Stratus Case Study: Edge Computing in Midstream Oil & Gas

Case Study

Edge Computing in Midstream Oil & Gas How one large midstream Oil & Gas company use Stratus edge computing platforms from Penguin Solutions® to standardize and digitally transform terminal and pipeline automation

Challenges

Solution

Benefits

• Multiple, disparate systems

• Stratus ztC Edge™

• Increased asset lifecycles from

• Legacy technology applications

• Stratus ftServer®

and PCs • Frequent equipment failures •

Significant unplanned downtime

•

Rockwell Automation PlantPAX®

• Toptech Systems

three years to six years •

Eliminated unplanned downtime

•

Reduced workload for IT and OT personnel

• Standardized scalable and reliable hardware and software across operational applications • Received 24/7 support and services

© 2025 Penguin Solutions Oil & Gas Case Study - 06.2025

One of the largest independent liquid petroleum product pipeline operators in the United States owns and operates a diversified network of integrated assets that provide trusted midstream logistic solutions. With a global terminal network composed of more than 100 liquid petroleum terminals, over 7,000 miles of domestic pipelines, and millions of barrels of tank capacity, this Oil & Gas company manages the complex distribution of petroleum-based products. In recent years, the organization has made sizable acquisitions to become a global leader in the terminal distribution segment.

To keep up with rapid growth, this company needed to modernize technologies to support the expansion of operations while also increasing reliability and manageability of geographically dispersed IT systems. The firm discovered Penguin Solutions at an industry conference, which led to proactive internal discussions about implementing Stratus edge computing platforms to support their crucial terminal operations applications, which handle thousands of gallons of gasoline and distribute to gas stations across the country. After extensive due diligence that involved many rounds of testing across all disciplines—including field operations, infrastructure operations, client technologies, security, operational applications, and network operations—they decided to partner with Penguin Solutions.

Not only was the company looking for the support services to help manage their computing resources across operations—especially those that are geographically remote—but they also needed a solution that they could standardize to replace legacy PCs and technologies, improve operational efficiency, and reduce costly unplanned downtime. After installing a proof-of-concept system and receiving company-wide approval, they deployed Penguin Solutions Stratus ztC Edge platforms running terminal automation software across more than 100 sites. After seeing success with Stratus ztC Edge, the company then leveraged Penguin Solutions Stratus ftServer for its large terminal projects.

Challenges: Unplanned downtime, disparate systems, and legacy PCs and technology From load authorizations and product movement to inventory control and ticketing, this midstream leader started out using solutions and PCs that were not intended for the terminal automation space. The deployment and maintenance of industrial automation architectures raised key considerations with regard to managing both physical security and cybersecurity, driving IT/OT convergence, and connecting disparate systems and processes that the company had to address quickly.

The Senior Manager of Terminal Operations explained that the company needed technology that could operate in challenging conditions and support terminal automation applications. Their PCs were not intended for the terminal environment and became clogged with dust in their moving parts and fans. Workers often had to restore the PCs manually and struggled to match them with the version or restoration process that the company had in place. These legacy PCs also had shorter lifecycles and had to be replaced more often.

Employees were spending unnecessary time monitoring, managing, and repairing the PCs due to regular failures, which in turn led to significant and costly unplanned downtime. © 2025 Penguin Solutions Oil & Gas Case Study - 06.2025

Not only were the PCs not suitable for the environment; they also couldn’t handle multiple applications at once. Without support for virtualization, the company needed multiple PCs to run their full suite of applications. With so little flexibility, it was extremely difficult to keep terminal operations running efficiently. Reaping the benefits of automation and digitalization would require solutions that could be standardized organization-wide to increase operational technology efficiency, reduce downtime, and streamline operations.

The solution: Digital transformation and edge computing Newer technology and advancing toward digital transformation appeared to be the right solution for this company. They began their search for computing platforms that could support operational efficiency and enable easy deployment and management of new applications.

The company wanted a flexible edge computing platform that was scalable, robust enough to operate in difficult conditions, and able to run for a long time. Many of their PCs had only a three-year lifecycle and they needed to extend this asset lifecycle to six years at minimum.

With thousands of IT assets to manage across thousands of miles of pipeline, manageability and support were also critical. The company needed access to 24/7 vendor support and services to help manage remote assets.

They also needed an edge computing platform that offered a common operating environment and management for redundant and non-redundant locations. Other essential functionalities included integrated security (both physical and cyber), simple integration with enterprise operations, and remote management and monitoring capabilities.

© 2025 Penguin Solutions Oil & Gas Case Study - 06.2025

We were looking for systems that were robust and that would run for a long time and last us a long time.

Senior Manager of Terminal Operations

Stratus ztC Edge delivers simple, protected, autonomous operations and 24/7 proactive support After performance tests and pilots, the team received company-wide approval to deploy Stratus edge computing platforms, starting with the Stratus ztC Edge.

The company had operational goals that included standardizing a trusted and reliable platform, addressing IT/OT challenges, increasing asset lifecycles, and accessing vendor support and services.

The Stratus ztC Edge platform met their requirements because it is:

Simple

Protected

Autonomous

• Easy to manage and deploy

•

• Predictive health capabilities

• Sets up in minutes • Simple single-button restore

eamless failover with S embedded security

• Full stack monitoring

• Self-monitoring and self healing •

Automated administration

• Remote management

After implementation, the midstream company saw a major increase in efficiencies across their terminal operations, especially with regard to platform reliability and longer lifecycles. They also had a noticeable reduction in IT and OT staff workloads. Since Stratus edge computing platforms are continually monitoring and protecting assets, including those in extremely remote and hard-to-access locations, IT and OT staff can focus on other higher-value tasks. The company has now successfully standardized this solution with a complete rollout of Stratus platforms in its terminal operations.

We meet with Penguin Solutions, the business, and the IT families to look at metrics and make sure that we’re getting good solutions with the systems that we’re implementing, integration with hybrid cloud operations, and obviously, real-time analytics and Machine Learning modes [running] on the Stratus platforms.

Senior Manager of Terminal Operations

© 2025 Penguin Solutions Oil & Gas Case Study - 06.2025

Stratus ftServer for large terminal projects After finding success with the Stratus ztC Edge platform, the company wanted to learn more about the Stratus ftServer and team up to deploy the platform for a large terminal project. The premier terminal and export position connects crude oil pipelines to waterfront storage, providing a critical link in the global distribution chain. This location had two deepwater ship docks for loading crude oil with three to five million barrels of tank capacity that could be expanded to over 10 million barrels.

From an operational technology standpoint, the company wanted to find the best-in-class hardware and software for this large automation project. They needed simplified implementation, good disaster recovery, manageable operational technology, 24/7 vendor service and support, and a planned six-year lifecycle for computers. For a project of this size, it was also crucial that they standardize their hardware and software solutions, prioritize the convergence of IT/OT requirements, and advance the company’s digital transformation.

Learning from this extensive project, and expecting other large installations in the future, the Oil & Gas company standardized with: • Stratus edge computing platforms • FactoryTalk® VantagePoint • OmniConnect •

Rockwell Automation ControlLogix®

•

Rockwell PlantPAx® suite

•

Rockwell ThinManager®

• SDI-LPD and TopTech

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