AI in the Oil and Gas Industry: Use Cases and Benefits

Energy exploration and production has been a highly mechanized task for most of human history. Even in recent years, improvements in engineering and the use of tools like drills and excavators, pipelines, etc.

And massive amounts of skilled human efforts – paint a picture of an industry that has increasingly upped its reliance on advanced tech and machinery.

The use of AI in the oil and gas industry, thus, doesn’t come as a surprise. But it still marks the beginning of an era where innovation meets the energy industry.

So, join us in exploring the relentless march of AI in energy exploration. Where the convergence of artificial intelligence is ushering in new stages of progress and benefits to the oil and gas industry.

And watch how it is fuelling advancements and efficiency through a quiet revolution. 

Refining Excellence: AI Applications in Oil and Gas

According to McKinsey & Company, the adoption of AI in the oil and gas industry across all activities can help the sector save $1.2 trillion by 2030. This considerable influence on the sector originates from the fact that the oil and gas industry is regarded as one of the key industries that have signed up as an early adopter of AI technology in its operations.

Since AI is being increasingly used to combat the harsh and demanding environments and automate various tasks that would not be feasible or practical for humans to continue participating in.

Not to be confused with conversational AI, the following are some important applications of AI in oil and gas sector as it stands today:

✔️ Managing Reservoirs

Exploring and then managing said reservoirs has been a key operation, often comprising of various checks and steps for companies in the oil and gas industry.

The algorithms powering AI have been a godsend in this regard where it is being utilized to analyze seismic data, geological information, logs of text describing the conditions of the wells, etc. 

Moreover, AI in oil and gas is helping engineers to predict the behavior and properties of the surface so that when operating heavy machinery like drills, their tasks are guided by informed decision-making.

Further, help from AI has been routed to those in charge of managing the reservoirs as they are using AI tools to mitigate risks related to using their reserves. 

✔️ Predictive Maintenance

Incorporating artificial intelligence into maintenance operations has changed the way equipment is monitored and maintained. Sensors and IoT devices collect data from machinery and equipment, which is then analyzed with AI algorithms to forecast probable breakdowns or maintenance requirements. 

Similar to IoT transforming oil and gas, using AI allows this preventative strategy to eliminate unexpected downtime, extend the life of equipment, and assure the safety of on-site people.

As there are mechanisms in place to prevent equipment and heavy machinery from breaking down while in use. And replacing/repairing them whenever they are not in use. 

✔️ Logistics

The logistics of the whole matter involved in transporting fuel and refined products during the various stages of energy production is another facet where AI has made its mark. AI in oil and gas is routinely used to make sure that the supply chain doesn’t face issues like lags or slowdowns. 

It achieves this by measuring the production and demand levels, tallying them with the inventory – so that what’s being shipped in or out is evenly distributed. This in turn saves manufacturing and all other types of labor involved in the processes.

And any resources available as a result are better optimized for use in different operations instead.

✔️ Maintaining the Well

AI in oil and gas also translates into artificial intelligence being used to power drilling systems. These systems use real-time data from sensors and drilling rigs to make immediate changes to the settings that affect drilling.

Furthermore, it boosts the drilling efficiency for engineers and lowers any downtime that they commonly face.

Additionally, AI through predictive maintenance and machine learning algorithms helps to anticipate possible drilling hazards that any personnel or the company might face.

The programs being used then recommend preventative measures that the professionals can take, thereby enhancing safety and lowering costs.

✔️ Averting Risks

Finally, one of the major positives through AI in oil and gas that stays criminally underrated is the fact that it prevents hazards and damages by analyzing safety-related data sets.

After having studied the data, it can lay down the trends or patterns that a company must be aware of during their operations. As that will help mitigate conditions that have a potential to be harmful and unsafe. 

This not only helps the company to ensure that they are within compliance of all laws, rules and safety regulations – but also sees the use of AI in oil and gas through drones and robots.

Mechanized and automated machinery that is capable of performing partial or full-capacity operational tasks – including those that can be routinely hazardous for humans. 

These are some of the prime applications of AI in oil and gas industry. It is pretty similar to what we see with AR/VR in oil and gas industry. In essence, it helps the industry to maximize its efforts and efficiency levels, reduce human exposure to risks, and save time and costs for all companies.

This helps oil and gas production companies to also operate in a sustainable manner that is important for the environment and our future.

Exploring the Important AI Use Cases for Oil and Gas

The global market for AI in oil and gas is poised to cross $4 billion by 2028, growing at a compounded annual growth rate of 12% over the next few years. Even though it is still in its primary stages and yet to see advanced levels of integration among the companies involved in the energy sector.

Just like technologies like blockchain and AI, here are some benefits of AI in oil and gas that are helping major companies in overcoming challenges with some examples:

✔️ Analyzing Seismic Data

Drilling is an essential part of the operations that constitute energy production in the oil and gas industry. Owing to various factors, such as the soil and subsurface properties, etc., the process can become tricky for companies. 

Shell is one example of an energy company that is using AI in oil and gas to help analyze seismic data so that it can identify optimal targets for drilling, like in the Arctic. 

✔️ Detecting Leaks

Leaks in pipelines can cause an immense amount of harm and loss to a company and its environment. In fact, they are the leading cause of environmental damage on land caused by oil companies and also the losses that they face financially. 

Saudi Aramco is an example of a petroleum refinery that is using AI to help detect where leaks may occur in pipelines. Then, through predictive maintenance, they are able to fix these spots before it might cause any major damage. 

✔️ Catalyst Management

Refining catalysts are an important part of the operations responsible for extracting valuable, distillable products from heavy oil such as crude. A slowdown in developing them will make the entire operation less productive and efficient, which is why it is necessary to focus on making new catalysts on time. 

Using AI, Chevron, an energy company in the oil and gas sector is optimizing the process through which they develop catalysts. Their program helps them in reducing the emissions from their refineries and also create catalysts that will improve the efficiency of their refinement operations. 

✔️ Modeling Reservoirs

Oil and gas reservoirs are the primary option for companies in storing their finished products, once it has passed through all stages and are ready for shipping. Proper reservoir management and design is a crucial step that many in the industry have gone through since their establishment, through various means and technologies. 

ExxonMobil, for example, is a natural gas company that is using AI in oil and gas to make its reservoirs, like in the Permian Basin. It will help them better understand the reservoirs they have made, and also further optimize their production based on their experience in the future. 

Fueling the Future: Benefits of AI in Oil & Gas Operations

The realm of oil and gas operations for companies in the industry sees challenges that can go as deep as the reserves they’re targeting. That’s why it is impossible to ignore the benefits posed by AI in oil and gas, as it is not a matter of the margins. Artificial intelligence has provenly become crucial to energy exploration, production, and distribution. 

And it is presently rewriting the playbook for the energy sector through its data-driven decisions and predictive insights for oil and gas companies. Join us at EDIIIE and stay informed about the latest advancements and breakthroughs.

We invite you to watch a demo with us on the same, or give us a call to learn how we can leverage AI, and AR/VR in power industry for energy sector companies.