Automation and Digital Transformation Improves Refinery Operations

Oil and gas refiners face a myriad of challenges, but the trend toward automation and digital transformation can help them overcome these obstacles and remain profitable in a time of uncertainty by providing actionable data that can be used for condition monitoring and predictive maintenance so refinery equipment remains fully functional, allowing increased efficiency, uptime and capacity, among other benefits.

In addition, the oil and gas sector is experiencing a labor shortage and mass retirement of experienced and skilled operators and maintenance technicians, making it more challenging to keep up with the operation of and repairs to existing refinery equipment. Further, environmental and safety regulations continue to become more stringent, so compliance is more demanding and costly. All of these factors are creating a “perfect storm” in which it is becoming increasingly difficult to remain efficient and profitable.

However, many refiners are successfully applying automation and digital transformation solutions to offset the impact of these pain points. As a matter of fact, a report by Mordor Intelligence estimates that the refining industry automation and software market was valued at $14 billion in 2020, but is expected to increase to nearly $17 billion by 2026 as the sector continues to employ these technologies to overcome challenges and provide precise and accurate solutions.

6 Ways to Apply Automation and Digital Transformation in Refineries

There are a number of ways in which automation and digitalization are helping refiners improve operations and remain competitive despite the tumultuous climate in the oil and gas sector.

Here are six of the most useful, profitable applications of automation and digital solutions in the oil and gas sector:

1. Increasing Capacity: Automated refinery equipment can be used in almost every operation from exploration and drilling to production and refining to enhance efficiency, productivity and throughput in an effort to offset the ongoing labor shortage while increasing capacity and profits. Further, robots and other automated machines operate inherently faster than human laborers and can perform their tasks 24 hours a day, seven days a week without fatigue, breaks or shift changes, providing continuous production and throughput in any refinery operation to which it is applied.
2. Optimization of Process and Equipment Usage: Automation and digitalization tools, such as intelligent sensors and automated monitoring devices can be placed on refinery equipment and used in conjunction with data analytics software and other Internet of Things (IoT) technologies to collect actionable and informative data that can be used for online condition monitoring to enable optimization of the process, as well as equipment usage. Collected data regarding temperature, pressure, flow rate and other variables can be used to make real-time process control adjustments to ensure optimal process conditions, maximizing product yield and quality. Automated monitoring tools can also be applied to ensure overall equipment effectiveness, allowing oil and gas processors to get the most throughput from assets and resources.
3. Predictive Monitoring: The automation and digital transformation trend allows refiners to apply condition monitoring and predictive maintenance to their equipment, boosting reliability of refinery equipment, despite a lack of skilled maintenance technicians. The actionable data provided by sensors, automated monitoring equipment and data analytics provides valuable information about the health of refinery columns and other assets – alerting technicians that there may be potential maintenance issues so they can employ predictive monitoring to address minor problems before unscheduled downtime occurs, preventing lost productivity and extending the life of refinery equipment.
4. Remote Monitoring: Automation permits remote monitoring and control of refinery equipment and processes, reducing the number of employees needed onsite and helping to eliminate hazards associated with having personnel in the most dangerous areas of the refinery. Further, process control can be managed from any location, permitting tighter control of process parameters without wasting time physically traveling to an asset, which may be in a remote location in a large refinery – reducing travel time and providing immediate process control.
5. Enhancing Safety: By enabling remote monitoring, refiners can enhance their safety records as personnel do not have to enter hazardous areas to operate refinery equipment, reducing the likelihood of injuries. Automated emergency shutdowns and other safety features can be accessed remotely and will react faster than human employees when hazardous conditions occur, mitigating risks to workers, assets and the environment.
6. Simplified Compliance: Automated monitoring allows refiners to keep a close eye on emissions, equipment failures or other situations that may result in safety or environmental compliance violations. Automated monitoring combined with remote control capabilities allow alerts to be sent and parameters to be adjusted or emergency stops to be activated to prevent issues that may result in non-compliance with environmental, safety and health regulatory mandates. Further, digitalization allows for improved record keeping, simplifying compliance reporting.

The automation and digitalization transformation is providing a practical way for refineries to overcome challenges such as aging infrastructure, labor shortages and regulatory compliance issues, while still increasing efficiency, productivity and capacity of existing refinery equipment. To learn more about how automated assets and digital technologies can help refiners increase profits amidst a growing list of obstacles, please contact the experts at JHFOSTER.