With surging demands for oil in the global market, to-day’s oil rigs might easily generate over a half million dollars in a single day. But this enormous revenue potential comes with a hefty price tag. Whether in operational or leasing costs, energy companies can spend hundreds of thousands of dollars per day to keep the oil pumping. Since a large number of barrels must be pumped daily to break even, any unplanned downtime can have grave consequences on the bottom line. Production losses caused by unplanned downtime are com-pounded by the high labor and operational costs incurred until the rig is back up and running.
To keep the oil flowing to meet customer demand in the global marketplace, rigs, pipelines and other equipment must run at peak efficiency. In this environment, inventory accuracy is particularly critical. Overnight courier services cannot easily reach offshore or remote rigs to replace a shortage of parts needed for an emergency repair. And today’s crowded marketplace is creating further delays in obtaining replacement parts — there are more companies requesting parts, impacting the speed in which orders can be fulfilled. To minimize the detrimental impact of a parts shortage, energy companies often resort to keeping excess safety stock on hand — a costly strategy given the number and cost of these high valued parts.
From exploration and production to drilling and refining, RFID can help companies streamline business processes to better protect the health of the business by:
- Increasing employee efficiency
- Increasing the automation of product movement and supply
- Ensuring optimal use of all assets
- Reducing inventory carrying costs
- Protecting against unplanned downtime
- Ensuring cost-effective regulatory compliance
- Improving employee safety