U.S. oil prices have been hit hard over the last 14 months. Despite this fact, most companies in the oil and gas industry will continue to invest the same amount or in some cases more in digital technologies. Over the next three to five years, 18 percent will likely be investing the same amount. Another 44 percent are expected to increase investments, with 18 percent of respondents investing significantly more, according to the survey conducted by Accenture plc and Microsoft.

Currently, the biggest investment areas for the oil and gas industry is mobility, infrastructure and collaboration technologies. However, over the next three to five years there will be increased investment in the Industrial Internet of Things (IIoT), Big Data, and automation.

On Thursday, August 13, U.S. oil prices hit a new six-year low slipping to $42.23 a barrel. Whether this will have an impact on the Accenture and Microsoft survey conducted in April this year remains to be seen.

This market snapshot shows how the oil and gas industry are continuing to adapt to become more efficient, cut production costs and are already looking at ways the IIoT can improve their industry.

BP’s connected oil wells

Being more efficient, increasing production and cutting production costs are of huge importance for the oil industry. To achieve these outcomes, BP plc recently announced they would connect 650 of their oil wells to General Electric’s (GE) Predix cloud data platform by the end of 2015.

Each of the 650 wells will be equipped with 20 – 30 sensors, which every 15 seconds will generate half a million data points into GE’s platform. The sensors will be able to measure the surrounding equipment as well as temperature and pressure close to the surface or at the deepest levels.

Using the software, BP will be able to analyze the data almost instantly from each of the connected wells. They can then quickly send the data for further analysis and storage in GE’s Predix cloud.

The software will allow BP to view each well’s performance and get an overall view of all 650 connected wells. The connected oil wells will allow BP to understand the quality and flow of the natural gas and oil coming out of the ground. From there the company will be able to predict the longevity of the well and eventually once the data has accumulated, BP will be able to proactively manage the extraction of oil and gas.

“This project highlights BP’s commitment to deploying technology that can not only improve efficiency and reduce the complexity of our operations, but that also continuously make them safer and more reliable,” said Peter Griffiths, BP system optimization strategist.

If the pilot of the 650 wells goes well, BP plans to outfit 4,000 wells before the end of 2016.

Drones flying high in the oil and gas industry

Over the last few years, drone technology has improved greatly. While Amazon.com Inc.’s “delivery drones” may not be flying around our skies just yet, other industries are making the most of the benefits of using drones, including the oil and gas industry. In 2014, the commercial drone market (or Unmanned aerial systems market) was worth $609 million. According to Radiant Insights, this figure is set to rise to $4.8 billion by 2021.

The Federal Aviation Administration (FAA) has banned the use of drones for commercial purposes in the U.S since 2007, but the FAA have granted exceptions on a case-by-case basis.

BP obtained permission in June 2014 to use drones to inspect their Alaskan pipelines. They are using the Puma AE, a drone manufactured by leading drone manufacturer AeroVironment Inc. The Puma AE can fly at altitudes ranging from 500 feet to 10,000 feet and has a battery life allowing two hours of flight.

Surveying a 250,000-acre area, the drone can build a three-dimensional imaging of pipelines and other infrastructure, using laser pulse imaging. Through multiple surveys, the Puma AE can detect pipeline movements due to the infrastructure being built on tundra. This detection can ultimately prevent pipeline ruptures before they occur.

With tight regulations in the U.S., overseas companies with more favorable restrictions are making the most of it and trying to get a jump start. One such British company is Sky-Futures, who have seen significant growth over the last few years and received $3.87 million in Series A funding in May.

The company work with 30 of the biggest oil and gas companies in the world, including operations in the North Sea, the Middle East, South East Asia and North Africa. They are also one of the first companies to receive FAA approval to operate in the U.S. and have set up an office in Houston Texas to serve their Gulf of Mexico clients.

Sky-Futures’ drones can collect HD video, stills, and thermal imagery data. They then analyze the data and deliver it to their clients.

Image via: dierk schaefer; snapper | Flickr.com; Aerovironment Inc.