In an industry where every second counts and downtime can lead to millions in losses, real-time asset tracking has become mission critical.
The oil and gas sector faces complex challenges: managing equipment spread across remote sites, ensuring compliance with safety regulations, and minimizing operational disruptions in high-risk environments.
By enabling continuous visibility into the location, condition, and usage of valuable assets, real-time tracking technologies are redefining how companies operate.
These systems empower decision-makers with timely, data-driven insights that enhance safety and boost efficiency.
According to a report by McKinsey & Company, real-time asset tracking and advanced analytics can reduce maintenance costs by 10–20% and downtime by 5–10%. Similarly Deloitte Study revealed that oil and gas companies leveraging IoT-based asset monitoring systems saw a 30% improvement in operational efficiency.
The Role of Asset Tracking in Modern Energy Operations
Asset tracking has moved far beyond traditional barcodes and manual spreadsheets. In today’s digital landscape, oil and gas companies rely on Real-Time Location Systems (RTLS) to monitor assets across vast and often hazardous environments.
These advanced systems deliver continuous updates on the movement, utilization, and condition of critical equipment, helping ensure assets are always accounted for, optimally used, and fully compliant.
Case Study – Shell
Shell implemented an IoT-based asset tracking solution across several upstream facilities in the North Sea. The system delivered real-time updates on the location and utilization of mobile equipment such as cranes and generators.
As a result, Shell reported a 20% increase in equipment usage efficiency and a 15% reduction in unnecessary asset transfers between platforms.
By integrating remote equipment monitoring, organizations gain deeper insights into performance trends, maintenance needs, and utilization rates. This not only boosts productivity but also supports proactive decision-making in areas like supply chain logistics and resource allocation.
How Real-Time Asset Tracking Enhances Safety & Compliance
Oil and gas sites present unique challenges, from extreme environmental conditions to stringent regulatory compliance demands. Real-time asset tracking helps companies stay ahead of these risks by enabling instant location updates and status reports for critical equipment.
When tools and machinery are accounted for in real time, it significantly reduces the chances of safety incidents, equipment failures, or unexpected downtime.
Case Study – Chevron
Chevron deployed Real Time Location System for tracking hazardous materials and pressure equipment at its refineries. This initiative enabled real-time monitoring of asset integrity, helping avoid potential leaks and safety incidents. The implementation contributed to a 40% drop in unplanned maintenance events over a one-year period.
Moreover, having precise asset data readily available ensures compliance with industry regulations and internal safety protocols—key factors for maintaining operational integrity and avoiding costly penalties.
Real-Time Asset Tracking in Harsh Environments
The real strength of real-time asset tracking is revealed in environments where traditional tracking methods fall short. On offshore platforms or remote drilling sites, real-time visibility into assets ensures operations stay resilient.
Whether it’s monitoring pipeline inspection tools or tracking mobile generators across a desert site, these insights help prevent costly delays and significantly improve on-site responsiveness.
Fact: The Oil & Gas IoT Market is projected to grow to $43.48 billion by 2024 (MarketsandMarkets), with asset tracking and monitoring cited as a top growth driver. Companies are increasingly investing in location intelligence to reduce equipment downtime, minimize logistics costs, and improve emergency response time.
Common Challenges in Harsh Environments
- Extreme Temperatures
Sub-zero cold in arctic regions or intense heat in deserts can damage equipment and affect sensor accuracy and battery life.
- Remote Locations
Long distances from central operations make asset retrieval, logistics coordination, and maintenance scheduling difficult and time-consuming.
- Limited Connectivity
Offshore rigs and remote drilling sites often suffer from weak or no network connectivity, making real-time communication and tracking a challenge.
- Asset Misplacement or Loss
With large and complex worksites, tools and equipment can easily be misplaced or left behind, leading to costly delays and unplanned downtime.
- Manual Tracking Limitations
Paper logs or manual barcode scans are time-consuming, error-prone, and ineffective in dynamic or hazardous environments.
- Logistical Bottlenecks
Inefficient routing or mismanagement of equipment transfers can disrupt supply chains and slow down critical operations.
- Equipment Downtime and Maintenance Delays
Without real-time monitoring, maintenance is often reactive rather than predictive, increasing the risk of breakdowns.
- Compliance and Safety Risks
Lack of visibility into the condition or location of critical safety gear can jeopardize compliance and emergency preparedness.
- Environmental Hazards
Dust, moisture, saltwater corrosion, and rough handling can quickly degrade unprotected or poorly tracked assets.
The Future of Oil & Gas Industry is Real-Time
As the oil and gas industry advances toward smarter, safer, and more sustainable operations, real-time asset tracking is becoming a critical enabler.
By embracing RTLS and remote equipment monitoring, companies to stay agile, reduce risk, and unlock enhanced agility, mitigate risks, and drive efficiency across the entire value chain.
Investing in intelligent asset tracking solutions today lays the foundation for a more connected and resilient, and future-ready ecosystem.
