Operations and maintenance (O&M) costs are a significant burden for U.S. gas utilities, especially as they face rising energy prices, aging infrastructure, and increasing regulatory pressures. In response to these challenges, utilities must find ways to optimize their operations and reduce costs without compromising on safety, efficiency, or service quality. Digital transformation, powered by advanced technologies like artificial intelligence (AI) and automation, is playing a pivotal role in helping gas utilities achieve these objectives.
The question is no longer whether digital transformation is necessary, but how can it be leveraged to drive tangible results in O&M cost reduction. By adopting AI-driven solutions and digital tools like FYLD, gas utilities can streamline their operations, enhance field management, and ultimately lower the cost of maintaining and operating gas networks.
Traditionally, gas utilities have relied on paper-based processes, manual inspections, and reactive maintenance approaches. These methods are not only time-consuming but also costly. According to the U.S. Energy Information Administration (EIA), the cost of maintaining aging infrastructure in gas networks is one of the key contributors to rising O&M costs. As pipelines and other infrastructure age, the frequency of repairs increases, and utilities must divert more resources to keeping systems operational.
Challenges in manual workflows can further increase the cost of traditional O&M practices. In a traditional setup, utilities often have to send field teams out for routine inspections or to investigate reports of issues. These inspections are typically done in person, which can lead to additional site visits, extended downtime, and delays in resolving operational issues. When a problem is identified, the time spent on reporting and follow-ups can create delays in addressing the issue, making it harder to allocate resources in the most effective way. By automating administrative tasks and reporting, FYLD reduces the time spent on paperwork, allowing teams to focus on operational tasks.
For example, a FYLD customer saw 15 minutes saved per risk assessment, allowing workers to spend more time on the tools and less time on paperwork. Additionally, 100% of sites are now reviewed remotely in real-time due to FYLD's remote site visibility, further enhancing efficiency by minimizing unnecessary site visits.
To address these challenges, gas utilities are turning to digital solutions that facilitate a shift from reactive to proactive maintenance. AI-powered tools, such as FYLD, revolutionize how gas networks manage operations, enabling utilities to predict issues before they arise, optimize workflows, and reduce operational costs.
AI is not just about automation or data collection; it’s about using advanced analytics to make better decisions in real time. By integrating AI-driven solutions into field operations, utilities can reduce the need for on-site inspections, minimize downtime, and optimize maintenance schedules. These tools allow utilities to identify potential issues early, reducing the need for expensive repairs or emergency maintenance.
Real-time visibility and predictive maintenanceOne of the key features of digital transformation is the ability to provide real-time visibility into field operations. For gas utilities, this means that managers and supervisors can monitor operations remotely, track the condition of infrastructure, and identify potential issues before they lead to costly failures.
With AI-driven tools like FYLD, field teams can capture real-time data from work sites via mobile devices, such as video risk assessments (VRAs), which are analyzed by AI. This data provides an up-to-date picture of the operational environment, enabling managers to identify potential risks and areas for improvement early. Rather than waiting for an issue to escalate, these insights allow utilities to take corrective action before problems arise, reducing the frequency of costly repairs and unplanned downtime.
Predictive maintenance is a prime example of how digital tools can improve operational efficiency. Traditional maintenance practices often follow a fixed schedule, regardless of the actual condition of the equipment. In contrast, predictive maintenance analyzes data from past performance and real-time inputs to predict when maintenance needs to occur. This helps gas utilities avoid unnecessary service interruptions and reduces the need for time-consuming and expensive routine maintenance.
Automation and workflow optimizationAutomation is another key element of reducing O&M costs through digital transformation. Traditional workflows often require multiple manual steps, such as coordinating field inspections, collecting data, entering information into systems, and reporting findings. While these tasks are essential, they can consume valuable time and resources.
By automating many of these tasks, utilities can streamline workflows, reduce administrative overhead, and free up resources for more value-added activities. FYLD’s platform can automatically generate digital risk assessments based on real-time data from the field, significantly reducing the need for manual data entry and reporting. This speeds up the decision-making process and ensures that safety protocols are followed without requiring additional effort from field teams or managers.
In addition to automating data collection and reporting, digital tools can optimize fieldwork management. By using AI to assess and prioritize jobs, utilities can allocate resources more effectively, minimizing downtime and travel time for field workers. With the right tools, managers can easily identify urgent tasks and dispatch the right teams to the right locations, improving both efficiency and cost-effectiveness.
The real impact of AI and digital transformation on O&M costs can be seen in the measurable savings across gas utilities. By reducing downtime, streamlining workflows, and optimizing resource allocation, utilities can save significantly on labor and operational expenses. According to industry reports, utilities that adopt AI-driven maintenance practices see up to a 30% reduction in overall maintenance costs.
Furthermore, the ability to predict and prevent issues before they arise can save utilities millions of dollars in emergency repair costs. Gas companies that rely on predictive maintenance to detect early signs of pipeline wear or leaks can prevent catastrophic failures that would otherwise require expensive emergency repairs and replacements.
FYLD's early detection capabilities help minimize rework by identifying errors in real time, leading to higher quality work and reducing the need for costly adjustments. In fact, a 15% reduction in rework has been reported across clients. By supporting smarter decision-making, FYLD streamlines resource allocation and optimizes maintenance schedules, contributing to long-term cost savings and more efficient operations. With FYLD, gas utilities can ensure greater efficiency in new plant builds and reduce the total cost of infrastructure development.
Digital transformation also plays a crucial role in reducing costs for new plant builds. Developing new infrastructure is an expensive and complex undertaking, with a wide range of variables to manage, from material costs to labor to scheduling. By integrating AI-driven tools into the planning and construction process, gas utilities can better manage these variables and optimize the construction process.
AI can model and simulate various scenarios during the planning phase, helping utilities make more informed decisions about resource allocation, scheduling, and cost control. These tools can also help manage procurement by forecasting material needs and costs more accurately, reducing the likelihood of delays and cost overruns. As construction progresses, real-time data from the field can be used to monitor progress, identify potential issues early, and adjust plans as needed.
By applying these technologies to new plant builds, utilities can achieve greater efficiency, deliver projects on time, and within budget, and ultimately reduce the overall cost of new infrastructure.
The future of operations and maintenance in U.S. gas utilities lies in digital transformation. With rising energy prices, aging infrastructure, and increasing regulatory demands, it’s more critical than ever for utilities to embrace innovative technologies that optimize efficiency and reduce costs. AI-driven platforms like FYLD are empowering gas utilities to make better decisions, predict issues before they occur, and streamline field operations—all of which contribute to substantial reductions in O&M costs.
By embracing digital tools, gas utilities can not only improve operational efficiency but also enhance safety, extend the lifespan of assets, and drive sustainability across their networks. With FYLD’s ability to help reduce administrative work and improve quality control, gas utilities can focus on what truly matters—operational efficiency and reducing costs across the board. Digital transformation is no longer a choice—it’s a necessity for utilities looking to thrive in a rapidly evolving energy landscape.
Contact FYLD today to learn how AI-powered solutions can help your gas utility reduce O&M costs, optimize resources, and improve overall operational efficiency.