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Cybersecurity Top Concern for Oil and Gas Sector

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Among the growing concerns about cybersecurity and the IoT, the industrial sector stands out.  Industrial IoT applications are in some ways more at risk than others.  Control networks traditionally safeguarded through complete isolation are now seen as sources for valuable data for companies to tap.  But connecting plant data to outside networks or the Internet must be done securely.  The consequences of a hack can cost thousands or millions of dollars, and possible loss of life.  Nowhere is this more evident than in the oil and gas sector.

In a recent report, Countering the Threat of Cyberattacks in Oil and Gas, the Boston Consulting Group (BCG) enumerates the concerns in that sector for cybersecurity.  They pointed in particular to upstream systems, such as remote data acquisition systems, gateways, transmission bridges, and controllers in exploratory rigs and drilling control systems.  This equipment and these networks are spread across vast areas, and are responsible for tracking and controlling the extraction and production of the oil and gas resources in the field.  Once considered too remote to worry about, as these systems come online, they should be considered possible targets for an attack.

“Until recently, the industry considered the traditional upstream systems in the oil and gas sector to be relatively safe because they were, in most cases, isolated,” the report said.  “But the industry’s growing use of connected industrial systems and networking technology—coupled with the ever-increasing need for real-time data and analytics—has introduced new risks.”

The BCG report outlines several specific areas of risk, and recommends a number of steps for CIOs and other executives to take.  These fall into three categories:

  • Boundary protection – The exploding popularity of mobile devices has driven operators and others to request or expect the same convenience they get at home or anywhere else in the world at their workplace.  Each device adds to the potential attack surface.  Wherever possible, remote users in the oil and gas sector should be given access to the data only, and not to the control system itself.
  • Remote access – This is essential to monitoring and controlling a wide-spread enterprise like oil and gas production.  Strong control over remote access points includes both physical access and software-based safeguards.  On the software side, we would recommend a secure-by-design, outbound-only architecture wherever possible for remote equipment or devices.
  • Information flows – If a malicious agent is able to interrupt, alter, or redirect the flow of information through the system, it could cause significant problems.  Firewalls, reverse proxies, DMZ technology and hardware solutions like data diodes can reduce or eliminate unauthorized access, while employing network-monitoring equipment and network-use rules can help identify any intrusions that do occur.

In all of these, there are both human and technical factors.  On the human side, operators and managers need to be trained and supervised to ensure that they are keeping security as a top priority, and adhering to the relevant policies.  The technology, for its part, should support those efforts by being as convenient and unobtrusive as possible, while still providing the highest possible level of security.

The BCG report concludes, “To protect themselves, their shareholders, and their customers adequately, industry players must make cybersecurity a highest priority and an ongoing consideration at the executive level.”  We agree.  And we would add that starting from there, this attitude should spread throughout the organization, and be present in each of its members, and the tools they use.

Skkynet’s SkkyHub Powers Becker Mining Demo at MINExpo 2016

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Leading gas monitoring system now IoT-ready, providing access to critical data for operations, maintenance, and management personnnel.

Mississauga, Ontario, September 26, 2016 – Skkynet Cloud Systems, Inc. (“Skkynet”) (OTCQB: SKKY), a global leader in real-time cloud information systems, announces that its SkkyHub™ technology is being used to provide real-time, remote data displays for a Becker Varis SSFM-100 smartsense® Atmospheric and Environmental System demonstration at MINExpo 2016 in Las Vegas, Nevada.  Show participants will be able to view live data from the SSFM-100 on a display monitor, as well as securely from their mobile phone browsers over their own cellular connection, in real time.

The SSFM-100 smartsense® monitor provides a lighted display on the sensor itself for a user to read data directly, and it also supports standard industrial data communications protocols like Modbus and OPC.  Connecting in this way to SkkyHub enhances the SSFM-100 by allowing its data to be viewed by any authorized user’s computer or mobile phone, with SkkyHub WebView™.

“Connecting to SkkyHub makes the SSFM-100 IoT-ready,” said Jian Zhao, Engineering Manager – Environment and Safety at Becker Varis.  “Mine managers can monitor the gas levels in the mine from a computer in the office, while ventilation maintenance personnel can see the same data from their smartphones from any location.  Here at our offices, we can also use that data for routine or emergency maintenance on the equipment, as needed.”

“This demonstration is a real-world example of the practical value of the Industrial IoT, and SkkyHub’s implementation of it,” said Paul Thomas, President of Skkynet.  “It’s all about putting useful or critical data into the hands of people who need it, on-site or remote, at any level of the organization.”

The smartsense® fixed monitor SSFM-100 with its integrated controller functions as a black box storing critical information such as calibration record, Alarm History and Data Logging for post-accident investigation. The SSFM-100 is an all-in-one package and eliminates the need for complex cables connections and troublesome programming, out of the box the SSFM-100 is the most versatile and hassle free Atmospheric and Environmental System on the market. The SSFM-100 system design has taken into account the requirements of the industry and placed on the security and features into a single compact design but still maintaining the main requirement of reliability / accuracy / low power consumption.

The SkkyHub service allows industrial and embedded systems to securely network live data in real time from any location. It enables bidirectional supervisory control, integration and sharing of data with multiple users, and real-time access to selected data sets in a web browser. The service is capable of handling over 50,000 data changes per second per client, at speeds of just microseconds over Internet latency. Secure by design, it requires no VPN, no open firewall ports, no special programming, and no additional hardware.

About Becker Mining Systems

Becker Mining Systems is a system supplier for mining infrastructure with its headquarters in Friedrichsthal, Germany. With 1,800 employees in every essential mining region, the company, which is completely family-owned, sells its products to the leading mining companies of the world. In addition to Germany, Becker Mining Systems is also represented by its own subsidiaries in France, Poland, Russia, China, South Africa, Australia, the United States, Canada and Chile. Since the middle of the 1980s, Becker Mining Systems has followed a consistent internationalisation strategy and thus countered the receding mining market in its home country.

About Skkynet

Skkynet Cloud Systems, Inc. (OTCQB: SKKY) is a global leader in real-time cloud information systems. The Skkynet Connected Systems platform includes the award-winning SkkyHub™ service, DataHub®, WebView™, and Embedded Toolkit (ETK) software. The platform enables real-time data connectivity for industrial, embedded, and financial systems, with no programming required. Skkynet’s platform is uniquely positioned for the “Internet of Things” and “Industry 4.0” because unlike the traditional approach for networked systems, SkkyHub is secure-by-design. For more information, see http://skkynet.com.

Safe Harbor

This news release contains “forward-looking statements” as that term is defined in the United States Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements, including beliefs, plans, expectations or intentions regarding the future, and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors, such as the inherent uncertainties associated with new business opportunities and development stage companies.  Skkynet assumes no obligation to update the forward-looking statements. Although Skkynet believes that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate. Investors should refer to the risk factors disclosure outlined in Skkynet’s annual report on Form 10-K for the most recent fiscal year, quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the U.S. Securities and Exchange Commission.

Manufacturers and Machine Builders Weigh In on IIoT

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With all the conversation swirling around about Industry 4.0 and the Industrial IoT, you sometimes have to wonder what’s actually trickling down to those people who are expected to buy in, like manufacturers and machine builders.  The bottom line is that someone is going to have to invest in the IIoT, and they expect to get a return on that investment. IIoT proponents are counting on manufacturing companies and OEMs to put some skin in the game.  But who is talking to them?

At least one person is.  Larry Asher, Director of Operations at Bachelor Controls Inc., a certified member of the Control System Integrators Association (CSIA), has been meeting with long-term customers in a number of industrial fields, and asking them for their thoughts on the IIoT. Their responses indicate an overall positive view of the potential.

Asher first reiterates a growing understanding that the IIoT is not just a new term for industrial networking, or SCADA as usual.  He says, “Though it is true that networking has existed as part of industrial control solutions for many years, traditional isolated control networks will not support the level of integration required for large-scale data and analytics, nor will they support the number of connected devices that will be a part of IIoT-based solutions. IIoT-based solutions demand connectivity, accessibility and security, making the network infrastructure critical.”

He then shares the insights garnered from his conversations, organized into four areas that the IIoT is expected to impact: data analysis, mobile/remote access, supply chain integration, and preventative maintenance.

Summary of Insights

Here is a summary of how the manufacturers and machine builders he met with view the impact of the IIoT:

Data and Analytics: Everyone agrees that investing in IIoT to enhance data collection and develop more sophisticated and powerful analytics is a good thing.  Applying this higher level of analysis is already impacting procedures and control implementation on the plant floor. Some manufacturers are even revising company organizational structures to bring in people who can maximize performance and profit using IIoT data.

Mobile/Remote Access: Access to data via mobile devices and/or from remote locations has seen less interest, but that is expected to change.  Right now the implementation is fairly low, despite the significant number of products and options available, perhaps due to a perception of high cost.  But, as Asher reports, “mobility remains as a central theme and poised for rapid growth with a change in the value proposition.”

Supply Chain Integration: As to supply chain integration, there was a wide range of experience.  Some saw little or no difference between current practices and what the IIoT has to offer, while others reported that the integration is so complete that suppliers now effectively have direct access to user inventory levels.

Preventative Maintenance: Manufacturers and OEMs alike appreciate the value of IIoT-based preventative maintenance.  With machines and equipment connected directly to the vendor, manufacturers can automatically generate maintenance work orders or request spare parts.  Vendors gain a competitive advantage when they are able to monitor and remotely service their equipment 24/7, which also provides them with a source of recurring revenue.

Overall, the views of those at manufacturing plants responsible for ensuring ROI validate the practicality and cost-effectiveness of the Industrial IoT.  As word gets out, and more decision-makers understand the benefits, we expect to see increased levels of adoption.

Skkynet Technology Featured in IEEE Paper and Presentation

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The feasibility and value of cloud-based data communications for power generation smart grid testbeds presented at IEEE General Meeting.

Mississauga, Ontario, July 19, 2016 – Skkynet Cloud Systems, Inc. (“Skkynet”) (OTCQB: SKKY), a global leader in real-time cloud information systems, announces that its SkkyHub™  technology supported research leading to a published paper presented at the IEEE Power and Energy Society General Meeting in Boston yesterday. The paper, “Cloud Communication for Remote Access Smart Grid Testbeds” by Mehmet H. Cintuglu and Osama A. Mohammed of Florida International University, concludes that “cloud communication can be successfully implemented for actual smart grid power systems test beds.”

“We are pleased that the IEEE has accepted this paper for publication,” said Paul Thomas, President of Skkynet. “This is a significant milestone in demonstrating the value of cloud-based, real-time data connectivity for industrial and infrastructure applications.”

The object of the research was to determine the effectiveness of cloud-based communication for integrating data coming from diverse, heterogeneous electrical system testbeds.  These testbeds allow students and researchers to quickly test and verify innovations and proof-of-concept systems. While networked testbeds are useful for testing large deployments of smart devices, traditional WAN approaches are costly.  “In cloud based systems operational costs are significantly reduced compared to dedicated high bandwidth wide area links which was previously a pre-requisite for creating successful networking test beds,” the paper states.

The cloud communications technology used for the research was Skkynet’s SkkyHub service, which the paper describes as “a SaaS platform providing secure end-to-end networking for smart grid devices such as IEDs and PMUs,” which can be “implemented on virtually any new or existing system at a low cost capital and provides a web-based human-machine-interface (HMI) for remote access and supervisory control.”

The SkkyHub service allows industrial and embedded systems to securely network live data in real time from any location. It enables bidirectional supervisory control, integration and sharing of data with multiple users, and real-time access to selected data sets in a web browser. The service is capable of handling over 50,000 data changes per second per client, at speeds of just microseconds over Internet latency. Secure by design, it requires no VPN, no open firewall ports, no special programming, and no additional hardware.

About Skkynet

Skkynet Cloud Systems, Inc. (OTCQB: SKKY) is a global leader in real-time cloud information systems. The Skkynet Connected Systems platform includes the award-winning SkkyHub™ service, DataHub®, WebView™, and Embedded Toolkit (ETK) software. The platform enables real-time data connectivity for industrial, embedded, and financial systems, with no programming required. Skkynet’s platform is uniquely positioned for the “Internet of Things” and “Industry 4.0” because unlike the traditional approach for networked systems, SkkyHub is secure-by-design. Customers include Microsoft, Caterpillar, Siemens, Metso, ABB, Honeywell, IBM, GE, BP, Goodyear, BASF, E·ON, Bombardier and the Bank of Canada. For more information, see http://skkynet.com.

Safe Harbor

This news release contains “forward-looking statements” as that term is defined in the United States Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements, including beliefs, plans, expectations or intentions regarding the future, and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors, such as the inherent uncertainties associated with new business opportunities and development stage companies.  Skkynet assumes no obligation to update the forward-looking statements. Although Skkynet believes that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate. Investors should refer to the risk factors disclosure outlined in Skkynet’s annual report on Form 10-K for the most recent fiscal year, quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the U.S. Securities and Exchange Commission.

How IoT Can Revolutionize the Oil and Gas Industry

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Have you ever driven past a gas field or oil refinery at night, and seen the blazing orange fires raging atop the gas flare stacks?  What a waste, eh?  How much money must be going up in smoke?  How much CO2 is the oil and gas sector needlessly spewing into the atmosphere?  It makes you want to pipe that gas to your own house and cut your monthly heating bills, if nothing else.  Surely there must be some way to collect that gas, saving precious resources and the environment at the same time.

Solving the Problem

Perhaps this decades-old problem can be solved—with the help of the IoT (Internet of Things).  In a recent article, From Measurement to Management: How IoT and Cloud-Based Data is Changing the Oil and Gas Industry, Adam Chapman, Global Director of Marketing at Fluenta, lists in detail the waste and damaging effects of gas flaring, and then shows how the IoT can transform the status quo through remote assest management.

“IoT applications can not only support measurement, but enable businesses to manage more effectively in hostile and hazardous locations,” he said.  “For the oil and gas industry, IoT connectivity will enable organisations to control risk more effectively, and support the necessary transition from measurement to management of greenhouse gasses as the industry addresses the problem of emissions.”

Opportunity

There is a big opportunity here.  Chapman says that the total amount of gas flared every year is roughly equal to 30% of the gas consumed in the European Union—over 150 billion cubic meters.  In Africa, where much of the flaring takes place, it adds up to about 1/2 of the total energy use for the continent.  Capitalizing on this missed opportunity can be done through proper asset management. “When applied effectively, remote asset management through connected infrastructure will revolutionise oil and gas operations,” says Chapman.

Gathering real-time data using the IoT can cut manpower costs of offshore platforms, provide input for continuous emission monitoring systems, and help centralize Big Data repositories for company-wide comparitive analysis, Chapman explains. “It is cloud technology and the ubiquity of internet connectivity that fundamentally brings significant change to remote asset management.”

Appropriate Technolgy

Offshore platforms and other remote industrial assets call for specialized cloud technology.  Skkynet provides not only the real-time data required by an industrial asset management system, but it also ensures secure connectivity and robust performance that is fully compatible with cellular and satellite technology commonly used in these kinds of applications.

Chapman says, “The combination of accurate, real-time information on remote assets and cloud technology can have a significant positive impact on moving an oil and gas operation from a monitoring approach to a management approach.”

Case Study: University of California, Berkeley, USA

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DataHub software integrates data for distributed control of unmanned aerial vehicles

For the past several years, students and faculty at the Vehicle Dynamics Lab (VDL) of the University of California, Berkeley, have been developing a system of coordinated distributed control, communications, and vision-based control among a group of several unmanned aircraft. A single user can control the fleet of aircraft, and command it to carry out complex missions such as patrolling a border, following a highway, or visiting a specified location. Each airplane carries a video camera and an on-board computer, and communicates with the ground station and the other aircraft in the formation. The control algorithms are so sophisticated that the fleet can carry out certain missions completely autonomously—without any operator intervention.

The control system for each aircraft runs on a PC 104 computer with a QNX6 operating system. Control is divided into three kinds of processes: communication, image processing, and task control. All of these processes interact through the DataHub software running in QNX. Each DataHub® instance is a memory-resident, real-time database that allows multiple processes to share data on a publish-subscribe basis. For this application, each process writes its data to the DataHub instance, and subscribes to the data of each other process on a read-only basis. In this way, each process gains access to the data it needs from the other processes, while avoiding problems associated with multi-processing data management.

For example, the communication software comprises three separate processes: The Piccolo process controls the aircraft, the Payload process communicates with users on the ground, and the Orinoco process handles communications with the other aircraft. Needless to say, each of these three programs needs information from the other two, as well as from the video and task control packages. All of this data is transferred seamlessly through the DataHub instance.

“DataHub software has contributed a great deal to our system integration,” said Brandon Basso, one of the VDL team members. “Its ability to restrict write privileges to each shared variable of the owner processes avoids many of the difficulties associated with multi-process management.”

For task control, there are two primary software packages: Waypoint controls visits to specified locations, while Orbit handles the orbiting “patrol” of a group of locations. These processes are monitored by a third, supervisory process called Switchboard. In addition to coordinating these processes, decisions must be made by the different aircraft as to which plane will take on which task. The complex calculations needed for this decentralized task allocation are mediated through the DataHub instance.

Waypoint and Orbit use input from the vision control and vision process. Prior to takeoff, certain algorithms are applied to previously recorded videos, to create a visual profile of the area, which is maintained by the vision control. In the air, this data must be compared to what the plane is currently flying over. A camera on the wing of the plane feeds data to the vision process, which analyzes the content and generates meaningful information about objects on the ground, such as waypoints on a river or road. This live content, along with the stored visual profile in the vision control, is fed through the DataHub software to Waypoint and Orbit.

According to the paper, A Modular Software Infrastructure for Distributed Control of Collaborating UAVs, published by the University of California Berkeley which describes it in detail, this project marks “a major milestone in UAV cooperation: decentralized task allocation for a dynamically changing mission, via onboard computation and direct aircraft-to-aircraft communication.” Skkynet is pleased that DataHub technology has played an important role in the success of this endeavour.