How Can Artificial Intelligence Revamp Gas and Oil Industry?

By CIOReview | Thursday, June 13, 2019

FREMONT, CA – Industries and organizations across the globe have realized the potential of artificial intelligence (AI), and the oil and gas industry is one of them.  Petroleum oil is one of the most prominent resources in the energy sector and is the basis for many products such as wax, lubricant, kerosene, petroleum jelly, and so on. Over the last few years, the crude oil reserves are steadily reaching their limits. Also, the rise of alternative fuel sources has resulted in the reduction of oil prices, which has raised concerns in the oil and gas sector.

To alleviate the adverse effects plaguing the industry, many organizations are turning toward modern technologies to increase productivity as well as revenue. The successful implementation of AI across sectors such as healthcare, manufacturing, retail, and agriculture has fueled the interest of oil and gas companies. Several organizations have already adopted modern technologies such as precision drilling and automated gas station monitoring to enhance efficiency and decision-making.

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Leveraging AI technology in the oil and gas industry has led to production optimization, enabling organizations to recognize inefficiencies and develop effective strategies to maximize production. Companies can now design AI-based algorithms to guide the drilling equipment on land as well as the sea.  As a result, organizations can drill precise spots to obtain crude oil, saving operating cost, as well as the running time. Many oil and gas companies are utilizing troves of raw production data to train AI systems, which will enable them to identify the patterns and generate analytics. The AI-based machine learning (ML) process can be utilized to assess the analytics data and develop estimation and prediction models.

AI has facilitated efficient reservoir management for modeling reservoirs and implementing field surveillance, resulting in enhanced longevity and production cycle. Training the AI systems with historical data of seismic interpretation, geology, reservoir engineering, and production techniques has enabled the organizations to slash their operating costs and deploy effective solutions.

AI devices can aid the enterprises in conducting inspections to identify abnormalities in the equipment. Chatbot technology has enabled organizations to interact effectively with the customers and assist them in their needs. Also, the incorporation of modern technologies has empowered the oil and gas sector to explore new possibilities and foster innovations.