Digital Oilfields: Risky Business?
Shawn Martin | November 24, 2017
Source: U.S. Marine Corps | public domain
The birth of the digital oilfield has unfolded. Real-time well monitoring solutions, autonomous operations, integrated workflows and the industrial internet of things (IIoT) have allowed producers to maximize oilfield recovery, eliminate non-productive time and increase profitability. Net gains have even allowed the smallest operators to remain resilient in a low price environment, but are the security risks worth the investment?
Digital Oilfields
The digital oilfield is made possible by the exploitation of intellectual assets, real-time monitoring solutions and automation. The oil and gas industry has been slow to adapt to the IIoT, but the need to address margins, improve operational efficiency and practice sustainable operations has forced producers to evaluate the benefits of a connected oilfield.
Upstream oil and gas operations typically operate in remote areas where cellular networks are limited. Real-time monitoring solutions rely on satellite-enabled wireless networks that feed data streams to cloud platforms. Operators are able to assess well productivity via mobile apps and take corrective measures by enabling remote well control.
The self-driving pump jack may even be closer to reality than one might think. Machine learning and predictive algorithms are able to provide real-time alerts and identify preemptive equipment failure or malfunctions. Producers are able to adjust operations based on real-time data and the development of augmented intelligence could further boost well productivity.
Digital oilfields have the potential to reduce operating expenses, boost well productivity and eliminate unscheduled shutdowns. While these benefits have not gone unnoticed there are also alternative motives as all sectors of the oil and gas industry, from exploration to refining and distribution, are under increased scrutiny to achieve operational efficiency with the limited availability of skilled personnel.
Assessing Cyber-risks
The IIoT has been the solution that many operators have been leveraging. The resulting compound annual growth rate (CAGR) of the digital oilfield is at 5 percent since 2015, and the market is expected to reach US$30.7 billion by 2020, but what steps should be taken to assess data security risks, and are digital oilfields vulnerable to cyber threats?
In 2012, Saudi Aramco experienced the largest cyber-attack to date in the oil and gas industry. Their information technology team opened a malicious email and it resulted in wide-scale turmoil. Oil production remained steady, but with its entire network infrastructure offline they were unable to manage logistics and fulfill business contracts. Saudi Aramco halted sales to domestic partners and even gave away free oil to keep production flowing. It then took five months to get the new infrastructure up and running.
Investment in risk management is required to ensure the industry remains on top of security threats. Human error is the single largest cause of security lapses, and while standard operating procedures are increasingly more stringent, research plays a large role in mitigating cyber threats specific to the oil and gas industry and, in particular, supervisory control and data acquisition (SCADA) systems.
The industry's response to cyber threats has led to increased cooperation and sharing of intellectual assets. There are now a growing number of ongoing collaboration initiatives including the Open Process Automation™ Forum which is focused on the development of standards-based, open, secure, interoperable process control architecture.
The truth is that many operators have adopted IIoT systems that are susceptible to cyber-attacks. Next-generation operations will entail increased collaboration and heightened security measures in order to continue to deliver increased well productivity in a secure environment.
Resources:
Big Data Can Optimize the Oil Patch
Cyber and Physical Attacks – Understanding and Managing the Risks
