Today, every industry, including the energy industry, uses data to improve operational efficiency. While other industries may have been quicker to leverage data, the energy industry has lagged somewhat behind others. Collecting data is the first step in data management, but the real value is discovered after being cleaned and analyzed. This process helps draw insights and predict future performance. As the energy industry, including oil and gas, begins to fully embrace analytics, it is benefitting the industry in a variety of ways.

In the energy industry, data can be used in a variety of ways. It may begin with the search for new oil sources in the field. Geologists take samples of potential new sources and create a database based on the findings. Those databases are then used to locate the best area for new wells.

The energy industry, especially the oil and gas sector, is heavily reliant on infrastructure and physical equipment, this is another area where data management is utilized. Analyzing data from infrastructure can be an excellent tool for predicting maintenance. This will help determine what parts of the equipment are likely to fail or require replacement. This helps energy companies more precisely manage costs and avoid pricey, extensive damage.

Once crude oil is distilled and cracked at the refinery, data is gathered about the amount received; where it was produced; and how many different petroleum products are created. Measuring the quality of production can help the refinery adjust its processes, and can also help streamline and improve at other refineries as well. Down the line, when fuel is sold to suppliers and consumers, data can help reveal seasonal and geographic demands for fuel. It can also help predict future demand for oil.

The energy industry is collecting and analyzing a large amount of valuable data, but there are challenges involved with this kind of data management.  Make sure to read the infographic below for more information on how analytics is changing the energy industry.

Infographic created by Resource Energy Solutions, an oil and gas software provider