2021 Alarming Conditions of Today's Instrumentation and PLC-based Control Systems in the Oil & Gas and Petrochemical Industries
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BRIDGING THE GAP
2021 Alarming Conditions
of Today’s Instrumentation
and PLC-based Control
Systems in the Oil & Gas and
Petrochemical Industries
Is there a roadmap to embracing the Industrial
Internet of Things (IIoT)?
Is thBased on a 2021 Survey of Major Petrochemical
and Oil & Gas Industry Players
Executive Summary
In the wake of the pandemic, and volatile pricing on oil and other commodities, many
issues have come to light about the state of Instrumentation and Controls and its impact
on the Oil & Gas and Petrochemical Industries.
In partnership with M S Benbow, Control Engineering recently released its survey as to the
critical and potentially catastrophic conditions of the Instrumentation and Control Systems
of the Upstream, Midstream and Downstream Oil & Gas and Petrochemical landscape.
The report provides insight into the changing and potentially alarming conditions within
the Upstream, Midstream and Downstream Oil & Gas as well as petrochemical landscape
of Instrumentation and PLC-based Control Systems. Questions and topics ranged from
systems challenges to FEED (front-end-engineering and design) and average downtime
due to failures, to status on making current the industrial internet of things (or IIoT).
The long-term success of any company’s Instrumentation and PLC-based Control Systems
strategy includes the adherence to a health, safety and environmental (HSE) policy that
is compliant with standards and applicable laws and regulations where any company
operates. This remains a contributing factor to averting catastrophes, avoiding the pitfalls
of significant penalties and a loss of production profits.
“This survey is timely and essential.”
— Leo Holzenthal, Jr., P.E., President M S Benbow
Key takeaways of the Instrumental and Control Systems
Report include:
• Close to half or upwards of 60% of respondents from the chemical manufacturing
and oil & gas industries respectively expressed concerns about the growing technical
obsolescence of their current systems. This means the potentiality of catastrophic
system failure, safety concerns, cybersecurity risks, and financial impact. For facility
operators and engineers at a petrochemical plant, this could mean, equipment failure,
uncontrolled release of hazardous chemicals into the environment, and potential
loss of life.
BRIDGING THE GAP 2More than 70% of survey respondents from chemical manufacturing industries expressed
concerns about control software no longer being supported and 47% expressed similar
concerns about PLCs and HMIs.
• 51% of respondents had 2 to more than 10 unplanned outages in the past 6 months due
to instrumentation and control system failures. Two thirds of respondents had at least
1 unplanned outage. In addition to the potential, uncontrolled release of hazardous
chemicals, it can mean the loss of data measurements that operators and engineers
need to ensure machinery and processes are operating efficiently. The cost per outage
can be extremely high, sometimes running more than several million dollars depending
upon the length of the outage and the related impact to production.
Overview
We all have our own individual relationships to technology. Our personal computers,
our televisions, our cars, our smartphones, the IoT in our homes. The pace of change
keeps accelerating. Our tools quickly become obsolete and require replacement. We
understand, all too well, the costs and losses involved to stay functional — money, time,
and opportunity.
Thankfully the damage caused by our personal technological hiccups is limited in scope.
Stop to consider the impacts of such technological disconnect and turnover on an
industrial scale at our physical facilities and commercial workings.
Many of our most vital systems, facilities and natural resources in the United States are
guided by an aging and crumbling infrastructure composed of similarly vulnerable and
incoherent integrations of digital technology, machinery and controls.
Consider this. You serve as an instrumentation and controls engineer at an oil refinery.
The refinery relies on 22.5 million gallons of water flowing through its system daily. Now
imagine that a system goes down on a microprocessor based control device critical to
the refinery’s ability to enable that water flow function to operate. Because of aging
technology, a lack of the required skilled labor, and outdated documentation on the
microprocessor and complementary control systems, the refinery stops — unable to turn
crude oil into petroleum products. And, it relies on fixing it by replacing one part.
And, that one part is only available by having you, the facility manager, search on eBay™
for a spare.
BRIDGING THE GAP 3The supply chain is arrested. Products used for
everyday life disappear.
Imagine the vast cost of the continual integrations, patches, and system stoppages that
touch so many facilities and industries. The challenges of ever more complex system
maintenance grow exponentially.
Just as one maintains their home under budgetary constraints, so goes industry.
Companies that may need to prepare for remote environments weigh costs and benefits
and increase unstable or unsafe conditions as systems grow in complexity. These tradeoffs
are in part due to human-machine interfaces (HMIs) where newer operators may not
have a full understanding of complex legacy systems. In turn, the operators and decision-
makers may postpone necessary capital expenditures because those operators sometimes
do not know how to assess risk.
Facilities continue to hesitate to upgrade given the need to have experienced
professionals “reverse engineer” obsolete systems prior to designing their replacements,
as the legacy obsolete systems are rarely well documented. The hesitation then results in
a further gap in the ability to upgrade and correct the future potentiality of failure.
The impact on the oil & gas industry is clear — the problems at plants and facilities will
only get more expensive and harder to fix. Only by looking clear-eyed at the state of play
and planning for the needed upgrades will disaster be deterred.
BRIDGING THE GAP 4Critical Findings
1. No Clear Path Forward To Resolve Timely and Pressing Issues
Some Systems Patched Together With Parts Companies Can Only Find on eBay™
When asked the top two concerns related to Instrumentation Control and Systems, at
least 40% of respondents cited the lack of skilled resources and technical obsolescence
and more than 25% cited no clear upgrade plans, no budget and a lack of standardization.
While the oil & gas industry’s in-house instrumentation and control professionals are
most concerned about staffing and obsolete technologies, they sorely need a budget,
a sound ability to measure system interactions and a way to standardize their current
patchwork of systems and controls.
This survey reveals mounting concerns for
instrumentation and control systems in the Oil &
Gas and Petrochemical industries
What are your top 2 concerns related to your current instrumentation and controls
system configuration?
60
50
40
Percent
30
20
10
0
Lack of skilled Technical No clear upgrade No budget Lack of Lack of Connectivity Other
resources obsolescence plans reliability standardization issues (please specify)
This report compares data from the Oil & Gas industry segments –
Upstream Midstream Downstream Chemical Manufacturing segment
BRIDGING THE GAP 52. Falling Further Behind Today’s IT Technology
With Many Skilled Resources Laid off or Furloughed During the Pandemic,
Indicators Show a Rising Knowledge Gap With a Lack of Basic Blueprints
Over 40% of respondents lack critical elements to help remedy the complex problems of
the current state of Instrumentation and Control systems. This includes the lack of a basis
blueprint for existing software and systems, component parts and software that are no
longer supported by the manufacturer, and obsolete systems that fall far behind today’s
technologies available to the market.
Which of the following is a challenge to your control engineers and technicians?
80
60
Percent
40
20
0
Lack of accurate Parts or Systems are High frequency Control system Lack real-time Lack of Cyber risk Other
blueprint of software obsolete given of breakdowns struggles to deliver visibility into standardization (please specify)
current systems no longer today’s IT-driven or system required product processes due to with respect to
and software supported by advanced failures characteristics lack of machine PLCs, Control
used OEM control systems and equipment Software,
or supplier connectivity and HMIs
This report compares data from the Oil & Gas industry segments –
Upstream Midstream Downstream Chemical Manufacturing segment
BRIDGING THE GAP 63. Unplanned Systems Outages and Potential Cybersecurity Risks
Present Future Challenges
The Cost of System Outages and Cybersecurity Risk Can Be Devastating Especially
In Critical Infrastructure
Systems migrations, upgrades and maintenance are planned far in advance, especially as
it relates to those that operate 24/7 consecutively. However, 51% of respondents had 2
to more than 10 unplanned outages in the past 6 months due to instrumentation and
control system failures. Two thirds of respondents had at least 1 unplanned outage, with
20% being longer than 12 hours. The financial cost combined with potential physical
safety and cybersecurity risks requires a cost-benefit analysis for future risk.
To the best of your knowledge, approximately how many unplanned unit outages
have occurred at your facility in the past 6 months that were caused by
instrumentation and controls system failures?
60
50
40
30
Percent
20
10
0
None 1 2 to 5 6 to 10 More than 10
This report compares data from the Oil & Gas industry segments –
Upstream Midstream Downstream Chemical Manufacturing segment
BRIDGING THE GAP 74. With an Eye Toward the Future – How can we build a Roadmap
to Embracing the Industrial Internet of Things (IIoT)
Are we ready for widespread migration and upgrades in the United States?
The benefits of IIoT related to instrumentation and controls are well documented in
helping to enhance productivity. Manufacturers and end-users can gain greater insights
into machinery health and help prevent the potential for outages due to system failures or
obsolescence. Further, data analytics help guide instrumentation and controls engineers
to increasing productivity and maximizing efficiency.
How ready are Oil & Gas Upstream, Midstream, and Downstream providers to embrace
the future? More than 45% of respondents do not have the in-house resources to plan
and execute a smooth migration to safe and modern systems and technologies. Further,
more than half of respondents reported at least four or more different brands of industrial
controllers in use at their facilities. It is extremely important to note that this can be
difficult to find replacements, and ensure smooth future integrations.
With more than half of respondents (55%) either confident or very confident that their
existing suppliers/integrators had the automation efforts needed to carry them into the
future, budget and planning will be tantamount to helping optimize operations through
automation to ensuring compliance with cybersecurity and safety standards.
How confident are you that the IIoT technology integrators (or suppliers) bringing
new solutions into your facility have the viability to support your automation efforts
over the long haul?
80
70
60
50
Percent
40
30
20
10
0
Very confident Confident Not too confident Not at all confident
This report compares data from the Oil & Gas industry segments –
Upstream Midstream Downstream Chemical Manufacturing segment
BRIDGING THE GAP 85. Obsolescence of Control Systems Components
Even More Widespread at Facilities Than Anticipated – Pose Major Safety Risks
and Reveals Vulnerabilities
Plant and facility personnel know that “rip and replace” is not the solution in addressing
the obsolescence of existing equipment for a multitude of reasons ranging from cost,
to planned outages. However, mitigation recommendations that align around lifecycle
statuses and the availability of parts and services are critical.
For 2021, the survey has revealed that from Programmable Logic Controllers (PLCs)
to Control Software to Human-Machine Interfaces (HMIs), close to 65%, on average, of
facilities have obsolete control systems components and software.
If applicable, which of the following control system components have you identified
as obsolete at your facility?
80
60
Percent
40
20
0
Programmable logic controllers Control software Human machine interfaces Don’t know Not applicable
(PLCs) (HMIs)
This report compares data from the Oil & Gas industry segments –
Upstream Midstream Downstream Chemical Manufacturing segment
BRIDGING THE GAP 9Action Items
The survey findings have revealed the vulnerabilities of critical infrastructure in the United
States in 2021. Facility Managers, Operators and Plant Engineers are in dire need of a
clear path forward. Based on the data results of the survey, combined with M S Benbow’s
distinct expertise in site audits, feasibility studies, and front end engineering design, it is
clear that in order to avoid an ominous and potentially dangerous future for the oil & gas
and petrochemical industries, it is necessary for all plants to ensure:
1. Skilled Human Resources – to plan and implement solutions. In large waves,
personnel who have operated the instrumentation and controls at plants for years
have retired. The pandemic has led to widespread layoffs at plants — of skilled
and knowledgeable employees who can operate, maintain and analyze data of
Instrumentation and Control Systems.
Survey respondents see a widening gap in the talent pool of the future in terms
of being able to avert cybersecurity and safety risks and manage technical
obsolescence. Oil & Gas and Petrochemical Companies must put plans into place to
train resources and seek outside help to manage the future of their systems for the
forthcoming decades. Plants must find the talent pools for the next generations.
2. Clear Upgrade Plans – Crises cannot be averted without a clear path forward
that takes into account the latest technology, standardization, personnel training,
cybersecurity risks, and a myriad of issues that an upgrade presents.
For Oil & Gas and Petrochemical Companies to move forward, internal measures must
be taken to document clear, upgrade plans. External resources can be utilized to help
develop migration paths for the future. The survey results clearly showed gaps in
existing system definition and other documentation to help guide those who may
be in timely and sensitive situations to avoid disaster.
3. Leadership & Support – A C-suite that recognizes the seriousness of this problem
and budgets for a solution. The survey results show that information is not always
communicated from the C-suite to plant operators, managers and engineers. The
pandemic has clearly shown us alternate ways to convey messaging to all employees,
especially around awareness of complex, difficult, and evolving ideas and information.
The benefits of open, healthy communication and support of employees clearly lead
to dynamic and motivated employees helping focus resources on achieving optimal
outcomes. In the case of a plant, this means committed employees working to help
optimize success.
BRIDGING THE GAP 10Conclusion
The 2021 Instrumentation and Controls survey results are staggering. The vulnerabilities
in the United States’ most critical systems, facilities and natural resources have been
exposed, in part, by these results.
The key concerns exposed by this survey are well placed. A significant number of critical
control systems in use today are on the verge of obsolescence, or are already obsolete.
Additionally, those who are familiar with troubleshooting and maintaining these legacy
systems are retiring and no longer able to provide support. In order to address the many
issues associated with these obsolete systems, it is imperative to first identify, via field
audit, the offending systems, put together a standardization/replacement strategy, and
develop a migration path that takes into account available downtimes (i.e. scheduled
turnarounds) for system replacement and how best to take advantage of the new
features/functionality of today’s systems, including connectivity via IIoT.
A complete assessment of any instrumentation and control system, its intent, and
development of a comprehensive plan to meet the operational and reliability needs now
and in the future is a clear step forward.
Survey Methodology
Respondents in critical roles in the Oil & Gas and Petrochemical Industries provided
responses related to questions related to internal Instrumentation and Control Systems.
BRIDGING THE GAP 11About M S Benbow Keeping you on-line. Moving you ahead. We keep you on-line with pragmatic responses to your most urgent challenges. When your operations are halted or otherwise compromised due to faulty instrumentation and control systems infrastructure, every single minute counts — in lost dollars and disappointed customers. Your team at M S Benbow understands the need for speedy, but smart responses to such disruptions. We are expert troubleshooters who identify both direct and indirect causes, propose pragmatic solutions, and rapidly assemble the right equipment, software and expertise to get your operation going again. What’s more, in an era when experienced instrumentation professionals are hard to come by, our team brings instant expertise and insight to bypass a costly learning curve. We sustain your momentum by delivering savvy, product-neutral solutions. Many facility managers and engineers struggle with a dual challenge: investing in instrumentation and control systems infrastructure upgrades to enhance performance while also dealing with a cluster of failing, obsolete or underperforming equipment. Our team of engineers and instrument and control system specialists helps you emphasize the forward-leaning aspects of your business plan by selecting the best products and solutions available — without the bias often seen from manufacturers’ service reps. Our loyalty and focus always remain on you. We move you ahead by applying disciplined, dependable approaches that anticipate the future. When you are ready to plan for and invest in comprehensive upgrades of your instrumentation and controls systems infrastructure M S Benbow provides a rigorous, proven design process to achieve success. Our team members act as an extension of your team — as true partners — to move you from conception, to design, to installation, testing and implementation. You will appreciate our team’s commitment to make your “ideal world” come closer to reality by positioning you to succeed. For more information, contact www.msbenbow.com Dallas | Houston | Mandeville | New Orleans BRIDGING THE GAP 12
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