As more and more machinery becomes loaded up with sensors and connected to the internet, there are predictions that the IoT could slash costs. Analysts at Nomura, for example, say this could make oil and gas companies more profitable at $70pb than they were previously at $100pb. A quiet revolution is under way in asset-intensive industries, thanks to the advance of the Industrial Internet of Things (IIoT). And as one of the most asset-intensive sectors in the economy, the oil and gas sector is set to be one of the biggest beneficiaries. The internet of things is widely perceived as a consumer phenomenon that will allow smart appliances to turn themselves off and on, order your milk when you run out and make sure your house is warm when you get home from work. But efforts to make technologies such as smart appliances and connected homes a reality are still at a very early stage—in part because the very people they aim to help, consumers, have yet to fully embrace the idea of digital domesticity. By contrast, companies have started to realize the huge potential the IIoT holds and it is making great strides across a number of sectors. And while many aspects of the digital economy undermine the oil and gas industry by reducing demand for energy – Google in 2016 announced that it has cut the cost of cooling its data centers by 40 percent through the use of artificial intelligence. However, a digital infrastructure will be crucial for the roll-out of electric vehicles and car –sharing–the IIoT also has the potential to significantly improve efficiencies, cut costs and boost profits for energy groups.
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