August 23, 2023.
1. Introduction
The oil and gas industry is one of the most data-intensive industries in the world. With billions of dollars at stake, companies are always looking for ways to improve efficiency, reduce costs, and make better decisions.
Artificial intelligence (AI) is rapidly emerging as a powerful tool that can help oil and gas companies achieve these goals. AI can be used to automate tasks, improve decision-making, and optimize operations.
In this blog post, we will discuss some of the most promising AI use cases in the oil and gas industry. We will also provide a step-by-step guide for businesses that want to harness the power of AI.
2. Benefits of Using AI in the Oil and Gas Industry
There are many benefits to using AI in the oil and gas industry. Some of the most common benefits include:
- Improved efficiency: AI can be used to automate tasks that are currently done manually, such as data entry, inspection, and maintenance. This can free up human workers to focus on more strategic and value-added activities.
- Reduced costs: AI can help to reduce costs by identifying inefficiencies and areas where savings can be made. For example, AI can be used to optimize drilling operations, improve energy efficiency, and reduce waste.
- Better decision-making: AI can be used to analyze large amounts of data to identify trends and patterns that would be difficult to spot with human eyes. This information can then be used to make better decisions about things like drilling locations, production schedules, and pricing strategies.
- Increased safety: AI can be used to monitor equipment and operations for potential hazards. This can help to prevent accidents and improve safety for workers.
- Sustainability: AI can be used to develop more efficient and environmentally friendly ways to extract and produce oil and gas. For example, AI can be used to optimize water usage, reduce emissions, and develop new technologies for carbon capture and storage.
3. Step-by-Step Guide to Harnessing AI in Your Business
Aside from the use case on how companies are using AI in the oil and gas industry, there are steps that your company can also take to use AI in your line of business. If you are interested in harnessing the power of AI for your oil and gas business, here are some steps you can take:
- Identify your needs: The first step is to identify the specific problems that you want AI to solve. What are the areas where you can see the most potential for improvement?
- Gather data: Once you have identified your needs, you need to gather the data that you will need to train your AI model. This data can include things like historical production data, sensor data, and market intelligence.
- Choose the right AI technology: There are a number of different AI technologies available, each with its own strengths and weaknesses. The best technology for you will depend on your specific needs and budget.
- Develop and train your AI model: Once you have chosen the right AI technology, you need to develop and train your AI model. This process can be complex and time-consuming, but it is essential to get it right.
- Deploy your AI model: Once your AI model is trained, you can deploy it to production. This means making it available to your business users so that they can start using it to improve their operations.
- Monitor and evaluate your results: Once your AI model is in production, you need to monitor its performance and evaluate its results. This will help you to identify any areas where the model can be improved.
4. Examples of How AI is Used in the Oil and Gas Industry Today
Here are three examples of how AI is being used in the oil and gas industry today:
4.1 ExxonMobil and AI robots
ExxonMobil is using AI in submersible robots in ocean exploration. These robots have sensors that are used to detect natural seep which could indicate potential oil and gas deposits under the ocean floor.
4.2 Shell and Digital Twins
A digital twin is a virtual representation of a physical asset or system. It can be used to simulate the behavior of the asset or system, and to predict how it will perform under different conditions. In the context of the oil and gas industry, digital twins can be used for a variety of purposes, including:
- Asset monitoring and maintenance: Digital twins can be used to monitor the condition of assets, such as pipelines and pumps. This can help to identify potential problems early on, and to prevent unplanned downtime.
- Reservoir management: Digital twins can be used to simulate the behavior of oil and gas reservoirs. This can help to optimize production rates and to maximize recovery rates.
- Drilling optimization: Digital twins can be used to simulate drilling operations. This can help to improve drilling efficiency and to reduce costs.
- Production optimization: Digital twins can be used to simulate production operations. This can help to improve efficiency and to maximize output.
- Safety: Digital twins can be used to simulate safety risks, such as leaks and spills. This can help to improve safety procedures and to prevent accidents.
Shell Global Solutions International is using digital twins to digitalize its global assets to enable a new and more sustainable way of operating heavy assets for their global workforce.
4.3 BP and Digital Energy
Another use case of AI in the oil and gas industry is BP that acquired UK-based Open Energi, a digital energy business that uses real-time data to optimize the performance of energy assets.
Open Energi's platform connects customers to power markets and provides flexibility at times of low renewable-energy generation and during price peaks. The acquisition helps BP to integrate digital technologies into its operations and shows how using AI is one way to become a more sustainable energy company.
5. Conclusion
AI is a powerful tool that can help oil and gas companies improve efficiency, reduce costs, and make better decisions. The use cases highlighted above show how AI is used in the oil and gas industry.
At Reclever.ai we are providing a specific AI search engine for professionals in the oil and gas industry. You can ask questions and retrieve answers from a ChatGPT-style bot that gives you insight based on the latest oil and gas industry market reports and news. See more info here.
