Why and How AI Is Transforming the Oil and Gas Industry
Using artificial intelligence (AI) technology proves not only useful but also transforms those who work in a variety of industries. Executives of oil and gas are no exception: The use of technological applications such disruptive machine learning (ML) and predictive analytics can help industry insiders to improve their operations and could reduce costs $ 55 billion in oil and gas upstream activities only. However, the impact of AI on the oil and gas industry goes beyond cost savings, offering several potential advantages. It is oil executives and vital gas understands what is at stake – and what they have to gain.
Since its creation, technology led the development and transformation of the oil and gas industry and because of this, AI Development Companies in Dubai, UAE, Riyadh, Kuwait, Doha, Muscat, and Manama has increased around. Technologies to locate and extract oil and gas reserves has allowed the shale revolution, a new revolution is on the corner of oil and gas exploration and production. Although it may seem like something from science fiction, artificial intelligence (AI) and machine learning has the potential to reshape the oil and gas exploration and production landscape. Once considered a novelty, AI and machine learning are not far from becoming mainstream for each and every production companies.
The promising potential of artificial intelligence has already done in many businesses and industries. Now may the introduction of AI in using oil and gas can overcome its limitations and maximize profits?
How AI and ML Empowered OIL & GAS Industry?
Oil is one of the most valuable products in the energy sector. Several companies established in the oil and gas sector were earning huge profits by producing fuel and other crude oil products such as lubricants, paraffin wax and petroleum. However, crude oil world reserves are depleted to a record low according to reports.
The potential impact of Artificial Intelligence in Transport and Logistics industries, healthcare, manufacturing, retail and agriculture has provided beneficial. Similarly, the introduction of AI in oil and gas companies can upgrade the industrial sector. Several industry giants are already deploying AI in commercial operations of oil and gas. The development of Artificial Intelligence has led to the rise of various apps like precision drilling and automatic inspections to benefit producers of oil and gas.
Not all problems are created equally, which provides a unique opportunity for the oil and gas industry. Some business models are dependent on human emotion, which means that problem solving must take into account the potential paths of emotional reactions. Human emotion remains a variable in the model that is very difficult or impossible to predict accurately. However, apart from some aspects of business, oil and gas companies have many other challenges and problems to solve that are not as dependent on human emotion.
The International Energy Agency widespread use of digital technologies could increase the reserves of oil and gas of about 6% and reduce production costs by 15% to 20%. AI and machine learning can help companies to optimize well design, drilling and completion, and even use machines to perform hazardous tasks on an unmanned basis. It can advance the oil and gas production rates and lower costs.
The Future of Artificial Intelligence in Oil and Gas
Despite a slow start, the oil and gas companies now seem willing to adopt all kinds of digital technology to hinder costs and increase performance. The power of the oil boom and Permian gas stream is the perfect example of how the adoption of new technologies such as directional drilling and hydraulic fracturing has increased yields. The application of AI technology seems to be the next step for the industry, as it continues to seek solutions to stimulate growth.
Artificial intelligence (AI) for oil and gas sector has a huge potential market. A report from Markets and the market believes that the value of AI in the oil and gas industry will increase from $ 1.60 billion in 2017 to 2,800,000,000 $ in 2022. The digitization of the oil and gas industry the increasing pressure to reduce production costs and investments in AI-related start-ups are the factors behind this growth. From now on, North America is the largest market utilizing AI in oil gas, closely followed by Europe and Asia Pacific.
Why AI is Important to the Oil and Gas Industry
Oil and gas is a huge industry with three main operating segments: upstream, along the way (transport and storage) and downstream. There are several ways to apply AI technologies to each of these sectors. Here are some of the ways the AI can help oil and gas companies:
Just ten years ago few, even the most advanced AI could advise companies retrospectively. For example, the AI can pinpoint where a specific preventive action could have been taken to avoid failure. While technology has helped companies to make accurate decisions in the future, it has done little in real time.
Today, with the help of sensors and advanced software powered by AI, companies are able to handle not only a large amount of data, but also the production of real-time answers about the best plan action. AI tools can help oil and gas companies to digitize their records and automate the analysis of geological data tables. Over time, these files can then help companies identify problems such as corrosion of the pipelines or the increased use of the equipment.
Potential customers can visit the website of an oil company to buy their products, such as lubricants, grease, paraffin wax, oil, microcrystalline wax, refined asphalt, bitumen and refined. Usually, customers must search through an extensive database to find their required product. These clients need help and advice with various products. In addition, oil and gas companies can have discounts on certain products that their customers do not know.
Oil and gas companies can deploy AI chatbot powered with Natural Language Processing capacity. The chatbot can interact with customers and help them find their necessary product providing information critical product and offer similar products. Customers can also address their questions about products and deliveries with the help of chatbot. Furthermore, websites can investigate the chatbot using to collect customer feedback. Therefore, by implementing AI in the websites of the oil and gas company, companies can improve their customer experience.
Exploration and Production
Most of the drilling and production wells are located in remote areas, which mean sending workers there greatly increases costs. Oil well operators typically generate daily reports on inspection and maintenance on site; these reports are usually not structured or semi-structured documents in paper or PDF. Oil and gas companies can now use AI technologies to extract data from these documents automatically.
Further analysis based on AI can help company’s better use of large amounts of data – ultrasound data, production process data, drilling data, inspection data pipelines and data seismic collected – their plants daily. These analyzes, ultimately, reduce the cost of exploration, extraction, processing and supply of oil. The development of exploration robots could also help oil and gas companies to reduce the time and costs of exploration and allow human employees to stay out of danger.
Oil and gas companies are always seeking for innovative and unique techniques to optimize their production. With the help of optimizing production, oil and gas companies aim to improve efficiency and maximize profits. However, traditional techniques are ineffective in improving revenue.
Oil and gas companies can form AI systems using large volumes of raw production data. Leveraging AI in the oil and gas companies will allow recognition and classification of automatic refining production data patterns to generate analyzes. With the help of the analysis, AI systems can develop estimation and forecasting models. Using this approach, the oil and gas companies can capture and analyze the dynamics of the production process. Furthermore, Al can contribute to separate reservoir effects from the production control responses such as gas recovery rate, choke positions, the network routing
Mapping and Analyzing
AI also has the capabilities to help oil and gas companies map and analyze seismic activity in a potential oil field. So far, this task involves geologists analyzing the image files manually. AI systems are being developed that will help geologists to interpret subsurface images from seismic studies more quickly, thanks to computer vision.
Currently, new projects are underway to develop software that can go further: the software that can analyze the image files and correlate these results with information from technical documents. The results could then be fed into an AI assistant that can answer questions about the basement of data. If successful, this software simplifies the model identification process indicates the economic liability company may experience in a new field.
Security and Planning
AI assistants are also used to transform security meetings. AI technologies can identify key details, provide summaries to action and eliminate the need for large multi-tasking during discussions. Using an AI assistant can also help workers of oil and gas to make critical decisions for real-time security and manage the ever-increasing complexity of engineering systems.
Automating manual routine activities not only improves productivity, but also reduces the risk for human workers. Some companies are already using software that analyzes production data and sensors (including pump pressures, flows and temperatures) to provide equipment and parts are at high risk of failure. AI can also help oil and gas companies make better, faster drilling and blasting decisions, improved productivity and security.
The leaders of the oil and gas industry include the AI in multiple areas. Reducing the carbon footprint, exploring deep-sea oil and the implementation of innovative and sustainable energy strategies are driving the pace of change in the field. No industry, including the oil and gas industry, has fully used the potential of artificial intelligence.
As an Artificial Intelligence (AI) Development Companies UAE, Saudi Arabia, Kuwait, Qatar, Oman, Bahrain we Fusion Informatics provides AI Solutions upstream oil and gas companies to develop their oil and gas resources more confidently and effectively. By using our quick and accurate AI models, the duration of the decision making process entire takes less than a week. Our quick AI Platform analyzes more than 10,000 development scenarios on the ground for hundreds of possible under-ground within hours. Contact Fusion Informatics at Sales@fusioninformatics.com and we help you with the platform, which helps you, find the most optimal field development design tailored for short term and long-term goals of your company.
You may be interested
Heated Debate: MICROSERVICES vs. MONOLITHIC Architecture for StartupsSreeni - October 17, 2019
Having come into light just a few years in the past, microservices are an accelerating trend in recent times. Certainly,…
Why Python is Future of Programming Language for Biggies like Google, Facebook?Sreeni - October 15, 2019
Python is trending object-oriented high-level programming language, which is built-in data structures combined with dynamic typing and binding; intensely used…
Trends to dominate the future of Mobile App DevelopmentSreeni - October 7, 2019
Over the past recent years, mobile apps have been changing our lives and because of their popularity and usefulness, they…