Redline wins contract for Omani oil wells

It's always nice to see a timely piece of news. Over the weekend I noticed this piece of news from Redline Communications. They're to wirelessly connect 2,000 oil wells in Oman.

I say timely because I have just put the finishing touches to Machina Research's report on M2M in the Manufacturing & Supply Chain sector. In our definition extractive industries (oil & gas, minerals, etc.) are included in this sector.

Our view is that there are around 400,000 connected sites in this sector worldwide as of the end of 2011 and this will grow to over 1 million by 2020. There are huge benefits associated with connecting wells in particular. In many cases they're remote and unmanned. The cost associated with remotely monitoring is a fraction of the cost of sending people to check production on a regular basis, and there are substantial efficiency savings to be gained from only sending a tanker when the storage capacity has been reached. This increasing efficiency means that previously uneconomic wells can continue to produce.

If you're interested in M2M in the extractive sector, then the report Machine-to-Machine (M2M) Communication in Manufacturing & Supply Chain will be available from later on this month as part of the Machina Research Advisory Service.