Robots could save billions in drilling costs but risk oil & gas jobs, Rystad says

Robots could replace hundreds of thousands of oil and gas jobs and save billions in drilling costs by 2030, according to a report by Rystad Energy, the Norwegian energy intelligence firm.

 

Even when the Covid-19 downturn is finally past us, operators will have to continue exploring new avenues for cost reductions to be better equipped to withstand future market declines, Rystad Energy said on the 29th March.

 

In a report that looked into the adoption of robotics across the petroleum industry, Rystad Energy found that existing solutions could replace hundreds of thousands of oil and gas jobs globally and reduce drilling labour costs by several billion dollars by 2030 if there is an industry push for such a transition.

 

One of the segments with much to gain from the adoption of robotics is drilling, as it is highly cost-intensive and involves carrying out dangerous tasks in challenging environments.

 

Robotic solutions have already been introduced successfully in drilling operations, with companies such as Nabors at the development forefront.

 

Applying current supplier specs, which suggest that robotic drilling systems can potentially reduce the number of roughnecks required on a drilling rig by 20 per cent to 30 per cent, Rystad Energy estimates that such a reduction in both offshore and onshore drilling crews can bring cost savings of more than US$7 billion in wages in the U.S. alone, based on present wage levels.

 

Inspection, maintenance, and repair (IMR) operations are also ideal for robotic operations and is the segment where adoption of robotics has gained the most traction among operators in recent years, according to Rystad.

 

This has so far mainly been limited to subsea IMR activities, but we are now starting to see IMR robotics solutions also being used for topsides.

 

Overall, Rystad Energy believes that at least 20 per cent of the jobs in segments such as drilling, operational support, and maintenance could in theory get automated in the next ten years.

 

Looking at the current staffing headcount of some key oil and gas producing countries, the US could reduce its staffing needs by over 140,000 employees and Russia by over 200,000 personnel.

 

Canada, the UK, and Norway could shed between 20,000 and 30,000 jobs each.

 

Sumit Yadav, an energy service analyst at Rystad Energy, said: “Despite the huge potential of robotics, operators should be aware that these savings will be partially offset by the considerable investments required for the adoption of these solutions, which may vary depending on the cost structure and whether the robots are owned or leased”.

 

Nevertheless, the next generation of robotics solutions is already emerging within subsea IMR in the form of perpetually underwater robotics solutions that offer significantly lower costs and better reach than a conventional remotely operated vehicle (ROV).

 

While a conventional ROV needs to be sent down from the surface, these new systems can stay underwater permanently and easily access places that are difficult to reach for conventional ROVs, irrespective of the weather conditions.

 

A notable example is the self-propelled robotics arms unit Eelume, developed by Kongsberg Maritime and used by Norwegian operator Equinor. Owing to their snake-like design, the robotic arms have the flexibility and agility to transit over long distances and carry out subsea IMR activities such as visual inspection, cleaning, and operating valves and chokes in highly confined spaces.

 

Not all digitisation and robotisation translates into a reduction in manpower, however. For instance, Transocean has introduced wearable safety technology which alarms crew members if they come too close to the drilling equipment. If the crew member still doesn’t maintain a safe distance, the alarm will shut down the equipment.

 

Source: Offshore Energy Today