Asset Tracking
How RFID Transformed Asset Tracking in Oil and Gas Industry?

How RFID Transformed Asset Tracking in Oil and Gas Industry?

How RFID Transformed Asset Tracking in Oil and Gas Industry?

RFID (Radio Frequency Identification) technology has been around us in various forms since World War II.

That was the time where work on the first radar system generated the use of passive RFID systems to distinguish friendly fighters from enemy fighters in the skies over war-torn Europe.

In these 70 years, transformation in electronics from transistors to microchip technology and the creation of miniatures of components have allowed the announcement of radiofrequency technology as a cost-effective and non-interfering tool for the global industry.

Radio Frequency Identification (RFID) technology has transformed several industries like automation, manufacturing, medical science, retail, telecommunications, and the oil and gas industry.

The business sectors like retail were keen to embrace and develop the use of RFID in global commerce, doubt within the oil and gas industry has seen a piece by piece uptake of RFID solutions.

However, attitudes of business associated people have begun to change. Implementation of RFID technology is tried and tested evidence across the business world and forced to turn heads in the most conservative territory in the global enterprise.

The oil and gas industry is using applications of RFID extensively for their improved operational efficiencies, better production, and safety of workers and equipment.

RFID technology including tags/readers provides a strong and long-lasting solution for various services like asset management, administration, operations, and production and distribution in the oil and gas industry.

This RFID technology ensures smooth operation from the facility to the actual delivery of the final product.

How RFID helps in the functioning of the Oil and Gas Industry?

During the inspection or production of the crude oil and gas RFID technology is very responding in this industry of oil and natural gas.

RFID tags or readers are attached to the drilling pipes for the measurement in-depth, for pipe health and for the measurement of estimated depth in which oil is available.

RFID tags have information related to underground temperature, flow rate velocity, stress, and mud composition.

They used pipes and drills are also tagged with RFID tags that give information regarding pipe identification number, age, length, number of times it is used for drilling, recent job ID, etc.

The RFID procedure helps oil drilling companies to select the required equipment for their proper operations.

Also Read: Which Industries are using RFID for Asset Tracking?

How RFID helps in the maintenance of the Oil and Gas Industry?

The RFID technology is used extensively in the facilities or oil rigs, where the pipelines and other equipment undergo extreme temperatures due to which they start to disintegrate very quickly and after some time lead to loss of oil and simultaneously become a threat to marine life.

To maintain this equipment and units, RFID tags are used for the identification of individual pipeline joints and their assemblage, oil leakage from the pipes, pipeline joint pressure, proper assembling of the pipework equipment during exploration, and unreachable pipes or flanges.

RFID tags are also attached to underwater equipment to identify factors that might be harmful to the marine system.

The tags also assist in tracking remote vehicles and divers who work in remote areas finding digging sites.

RFID with metal surface compatibility is used for all kinds of oil drilling, exploration, and transportation equipment.

How RFID imparts safety and security?

RFID technology is also used for the safety and security of the workers working in the location.

RFID badges incorporated with GPS technology are issued to the workers and divers during their fieldwork. These badges help to trace and rescue workers in case of any incident if happen.

Workers in the inspection locations or rigs are also given safety equipment that is mandatory for the work process.

Then, the RFID readers verify the equipment and location of workers whenever workers pass through the gates located in the actual sites during their work hours, if the presence of any unauthorized person is detected in the location, then the headcounts are taken after a fire drill.

Rfid Imparts Safety and Security
Also Read: RFID vs NFC: How They are Different in Terms of Asset Tracking?

How RFID assist in the conducting processes?

The RFID badges issued to workers allows to track their daily attendance, entry and exit timings, activity logs and even parking facilities.

The parking area is equipped with the RFID transponders, which helps to automate authorization and logging entry or exit of vehicles.

For handling a document inventory and tracking application, a handheld RFID reader is integrated into a personal digital assistant (PDA) that reads RFID tags attached to the documents.

How does RFID affect your business?

There are many benefits of RFID technology that makes it possible to create a solid business example for its use in different industries and for different applications.

RFID is one of those versatile techniques that is used across construction, engineering, the chemical industries, manufacturing, retail, logistics, and the public sector, and many others.

However, the usefulness of various benefits of RFID in different-different sectors.

Following are some of the benefits of RFID:

1. Cheaper with Increased Productivity

RFID applications can automatically update the information regarding the movement and location of assets, components, stock or other items.

Due to this automatically saved data, time consumed was less which makes work done quicker while reducing all the costs and with greater accuracy.

This way reliability is more accurately possible in comparison with manual methods and comparatively more details can be obtained from the techniques like bar-coding.

Data collection can be a by-product of other activities, eliminating the need for effort in form filling. Identifying products using RFID is quicker than barcode scanning or manual entry of product details.

2. Improved Data Capture Excellence

While using RFID technology you get the assurance that data is being captured rapidly and accurately.

It's an electronic way to collect data with RFID to avoid data transcription errors and to avoid missing items when the collection of data is in a large number of items at a moment.

3. Reduction in Capital Costs

RFID technology helps to lower the costs by providing better control of stocks or assets.

This helps in keeping track of business assets such as equipment, transport packing, computing technology, and other portable and non-portable devices.

4. Enhanced Security

The contribution of RFID in control system access has improved the security of business premises in an excellent way.

RFID tagging of stock and assets makes it easier to track inventory in case of decline and tags can be used to fight against asset forging.

Recommend To Read: Businesses Must Know About the Best Practices in Asset Monitoring

5. High Revenues

Using RFID, the business can get high revenues, first by avoiding the reliable gap between quantity of ideal stock available for orders and actual stock present in the warehouse, and second, by providing upgraded data on product movements.

Organizations with RFID can provide a better service that creates a healthy competitive differentiation and allows them to promote customer satisfaction at high rates; creating a space for opportunities higher in sales and better in margins.

6. Quick Process

The processing time from order to dispatch and delivery is rather quick with RFID technology as it is integrated with other manufacturing or supply chain technologies like automated pallet handling, stock-picking systems, etc.

7. Accurate and Relevant

Since, RFID allows the data to be captured in real-time as stock and assets are moved with detailed information being up-to-date and therefore, management information is available for planning and operational management purposes.

Benefits of RFID


If you are into running your oil and gas industry-based business without using RFID Technology, then you are missing something huge. But if you are using it then you already know how efficiently it works.

It is cost-effective, gives real-time information, accurate information about inventory. Therefore, RFID technology can be used in any industry.

Also Read: RFID vs Barcodes: Which One is Better for Asset Tracking?

Frequently Asked Questions (FAQs)

1. What is asset tracking software?

Asset tracking software is a software that allows tracking of the movement of devices, equipment, and software within a business environment. It builds the list of all the technologies that help a business environment to track the location of each of their asset.

2. What are asset tags used for?

Basically, asset tags are the labeling with an adhesive back. Generally, asset tags are made of a material which is anodized aluminum or laminated polyester. Commonly, the design includes the logo of the association and code with the asset details. Barcodes and QR codes are used on asset tags to speed data entry and to reduce field entry errors.

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