Artificial intelligence in the oil and gas industry
All industries adopt new technologies to operate more efficiently and get ahead of the competition. The oil and gas market is no different. There are multiple applications of artificial intelligence in the oil and gas industry. AI can not only improve the way you manage your business but also simplify day-to-day work on production. Read our article, to learn more.
The oil and gas companies recognize the potential of AI-based solutions for business as well as any other organizations. Some of them are the same for various industries – all institutions require management, marketing, and analytics tools. There are also applications and devices developed especially for this industry. The oil and gas businesses deploy AI and ML in many ways. Are you wondering how you can use artificial intelligence in the oil and gas business?
AI in oil and gas industry – statistics and expectations
In the survey conducted in 2020 by Statista, over 90% of respondents claimed that their company used advanced technologies (such as remote monitoring, IoT, AI, robotic process automation, and others). In 2019, the global AI in the oil and gas market has been valued at 2,040.89 million US dollars by authors of an AI in the oil and gas market – growth, trends, COVID-19 impact, and forecasts (2022–2027) report. They also state that companies from this sector test contemporary technologies (including artificial intelligence) to increase their efficiency and revenue. AI can help oil and gas businesses not only to make more of the existing infrastructure but also to predict significant changes in the market. It is possible to use AI in data science to reach complex data used for oil and gas exploration and production more easily.
AI on the oil and gas market – why should you consider adopting modern technologies in your company?
There are multiple risks and challenges in the oil and gas market. Artificial intelligence can solve some of them. Thanks to advanced analytics and predictions, an organization is capable not only of reacting to the changes in this volatile market, but also foreseeing them and preventing the negative impact they could potentially have on the company.
Averting a crisis is not the only thing you have to be ready for if you want to succeed. Leveraging artificial intelligence in the oil and gas industry is a way to gain a competitive advantage over the other companies from your sector. AI is more than just business intelligence and predictions. It can help you boost the efficiency of many processes in your institution and increase safety.
What can you gain by leveraging artificial intelligence in the oil and gas business?
Adopting AI-based solutions may be a challenge, but it is certainly worth your effort. Artificial intelligence has various applications and it can revolutionize work in more than one department of your oil and gas company. Artificial intelligence can be applied alone or together with other, modern technologies to:
- reduce the business risks of various types (related to changes on the market, investments, and personal safety of the employees),
- improve the company’s efficiency of production, management, marketing, etc.,
- cut down operational costs,
- improve communication with the customers,
- have better control over the product quality,
- make more data-driven business decisions.
There are many ways to use AI within the oil and gas sector. Possibly, soon more and more organizations will implement this technology.
What are ML and AI use cases in the oil and gas industry?
There are many reasons why you could benefit from artificial intelligence in the gas and oil industry. Many use cases that we are about to mention have been tested by mature companies and proved to be effective in increasing the competitive advantage of the company.
AI-based analytics tools
Information is nowadays a valuable business resource. Artificial intelligence analysis powers software that supports the decision-making process in a company, but also many other applications that require constant examining of the actions and data in real-time. AI can be used for surface exploration and assessment. Special, AI-based robots are exact in their work, and they significantly reduce the exploration risk. In short, artificial intelligence allows you to step into the brighter future of the gas and oil industry faster than your competitors.
Quality control and visual inspection solutions
Defects in the final products of gas and oil companies can cost a lot, that is why quality control is so important at all stages of production. It reduces the risks of losing various business resources due to the complications that could have been prevented. AI can be used for analyzing tons of significant data in a short time, so you could react immediately if something goes wrong. AI-powered analytic tools can even analyze video footage and alarm you if an employee is dressed inadequately for carrying out certain duties.
AI applications for optimizing machine operation
Analytic tools can analyze data generated by various equipment and production machines, not only to spot damage that needs to be fixed but also to monitor the consumption of energy and other resources. With the right, advanced AI software, machines are capable of optimizing material and energy utilization. Such application of artificial intelligence not only allows you to reduce costs and increase productivity, but also to improve the conditions of work not only in laboratories or on production, but also in the offices.
Tracking and reducing emissions
Countries all over the world try to be more eco-friendly, and gas and oil companies are looking for more green solutions too. In the McKinsey report, we read that some oil and gas organizations have already set net-zero emissions targets. It is not easy to achieve such a goal, but thanks to the AI emission tracking solutions, it is now much simpler to accomplish it. It is challenging, but artificial intelligence will help you reduce the negative impact your business has on the environment. AI software will track and inform you about the number of greenhouse gasses that escape from your pipelines and other equipment, so you could prevent it whenever possible.
Efficient supply management software
Making the right decisions about procurement requires years of experience in the particular industry and good intuition. Even the best employees can predict some changes in the market. Advanced solutions for supply management in the gas and oil industry based on artificial intelligence allow leveraging high-level automation in terms of supply management. AI supply management software can help you replenish your stores effectively by creating interconnected digital supply networks and smartly managing your stores. Such a system will enable purchase-to-pay automation, but not only. You will be capable of identifying supply chain bottlenecks and improving your purchasing process.
How to improve your oil and gas business productivity?
There are multiple solutions that you can adopt in your company, but it would be wise to develop a detailed strategy for modernizing your business. Our experienced consultants can assist you while assessing the current state of your company and help you choose and implement the right tech solutions to optimize your processes. Contact us to learn more.