The Oil and gas industry is one of the largest sectors in both the United States and the world.

The industry is filled with high level competitors set on continuously innovating to meet new challenges. Keeping up with these changes can sometimes prove difficult for your company.

Whether it be improvements in measurement, upgrades to key components of production, or simply reinvigorating existing systems, overcoming challenges with the right solutions is essential to remain solvent and competitive.
The oil and gas industry is a tough and high-stakes market, and there’s no other position to take but the top.

Facing New Challenges

As the market evolves, the challenges that any business in the oil and gas industry faces can have both direct and indirect effects.

The three main challenges that companies should pay attention to are the following:
  • Reducing production costs 
  • Improving systems performance
  • Meeting stringent environmental regulations

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Reducing Production Costs

Gaining an advantage over competition can be accomplished through cost reduction. Over time, equipment will inevitably become less efficient, less reliable, and more prone to errors or breakdowns. This leads to higher production costs. You can manage these costs by upgrading key equipment and systems.

The best areas to upgrade are:

  • Measurement equipment – By upgrading measurement equipment, you will have more reliable readings and fewer errors. By reducing downtime or bad readings due to faulty equipment, you will see a boost in reliability, leading to higher revenues.
  • Safety systems – Making sure safety systems are as up-to-date as possible is imperative for day-to-day operations. Having the most reliable safety equipment can help reduce accidents and keep production going.
  • Pressure systems – Upgrades to pressure systems will help your operation run more efficiently. Higher rates of efficiency can lead to higher production and better revenue.
  • Radar – Upgrades to the radar will allow your business to have a better visualization of your operations. Avoiding spills and tracking the movements of the materials being extracted or shipped will reduce overall costs.

By staying on top of upgrades to key areas of operation, your company will be able to maximize efficiency throughout the production process. This will make a major impact in reducing costs.

Improving Performance

While upgrades to key systems and implementing innovation in needed areas reduces production costs, it also can initiate higher performance overall. By enhancing pressure, flow, gas detection, and other key systems, the data collected from such will be more obtainable and reliable.

While upgrades to key systems and implementing innovation in needed areas reduces production costs, it also can initiate higher performance overall. By enhancing pressure, flow, gas detection, and other key systems, the data collected from such will be more obtainable and reliable.

  • Better data
  • Higher rates of production
  • Less monetary loss due to downtime
  • Longer lifespans of key equipment

Reducing errors and enhancing the efficiency of your equipment will improve the overall performance of your company.

Meeting Increased Regulations

Due to the changing climate, regulations also continue to shift and become stricter. This means that your business will have to pivot and adapt, as well. This is irrefutably the most difficult challenge facing the oil and gas industry today. Consequences of failing to adequately meet increasing environmental regulations can result in any of the following for your company:

Ensuring your company is not only recognizing these shifts but actively engaging in ensuring increasing profitability will allow your company to remain highly competitive.

Increased competition can be combatted through the following key methods:

  • Upgrading key production systems to ensure efficiency and reliability
  • Ensuring flexibility in production to combat fluctuating consumer preferences
  • Staying up to date with the latest quality control regulations
  • Investing in innovative technologies to lower overall costs

Implementing Core Solutions

At different points of the supply chain within the oil and gas industry, solutions to core challenges will be different. The type of recommended systems will be looking for innovations to reduce costs, improve performance, and meet environmental regulations. Strategies will vary slightly depending on whether your company is:

  • Upstream
  • Midstream
  • Downstream


This is the furthest point in the supply chain from the end consumer. If your company specializes in exploration and production, there are key solutions that can alleviate identified challenges.

These include:

  • Gas detection safety systems
  • Pressure
  • Flow
  • Radar level
  • Advanced analyzers
  • Remote monitoring of well sites

Upgrades to any of these areas will allow you to identify raw materials more easily and boost extraction efficiency. This will increase the overall productivity of your business.


If your company is classified as midstream, the most vital areas to monitor and upgrade include the following:

  • Flow measurements 
  • Asset management 
  • Pipeline leak detection

Managing and upgrading transportation and storage systems for oil and gas is absolutely crucial to avoid points of failure and subsequent environmental damages, which could result in huge financial losses.


If your company is classified as downstream, ensuring proper upgrades within the refinement process will be fundamental to meeting industry challenges. Innovations to gas analysis, flow, pressure, and other measurement systems is crucial to ensure that your company remains in line with environmental regulations for refineries.

Major areas in production to consider are: 

  • Pressure and temperature
  • Flow
  • Radar and nuclear level
  • Gas detection
  • Liquid and gas analysis
  • Networking solutions

Challenges are Hard, Let’s Make Solutions Easy

As the oil and gas industry continues to change, challenges prove to be even more difficult to navigate throughout the production process. However, ensuring that your company is best situated to meet these challenges does not have to be difficult.

Implementing the right solutions can lead to a more competitive bottom line, higher production efficiency, and enhanced resilience amidst the changing environmental regulatory landscape.

Find out more today about how your company can meet new and existing challenges with the right instrumentation and application solutions.


Discover our full scope of offerings–from cutting-edge instruments to custom training and dedicated service, TechStar is your Total Solutions Provider.

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