HomeNewsDigital Feature: Unlocking untapped value: The pathway to a midstream pipeline virtual control room via human-centric industrial autonomy

Digital Feature: Unlocking untapped value: The pathway to a midstream pipeline virtual control room via human-centric industrial autonomy

5/1/2025
Analysis indicates a compelling opportunity for vertically integrated midstream operators. By transitioning to advanced automation in pipeline control rooms, one can unlock significant value and drive margin expansion. This represents a substantial, often untapped, lever for profitability enhancement within the vertically integrated energy value chain.
To better understand the stages of this transformation, the author has drawn a parallel between the evolution of automation in commercial aircraft and the path to a virtual control room in midstream pipelines.
Stages of automation in midstream pipelines vs. commercial aircraft.
Level 0 - Manual Operations:
Pipelines: Operations are entirely manual, with decentralized decision-making and reliance on human intervention.
Aircraft: Pilots manually control all aspects of flight without automated assistance.
Level 1 - Localized automation:
Pipelines: Programmable logic controllers (PLCs) manage individual assets, providing basic automation at specific sites, similar to lane assist in automobiles.
Aircraft: Basic autopilot systems maintain altitude and heading, reducing pilot workload for routine tasks.
Level 2 - Centralized control:
Pipelines: Centralized control via SCADA and PLCs allows remote operation of the entire system, with operators intervening in critical situations.
Aircraft: Advanced autopilot systems handle more complex tasks, such as navigation and altitude adjustments, with pilots ready to take control if necessary.
Level 3 - Conditional autonomous pipeline:
Pipelines: The system operates autonomously under certain conditions, but operators must be ready to intervene. This level demonstrates proven technology and significant margin improvements, driving a 30% increase in margins for integrated midstream companies.
Aircraft: Autopilot systems manage most flight phases, including takeoff and landing, but require pilot intervention during unexpected events.
Level 4 - Autonomous pipeline:
Pipelines: Fully automated operations, including complex tasks such as swings, strips, and start-ups/shutdowns, integrated with scheduling and nominations.
Aircraft: Advanced autopilot systems handle all flight phases autonomously, with pilots primarily monitoring and intervening only in rare situations.
Level 5 - Virtual control room:
Pipelines: Operations are seamlessly integrated with nominations and scheduling, executed without traditional human interfaces, and replaced by individualized dashboards for monitoring and intervention.
Aircraft: Future vision of fully autonomous flights where pilots oversee operations from a virtual control room, intervening only when necessary.
Challenges and opportunities. Both industries face challenges with legacy systems. In midstream, SCADA and distributed control systems (DCSs) often require modernization to support advanced automation. This can be compared to renovating an old house – sometimes, a complete overhaul is necessary to build a strong foundation for the future.
Successful implementation also requires human adoption and trust. Training and gradual integration are crucial. Advanced artificial intelligence (AI) and machine-learning are essential for achieving full human-in-the-loop industrial autonomy, necessitating investment in technologies that enable real-time processing, connectivity, and seamless integration.
Looking forward: The autonomous driving parallel. The progress in autonomous driving provides a compelling parallel. Just as society has grown comfortable with autopilot in aircraft, the midstream sector must embrace the potential of human-in-the-loop industrial autonomy and virtual control rooms. The transition to higher levels of automation will unlock significant operational efficiencies and margin improvements.
The author's analysis reveals a compelling correlation between automation maturity and margin expansion:
  • Level 0 to 2: Up to 20% increase in top-line revenue currently realized by integrated midstream operators.
  • Level 2 to 3: Up to 30% increase in top-line revenue for integrated midstream companies currently in adoption.
  • Level 3 to 5: Anticipated up to 20% increase in top-line revenue for integrated midstream companies when we achieve human-in-the-loop industrial autonomy and virtual control rooms.
There is 30% increase in top line revenue left on the table by not adopting existing and commercially available technology. When added to the potential increase in efficiency, and thus revenue of full human-in-the-loop virtual control room, it's up to 50% increase in top line revenue available to vertically integrated midstream operators. The imperative is clear: midstream pipeline operators must act decisively to modernize their control systems and leverage advanced technologies. Waiting risks falling behind competitors who are already reaping the benefits.
Takeaway. In a rapidly evolving landscape, maintaining the status quo risks obsolescence. Vertically integrated midstream leaders must embrace innovation and proactively pursue the transformative potential of pipeline automation. The choice is clear: act decisively or risk being left behind.

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