Downtime costs millions, inefficiencies eat into margins, and unreliable networks put safety at risk – this is the reality for oil, gas and petrochemical operators. Private 5G is often praised for its connectivity benefits, but there’s another major reason why private 5G is gaining traction in the oil and gas sectors - its substantial cost-saving potential.
The direct savings have always been known, and now realised by early adopters. Reduced infrastructure, minimised downtime and lower manpower costs result in higher productivity, lower OPEX and sustained competitiveness. Broader benefits include enhanced safety and faster decision-making. But as macro pressures intensify - labour shortages, cost inflation, and decarbonisation - the ability to operate lean, efficient and digitally enabled means Private 5G should now be a consideration for every refinery and petrochemical site.
Traditional connectivity is driving up costs and eroding operational efficiency
Large-scale operations require not just access points, but miles of Ethernet cabling, network switches, mounting points and constant upkeep. Since each Wi-Fi access point provides limited range, it needs a wired connection to the network, installation and maintenance costs balloon, while network blind spots and frequent outages continue to plague operations.
Even with this installation investment, Wi-Fi remains unreliable due to steel structures, high-powered machinery, and environmental interference contributing to connectivity dropouts. Workers then switch to manual processes which delays work and increases safety risks – translating directly into financial losses.
Public 5G is often considered a viable alternative, but for industrial operations there are risks:
• Data security - public networks send sensitive operational data off-site given the involvement of third-party cellular providers.
• Potential downtime – if external providers experience service disruptions.
• Latency - can be inconsistent due to network congestion and lack of QoS (Quality of Service) mechanisms.
• Control - operators depend on telcos for coverage and service quality, but in remote locations or high-demand environments, reliability is never guaranteed.
• Unplanned downtime – can cost oil and gas companies millions, making reliance on public infrastructure a financial liability.
With traditional connectivity driving up costs and eroding operational efficiency, oil and gas companies need new connectivity solutions.Transitioning to private 5G provides this direct path to cutting costs,optimising operations and securing long-term financial gains.
The cost-saving benefits of private 5G
Private 5G’s return on investment isn’t tied to a single ‘killer use case.’ Instead, its value comes from a basket of interconnected financial and operational benefits - each driving efficiency, reducing costs and compounding value over time.
Cutting infrastructure and maintenance costs
Private 5G requires significantly less physical infrastructure than Wi-Fi. A private 5G network can cover an entire refinery or plant with a fraction of the access points Wi-Fi would require. This means lower installation costs and fewer ongoing maintenance expenses.
Reducing unplanned downtime
Poor connectivity prevents early detection of equipment failures, process slowdowns and safety incidents. Private 5G ensures continuous, reliable coverage to support real-time monitoring of critical equipment. In one refinery, IoT sensors connected via a dedicated Celona 5G network resulted in maintenance turnaround being shortened by two weeks - saving millions in lost production.
Enhancing workforce productivity
Private 5G provides frontline workers with instant, on-site access to maintenance records, permits, and live video consultations with remote experts - eliminating the need for unnecessary travel. By cutting delays and reducing reliance on inefficient manual workarounds, companies can lower labour costs while significantly improving productivity and efficiency.
Automating manual processes to drive efficiency
Private 5G enables full-scale automation, allowing IoT sensors to track equipment performance, process conditions, and safety metrics in real time. With automation reducing the need for manual checks and interventions, companies can lower labour costs and improve safety, reducing the financial impact of human error and inefficiencies.
New ways of working to cut labor and travel costs
Private 5G extends high-performance connectivity to remote, high-risk environments, enabling autonomous vehicles, robotic maintenance systems, and remote monitoring - minimising the need for on-site personnel and significantly reducing travel expenses and safety risks.
Beyond automation, private 5G unlocks advanced tools like drones and augmented reality (AR), making them viable at scale. Drones can inspect remote pipelines or offshore rigs without waiting for a crewed helicopter, while AR headsets allow a lone field technician to collaborate with experts at headquarters via live video.
Optimising energy use and meeting regulatory demands
Private 5G enables real-time analytics that optimise energy use and reduces waste - cutting one of the industry's largest operating expenses. At the same time, tightening environmental regulations demand better monitoring and compliance. 5G-powered technologies like continuous leak detection and digital flare monitoring provide real-time emissions tracking, allowing companies to meet regulatory requirements more efficiently and avoid costly penalties.
Private 5G provides your financial advantage in a volatile market
In a high-pressure market, the competitive advantages of private 5G are just as significant as the direct cost savings. Oil and gas companies that embrace private 5G early are essentially seizing a chance to leapfrog competitors stuck with older network technologies. For your Insider’s Guide to Operational Efficiency and Digital Transformation, access this Case Study report by Geoffrey Cann (International Author and DigitalExpert) >
