The Internet of Things in The Oil and Gas Industry: A Systematic Review
The Internet of Things in The Oil and Gas Industry: A Systematic Review
The Internet of Things in The Oil and Gas Industry: A Systematic Review
fully edited. Content may change prior to final publication. Citation information: DOI 10.1109/JIOT.2020.2995617, IEEE Internet of
Things Journal
IEEE INTERNET OF THINGS JOURNAL, VOL. XX, NO. X, AUGUST 2019 1
Abstract—The low oil price environment is driving the oil The fourth industrial revolution, also known as “industry
and gas industry to become more innovative and deploy smart 4.0”, introduces a range of digital technologies that potentially
field technologies, to increase operational and asset efficiency, make a paradigm shift in the entire industrial and social status
minimize health, safety and environmental (HSE) risks, improve
asset portfolio, reduce capital and operation costs, and maximize quo. Extractive industries, such as oil and gas, will be affected
capital productivity. The internet of things (IoT) is at the forefront by this revolution [2]. In 2016, on behalf of Accenture and
of this digital transformation, enabling seamless real-time data Microsoft, PennEnergy Research, in partnership with the Oil
collection, processing, and analysis from a range of equipment, & Gas Journal, surveyed upstream professionals worldwide to
processes, and operations to achieve these objectives. There are determine the digital transformation trends in the oil and gas
various operations/applications in the upstream, midstream, and
downstream sectors (e.g., condition-based monitoring, location industry [3]. The survey identified that mobile devices, the in-
tracking) for which IoT enabled solutions have a significant ternet of things (IoT), cloud computing, artificial intelligence,
impact and offer a range of opportunities to increase socioe- robotics and drones, wearable technologies, collaboration and
conomic benefits. However, there are several impediments (e.g., social tools are the key technologies in which the O&G
vulnerability to cyber attacks, lower technological readiness industry have invested and will continue to employ for the next
for deploying in Zone-0 and Zone-1 hazardous environments,
unavailability of communication infrastructure, labour concerns, few years. With the deployment of these digital technologies,
and maintenance and obsolescence) that slow the pace of adop- the O&G industry is expecting to make faster (real-time) and
tion of IoT technologies for regular upstream, midstream, and better decisions to manage their assets effectively. In terms of
downstream operations. This review article provides an overview workforce, the deployment of digital technologies is expected
and assessment of the role, impact, opportunities, challenges, and to increase productivity, engagement, and job training.
current status of IoT deployment in the oil and gas industry.
As reported in [4], the digital transformation of an in-
Index Terms—Internet of Things (IoT), Industrial IoT (IIoT), dustry involves ten steps, namely, mechanizing, sensorizing,
Oil and Gas Industry, Digitalization, Industry 4.0 transmitting, integrating, analyzing, visualizing, augmenting,
robotizing, crafting, and virtualizing. These ten steps are care-
I. I NTRODUCTION fully planned and executed to collect and analyze more data
from assets to make faster and better decisions so that assets
T HE oil and gas (O&G) industry is a highly regulated
and capital-intensive industry that plays a pivotal role in
meeting world energy demand. Despite worldwide initiatives
can be managed effectively while complying with regulatory
requirements. It is apparent that the collecting, analyzing, and
to implement green energy sources, the global demand for visualizing data play pivotal roles in the digital transformation.
crude oil is expected to remain high for decades to come [1]. Autonomous data collection followed by real-time, near
Low oil prices for a longer period and increasing regulatory real-time or post data processing and actuation are not new
constraints challenge O&G actors (operators, service compa- to the O&G industry. For example, the O&G sector has been
nies, and suppliers) to become more innovative to address their using supervisory control and data acquisition (SCADA) sys-
long term business goals. These business goals include, but tems for decades to monitor its assets [5]–[11]. Additionally,
are not limited to, reducing health, safety, and environmental wireless sensor network (WSN) based monitoring and data
(HSE) risks; extending the life of producing fields; minimizing collection approaches have also been considered for a range
capital and operational costs; increasing equipment reliability of upstream, midstream, and downstream applications [12]–
and operability to reduce maintenance costs and facility down- [19]. However, deployment of SCADA systems and traditional
time; improving governance and regulatory compliances; and WSNs entail a range of challenges. Concerning SCADA
increasing production and revenue. systems, the hardware and software of these systems are
generally not interoperable; equipment and the maintenance
Wanasinghe, James, Mann, and de Silva are with the Faculty of Engineering costs are very high, and unscalable, due to low density in
and Applied Science, Memorial University of Newfoundland, Canada (email:
{thumeerawa, ljames, gmann, oscar.desilva}@mun.ca) time and space; changing/updating of communication or op-
Gosine is with the Faculty of Engineering and Applied Science, Memo- erational protocols or software tools is extremely challenging
rial University of Newfoundland, Canada and the Innovation Policy Lab, and associated with high latency [20], [21]. WSNs are not
Munk School of Global Affairs, University of Toronto, Canada (email:
rgosine@mun.ca) homogeneous systems and typically lack coordinated commu-
Warrian is with the Innovation Policy Lab, Munk School of Global Affairs, nication and clarity within their operation areas and across
University of Toronto, Canada (email: peterwarrian@sympatico.ca) processes [21].
Copyright (c) 20xx IEEE. Personal use of this material is permitted.
However, permission to use this material for any other purposes must be With the recent advancements in information and commu-
obtained from the IEEE by sending a request to pubs-permissions@ieee.org nication technologies, as well as in micro-electro-mechanical
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systems (MEMS), IoT has emerged as a solution to the literature review to investigate how IoT technologies and sys-
limitations associated with SCADA and traditional WSNs. tems drive data-driven innovation in the O&G industry. This
The term ‘internet of things’ was coined by Kevin Ashton, systematic review includes the current research status of IoT
executive director of the Auto-ID Center, in 1999, when he in the O&G industry, and the opportunities/applications and
presented a radio frequency identification (RFID) based supply challenges of adopting the IoT technology for this industry.
chain optimization system to Procter & Gamble (P&G) [22]. In Finally, it provides a research agenda to adopt IoT for the
summary, IoT is a network of items, which are each embedded O&G industry.
in smart devices (sensors, actuators) connected to the internet, The remainder of this article is organized as follows. Section
that enables connectivity anytime, anywhere by anyone, and of II outlines the methodology of the literature survey. Section
anything [23], [24]. Typical IoT system includes sensors, actu- III summarizes the publication pattern. Section IV and Section
ators, network infrastructure, and data analytic tools to collect V discuss the opportunities and challenges of deploying IoT
and analyze data [23]–[25]. Edge, fog, and cloud blended data based solutions for upstream, midstream, and downstream
processing solutions are now being considered for IoT systems operations. Section VI proposes a research agenda for IoT
to alleviate latency, increase scalability, and enhance access to adoption for the O&G industry. Section VII gives the summary
information so that better and faster decisions can be made of the overall findings of this literature review.
from the data captured from IoT enabled sensors [26]. There
are several other concepts (terms), such as IIoT (industrial II. M ETHODOLOGY
IoT), IoE (internet of everything), WoT (web of things), CoT
(cloud of things), M2M (machine to machine) systems, IoNT This systematic review follows a similar approach presented
(internet of nano things), and IoMT (internet of mobile things), in [47], [48] and Table I summarizes the article selection
that have emerged with the IoT [24], [27], [28]. The intention criteria for this review.
of our study is not to provide a deep analysis of IoT standards,
TABLE I
architectures, research projects, national initiatives, and other A RTICLE SCREENING CRITERIA
concepts relate to IoT, but to assesses its role in the O&G
industry. Readers who wish to get an overview of IoT are Search index Specific content
encouraged to follow [23]–[30] and their references.
Over the last two decades, the IoT concept has been fur- Database OnePetro, Scopus, Springer, IEEE
ther studied, piloted, and implemented across many industrial Xplore, Web of Science
sectors, including manufacturing [31], retail [32], smart cities Article types Scientific articles published in jour-
[33], smart homes [34], smart grid [35], transportation [36], nals, conferences, and books
healthcare [37], and resource industries (mining and O&G) Search string (“internet of things” OR “IoT” OR
[38], [39]. International Data Corporation (IDC) projects that “industrial internet of things” OR
the worldwide technology spending on the IoT will reach “IIoT” OR “internet of everything”
US$1.2 trillion in 2022 [40]. Ericcson predicts that the number OR “IoE”) AND (“oil” AND “gas”)
of cellular IoT devices will reach 3.5 billion, wide-area IoT Search period No lower bound was set for the
devices will reach 4.1 billion, and short-range IoT devices search period. As the paper search
will reach 15.7 billion by 2023 [41]. As reported in DBS was done in late August, 2019, only
Asian, the IoT installed base will expand from 6.3 million the research articles published until
units in 2019 to 1.25 billion in 2030; however, the number of August 2019 are included in this re-
total consumer devices as a percentage of total IoT installed view.
bases will remain approximately constant, around 62% [42]. Screening proce- The relevance to the IoT application
According to Brain & Company, the IoT market will reach dure to O&G was selected based on the
US$520 billion in 2021 from US$235 billion in 2017 [43]. IoT number of occurrences of key terms
Analytic forecasts a 17% growth rate for active IoT devices, followed by the manual review of
and the number of active units will reach 21.5 billion by 2025 contents of abstract, introduction and
[44]. These predictions imply that IoT technology has strong conclusion.
industrial adoption and further market potential. Classification The literature was classified based
High levels of industrial adoption, unparalleled capabilities, scheme on the type of the study (review,
and the significant market potential of IoT may disrupt the tra- concept, case-study), application ar-
ditional business model of many industries [45]. According to eas, enabling technologies and re-
Digital Transformation Institute, Capgemini’s in-house think searchers’ affiliations (academic or
tank, industrial manufacturing is leading the IoT adoption industrial).
followed by retail, telecommunication, consumer products, Other Opportunities and challenges related
energy and utilities, and the automotive industry [46]. The information to IoT applications were identified
United States (US) is the country leading IoT adoption fol- from the selected articles.
lowed by the United Kingdom (UK), Germany, France, China,
and the Netherlands [46]. In this article, we narrow down The initial keywords-based search identified 993 articles, of
our discussion to the O&G industry and present a systematic which it was possible to obtain full access to 826 articles.
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Some of these articles included the keywords but only in their relative occurrences. Fig. 1 illustrates the connectivity of
passing reference to IoT within the article. Therefore, all IoT with other technological concepts. Using Voyant Tools, the
the collected articles were analyzed using the web-based text total number of words, number of unique words, and number
analytic software tool “Voyant Tools” [49], [50]. This software of occurrences of the unique words were extracted for the
performs automated content analysis and generates compre- selected articles. The total word count was 306,835 and there
hensive information about key terms, number of occurrences were 25702 unique words. A pictorial representation of the
of these key terms, their correlations with other key terms, co- relative frequency of top 50 unique words is shown in Fig. 2.
occurrent terms, and the context in which the term appears. This pictorial representation allows us to identify key concepts
After analyzing the collected research articles using Voyant and their relative importance conveniently. The actual word
Tools, it was possible to narrow down the number of articles counts can be found in Appendix A.
to 151. The abstract, introduction, and conclusion of these 151
articles were manually reviewed to identify the most relevant network computing
technology
internet
articles for our study and to eliminate possible duplication. big
devices
sensors
This manual review reduced the number of articles to 66.
cloud platform
applications
These 66 articles were reviewed comprehensively to answer analytics
iot
gas
the following research questions: learning
data industrial
digital
RQ1: How do the publication patterns provide insight into machine iiot
IoT innovation and adoption in the O&G industry? communication
oil field
tim e
RQ2: What are the key use cases (applications) of IoT real
encryption
management
adoption in the O&G industry?
challenges
RQ3: What are the key challenges for adopting IoT for the monitoring survey lightweight
world
O&G industry?
To answer RQ1, some of the metadata, such as the title, year, schemes
authenticated cipher
data
tions, product development or deployments, and field
control
security
iot
field wireless
process
tests.
real
architecture
gas
https
• Review/survey paper: articles that present literature or using machine
analytics
network
time
figure
operations
technical reviews, and industrial surveys.
industry power
paper
oil
deployment/validation were placed in both the concept paper
based
devices technologies
things
use smart
sensor
new
model
and case study categories with relative weights. Note that monitoring used
ms
http
maintenance
on components of the O&G industry associated with the
development and production sectors of the industry. Fig. 2. Word-cloud representing top 50 unique words by word count as
identified from the selected 66 articles (generated using Voyant Tools). The
size of the term (word) represents the relative frequency of that term in the
III. P UBLICATION PATTERNS articles
This section presents the findings related to the first research
question (RQ1), i.e., “how do the publication patterns provide From these two diagrams, it can be seen that ‘data’ is
insight into IoT innovation and adoption in the O&G indus- the core concept that drives IoT-based digital transformation
try?”. of the O&G industry. ‘Cloud-computing’, ‘big-data analytic’,
‘machine learning’, ‘machine communication’, ‘digital oil/gas
fields’, ‘real-time monitoring’, ‘smart technologies’, ‘sensor
A. Birds-eye View networks’, and ‘data-management systems/platforms’ are other
To reach a high level of understanding of the current status key technological concepts connected with IoT. Concern-
of IoT adoption in the O&G industry, the selected 66 articles ing the challenges, cybersecurity seems to rank as the top
were re-analyzed using Voyant Tools. This analysis focusses challenge, with terms like ‘encryption’, ‘authentication’, and
on identifying the main technological (digital) concepts asso- ‘cypher’ appearing most frequently. Designing lightweight
ciated with IoT deployment in the O&G industry along with sensory systems and encryption or cipher mechanisms is also
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considered a major challenge for deploying IoT systems in the Operators (~7 articles)
O&G industry. 10.4%
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TABLE II
L IST OF CONFERENCE NAMES AND ORGANIZERS WHERE THE SELECTED 66 CONFERENCE PAPERS WERE PUBLISHED
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Azerbaijan: 3.03%
Germany:
3.79%
UK: 10.23%
Italy: 4.59%
Greece: 3.33%
China: 3.03%
Australia: 2.32%
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Fig. 8. Publication distribution by organization. Black arc lines with set of black dots represent collaboration among the organizations. For a given black arc,
the size of black dots represents relative contribution by each organization involved for the article. (ENEA: Italian National Agency for New Technologies,
Energy and Sustainable Economic Development; ANAS: Azerbaijan National Academy of Sciences)
Automation Solutions (3.03%), Halliburton (3.03%), Schnei- IoT adoption within the O&G industry, compared to academic
der Electric (3.03%), and Weatherford (3.03%) are the key institutions and O&G operators. This can be attributed to the
supply chain companies that contribute to IoT adoption for fact that there are more supply chain companies than the
the O&G industry. Concerning the O&G operators, Saudi O&G operators or universities. Additionally, as mentioned
Aramco (6.06%) has been involved in research publication earlier, the supply chain companies, such as Siemens, ABB,
related to IoT deployment for the O&G industry more than and Cisco, provide services and equipment to other industries,
the other operators. This is followed by ExxonMobil (1.52%), such as manufacturing, which act as innovators and early
Petrochina (1.52%), Shell (0.76%), and Equinor (0.61%). adopters. Thus, these supply chain companies are involved in
Jazan University-Saudi Arabia (3.33%), Institute of Informa- emerging technologies much earlier than the O&G operators,
tion Technology, Azerbaijan National Academy of Sciences, allowing them to play leading role in the digital transformation
Baku (3.03%), Bina Nusantara University-Indonesia (1.52%), (technology adoption) of the O&G industry.
China University of Petroleum-East China (1.52%), and Iran
University of Science and Technology (1.52%) are the five When considering the research collaborations, only 16 out
leading universities which contributed to the 66 selected re- of 66 papers were authored by researchers from multiple
search articles. It is important to note that the authors who have organizations. In Fig. 8, these 16 collaborations are indicated
contributed to the 66 selected research articles are distributed with black arcs. The organizations which collaborated for a
across 72 organizations. Siemens has the highest contribution, given article are marked using black dots. The size of the
yet it only accounts for a 6.82% contribution. Thus, it is black dot represents the level of contribution. For example,
challenging to identify an entity that plays a pivotal role Shell collaborated with Innoseis B.V and the National Institute
in IoT adoption in the O&G industry. However, from the for Subatomic Physics and published an article titled “IoT-
aggregated data, it can be seen that the supply chain leads the based wireless seismic quality control”. In Fig. 8, there is
a black arc to represent this collaboration. As mentioned
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earlier, eight authors contributed to this article with four from TABLE III
Shell, two from Innoseis B.V, and the remaining two from K EY USE - CASES OF I OT FOR THE O&G INDUSTRY
the National Institute for Subatomic Physics. Assuming each
author makes an equal contribution to the paper, Shell had Paper
Use-cases References
a 50% contribution, while the other two each had a 25% Count
contribution. Therefore, the black dots represent Innoseis B.V [20], [21],
remote monitoring, opera- 27
and the National Institute for Subatomic Physics are of equal [51]–[75]
tion and asset optimization
size, while the black dot representing Shell is twice the size
of the black dot representing Innoseis B.V. As shown in Fig. [20], [21], [53],
9, universities were observed to work more collaboratively [59], [60], [63],
predictive or proactive 19
than other organizations. O&G operators do not appear to [66], [69], [71],
maintenance
have collaborated among themselves while the supply chain [75]–[84]
companies collaborated among themselves. There was one
[67]–[69], [75],
article for which one supply chain company collaborated automation and control 14
[83], [85]–[93]
with a university, one article where a supply chain company
collaborated with an O&G operator, and one article where a [69], [74], [82],
occupational safety and 7
supply chain company collaborated with an O&G operator and [86], [94]–[96]
health compliance, situa-
a university. tional awareness, and per-
sonal tracking
1.5%
1.5% 1.5% [64], [68], [79],
4.5% collaboration and digital 5
[97], [98]
No collaborations twin
Inter-university supply chain and fleet [60], [63], [99] 3
15.2% Inter-supply chain management
Supply chain and operator
75.8% Suply chain and university security [54], [60] 2
Supply chain, operator and university
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Things Journal
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and replacement takes place. Time-based maintenance follows 33% oil production gain from the wells which were under
the original manufacturer’s datasheet and includes repair and pumping. Additionally, for wells that were over-pumping,
replacement at predefined times. The predictive maintenance Equinor achieved a 14% increase in pump efficiency while
approach collects asset integrity and operation data at regular decreasing the number of strokes by 11%.
intervals. The collected data is analyzed using advanced data
processing algorithms to assess and forecast the health of the
equipment [102], [103]. This data-driven system allows asset D. Occupational Safety and Health Compliances, Situational
owners to identify potential issues and take actions to mitigate Awareness, and Personnel Tracking
them in a timely manner [104], [105]. O&G drilling and production processing facilities are known
Key components of any predictive maintenance system to be hazardous working environments. Challenges and the
include a sensor network to acquire data, algorithms to pro- risk associated with these facilities become elevated when they
cess the data, a place to store data, and a human-machine are located in remote and hostile locations, such as offshore
interface to interact with human operators and visualize the Newfoundland or in the Arctic. The Worldwide Offshore
insights. This framework can be used with an end-to-end Accident Databank (WOAD) reported that there were 2288
IoT-based cyber-physical system. Data collected from IoT fatalities included among 6451 offshore accidents occurring
enabled smart sensors can be processed using edge or fog between 1970 and 2012 [106]. According to the US Bureau
computing system to make immediate data-driven decisions to of Labor Statistics, in 2017, the average fatality rate for
avoid potential catastrophic failure. For example, if a rotating US workers was 3.5 deaths per 100,000 full-time equivalent
machine in an O&G plant suddenly increases its rotation workers (FTEs) [107]. That rate increased to 12.9 deaths per
speed to unsafe levels, the edge/fog processor shuts down the 100,000 FTEs for mining, quarrying, and the oil and gas
particular machine and associated systems, and alerts autho- extraction industry [107]. There is a range of occupational
rized personnel to make further investigations. More advanced risks associated with working at an O&G facility, including
data analysis using machine learning and artificial intelligence slips, trips and falls; injuries from falling equipment; collisions
algorithms can be performed in the cloud. Actual and historical with moving objects; repetitive actions of handling, lifting,
data can be stored in a private or public cloud, enabling and carrying; exposure to extreme environmental conditions;
history mapping, model-based simulations, and forecasting. and exposure to toxic substances. To protect oilfield workers
As IoT sensors can continuously collect data, it is possible from such accidents, most O&G producing countries have
to perform more realistic equipment health forecasting than implemented occupational safety and health (OSH) regulation
with a prediction generated from low-frequency periodic data frameworks for theie O&G industry. For example, SOR/87-
(snapshots of plant conditions). With the IoT-enabled smart 612 is the oil and gas OSH regulation for Canada [108].
sensors, actuators, and data-driven predictions, it is possible to The regulatory body and the O&G companies (operators,
reduce the number of human interventions, increase asset life, service companies, companies in the supply-chain) are making
perform triaging maintenance, conduct selective maintenance, an unparalleled effort to establish well-defined regulatory
implement a lean operation, increase facility reliability, and frameworks and training programs for enhancing occupational
decrease the facility’s downtime. health and safety at the oilfield. However, if the field personnel
does not comply with these codes, potential OSH risk remains.
IoT-enabled solutions can be implemented to monitor OSH
C. Automation and Control compliance. For example, IoT enabled smart sensors can be
End-to-end IoT solutions can be leveraged to automate integrated with personal protective equipment (PPE), which
some oilfield operations, including automation of drilling includes safety helmets, eye protection, highly visible clothing,
systems [67], [68], [86], automation of production systems protective gloves, and protective footwear [69], [96]. When
[85], automation of well completion systems [86], surveillance a person enters an oilfield, the ID scanning system (RFID)
of unmanned production platforms [69], automation of legacy can identify the person and all the safety gear that the person
rod-pump control [89], automation of tubular running services wears, and combine the person’s ID and PPE IDs into a single
[90], automation of artificial lift-assisted production [91], cluster. If the person does not wear the required PPE, the
and autonomous surveillance for electric submersible pumps IoT system can remind him/her to wear the required PPE. If
(ESPs) [83]. the field person does not comply with the OSH regulation
In the Bakken oil field, Equinor successfully deployed a even after he/she was reminded, the IoT system can send an
well optimization system for 50 horizontal wells using IoT- automatic message to field supervisors, and other authorized
enabled devices and advanced machine learning algorithms personnel, allowing them to address OSH code violations.
[89]. Data from an IoT device which was connected to the Once the field personnel are on site and engaged in fieldwork,
legacy rod pump controller was compared with the traditional the IoT system keeps monitoring the data from IoT sensor
rod pump controller data using a machine learning algorithm nodes to detect whether the field personnel are wearing the
to dynamically classify wells into three operating states: under- PPEs. If an OSH code infringement is observed, the IoT
pumping, over-pumping, and dialed in. This allowed Equinor device can remind field staff to comply with the OSH code.
to automate well optimization setpoint decisions, resulting in Additionally, the IoT device can alert field managers and other
reduced well volatility, better pump efficiency, and increased authorized personnel about OSH code violations, helping them
pump fillage. With the optimized setpoint, Equinor achieved a to address issues.
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In addition to determining whether field personnel are popularity within the digital transformation paradigm [114]–
complying with the OSH code, an IoT system can have [117]. The O&G industry is also now embracing the digital
sensors for slip, trip and fall detection [69], [86]; envi- twin concept [118]–[125]. Key operations of a digital twin
ronmental conditions, including gas, temperature, noise, and include (1) acquiring real time data from the physical asset; (2)
radiation level detection [94], [109], [110]; equipment oper- communicating, aggregating, and analyzing the collected data
ating condition and status monitoring [20], [51]–[58], [60]– to generate insights about the physical asset; (3) simulating a
[74]; gesture detection [86]; and field personnel location and series of “what-if” scenarios to determine the best operation
health tracking [74], [82], [95], [109], [110]. Data from these parameters; and (4) applying these parameters to the physical
systems can be used to generate alarms when OSH code asset to optimize the asset performance [114]. For any digital
violations are detected, enhance situational awareness, detect twin application, IoT devices can be deployed to collect data
hazardous sitiations, and alert personnel to leave hazardous and apply actuation commands to the physical asset, while
environments, and effectively respond to health and safety- its backbone network acts as a seamless data and command
related incidents. For example, gesture detection sensors can transfer between the physical asset and digital twin [79], [97],
monitor whether the field personnel use the correct movements [98].
when performing tasks, particularly involving repetitive ac-
tions. Such tracking systems can assist field personnel in fixing
incorrect actions and provide some insight for O&G operators F. Supply-Chain and Fleet Management
on future employee training programs. Additionally, the IoT Supply-chain management is one of the key use cases for
system can automatically generate and send “man down” alerts IoT technology [126]–[129]. This is also the case for the
with location data to other field personnel, supervisors, and O&G industry [39], [99], [130]. At the development phase,
emergency response teams, based on the data coming from an IoT-based system can connect the supply chain, enabling
trip, slip, and fall detection sensors and health monitoring unparalleled visibility along the supply chain to effectively
sensors [69]. By connecting field personnel ID with industrial track construction activities and raw material supply for con-
training certificates, the IoT system can automatically detect struction. During the operation phase, an IoT-enabled system
whether the person attempting to perform field tasks or operate can assist in managing stores, warehouses, and transportation.
field equipment has the required training to perform that Downstream players can employ IoT solutions to create new
activity. If the person is not trained for the task, the IoT value by expanding the visibility of the complete hydrocar-
system can request the person not to start the task and send an bon supply chain. This enables O&G companies to enhance
alert to the field supervisor. This helps eliminate unauthorized core refining economics and target new digital consumers
equipment access and helps ensure that only the field personnel through new forms of connected marketing. In summary, with
with proper training operate field equipment [111]. the aid of IoT technology, O&G companies can effectively
manage their inventories, plan and schedule asset repair and
E. Collaboration and Digital Twin replacement activities, plan and schedule production activities
to respond to the demand and other market dynamics, and
Recent digital transformation initiatives in the O&G in-
ultimately bring transparency and traceability to the industry
dustry are focussed on leveraging industrial IoT solutions to
[39], [130].
bring the relevant data to the right people, allowing them to
contribute and collaborate to make data-driven decisions [64]. Similar to supply chain management, IoT technology can
IoT-based collaborative platforms allow subject matter experts aid O&G companies to perform fleet management [60], [63],
to connect from anywhere in the world. Additionally, with [130]–[134]. Fleets in the oil and gas industry can be divided
a carefully implemented data sharing culture, IoT solutions into three major groups, namely, the field personnel fleet,
enable seamless data sharing among different applications on a the mobile oilfield equipment and vehicles fleet, and the
variety of IoT devices and across multiple vendors, contractors petroleum products (raw or processed) transportation fleet.
and oilfield service companies. In [112], it has been reported With the aid of IoT sensor networks, the exact location of field
that the digital transformation of the O&G industry needs to personnel, mobile equipment and field vehicles, and petroleum
follow a three-step journey: connecting asset and operation, product transportation systems (trucks, trains, tankers, ships)
connecting the value chain, and building a fully connected can be monitored in real time. Fleet management software
enterprise. IoT and cloud architecture assist the O&G industry tools leverage this real time data to assess field personnel
to embark on this digital transformation journey by connecting and equipment utilization and assist facility managers and
assets, people, and processes. This allows O&G companies to supervisors to optimally deploy their fleets. Smart sensors
connect their operations on a global rather than a local scale. connected to the mobile equipment and field vehicles track
Considering data integration, advanced data processing, the performance of equipment operators and vehicle drivers.
multi-physics-multi-model simulations, and enterprise level Additionally, these sensors track the health of equipment and
collaboration, a concept called “digital twin”2 is gaining much vehicles while controlling their emissions and fuel consump-
tion. Location tracking data of field vehicles and petroleum
2 According to the Defense Acquisition University’s (DAU) glossary digital product transportation systems allow drivers to identify hassle-
twin is defined as an “integrated multi-physics, multi-scale, probabilistic free delivery routes. When many vehicles are used for field
simulation of an as-built system, enabled by digital thread, that uses the best
available models, sensor information, and input data to mirror and predict activities, the use of highly coordinated fleet management
activities/performance over the life of its corresponding physical twin” [113] is of paramount importance to avoid accidents and enhance
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facilities. These pipelines run thousands of miles and even run Production
Development
drilling
a pipeline while engaging in some other activities in the area Exploratory
& appraisal
where the pipeline is laid. Additionally, the through-life degra- Well
completion
drilling
Field
dation mechanism of pipelines may cause them to lose their development
planning
and fix leaks as soon as possible. Additionally, IoT-based smart Development Low Medium High V. High Extreme
Production and abandonment
sensor networks can be deployed to monitor pipeline networks,
detect leakages, and locate leakages [54], [59], [137], [138]. Fig. 10. Cyber vulnerability/severity matrix by upstream operations [144]
In addition to the use of pipelines, crude oil can be transported
using oil tankers, trains, and trucks. It is also possible to
design an IoT-based anti-theft alarm system for these type of Vulnerability and the severity of a cyber attack varies among
oil transportation systems [138]. oilfield activities (refer to Fig. 10).
As illustrated in Fig. 11, there are three types of intrusion
V. C HALLENGES related to IoT systems: eavesdropping, device masquerading,
This section presents the findings related to the third re- and server masquerading [69]. Eavesdropping intercepts data
search question (RQ3), i.e., “what are the key challenges traffic between a physical asset and a control center. The
for adopting IoT for the O&G industry?”. From the O&G intruder does not alter data or actuation commands but uses
industry perspective, and as reported in the selected articles, data to manipulate market conditions or monetize data by
major challenges for IoT adoption are listed in Table IV. The selling it to an unscrupulous rival. Device masquerading inserts
following subsections discuss each of these challenges. a fake device into the system. These fake devices may feed
fake sensor data to the network, leading to incorrect interpre-
tation and follow up actions. For example, a fake sensor may
A. Cybersecurity send a malfunction alarm, triggering a disruptive shutdown
IoT technology connects the physical world with the cyber of a platform or specific operation on the platform. A fake
world, and these connected cyber-physical systems (CPS) are device with actuation capabilities may perform an action that
highly vulnerable to cyber attacks. In 2016, the energy sector may lead to equipment failure or platform shutdown. A fake
was ranked as the second largest target for cyber attacks [144]. device that overwhelms the network with messages may cause
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IoT devices, but when interfacing modern IoT tools with exploration, appraisal, drilling, field development, production,
legacy systems installed on existing O&G platforms [145]. The and reclamation. It is possible to develop an IoT solution
communication protocols of these systems may be outdated, targeting operations, machines, and facilities. However, the
and the upgrading of these legacy systems may entail a high financial or health and safety gain obtained by deploying
capital investment as well as increased facility downtime. IoT systems differ from operation to operation, machine to
machine, and facility to facility. Therefore, it is vital to conduct
D. Data Storage and Analytics a pre-deployment study to determine the most valuable data,
the fastest and safest way to gather data, how to leverage the
IoT sensor nodes acquire data at a high rate, generating
data, how to maximize the value of data that the company
a large volume of data daily. This high volume of data is
already has, and how to maximize data coverage [59], [71],
typically referred to as “big data”. Storage and analyze of this
[146]. A wide range of IoT devices and platforms with
large volume of data is the next big challenge that the O&G
different characteristics is available in the market, targeting the
industry must resolve [61], [64], [146], [155]–[157]. An O&G
same applications. Therefore, selecting the right IoT-enabled
company may store and process data using a company-hosted
tools and infrastructure for a given industrial application is a
computing environment or a third-party IoT cloud. The former
challenge.
requires an in-house information technology (IT) resources
to take necessary action to store and safeguard the data F. Maintenance and Obsolescence
and control application and data access. As the data volume
IoT technology is rapidly spreading across all industries,
increases, the O&G company may require the construction and
and the number of active IoT devices is expected to exceed
maintenance of a more extensive data warehouse. In contrast,
20 billion by 2025. Concerning the oil and gas industry, some
the use of a third-party IoT cloud eliminates the requirement
of the asset integrity monitoring applications collect data from
for, and investment in, more extensive IT resouces and a larger
tens of thousands of locations. For example, the number of
data warehouse. However, in the case of outsourcing, the O&G
thickness monitoring locations (TMLs) or corrosion monitor-
company must establish an explicit agreement with the third-
ing locations (CMLs) at some of the refineries may reach
party service provider on data ownership, security, access, and
three million [58]. Managing such a large sensor network and
responsibility of each party. Additionally, it is important to
associated infrastructure, by delivering, in a timely manner,
check regional requirements associated with third-party data
the required services, keeping track of failures, monitoring
centers to ensure these requirements do not conflict with the
the performance, and executing repair and replacement of
O&G company’s data policies.
defective devices or infrastructure, is an extremely challenging
As the amount of data collected from an oilfield exponen-
task [141]. In the event of a small number of devices failures,
tially grows, human operators are no longer able to review
if the IoT system can self-reconfigure and continue to provide
and analyze all of the collected data. This issue has now been
the service at an acceptable level of accuracy and quality, the
addressed by deploying big data analytics tools (including arti-
frequency of human intervention for repair and replacement
ficial intelligence and machine learning algorithms) to process
can be minimized. While self-reconfigurable capability does
the data in real time to support the data-driven decision making
not solve maintenance issues, it does provide some flexibility
process [158]–[162]. Numerous big data analytics tools and
for planning and scheduling of maintenance activities. There-
algorithms have been developed over the past few decades,
fore, a dedicated team (in-house or out sourced) is required to
making the software tool selection process more challenging
manage the IoT devices and associated infrastructure.
than it was a few years ago.
As mentioned earlier, the pace of the technology evolution
It is important to note that data is useless without knowing
is exponential. Thus, most of the current industrial standards
how to interpret it. Traditionally, data interpretation was made
and protocols will soon become obsolete [61]. Therefore,
by field personnel. Post-war baby boomers who have worked
when adopting IoT systems, the O&G industry should have
in oilfields have, through practical experience, knowledge
a proactive strategy to cope with the associated technology
for interpreting oilfield data, and identifying anomalies and
obsolescence. The in-house or out sourced subject matter
their root causes. They also have an understanding of solu-
experts team should continuously analyze the installed systems
tions which may be implemented to address anomalies, and
against other systems available in the market to accurately
the physical or empirical concepts under pinning solutions.
identify the IoT devices or infrastructure that are approaching
Unfortunately, unlocking this decades old knowledge and
obsolescence. Results of these analyses can be employed to
using it to improve big data analytics tools remain an open
accelerate the adoption of new technology and incorporate it
challenge for all industries [163]. This challenge is a result of
before obsolescence of the old systems, including the transfer
experienced staff retiring, with their expertise and knowledge
of information from old databases to those based on new
not transferring to their successors.
standards. Another proactive strategy that the O&G company
can use to cope with technology obsolescence involves the
E. Scope and Tool Selection selection of vendors that provide end-of-life planning for their
O&G is a massive global industry that has three sub- products. For example, a vendor could replace obsolescent
sectors: upstream, midstream, and downstream. Each sub- devices at a discounted rate with new devices and assume
sector involves a range of operations, machinery, and facilities. responsibility for the disposal of electronic waste from legacy
For example, the upstream O&G sector has six operations: systems.
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Un
de
rst
Industrialize
an
Step 4: Scale up the succssful pi-
d
lot project and integrate it into the
existing IoT backbone of the O&G
company/facility.
Step 2: Identify the applications
e
fin
which offer highest returns on in-
De
Pilo vestment, and the best chance of
t
being successful. Then, develop a
plan, timeline and sequence to de-
Step 3: Implement a pilot project to ploy IoT solution for the selected ap-
study opportunities, challenges, and plications and to re-skill the work-
tools/infrastructure requirements for se- force.
lected applications.
ically analyzed at this stage to identify the applications for frequent field visits to collect data, but it requires
which offer the highest returns on investment, and the human operators to have a moderate to high literacy in in-
best chance of being successful. Feasible applications formation technologies to remotely access equipment and
must use existing hazard Zone-0 and Zone-1 certified data. This adoption can be disruptive if not implemented
IoT devices. Once the first application has been se- incrementally. The operator should assess the impact of
lected, subject matter experts from the operators, supply IoT adoption on the workforce and draw a plan to re-
chain companies, and universities can develop a plan to skill and restructure the existing workforce to minimize
integrate with other applications identified at the first the impact on the workforce.
stage. This initial plan includes the list of applications, Pilot: Before moving to full-scale industrial deployment, it is
a timeline, and sequence for integrating into existing critical to implement a lab-scale pilot project. Typically,
infrastructure and HCPS. universities and research institutes that collaborate with
There may be applications which have more economic, the O&G industry have laboratory-scale O&G facility
health, or safety benefits, but cannot be implemented models and equipment, allowing these institutions to
immediately due to the unavailability of safe Zone-0 and run lab-scale pilot projects (e.g., Hibernia Enhanced Oil
Zone-1 IoT devices. An R&D project can be planned Recovery Laboratory, Memorial University of Newfound-
in collaboration with the supply chain companies and land, Canada [169]). Pilot projects act as learning plat-
universities to design, implement, validate, and certify the forms to critically evaluate the opportunities, challenges,
required IoT devices for Zone-0 and Zone-1 operation. and tools/infrastructure requirements for selected appli-
The operator and supply chain companies, the primary cations. For example, the research team can evaluate a
beneficiaries of the technology, involved in R&D projects wide variety of cybersecurity approaches, IoT tools from
could share the financial responsibilities for the project multiple vendors, a range of data storage mechanisms
while all three parties (operators, universities, and supply (local vs. cloud), and data analytic tools to explore
chain companies) share the technological responsibilities options for the selected application.
for the project. When the financial responsibilities are Industrialize: A successful pilot program is followed by a
shared with the operators, small and medium enterprises full scale (industrial scale) implementation. IoT tools
also have more capacity to engage in R&D activities as and infrastructure for this implementation should be
they have an early customer for the resulting products. purchased from a vendor that provides maintenance and
The adoption of IoT will modify the traditional ways of end-of-life planning for their products. This reduces the
performing oilfield activities and the skill sets required to maintenance and obsolescence issues associated with the
perform these activities. For example, with the deploy- large scale IoT deployments.
ment of IoT, human operators can access field data at Monitor: After implementing a large scale IoT system, the
anytime from anywhere. This eliminates the requirement O&G company can assign a group of experts to con-
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tinuously monitor the system to identify the potential digital twins, fleet management, situational awareness, supply
maintenance requirements, to evaluate the values created chain tracking, employees tracking (location and health), and
through the IoT deployment, and to determine the re- pipeline monitoring. Despite a large number of applications,
quired modifications to obtain the maximum benefit from there are several challenges yet to be addressed when inte-
the system. Additionally, an in-house R&D team must grating IoT systems into the O&G industry. Among these
continuously evaluate the installed IoT system against challenges, vulnerability to cyber attacks, a lower techno-
the newer systems available in the market to identify IoT logical readiness level for deploying in Zone-0 and Zone-1
systems that are approaching obsolescence. hazardous environments, maintenance and obsolescence are
Once the first application is successfully deployed, the O&G three significant challenges that must be addressed when
operator can revisit the original research plan to identify deploying IoT systems in the O&G industry.
modifications. If no modification is required, a pilot program Most of the current studies and implementations have
for the second application can be initiated, followed by the in- limitations with respect to a lack of collaboration, a lack
dustrialization of the second application. This industrialization of operator engagement, and a limited understanding of the
integrates the first and second applications into a single system. challenges around IoT deployment. There are also many siloed
If modifications are required, the operator can implement these implementations. Thus, we proposed a research agenda for the
modifications before carrying out the pilot program for the O&G industry to effectively adopt IoT technology within their
second application. This iterative process continues until all operations. This is a five step iterative process, which starts
of the applications have been implemented and integrated. with understanding possible applications and the associated
benefits, challenges and infrastructure requirements of IoT
VII. S UMMARY adoption for the O&G industry. This is followed by defining
The capital intensive O&G industry is attempting to digitally the scope and research time-line (step 2), implementing and
transform business and operations to address several long- testing a pilot project (step 3), scaling the pilot project to
lasting issues, including high HSE risk, low oil prices for industry level (step 4), and monitoring the system to accurately
longer periods, and large crew turnover. Deployment of IoT- measure the value creation, identifying maintenance require-
based solutions to enable data-driven decisions is one of the ments and potential hardware obsolescence (step 5). This is
areas in which the O&G industry is investing as a part of their an iterative process which implements an application which
digital transformation. This article attempted to provide an offers the highest returns on investment and the best chance of
overview of current R&D trends, opportunities, and challenges being successful first. Neighbouring applications and processes
associated with IoT deployment in the O&G industry by are then integrated one at a time by following the same five
conducting a systematic literature review. steps until all of the applications have been implemented
In terms of publication patterns, the distribution of publi- and integrated. From the second iteration onward, the first
cations across conferences, journals, and book chapters was two steps, i.e., “understand” and “define”, mainly involve in
83.3%, 9.1%, and 7.6%, respectively. Approximately 81.8% re-evaluating the original IoT adoption plan and updating it
of the content presented theoretical concepts, while 15.2% as needed. When deploying an IoT solution, it should be
presented case studies, and 3.0% presented literature reviews. viewed as a integral part of HCPS instead of as an selective
The higher number of conference publications and theoret- independent implementation.
ical papers indicates that the research on IoT adoption for
the O&G industry is still at an early stage. The majority ACKNOWLEDGMENTS
(64.2%) of the articles were affiliated with companies in The authors would like to thank Petroleum Research New-
the supply chain, indicating that the supply chain drives IoT foundland and Labrador (PRNL), Atlantic Canada Opportuni-
adoption in the O&G industry, compared to O&G operating ties Agency (ACOA), Mitacs, University of Toronto’s Munk
companies or universities. Concerning the country profiles, School of Global Affairs and Public Policy, and Memorial
most of the research articles came from the US (38.4%) University of Newfoundland for their financial and intellectual
followed by the UK (10.2%) and Saudi Arabia (9.6%). In support for this research project.
terms of inter-organization collaborations among operators,
supplychain companies, and universities, 75.8% of the selected
A PPENDIX
articles had no inter-organization collaboration. 15.2% of the
publications had inter-university collaboration, while 4.5% A. Unique Words Count
of the publications had inter-supply chain collaboration. The Top fifty unique words along with word counts are given in
remaining 4.5% includes collaboration between universities, Table V. Note that some of the unique words, such as ‘figure’,
supply-chains, and operating companies. There was no col- ‘ms’, ‘http’, ‘https’, ‘new’, ‘use’, ‘paper’, in the top 50 list
laboration among the operating companies in the publications does not represents terms related to digital technologies but
identified in this research. are typical unique words found in any technical literature.
End-to-end IoT solutions have a variety of use cases for Additionally, Voyant Tools considers the singular form and
the O&G industry, including remote monitoring, remote op- plural form of a given word as two unique words, making
eration, remote asset optimization, predictive/proactive main- ‘sensor’ and ‘sensors’ as two independent words. In reality,
tenance, automation and control, monitoring of HSE com- they should be considered as a single term and the count
pliance, drilling and well construction, data acquisition for should be 1008 (i.e. 535+473).
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Thumeera R. Wanasinghe received the B.Sc. (Hons.) degree and M.Sc. George K. I. Mann received the B.Sc. (Hons.) engineering degree from the
degree in electronic and telecommunication engineering from University University of Moratuwa, Sri Lanka, the M.Sc. degree in computer-integrated
of Moratuwa, Sri Lanka, in 2009, and 2011, respectively. He obtained manufacture from Loughborough University, United Kindom, and the Ph.D.
the doctoral degree in electrical engineering from Memorial University of degree from Memorial University of Newfoundland, Canada, in 1999. From
Newfoundland, Canada, in 2017. Currently, he is a postdoctoral fellow with 1999 to 2000 he served as a Reserch Engineer at C-Core. In 2001, he
the Faculty of Engineering and Applied Science at Memorial University of joined Mechanical Engineering Department, Queens University, Kingston,
Newfoundland, Canada. His main research interests include distributed sensor ON, Canada, as a Postdoctoral Fellow. In 2002, he joined Memorial University
fusion, multi-robot systems, digitalization, and technological impact on the as a faculty member and he is currently a Professor with the Mechanical En-
society. gineering, Faculty of Engineering and Applied Science, Memorial University
of Newfoundland. From 2002 to 2007, he also served as the C-CORE Junior
Raymond G. Gosine received the B.Eng. degree in electrical engineering Chair in Intelligent Systems at Memorial University. His main research areas
from Memorial University of Newfoundland, St. Johns, NL, Canada, and the are intelligent control, robotics, and machine vision.
Ph.D. degree in robotics from Cambridge University, Cambridge, U.K., in
1990. From 1991 to 1993, he was the NSERC Junior Chair of Industrial Peter J. Warrian is a graduate of the University of Waterloo and the
Automation and an Assistant Professor in Department of Mechanical Engi- Sloan School of Management, Massachusetts Institute of Technology. He was
neering, the University of British Columbia, Vancouver, BC, Canada. In 1994, formerly Research Director of the United Steelworkers of America. From
he joined the Faculty of Engineering, Memorial University of Newfoundland, 1992-94 he was Assistant Deputy Minister of Finance and Chief Economist
and also served as the Director for the Intelligent Systems Group at C- of the Province of Ontario. He is the Chair of the Lupina Foundation and
CORE. Currently, he is a Professor and Associate Vice-President Research Past Chair of the Philanthropic Foundations of Canada (PFC). He is Vice-
at Memorial University of Newfoundland, a fellow of Canadian Institute for Chair of the Governing Council of Regis College, the Jesuit Graduate School
Advanced Research (CIFAR) - Program on Innovation, Equity & the Future of Theology at the University of Toronto. Currently, he is a Distinguished
of Prosperity, a fellow of the Canadian Academy of Engineers (FCAE), a Research Fellow at the Munk School of Global Affairs, University of Toronto.
fellow of Engineers Canada (FEC), a visiting professor at Innovation Policy His current research is on knowledge networks, supply chains and engineering
Lab Munk School of Global Affairs, and a professor (status) at Mechanical labour markets. He currently leads an international research team for a joint
and Industrial Engineering University of Toronto. Additionally, he serves project of the ILO and the Vatican on AI, Robotics and the Future of Work.
on the Research Capacity Panel for the Government of Alberta and the
Canadian Engineering Accreditation Board. He is also on the Board of
Directors for Shad International and the Health Research Ethics Authority. He
served as Chair of the Board of Directors of the Professional Engineers and
Geoscientists of Newfoundland and Labrador (PEG-NL) and currently serves
on the Registration Committee. He has served on the Board of Directors for a
number of organizations and companies involved in research and technology
development, including ACENET, C-CORE, Verafin Inc., and Genesis Inc.
His main research areas are digitalization, multi-agent systems, telerobotics,
machine learning, and artificial intelligence.
Lesley Anne James is an Associate professor and former Chevron Chair in
Petroleum Engineering in the Department of Process Engineering at Memorial
University. Dr. James’ research interests focus on sustainable oil production
by increasing oil recovery rates through enhanced and improved oil recovery
(EOR & IOR). Currently, her focus is on maximizing recovery from offshore
Newfoundland and Labrador through understanding the fluid-fluid and rock-
fluid interactions at the fundamental, core, and field scale. In particular
examining miscible/near-miscible fluid injection and optimal EOR strategies
for offshore production. Working closely with industry and international
collaborators, Dr. James is currently working on the use of carbon dioxide for
offshore oil recovery from complex reservoirs, integrated operations for max-
imising oil recovery in remote harsh locations, water-alternating-gas (WAG)
for Hibernia, EOR screening, Digital Oilfield education and technologies to
increase production and reduce costs. Lesley is a Professional Engineer of
Newfoundland and Labrador (PEGNL), is a member and past-president of
the Society of Core Analysts (SCA), a member, and faculty mentor of the
Society of Petroleum Engineers (SPE), a member of the Canadian Society of
Chemical Engineers (CSChE), and the European Association of Geoscientists
and Engineers (EAGE).
Oscar de. Silva received his B.Sc. degree in mechanical engineering from
the University of Moratuwa, Sri Lanka, in 2009. He joined the intelligent
systems lab of Memorial University of Newfoundland (MUN) in 2010 as
a graduate researcher focused on sensor design, estimation, and control
algorithms for robotic applications. From 2014 to 2015, he worked as a
sessional instructor with the department of Mechanical Engineering teaching
subjects related to instrumentation, engineering design and computer aided
engineering. After completing his doctoral thesis in 2015, he worked as a
research fellow for the American Bureau of Shipping-Harsh Environment
Technology Centre (ABS HETC) developing a computer vision system for
detection and tracking of pack ice for use in marine hazard warning and
avoidance systems. He is a recipient of IMechE UK award for outstanding
achievement, Gold medal in mechanical engineering from UOM, and awarded
fellow of graduate studies from MUN. In May 2016 he joined as an assistant
professor with the department of mechanical engineering. His current research
interests include design of sensors and state estimators to support industrial
surveying, inspection and autonomous navigation applications.
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