There is an ongoing debate in the industry on whether or not adopting artificial intelligence will yield a better tomorrow. Benefits of artificial intelligence are being constantly inspected under the microscopic lens of efficiency and its effect on the human workforce. AI has been a success in several other industries like healthcare, manufacturing, retail, and agriculture. But the benefit of its adoption in the oil and gas industry is something we will reflect upon in this article.
Why AI in O&G?
Most of the big companies have vouched for the benefits of artificial intelligence for the industry. Many industry giants are deploying this technology for business operations. It is believed that AI has the capability to evolve and strengthen almost all the sectors of the industry. With time, it has found its application in precision drilling and automated inspections. According to the analysts, AI in the oil and gas market will be worth $2.85 billion by 2022.
Some of the major benefits of artificial intelligence in the Oil and Gas industry are listed below:
- Optimization of Production
The major goal for any oil and gas company is to maintain maximum efficiency and increase profits. The companies are always in search of ways to optimize production to attain the end goal. Sadly, till date, all the conventional methods have failed to improve efficiency and revenue.
Now with the arrival of AI, the industry is looking forward towards an improved and efficient decision making. The companies can train AI systems using large volumes of raw production data. This will help the system in pattern recognition and refining of data to generate analytics. With the help of analytics, AI can develop estimation and prediction models. This will help the companies in the analysis of production procedures. The areas of inefficiency will be easily detectable using this technique which can be worked upon and improved.
- Precision Drilling
Spots that can be drilled to obtain crude are hard to find. And it also involves a lot of risk and complexities. With the help of Ai, oil and gas companies can attain precision drilling. The system can be trained by utilizing historical drilling operations data which will help in developing an algorithm to guide drills on landmass and ocean floor. These benefits of artificial intelligence will enable required control on the rate of penetration (ROP) and provide to the drillers a better idea of risks prior to the commencement of operations. This will substantially reduce drilling cost and minimize the risks involved.
- Improved Inspections
Inspection is carried out frequently in all the sectors of the industry for risk assessment and monitoring the condition of their equipment. Inability to identify abnormalities and equipment failure might lead to major accidents on the sites.
Deploying AI will improve the quality of inspection and decision-making. Pattern recognition through AI systems will help in identifying equipment behaviour reducing the risks. Apart from this, AI-enabled robots can be used for pipeline inspection.
Artificial Intelligence Companies in Oil and Gas
NeuDax has leveraged the benefits of artificial intelligence and built an AI solutions platform for the upstream sector of the oil and gas industry. FracDax is the first AI platform built by the company which is designed for developing unconventional resources. The three main features of the platform are Full-stack AI, DL | ML | RL | IRL | MDP and Adaptive Decision Support System (ADSS).
FuGenX offers several machine learning-based AI solutions to the oil and gas industry. It is helping the companies improve efficiency, safety and reduce costs with artificial intelligence. The company offers services like Top-Down, Intelligent Reservoir Modeling, Surrogate Reservoir Modeling and Shale Analytics to the upstream sector of the industry.
Validere serves the midstream and upstream sectors of the oil and gas industry. It also helps the companies determine product quality in real-time and optimize logistics and trading. It is receiving funds by the investors for expanding the reach of IoT and AI in the oil and gas industry.
Artificial Intelligence in Oil and Gas: Dawn of efficient future
The benefits of artificial intelligence are more concrete than the ambiguities built around it. This technology will help the oil and gas industry monitor the assets, optimize production and increase revenues. With the help of AI, the companies will be able to reduce unnecessary costs and time investment and optimize operations in order to enhance efficiency.
Watch this space to stay updated on all the latest trends and technologies in the oil and gas industry.