With more than a 50% reduction in the number of rigs commissioned between 2014 and today, it’s a particularly challenging time for E&P companies. Worse still, hundreds of thousands of jobs have been lost throughout the oil and gas industry. During this downward cycle, reducing cost is paramount. For many companies that means halting advanced projects, freezing R&D opportunities and budgets, and foregoing capital investments for innovation.

However, viewed differently, a downturn is also a prime moment for E&P companies to recover costs by improving processes and increasing efficiencies in their operations. With the recent developments in virtual reality (VR) and augmented reality (AR) technologies, organizations no longer need to focus on short-term savings by cutting new projects and reducing spending. These solutions allow companies to capitalize on systematic efficiency gains to facilitate success today and well into the future.

Companies in oil and gas are quickly embracing the adoption of VR and AR technologies and solutions. The new wave of professionals, engineers and technicians demand it. Workers with decades of experience are retiring at an increasing rate, and the industry cannot afford to lose their legacy knowledge and experience. Having grown up in the digital age, the millennial workforce is extremely comfortable with VR and AR solutions. Thus, the industry is at a critical juncture to facilitate knowledge sharing before the baby boomers trade their computers for golf clubs.

VR in E&P

While many associate VR technology with video games and simulation experiences, the technology is well suited for E&P. That’s because E&P activities require a tremendous level of technical training, experience and competency to ensure safe operations. To ensure this level of safety and reliability, field engineers and technicians at all levels must have access to the most effective technologies and training programs available. Research now shows that VR-based training dramatically improves retention and recall of information and events. For example, a study by the National Training Laboratory revealed that the retention rates for lecture-style learning were at 5%, while retention from reading-based learning was at 10%. However, according to the study, learning using VR simulation produced a 75% retention rate.

It’s this level of immersive learning that companies like Optech4D seek to deliver through their VR-based training using realistic environments where personnel rehearse complex and dangerous training scenarios in the safe confines of a virtual world. The following cases demonstrate the power of this technology.

The first is a product developed for a major oil and gas operator looking to train and certify offshore helicopter landing officers (HLOs). By partnering with Oculus Rift, the company has been able to build a realistic virtual world where the HLOs can experience the dangers and extremes of a helicopter crash on an offshore oil platform. Using VR, the officer is exposed to a helicopter on fire and unconscious crewmembers. He is then required to execute the response plan in a quick and safe manner.

The beauty of these simulators is that the user is allowed to make mistakes that can be dangerous and life threatening in the real world and experience the outcomes with no real repercussions. Allowing HLOs to learn from their mistakes in the virtual world better prepares them to act should an emergency occur, empowering them to execute the emergency action plan quickly and accurately. Metrics on the accuracy, timeliness, mistakes and completion percentage are recorded in the background during training and are reviewed with the training managers. This allows the oil and gas operator to not only better determine pass/fail criteria but also have the ability to track and trend retention rates and performance and identify gaps in their training. It was estimated that cost savings for this operator reached well into the millions of dollars each year.

The second is a recent development in response to the industry’s need for a more realistic, intensive well control training program. In the aftermath of the Deepwater Horizon blowout, the E&P industry as well as government organizations took a closer look at training and maintenance best practices. The outcome has been increased regulations for critical equipment inspections and advancements in training programs. A team of developers has been proactively working on the next generation of well control simulators using VR. Similar to the HLO training program, operators and crews will be given control of a drilling rig in the safety of the virtual world.

Key variables and equipment such as weight on bit, ROP, pump pressure and choke adjustment during drilling are available for monitoring and manipulation. Users can work on a customized drilling rig console tailored to their equipment to work through typical problems encountered during well control. These include plugged bit nozzles, plugged choke, choke washout, well kicks and drilling fluid loss into the formation. The development team works closely with industry experts to deliver a realistic environment where operators can make mistakes without the risk of catastrophic failures and financial repercussions.

AR in E&P

As with VR, AR is the latest wave of advanced technology and arguably the most important to hit the oil and gas industry. With the advent of intrinsically safe tablet computers and smart safety glasses, AR enables hands-free operational instructions, checklists and videos to technicians in the field. This technology has revolutionized heavy industries such as aviation, aerospace, manufacturing and shipbuilding. It is finally time for the oil and gas industry to catch up.

Paul Davies, an electrical engineer at Boeing Research and Technology, conducted a study that revealed how trainees performed with and without the help of AR technology when asked to assemble a mock wing for an aircraft manufacturer. One group of trainees was allowed to have a PDF on a computer to aid them in the assembly, while another was given a tablet with the AR technology application. The study concluded that the group with the tablet performed 30% faster and was 90% more accurate than the group with only the PDF instructions. Additionally, at NASA it was observed that AR solutions contributed to an 82% reduction in dependent errors when compared to paper manuals.

With the new regulations on BOP maintenance and inspection, AR is quickly becoming a must-have technology for the E&P industry. Technicians can use AR tablets and smart safety glasses to access guided work instructions during this critical process, allowing a safer and faster turnaround with a reduced chance of errors. The industry has yet to see the ramifications of the new regulations with respect to the added costs and associated downtime. But with AR technologies, companies can offset these added costs by giving their employees the tools necessary to be successful.

One of the most powerful features of AR is the ability to communicate remotely with a technical expert. Field operators can use Wi-Fi and satellite communications to video conference with senior colleagues while working remotely, enabling them to ask questions, seek confirmation and get a second opinion in minutes rather than hours or days. The remote expert can annotate the users’ field of vision and even pass pertinent work instructions into the AR device so the user can get back to work as soon as possible. And given that oil and gas workers are constantly in a high-stress environment, making access to information and to subject matter experts as simple as possible is a huge need. When provided access to AR solutions, workers show a demonstrable improvement in performance, allowing them to work more confidently and safely.

New realities here to stay

The use of VR and AR technologies in the aviation, aerospace, manufacturing and shipbuilding industries already has surpassed proof-of-concept testing and is moving into pilot programs. The time has come for the oil and gas industry to step up and capitalize on this opportunity. These technologies are here to stay and will continue to help solve some of the biggest challenges in E&P.

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