Home Internet of Things Aerospace Apparel Energy Defense Health Care Logistics Manufacturing Retail

Access This Premium Content

Options To Access This Article:

What Subscribers Are Saying

  • "Probably the best investment I've ever made."
    Steve Meizlish, President & CEO, MeizCorp Services, Inc.
  • "I have found that RFID Journal provides an objective viewpoint of RFID. It you are looking for a resource that provides insights as to the application and implications of deploying RFID, RFID Journal will meet your needs, It gives you a broad perspective of RFID, beyond the retail supply chain."
    Mike O'Shea, Director of Corporate AutoID/RFID Strategies & Technologies, Kimberly-Clark Corp.
  • "No other source provides the consistent value-added insight that Mark Robert and his staff do. In a world dominated by press release after press release, RFID Journal is developing as the one place to go to make the most sense out of the present and future of RFID in commerce."
    Bob Hurley, Project Leader for RFID, Bayer HealthCare's Consumer Care Division
  • "RFID Journal is the one go-to source for information on the latest in RFID technology."
    Bruce Keim, Director, Hewlett-Packard
  • "RFID Journal is the only source I need to keep up to the minute with the happenings in the RFID world."
    Blair Hawley, VP of Supply Chain, Remington Products Company

RFID Powers Energy-Sector Efficiencies

Oil, gas and chemical companies are working together to develop a common approach and standards for deploying RFID across the industries. The technology promises to improve safety and security while cutting costs during lean times.
By Elizabeth Wasserman
Tags: Energy
Oct 01, 2009—Hundreds of offshore rigs populate the Gulf of Mexico, the North Sea, the Persian Gulf and other bodies of water to keep the world supplied with energy. The rigs are like industrial towns at sea that house the workers and the myriad items they need to live there, as well as the tools and equipment required to drill wells in the ocean floor, extract oil or natural gas, and transport the product back to shore. It can cost hundreds of thousands of dollars per day to operate each rig. If one essential part breaks or is misplaced and no replacement arrives in the next regularly scheduled ferry container shipment, a rig can be forced to halt production.

"As one vice president of an energy company told me, 'If we lose something, FedEx doesn't deliver 50 miles out into the Gulf of Mexico,'" says John Rommel, senior manager of RFID channel development for Motorola. As a result, companies sometimes have to hire helicopters to transport just one item out to a rig, at a cost of several thousand dollars per trip.

Nabors Canada, a land-drilling product and services provider, RFID-tags assets to manage and maintain its equipment.

Keeping rigs operating 24 hours a day is one reason many leading-edge drill and exploration companies are deploying RFID to track products from their distribution centers in Louisiana seaports, which service 90 percent of the Gulf of Mexico's oil production, to various deep-sea and inland oil platforms. RFID can ensure that the right containers stocked with the correct supplies—from toilet paper and soap to pumps and tools—are sent to the designated rigs. In addition, the U.S. government requires a manifest be created for each shipment and container delivered to these platforms, something RFID technology can generate automatically.

Saving money by improving asset management is another reason, and it represents a shift in focus for the energy sector, which has been considered somewhat of a laggard in technology adoption except when it came to oil or gas production. "If you're getting $145 a barrel for the oil or $13 per MMBTU [1 million British thermal units], then your focus isn't necessarily on losing an asset—it's on making sure you can get an extra 5,000 barrels a day," says Konrad Konarski, president of KBR Wireless, a provider of automatic identification and wireless solutions for the energy sector. That changed when the price of oil and natural gas dropped. "There's more interest in saving money by managing assets, making sure you don't rent an asset back to yourself, improving supply-chain efficiency, and not shipping products by helicopter that should have been sent by boat."
To continue reading this article, please log in or choose a purchase option.

Option 1: Become a Premium Member.

One-year subscription, unlimited access to Premium Content: $189

Gain access to all of our premium content and receive 10% off RFID Reports and RFID Events!

Option 2: Purchase access to this specific article.

This article contains 2,856 words and 6 pages. Purchase Price: $19.99

Upgrade now, and you'll get immediate access to:

  • Case Studies

    Our in-dept case-study articles show you, step by step, how early adopters assessed the business case for an application, piloted it and rolled out the technology.

    Free Sample: How Cognizant Cut Costs by Deploying RFID to Track IT Assets

  • Best Practices

    The best way to avoid pitfalls is to know what best practices early adopters have already established. Our best practices have helped hundreds of companies do just that.

  • How-To Articles

    Don’t waste time trying to figure out how to RFID-enable a forklift, or deciding whether to use fixed or mobile readers. Our how-to articles provide practical advice and reliable answers to many implementation questions.

  • Features

    These informative articles focus on adoption issues, standards and other important trends in the RFID industry.

    Free Sample: Europe Is Rolling Out RFID

  • Magazine Articles

    All RFID Journal Premium Subscribers receive our bimonthly RFID Journal print magazine at no extra cost, and also have access to the complete online archive of magazine articles from past years.

Become a member today!

RFID Journal LIVE! RFID in Health Care LIVE! LatAm LIVE! Brasil LIVE! Europe RFID Connect Virtual Events RFID Journal Awards Webinars Presentations