SPECIAL REPORT: Mixing RFID and oil creates competitive advantage

July 21, 2008
The RFID Oil & Gas Solution Group, a consortium of industry and universities based in Texas, offers research, study, and pilot deployment services to help improve automation, identify and control equipment, assets, tools, and related processes used in the oil and gas and petrochemical industries.

The RFID Oil & Gas Solution Group, a consortium of industry and universities based in Texas, offers research, study, and pilot deployment services to help improve automation, identify and control equipment, assets, tools, and related processes used in the oil and gas and petrochemical industries. The consortium is organized to help industry analyze how RFID is best deployed to improve visibility and control of assets, equipment, spares, tools, vehicles, and manpower.

RFID technology has a proven track record in many vertical industries, including retail, pharmaceutical, medical, automotive, and security. These industries have a problem in common with the oil and gas sector: asset tracking. A special challenge in oil and gas is that some assets are hard to tag and even harder to track because of their size and geographic placement.

RFID is a technology that can provide the right product at the right place at the right time. In addition to asset tracking, RFID has the potential to improve efficiency and visibility, cut costs, prevent theft and counterfeiting, monitor efficient maintenance scheduling, manage assets, increase security, monitor environmental conditions for health and safety, and maximize productivity with just-in-time spare replacement, while reducing downtime.

Framework

The core of the system is built around RFID tags (transponders), RFID readers, host computer, and software. Each tag sends its data periodically via a radio signal to RFID readers. The transmitters can be placed anywhere that movement-tracking adds value to the commercial process.

An RFID reader cross-references the tag’s data within the reader’s database. After the reader receives new data, it sends the data to the host. The readers and the host communicate through a secure wireless link. RFID links the physical world to the digital world without any human interaction. Whatever actions are then triggered will depend on the individual application.

RFID is best viewed as part of a broader spectrum of sensor-based technologies, such as barcodes and magnetic striping, as well as integration with sensors for such things as temperature, position, vibration, and moisture. RFID capability must be part of a comprehensive technology and applications infrastructure that can collect events from disparate sources, combine the data into composite transactions, and then automatically trigger the appropriate business process.

There is no doubt that RFID technology presents massive potential for creating competitive advantage. Oil and gas companies will find that incorporating these technologies into their information infrastructure and integrating them into their business processes will provide substantial business benefits.

RFID is being used throughout the distribution network from managing trucks down to actual shipments. RFID is being used to track the movement of trucks to ensure optimum use of expensive capital and labor. Key assets are being tagged and tracked throughout the entire oil and 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 repairs and maintenance are done on schedule but only when required or specified.

Roadmap

The next step is to develop a roadmap for RFID implementation. This should include RFID pilot projects, which allow companies to capture and analyze data out of the box, test new devices and filters, and perform custom, advanced data analysis. After the pilot project, operators should be ready to integrate with existing enterprise systems and deploy RFID in the field.

From there, the next move is to develop RFID-enabled applications and integrate RFID data into existing applications.

There are several current uses of RFID in the oil and gas industry:

  • During the assembly of pipe joints, RFID is proving to be a more reliable way of ensuring the right parts and torque pressures are used, rather than the traditional although bar code system. RFID tags can withstand harsh conditions and remain operable long after bar codes would have been washed or worn away.
  • Refinery operators continually look for ways to ensure that their processes meet safety and audit requirements. RFID can assist refinery operators to identify key inspection points and provide the audit trail required to meet audit standards.
  • RFID sensors can monitor machines and equipment to detect possible problems and deliver safety features in wells.

RFID technology can also be used to ensure the safe transit of materials, from tracking transfers between authorized handlers, to limiting entry of personnel to specific locations.

The author

Ben Zoghi ([email protected]) is a professor and the director of the Oil and Gas RFID Solution Group Consortium at the Dwight Look College of Engineering at Texas A&M University, College Station. Zoghi holds a BS (1982) in electrical engineering from Seattle University, an MS (1986) in electrical engineering from Ohio State University, and a PhD (1993) in bioengineering and electrical engineering from Texas A&M University. He is a registered professional engineer in Texas.