With a GDP of over $70 trillion making up for almost 5% of the global economy, Oil and Gas Sector is incontrovertibly one of the most significant ones in the world.
But in past few years, the sector has seen huge losses, which have indirectly affected the world’s economy and job industry as well. Stats say that since 2012, Organization of Petroleum Exporting Countries (OPEC) members have seen a fall in revenue of over $750 billion. Consequently, some of the biggest Exploration and Production (E&P) companies like Shell, Aramco and Schlumberger have cut costs on various fronts to soak up the losses, resulting in thousands of professionals losing their jobs.
But then recovering from these losses is not the only challenge Oil & Gas industry faces; improving its performance with smart investment decisions, while working synergically in the best interests of our ecosystem, is the real challenge here.
This calls for something that can integrate the elements of Oil & Gas Industry. Something that can utilize the enormous data present in the industry to prepare a more feasible, future-proof approach. In simpler words, we need AI in the sector.
Full-fledged application of AI in Oil & Gas sector could be game-changing. Evidently, some of the biggest industries like ExxonMobil, Royal Dutch Shell, Sinopec and more have already adopted AI in pursuit of churning out better results. So how exactly is AI helping in E&P companies? Let’s find out:
1. Stock management
Exchange of information among facility, wells and reservoirs is very important to maintain a surplus. AI can link these three components so that an optimum level of production can always be maintained. Apart from that, reservoir modeling, site survey for reservoir construction and much more can be greased up with the use of Digital Oil Field (DOF) technology.
2. AI in Exploration and Production
AI can utilize the concepts of geoscience for planning and execution of drilling. And as it considers several scientific factors involved in the drilling process, it eliminates the possibility of operational failures up to a large extent. With time, Machine Learning software integrated with AI can help optimize the process by analyzing patterns and frequency of drilling.
3. Prediction and Forecast
Application of artificial intelligence in predicting the production and exploration opportunities is good for not only the Oil & Gas sector but also for the global markets. Analysing the exploration patterns to define the production strategy would be a smart move as it increases efficiency and productivity; and at the same time, lets investors come up with informed decisions.
4. Automated Inspections
Use of drones for surveying new sites for drilling, maintenance of equipment, and diffusing potential hazards has always been around in Oil & Gas technology. This would not only make the surveys quick; it would save large sums of money needed for carrying out these inspections. Besides, the data acquired from the surveys can be analyzed and processed to identify spots with frequent failures and infrastructural faults like roads and oil-supply lines.