AI in Oil & Gas

When you say AI what comes to most minds are applications like marketing, gaming, social media, education, security, healthcare, and robotics. While those certainly are at the forefront of AI in our news feeds, AI is also taking the oil and gas industry by storm. According to an EY survey, more than 92% of oil and gas companies are either currently investing in AI or plan to in the next two years, with 50% of oil and gas execs saying they have already begun using AI to help solve challenges.

Here are some of the areas AI and machine learning can be used in the oil and gas industry

• Forecasting: Allows for better allocation of resources and can predict customer demand more accurately in a constantly changing market.
• Maintenance: Predict the risk of failure - optimizing maintenance and avoiding expensive shutdowns.
• Exploration: More effective identification of potential reservoirs - reducing time and cost.
• Back-office: Minimize errors and handle tedious, time-consuming tasks.
• EPA & Safety: Can monitor and detect potential hazards in real-time, allowing for a proactive rather than a reactive approach.
• Compliance: Data analysis automation, risk management improvement, and real-time monitoring enable a company to stay compliant and address any issues immediately.
• Well Optimization: Well design, placement, and spacing to optimize recovery and lower total cost.
• Supply Chain: Using real-time data the most efficient routes can be utilized and the most reliable suppliers can be used.

However, some challenges need to be considered and overcome to ensure a smooth implementation of AI in the oil and gas industry.

• Costly implementation due to upgrading the current legacy systems
• Regulatory and ethical concerns over data privacy and transparency
• Established culture and processes that can foster a spirit of resistance or fear
• Talent skilled in the AI technologies needed are in demand. Getting and keeping the talent you need can be a challenge.

Despite these challenges, AI is here to stay in the oil and gas industry. 

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*Cover Photo by Zbynek Burival on Unsplash