Satellite Communications: getting to where cost justifies means. (Fewer Restrictions).

When all is said and done, most technology choices are driven by bottom line. While many technologies exist that can enhance performance and productivity, and/or improve communications, companies must deliver a compelling economic argument in order for it to makes sense. When implementation

This dilemma has been especially prevalent in the area of communications for the oil and gas industry--in particular satellite communications, which represents the only viable technology for access to and from remote locations. While it is generally acknowledged that there are considerable benefits to be gained by having voice, data and email communications with crews in those types of locations at sea or on land. the communications choices have been limited, the implementation cumbersome, and overall deployment far too costly to justify widespread usage.

Given the exorbitant costs, financial control becomes a risk factor. It is necessary for organizations to strictly control access to satellite equipment to ensure that only company-related business is conduct ed or, in the event of personal calls, that the charges are properly diverted or allocated. This can become a significant logistical and accounting challenge--not to mention a detriment to employee morale when isolated from family anti friends for weeks or months at a time.

The technical limitations of alternative technologies are w ell-known, Cellular sire ply cannot provide adequate coverage in remote areas. Mobile radios come with expensive tower/repeater installation requirements and line-of-site limitations. Privacy is also a concern, since communications are open to any interested parries.

As more traditional wireless services have proven already however, once costs reach an acceptable level and critical mass is achieved, economic and productivity benefits can be considerable--a phenomenon that we are now witnessing in the satellite field. For oil and gas operations, accessible communications for remote personnel (and equipment) can mean more frequent communications between crew" members and their families (i.e. improved employee morale), lower operating costs, reduced manpower requirements at sites, faster deployment of personnel on emergency calls, and ultimately, automation of selected communications between moni toring systems at remote sites and SCADA applications.

These benefits have already proven their economic worth in less rigorous business and commercial environments that have relatively easy access to remote communications tools. Cell phones and pagers, "intelligent" monitoring devices that can connect to the Internet, and laptop PCs have become mainstays for many commercial, utility and industrial operations today.

Of course, general voice communication will always be required for logistical coordination, emergency response functions, etc.. so it stands to reason that the more efficient and secure and less costly the service, the better, At the same time, as operations become more data intensive, communications technology must also be capable of accommodating this added dimension without significantly impacting the bottom line.

Among other developments, many utilities for example, are now leveraging communications capabilities to integrate their SCADA systems online to perform remote monitoring and control, trigger paging alarms, and other automated functions. Much of today's site equipment comes equipped with built-in software and hardware to facilitate connection to modems and transceivers for communications over the air, the Internet or PSTN (public switched telephone network) for ultimate connection with the home office. Field personnel can access monitoring and control equipment from virtually any location in the world--that is, as long as the connections are good.

Move beyond the more conventional boundaries however, and the accessibility issues become a ranch bigger challenge, When operating outside of "normal" range. connectivity to the Internet, a WAN, or other complex system is far from being a matter of simple plug and play. Yes, satellite communications can deliver the capabilities to a point. Historically however, that access has come at a relatively high price.

In addition, given the environments in question, there can be a myriad of technical, geographical and physical equipment hurdles to overcome, including antenna mounting locations, power requirements, electronic interference, and security, among others What this means from a business perspective, is that organizations whose operations and field crews are on ships or in extremely remote locations, have had to be very careful about managing expenditures in this area and are forced to limit usage and applications to only critical items.

Coverage limitations of the various technologies used to date have also created unnecessary complexities and precluded the adoption of a single, location independent solution. At the same time, a single solution can prove to be the most cost-effective because volume put chase for equipment and service can be maximized and technology development costs more focused.

All that is now changing. Satellite communications--like the evolution of cell phone services--are becoming more cost-effective, equipment more portable and versatile, and options more feasible. Now oil and gas enterprises can substantially expand communications in the field, as well as lay the groundwork for interoperability with SCADA systems over time. Over the next few months, oil and gas companies can expect to see some significant improvements both in terms of ease of access and cost savings, which will impact more than just a field technicians ability to phone home.

by Brad Sherrard, Vice President Business Development, Roadpost, Mississauga, Ontario, Canada