation. Automation saved approximately one percent of Aitik’s total annual costs and eliminated the need for two more drill rigs. The next step in the rollout is fully automated \/ remotely controlled trucks that will deliver smoother transport flow and lower fuel consumption and emissions.
Aginco Eagle:<\/strong> Ericsson and Canadian-based Ambra partnered last year to deliver the world’s deepest underground LTE network for the Agnico Eagle mining complex, LaRonde, in Abitibi, Quebec. Located 3.5 kilometers below the surface, the 4G LTE private network provides data and voice services across the LaRonde mine site and enables several Internet of Things (IoT) use cases to improve safety and mining operations. The benefits of installing a private 4G LTE network included real-time communications across the mine, a safer workplace, more efficient operational activities and more sustainable mining.
Only robust wireless connectivity can handle the huge amounts of data and voice communications that are mission critical to smart mining. A 5G-ready private cellular network introduces the high-speed connectivity, low latency and strong performance—optimized for the Internet of Things (IoT)—required in a mine’s high device density environment.
Ericsson’s connectivity solutions for the mining industry have been enabling major productivity improvements and uncovering business value for both the mining industry and mobile telecom service providers.
As we are seeing across the Oil and Gas sector as well as the mining sector globally, we expect secure and reliable connectivity with 4G and 5G will drive a strong wave of digitalization in India as well.
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