RFID In The Oil & Gas Sector

As energy prices fall, the oil and gas industry finds itself under mounting pressure to improve operational efficiency to stay in the black.  The use of RFID has a proven track record of cost savings in other verticals such as Retail, IT, and Healthcare.  As RFID creeps into every aspect of the oil & gas supply chain, positive returns are being generated. 

 

Exploration: RFID is used to track expensive equipment, and mark locations.

Production/Refining:  RFID is used to track equipment, tools and people, not just for asset location but for safety.  Newest generation RFID ICs offer expanded memory, allowing maintenance notes/dates/times to be stored on the item itself.  RFID provides a “digital paper trail” for ISO audits, standards, and process verification. 

Distribution/Retail:  RFID is used to track expensive containers, the ownership of which can easily be obscured in a sea of supply nodes.  RFID is used to track the trucks that carry these containers, to optimize routes & distribution efficiency.  Short term ROIs are not uncommon in this facet of the supply chain:  18 months, 12 months, and 9 months are not unheard of.

 

On-Land/Off-Shore Drilling Facilities + Refineries

  • Asset allocation / reallocation
  • Personnel tracking (resource allocation, safety)
  • Down hole Applications
  • Tooling/Equipment Maintenance & Control
  • Construction Management
  • Personnel Control
  • Disposal & tracking of Hazardous By-Products
  • Proactive maintenance

Refineries look for ways to ensure that their processes meet safety, ISO & audit requirements. RFID can assist refinery operators in identifying key inspection points that provide the data trail required to meet standards. Adherence to inspection protocols of critical components such as valves, flanges and pressure settings can be vastly improved using RFID technology.

The oil and gas sector is no exception to a problem common to most industries – Asset Tracking.  Unlike more mundane tagging environments, the oil & gas sector must contend with a variety of unique challenges:  Wide temperature fluctuations, variable and unknown chemical interactions, blunt force, wind/UV/precipitation, irregular tagging surfaces and materials.  All of these environmental facets challenge not only the RFID chip logic, but the antenna material, the package material, the attachment method, etc.

 

Oil & Gas Product Manufacturer

  • Quality Control
  • Distribution of consigned containers (drums, tanks, cylinders, etc.)
  • Inventory Management
  • Asset Control 
  • Maintenance / Product Lifecycle Management
  • Advantages to supply chain; begets price premium
  • Hazardous material tracking & disposal

RFID is used throughout the distribution network from managing trucks down to the individual shipments. RFID is used to track the movement of trucks to ensure optimum utilization of expensive capital and labor. Key assets are tagged and tracked throughout the entire oil & gas distribution supply chain. RFID is also well suited for tagging parts that have to be maintained to predetermined routines. Many fleet operators are turning to RFID to make sure such preventative maintenance is saved and performed at optimal times.

Emerson & Cuming’s new MetalTag Flex is specifically designed for the oil & gas sector. 

  • The “Accordion” reminiscent surface was not chosen haphazardly.  As the tag is bent, the front surface stretches while the back plane remains smooth, allowing the tag to adhere to a curved, cylindrical or otherwise irregular surface with a simple adhesive bond.  In circumstances where PSA is insufficient, the smooth rear surface lends itself to easy epoxy application. 

  • The performance of the tag is outstanding, with real-world handheld and static antenna read ranges of 2.5 – 5m on metal surfaces. 

  • The entire unit (inner workings + package) is made of flexible & elastic material.  As such, energy imparted during a blunt force trauma is absorbed not only by the package, but the silicone within.  As a result, MetalTag Flex stands up to more physical abuse than most comparably sized hard plastic tags, which would be reduced to shards in similar circumstances.