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Many Drones Grounded by Oil Companies in Cost Cutting Moves

Before oil prices went plummeting drones were seeing increasing popularity and use in the oilsands, but recent cost cutting due to continued low oil prices and an economy that is still struggling to recover seems to have grounded many of the drones intended to be used in the oilsands. Just a few years ago entrepreneurs were outdoing each other trying to attract energy and pipeline companies who operated in the oilsands but that is no longer the case. The ability to experiment with emerging and new technologies has been compromised by numerous canceled projects, capital spending reductions, layoffs, and billions in lost revenue because of the sharp drop in the price of oil. Workers are also hesitant to support drone and automation use out of fear that they will eventually be replaced by this technology in the future.

The current economy and the cost cutting that has grounded many of the oilsands drones could be seen as a benefit though. ING Robotic Aviation chief operating officer Jeremy Byatt explained that “You would think the low cost of oil would be a payday for innovation because our industry clearly reduces costs and risks. You would think the low cost of oil would brighten things up in terms of financing innovation because these clearly reduce costs and risks. That simply isn’t happening these days.” Centovus Energy spokesperson Sonja Franklin said “We’re not doing as much surveys as we were before based on activities and spending. We would like to use more UAVs more often, but we also want to reduce our spending right now.”

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