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Ericsson | Oil and Gas Industry Solution Brief

Fuelingtransformationin Oil and Gas
Helping oil and gas companies
accelerate their digitalization with
4G and 5G private networks

June 2023

ericsson.com/
oil-and-gas

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Connectivity is key
to the future successof Oil and Gas
Connectivity is key to the future of Oiland GasThe oil and gas (O&G) industries are underimmense pressure to improve operational
efficiency, productivity and worker safety;
maintain cybersecurity; and, at the same time,
reduce environmental impact.
To solve these challenges, oil and gas
companies are accelerating their digitaltransformation. As they adopt use casesaround automation, smart safety andenvironmental monitoring, the oil and gas
sector is increasingly looking to advanced
cellular connectivity to help drive efficiencies
like these, while being more environmentallysound. According to McKinsey, the use ofadvanced connectivity to optimize drillingand production throughput and improve
maintenance and field operations could add
up to USD 250 billion of value for oil and gas
upstream operations by 2030.1

Ericsson’s private cellular network solutions
for the oil and gas industry are enabling major
safety and efficiency improvements anduncovering business value for the oil and gas
sector.

1. https://www.mckinsey.com/industries/oil-and-gas/our-insights/how-tapping-connectivity-in-oil-and-gas-can-fuel-higher-performance

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Ericsson | Oil and Gas Industry Solution Brief

A tall order: increase efficiencies while transforming
quickly, safely and sustainably
For an industry that’s no stranger to pressure,
today’s oil and gas sector faces unprecedented
expectations. Produce more, but do it at lower
cost. And while protecting both workers andthe environment.
Produce at a lower cost
Multiple economic and social shifts arecontributing to the downward pressure on oil
and gas profits. Work-from-home policies,
which began during the pandemic, are now a
new norm. Other factors include the renewedinternational focus on clean energy and climatechange and competition from alternativefuel sources like wind and solar. Oil and gas
companies have no choice but to continue theircost-reduction trajectory.
Produce more cleanly
Governments, society and even their own
shareholders expect oil and gas companies
to contribute to cleaner energy and corporatesocial responsibility (CSR). Ultimately, theindustry is expected to meet the global goalof net zero carbon by 2050. Companies mustfind ways to supply their products with fewer
emissions and less waste.
This can be achieved only by heightening
efficiency of operations (less waste ofresources) and monitoring and measuring
live operations to quickly identify leaks andother issues. The best opportunities to control
waste can be found in more rugged and remotelocations. Digitalization of infrastructure
will play an important role in enabling these
efficiencies.
Worker and assets safety compliance
It’s a harsh reality that oil and gas production
can be a dangerous profession. Conducting
manual site inspections of oil platforms aresome of the most hazardous tasks in theindustry. The process is time-consuming andresults in downtime and loss of production. It
also exposes oil and gas workers to dangerous
conditions. The industry’s fatality rate is seventimes greater than any other industry, despite
the industry’s best efforts to improve workplace

health and safety. Safety rules are becoming
more stringent by the day, made more
complicated by the new precautions required
during the pandemic.
The connected worker affords the ability
to make real-time decisions in day-to-day
operation and emergency situations.
Aging staff / staff turnover
The oil and gas industry expects a lot ofturnover and attrition due to retirement incoming years. Attracting younger workers to
replace and replenish this aging workforce
has been challenging. Advanced connectivity
and digitalization can help. Together, they
allow for fewer workers for operational andmaintenance tasks and enable side-by-side
training of newer workers. Younger workers are
attracted to workplaces featuring cutting-edge
technologies such as artificial intelligence/machine learning, drones, flexible IT tools andremote work choices.

It’s a risky business inother ways
In addition to challenges that can be solved
through technology, oil and gas companies
deal with many factors that are often beyond
their control:• Geological risk is encountered whencompanies explore greater depths in the
ground or deep in the ocean to find reserves.
• Political risk—Global oil and gas companies
also encounter political risks when doing
business in other countries. Instability inthe nation’s political system or even subtle
changes of political administrations in stablecountries can create lasting and impactfulchanges to the oil and gas industry.
• Price or market risks are dictated by supply
and demand at microlevel and more longterm trends at the macrolevel. These can
all affect the price of oil and, therefore, themargins oil and gas companies can extract
at any given moment.
• Oil and gas companies contend with costor operational risk as equipment, personnel
and operations task costs continue tofluctuate.

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Ericsson | Oil and Gas Industry Solution Brief

Extracting efficiencies with cellular connectivity
While technology can’t mitigate politicalrisk, digitalization enabled by cellularconnectivity can change the outlook for oil
and gas companies in many ways. With highperformance, low-latency private cellular
networks, the oil and gas industry can leverage
Industrial IoT (IIoT) to meet the challenges.
Private cellular networks will increase theelectrification and automation of assets
and processes. Real-time monitoring, using
sensors, of the conditions and performanceof vital assets lets providers detect when apiece of equipment is at risk for damage or
malfunction.
Edge computing opens up new capabilities forcompanies in the upstream sector, allowing
for collected data in the upstream sector
to be actionable in real-time. With insights
into conditions, companies can more easily
maintain optimal productivity and output
levels—lowering cost per unit and gaining
more leeway for profitability.

risk. High-resolution video drones can easily
perform these tasks with much more precision
and accuracy than any human. It also removes
them from the danger of performing theinspection manually. Drones require highly
reliable and high-bandwidth connectivity toaccommodate flight orders and send highquality imagery and analyses. Only cellular can
provide the performance and reliability needed
to support them.
To address staff turnover, advanced
connectivity allows companies to offer remoteexpert training. Training can be customized forconnected workers and tailored for differinglevels of expertise and for the various scenariosof the job.
Reducing environmental impact
The challenge to reduce, remove and manage
carbon risk necessitates widespread visibility
and smart monitoring of processes. To supportcompliance and regulation towards global

targets, lifecycle and asset performance
management is essential, together with aredesign of operations through increasedtransparency and collaboration. Private
networks using LTE and 5G connect highly
dispersed, data-intensive workflows incomplex value chains and bring a competitiveedge to companies in extreme environments
and in a volatile, converging market.
Such connectivity also prevents environmental
hazards by tracking fugitive emissions,methane leaks and corrosion with IIoT. By
optimizing speed control, private cellular
networks enable efficient energy spendingof such common production assets as
frequency drives, compressors and electricmotors. Collectively, these digital solutions
limit the CO2 footprint by reducing waste andincreasing collaboration. Another popularapplication can be to send drones withspecialized gas-detecting sensors and cameras
to locate methane leaks on aging equipment.

Advanced connectivity will also empower
workers with devices and wearables that will
not only make their jobs easier and faster tocomplete, but increase their safety. Using
mobile device-accessible schematics andplans, combined with features like Ericsson’s
Push-to-Video and Push-to-Talk, makeworkers more efficient both on-and offsite. Connected workers are not only moreproductive, but they are also safer.
By deploying Automated Guided Vehicles(AGVs) and drones in dangerous areas,
companies can avoid putting employees atDrones can reduce:
inspections times by 90%
downtime costs caused by manual inspections by 65%
health and safety incidents, resulting in 35% less cost to the provider 2
Benefits of a digitally enabled workforce:

8.5%
more productive

3

48%

less loss from health and safetyincidents4

2. Flyability, GSMA, Ericsson, Arthur D. Little | 3. Visual Capitalist, Ericsson, Arthur D. Little | 4. Ericsson, Arthur D. Little

8%

reduction in operational spend, due
to the increased effectiveness of aconnected worker3

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Ericsson | Oil and Gas Industry Solution Brief

Not all digitalization technologies are the same
Oil and gas companies have some options
for connectivity available. Wi-Fi is the mostcommon route to simple wireless networking
connectivity. While Wi-Fi networks meet someneeds, they have limitations, from scalability
to reliability, security to latency, all hampering
digital transformation. Wi-Fi quality of service(QoS) is not up to the required standards forindustrial applications and use cases. Other
technologies also fall short of oil and gas
needs.
We, at Ericsson, believe that 3GPP-based
technologies, which include 5G SA, best
achieves the goals of the oil and gas industry.
3GPP standards guarantee the level of
performance required for the industry’s
demanding applications. 3GPP-based
technologies, such as LTE and 5G NR, arepart of the large ecosystem shared by almost
all of the world’s mobile providers. The 3GPP
ecosystem can accommodate different
localized technologies such as LoRa, Wi-Fi andBluetooth. In typical deployments, LTE and 5G
NR can act as both middle and last mile andcan be the base underlying wireless technology
for a typical oil and gas plant. Because of thesebenefits, 3GPP has been increasingly adopted
by industrial sectors that have very similar use
cases and requirements to oil and gas.

Partner with Ericsson
Success cannot be achieved throughone company or alone with one strategy.
Partnerships are key. Ericsson works withmany different players—device makers, system
integrators and software vendors, including
network vendor equipment providers—tohelp oil and gas companies on the road todigitalization.

Ericsson has a broad portfolio for private
networks, including the most extensive Citizen
Band Radio Service (CBRS) radio portfolio of
any major Tier-1 vendor. We have the global
experience and references to provide proventechnology that can easily be deployed by oil
and gas enterprises. In addition, with Ericsson’s
software-only upgradable portfolio, oil and gas
companies being able to test and readily utilize
5G technologies can be cost-effective with
Ericsson solutions.

Ericsson’s private networks are Plug n Play.
Our solution has options ranging from as
low as 100 user licenses, called Small Core,
to 25k users, called Large Core. Ericsson’s
Radio System portfolio comes in a variety ofsizes. Radios the size of smoke detectors canaccommodate small indoor building spaces.
Our medium-sized radios, called micro radios,
are ideal for average to medium applications.
Our unique CBRS AIR radios can cover areasonably large area (small city), with amoderate amount of subscriber density.

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Ericsson | Oil and Gas Industry Solution Brief

Reference cases
Centrica Storage 5G-ready private network
Centrica Storage Limited (CSL) is the gas
storage and processing unit of UK gas andelectricity supplier Centrica. Centrica wanted
to digitize their operations and launcha connected worker solution that would
increase the safety of workers in the facility.
Using Ericsson radio and core networking
gear, Vodafone built a private LTE network,
upgradeable to 5G, that allows Centrica’s
staff to connect to a new set of maintenance,
operation and safety applications via theirhandheld devices. The new 5G-readyinfrastructure enables Centrica Storage toautomate, monitor and centralize much ofits critical maintenance and engineering
operations. Learn more

Tampnet deployment in Gulf of Mexico
Tampnet operates the world’s largest offshore
high-capacity communications networkin the North Sea and the Gulf of Mexico,
serving more than 240 oil and gas platforms,
floating production storage and offloading
units (FPSOs), exploration rigs and vessels.
Upgrading their existing 2G network, Tampnet
aimed to offer high-capacity, low-latency
data and voice coverage in the Gulf of Mexico.
Deploying an Ericsson redundant Core LTE
network, Tampnet now boasts the largest
offshore high-capacity communications
network in the world. The network improves
the quality, health, safety, efficiency andwelfare for offshore operations. It also provides
revenue opportunities from oil rig workers,
commercial and cruise ship roaming traffic in
the Gulf. Learn more

“Safety is critical at CSL and this solution will reducerisk for everyone on our site. The mobile private
network will help us address 1970s problems witha 21st century solution, taking our business to the
future from the moment it’s live.”— Paul Stevens, Information System And Technology Director at Centrica Storage Limited

Why choose Ericsson cellular solutions?
For oil and gas companies, digitalization
powered by Ericsson private networks is asingle, one-time investment that delivers asubstantial triple bottom line that includes
improved safety for workers and more
responsible environmental impact along withmajor efficiency and financial benefits. For
telecom service providers, Ericsson 5G-readywireless technology can provide a foothold in a
growing industry segment.
Ericsson is leading the way in the specialized
world of connectivity for the oil and gas
industry. Our market-leading 4G and 5G
solutions are based on 3GPP (formal
standards) that aligns with large ecosystem
players among device manufacturers. Byutilizing the same radio and baseband
portfolio that the larger providers do, ourPrivate Network portfolio enables a broadreach that helps fit solutions to the needs oflarger multinational oil and gas companies. Our
ecosystem includes a wide range of industrial
partners, enabling us to address our oil and gas

customers’ unique challenges. With extensive
relationships with many of the world’s service
providers, we can easily facilitate hybrid
solution offerings in partnership with local
providers. We put all our resources at yourservice to find the exact, right solution for yourunique needs.
How can we help you?
Bringing about change is never simple. But theadvances of automation enabled by private
networks have the potential to solve many of
the oil and gas industry’s ongoing challenges—
and even shape the future of the industry.
Find out more about wireless connectivity
for oil and gas and let us help you on yourdigitalization journey.
Visit our website: ericsson/oil-and-gas

Ooredoo Qatar private 5G-ready network
Ooredoo is Qatar’s leading communications
company, delivering mobile, fixed, broadband
internet and corporate managed services
tailored to the needs of consumers andbusinesses. Partnering with Ericsson, Ooredoo
implemented a 5G-ready private network
solution to support offshore operations andmodernize the oil and gas current enterprises’communication infrastructure, simplifying
customers’ communications while ensuringsafety, reliability and security over Ooredoo’s
network. Learn more

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Ericsson | Document title

About Ericsson

Ericsson enables communications service providers andenterprises to capture the full value of connectivity. The
company’s portfolio spans the following business areas:
Networks, Cloud Software and Services, Enterprise
Wireless Solutions, Global Communications Platform,
and Technologies and New Businesses. It is designed tohelp our customers go digital, increase efficiency and find
new revenue streams. Ericsson’s innovation investments
have delivered the benefits of mobility and mobile
broadband to billions of people globally. Ericsson stock islisted on Nasdaq Stockholm and on Nasdaq New York.
www.ericsson.com© Ericsson 2023

The content of this document is subject torevision without notice due to continued
progress in methodology, design andmanufacturing. Ericsson shall have noliability for any error or damage of any kind
resulting from the use of this document.

www.ericsson.com
SE-126 25 Stockholm, Sweden
Telephone +46 10 719 00 00
June 2023