Unlock ROI in oil and gas operations with private 5G
As oil and gas companies strive to boost productivity, efficiency and worker safety, digital transformation is at the forefront of their strategies. By investing in a wide range of data-driven, advanced use cases, such as drone inspections, connected workers, asset management, remote operations and automation, they are transforming operations with optimal results.
Vice President of Industry and Partnership – Energy, Ericsson
Consulting Manager
Vice President of Industry and Partnership – Energy, Ericsson
Consulting Manager
Vice President of Industry and Partnership – Energy, Ericsson
Consulting Manager
Private cellular networks provide superior coverage, high throughput, and low-latency connectivity crucial for Oil and Gas 4.0 applications. However, as oil and gas companies embrace this digital transformation and implement industrial use cases, two critical questions arise: What is the business value realization of these use cases? And how can we best drive adoption among the operations team?
Ericsson’s ROI value calculator helps answer these questions by evaluating the financial impact of integrating private networks into your operations over time. The tool allows oil and gas businesses to estimate the potential returns for specific scenarios. It also factors in various inputs and use cases applications, allowing you to project potential gains and savings throughout the investment period.
Establishing connectivity in the oil and gas sector requires overcoming unique and complex challenges. Refineries and oil platforms and other facilities are vast and intricate, with a mix of both outdoor and indoor environments. Over time, companies have pieced together a patchwork of Wi-Fi and wired connections that struggle to meet the demands of oil and gas 4.0.
Wi-Fi networks, in particular, face limitations in scalability, reliability, security and coverage issues, making their service inadequate for the high standards required by industrial applications in this sector. In addition, there is a huge cost for cabling and managing hundreds of Wi-Fi access points in the live production environment. Mobile assets are impossible to connect via cables. Cellular wireless connectivity, on the other hand, can provide the connectivity and coverage for every corner of the facility.
Driving efficiencies with cellular connectivity
Private 5G cellular networks are tailor-made for enabling advanced use cases and future scalability. They provide unmatched coverage, mobility, reliability, low latency and built-in security. Together, these features enable Industrial Internet of Things (IIoT) applications such as asset condition monitoring, the connected worker and drones.
In developing the ROI calculator, we focused on the top use cases currently being implemented in the industry, as identified by global business intelligence firms. These key use cases include:
- Connected Worker: Field workers equipped with smartphones, 5G tablets, or video-connected helmets, utilizing applications for e-permits, workforce management, maintenance databases, and AR-based remote support.
- IoT Connectivity: Private 5G networks serve as the backbone, providing full facility coverage and backhauling to existing wireless or wired networks.
- Robotics/Drone Inspection: Drones are employed for site inspections, leak detection, infrastructure integrity checks, and monitoring flare and smoke.
Translating operational gains into business value
While many oil and gas companies are already leveraging cutting-edge 5G-powered solutions, deploying these technologies requires a significant investment. The key question remains: What kind of return can you expect when investing in a private 5G network? The Ericsson oil and gas value calculator is designed to answer this question.
Every site is unique, and the oil and gas value calculator allows various models and scenarios, based on the specific needs.
- Review how different use cases- such as drone surveillance, connected workers and wireless IoT connectivity- can drive financial benefits.
- Discover how increased throughput and reduced plant downtime can affect capex/opex.
- Compare the relative value of the benefits against the Total Cost of Operation (TCO).
Sample case: Mid-size refinery
Consider a mid-size refinery that needs to cover four square kilometers with its Private Network (PN). Its operators are looking at a range of approaches, from committing fully in Year One to dipping their toes in the water gradually over four years. Here’s what they might find:
Baseline assumptions
| Total geographic area of refinery to be covered by Private Network(PN) | 4 | sq km |
| Avg daily thorughput of refinery | 175K | BDP |
| Number of employees | 450 | # |
| Avg MHR Cost of Engineers | 50 | USD |
Scenarios tested
Note: All numbers are for a period of five years
Empowering data-driven decisions in a more connected future
Leverage our research-based calculator to account for the additional savings, reduced labor costs, minimized maintenance expenses and enhanced productivity that 5G-ready private cellular networks can deliver.
A wide array of use cases, either developed for or enabled by private 5G networks, are now transforming the oil and gas sector. These include connected workers, remote operations, drones, asset condition monitoring, video analytics and Autonomous mobile robots (AMRs). Our value calculator showcases the ROI of select use cases and highlights the paths that offer the highest return.
Discover your potential savings and efficiency improvements with Ericsson's Oil and Gas ROI calculator and evaluate your return on investment today.