Unlike other industries, O&G industry is a slow adapter in digitizing its operations. But as per 2018 Oil & Gas forecast, Digitization is taking front row. Sensing the growth opportunities, many oil companies have now started investing in digital technologies. Disruptive innovation in the energy sector is likely to be driven by digital tools bringing together artificial intelligence, machine learning, data analytics, supercomputing and automation.
Why is AI important to O&G industry?
Although the adoption of new technologies such as directional drilling and hydraulic fracturing have increased yields, the industry continues to seek solutions to boost business, and many see AI as the answer. AI’s impact on the energy sector has perhaps been most widely discussed one. AI can improve oil and gas production rates and lower costs. With advances in quantum computing, machine learning and AI, tools can now be used to troubleshoot underperforming wells, enhance reservoir modelling, carry out preventive maintenance before problems arise, optimize well design, drilling and completion, and even use machines to carry out tasks on unmanned, automated drilling platforms and well pads. Moreover, AI systems can automate and optimize data-rich processes to mitigate business risks.
AI for oil and gas is a huge potential market, expected to reach US$2.85 billion by 2022. Presently, North America is the largest market using AI in oil and gas, followed by Europe and Asia Pacific.
Everybody in the oil and gas world is looking for operational efficiency to drive cost reduction. Here in this post, we are looking out the possibilities of Artificial Intelligence in the oil and gas industry.
Below listed are the main areas where AI is prompting real changes
- Applying AI in exploration and production (E&P) life cycle
- Location of new reserves
- Decision making
- Eliminating cost risk
Applying AI in exploration and production: AI system consists of various tools: machine learning, artificial neutral networks, and expert systems. These systems transform data into valuable insight that can be applied across various stages of the E&P life cycle, including seismic, geology, drilling, petrophysics, reservoir and production.
Location of new reserves: AI can come to the rescue in finding new sources at prospective drilling sites. The use of machine learning techniques and case-based reasoning to reference previous knowledge of similar situations could save time, money and manpower across the first stage of the E&P process.
Decision making: AI can provide automated customer support, process complex data and automate insight-led decisions.
Eliminate the risk in drilling: Drilling is a highly expensive and risky investment. Applying AI in the operational planning and execution stages significantly improves the success rate across the various stages of drilling including: well planning, real-time drilling optimization, estimating fictional drag, and well cleaning prediction
AI’s power and potential to increase efficiency and cost-effectiveness is making the technology increasingly attractive and speeding its adoption across all sectors of the oil and gas industry.
Insight Consultants specialises in digitizing the O&G ecosystem. We can help you provide actionable advice to begin an AI initiative with the right approach and perspective. So, if you are you looking for ways to harness the power of machine learning and AI for your business, or would just like to know more,