Oil & Gas Network Magazine
by Shelly Brimble, February 2005

The Petroleum Services Association of Canada (PSAC) reports that millions of dollars of oilfield equipment and supplies are stolen in Alberta every year. Often, random thieves seize opportunities to steal equipment for end-users in return for cash. In addition, organized thieves have networks of vendors that can move equipment around the country (or overseas) quickly. With equipment spread out over vast geographic areas, it is difficult for operators to track all of their assets.

But now the Canadian petroleum industry has access to a cost effective asset tracking system that can provide real-time detailed information about the location of equipment throughout the field as well as data for preventive maintenance, and utilization reports. Companies can view asset information on demand, through the Internet, using a Global Positioning System (GPS) combined with wireless solutions from Calgary-based Longview Advantage (previously ATS Asset Tracking Services).

The company initially started providing theft protection of vehicular assets in 1999. Since then, this technology has been used throughout North America to recover stolen outdoor power equipment—within less than one-hour of the crime and has led law enforcement to theft rings worth more than $1 million. This asset tracking technique has been so effective for theft protection and stolen goods recovery that some insurance companies are already reducing premiums for end-users.

According to Don Douglas, president and CEO, industry adoption of this asset tracking solution has been slow until 2004. “In the last year people have been saying that I not only understand the benefits of this technology, but I need it because it does what I want it to do and the ROI is down so they can easily afford it,” he says. Longview Advantage’s wireless solutions provide a ROI between six-months to one-year.

Costs are minimized because the system operates on exceptions so wireless communications are sent back to head office only if the asset moves outside a certain parameter. This can significantly cut down on the amount of wireless data that needs to be transferred, thereby reducing the operating costs of the system.

The asset tracking is conducted through a vShepherd™ system that combines GPS location with wireless technology and the Internet. It is packaged in a palm-sized box that can easily be hidden on a vehicle or compressor with installation taking less than one-hour.

Not only does it tell you where the asset currently is, but using certain features, it can also provide a history of where it was prior to that location. For example, a company could locate a compressor or a portable generator using the vShepherd™, know precisely where it is located, how many hours of service, and when its next maintenance should be scheduled. Parameters could also be set for the operator to be notified if there were any indications of a potential failure.

A vFence™, or virtual perimeter can also be set through the Internet to alert users with an alarm 24/7 if the asset moves out of the area. “The oil and gas industry is very excited about this capability so this was the first application, “ Douglas says. “Companies want to know the state of their assets sitting out in remote locations. Is it still there? When they show up at the job site, will it be there when they need it?” Geofences can also be established along transportation routes to indicate if the driver has veered from a preset course.

More recently, a preventive maintenance module was added to FleetReach™ enabling users to effectively manage equipment maintenance. From a web-based report, you can see ahead of time what machines will need maintenance and where they are located. It creates efficiencies for service departments whether they are monitoring excavators, trucks, or generators.

The preventive maintenance module gives service and supply companies a competitive edge. “When you are going out to do preventive maintenance, you are not going out to fix a piece of failed equipment that is sitting idle and not gaining revenue, or you have an angry customer who can’t use something and you have to rush another piece of equipment to the job site. You can prevent those costly breakdowns by knowing the status of your assets at all times,” Douglas says.

FleetReach™ provides access to detailed reports such as hours of service and maintenance schedules. In addition, it will soon be augmented with utilization capability for inventory management. For example a contractor or a service company could instantly see where all of their assets are, identify usage or inventory status, and then dispatch the proper machine for a job.

The wireless solutions provided by Longview Advantage utilize cellular coverage which can be a limiting factor for the petroleum sector that works in remote locations. “Although we have excellent North American coverage today, as we evolve we plan on adding the capability of satellite communications as well. It is in our planning cycle to offer this so that drilling rigs could use this whether they are in the high Arctic, in the middle of Alberta, or offshore in the Gulf of Mexico,” Douglas says. He foresees having a dual functioning system that will use cellular when available and switch to satellite when the asset moves into non-coverage zones.

Currently GPS is effective in tracking assets outdoors, but Douglas says it is months away from being able to track inside buildings.  Within a couple of years he expects the technology will evolve into small pendants that could be used to track the most valuable assets—people. These devices could be potentially used by employees in hazardous areas to ensure personal safety.

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