AI can revolutionize businesses, and the oil and gas industry is no exception. In recent years, we’ve seen a surge in the adoption of AI in the oil and gas industry, leading to increased efficiency and cost savings.
Here are some statistics to support the statement.
- To lessen its environmental impact, Shell uses artificial intelligence to do predictive maintenance on its equipment and systems.
- In 2021, the oil and gas artificial intelligence market was valued at USD 2,034.9 mln; by 2027, that number is predicted to rise to USD 3,669.8 mln, for a CAGR of 10.81%. (2022-2027).
- The annual cost of downtime for a typical oil and gas firm is over $38 million, with at least 27 days of unscheduled downtime. There might be as much as $5 million in damages if the outage lasts a minimum of 365 days. With the impact of AI, this can reduce to a great extent.
It’s clear that AI significantly impacts the oil and gas industry, and these are just a few examples of its many potential uses. As technology advances, we expect to see more impressive results shortly.
Here are 5 ways AI is changing the course of the oil and gas industry.
Usage of AI-based Analytics
By using Big Data, AI applications can get insight and context from the mountain of operational data.
And nonetheless, these enormous data sets may be broken down into more manageable chunks. And the hidden patterns or discrepancies can be exposed and utilized to generate predictions.
An ample example would be the latest advancement at Shell Company. Over ten thousand equipment across upstream, manufacturing, and integrated gas assets throughout Shell’s worldwide asset base are now monitored and maintained by AI.
Thanks to the company’s predictive maintenance program driven by C3 artificial intelligence technology.
The most promising locations for exploration and production may be identified using AI-based analytics with respect to data gathered from geophysical surveys and drilling operations.
An example is the use of machine learning to analyze seismic data for patterns that indicate the presence of oil and gas resources.
Models of oil and gas reservoirs built with analytics powered by artificial intelligence (AI) may be useful to save costs and increase efficiency in the oil and gas industry. This is made possible by machine learning algorithms to examine data from good logs and other sources to construct a 3D model of the reservoir.
The prediction of Equipment failure is possible using AI-based analytics, allowing to plan for preventative maintenance. The analyzing of data collected by machines’ sensors is for warning signs of malfunction.
Optimizing the oil and gas logistics and supply chain is possible by using AI-based analytics for the supply chain management. Better judgments are possible by examining data on demand, transportation, stock, climate, etc.
Better projections of future oil and gas prices, allowing for more informed purchasing and selling choices, may be possible using AI-based analytics.
The tech examines data on global economic indicators, and other variables influencing these markets.
Misreporting of output or misleading financial reports are two examples of fraud that may be uncovered using analytics powered by artificial intelligence.
Maintaining Security Standards
Artificial intelligence (AI) plays its role in a variety of ways to improve oil and gas sector security.
With the help of AI, predictive maintenance systems can predict when specific machines will break down and plan for repairs ahead of time. This could make accidents less likely and make it easier for people to follow safety rules.
Oil and gas plants can avail monitoring and surveillance systems that have been improved with AI to watch for security breaches and other dangers. Transportation and employee monitoring are two more uses for these kinds of devices.
With AI-based solutions, tasks like monitoring pollution and finding leaks can be automatically possible to keep up with regulations. With these systems, you can also use data analysis to look for patterns that point to not following the rules.
Artificial intelligence and machine learning may be useful for command autonomous vehicles and robots. This is to carry out operations that are too risky for human employees on oil rigs, platforms, and drilling rigs.
Between January 2015 and January 2017, the Centers for Disease Control and Prevention (CDC) found that oil and gas extraction workers had 602 accidents, 481 hospitalizations, and 166 amputations.
Things have changed now. This number has gone down because the Internet of Things has made it possible for remote devices and constant monitoring to help with predictive maintenance. However, for all this to happen. When it comes to the AI system, you can integrate it into the organization’s most important safety and security protocols. Along with this, it must undergo regular testing and maintenance.
AI is useful in the oil and gas industry to protect and keep track of assets.
Surveillance and monitoring systems in oil and gas facilities can look for security holes. This includes using cameras and other sensors to find break-ins and track how people and vehicles move around inside a facility.
AI-based predictive modeling systems can look at data from different sources, like sensor data, the weather, and other external factors, to predict equipment failure or other possible risks. This can help with the proactive maintenance and protection of assets.
AI lets businesses plan for repairs or replacements. This can assist in reducing unplanned downtime and keeps operations smooth. Also, the machines used to drill for oil, move at different speeds and use different amounts of electricity and vibrations. In a place with so much change, tracking and watching it all simultaneously is the best way to ensure that all the equipment is in good shape.
You might be thinking that 3% is meager. But considering the humongous volume of attacks that’s happening around the globe is still a considerable number.
AI could keep networks safe in the oil and gas industry by constantly looking for signs of suspicious behavior. With the proper training, machine learning algorithms can spot strange behavior and alert security staff immediately to possible threats.
AI can also look at and sort through vast amounts of data, like log files and security reports, to find security flaws in a company’s infrastructure. As a result, businesses can patch any vulnerabilities before hackers exploit them.
Using AI to defend against cyber threats can help the oil and gas industry protect itself from threats. It also helps keep critical infrastructure in good shape.
Employee Retention and Assistance Using Chatbots
AI-powered chatbots can help employees immediately, so they don’t have to wait for a human support agent to respond.
When workers can use chatbots, it’s much easier to tell management about problems or ask for help.
Chatbots could send new hires information and training materials, which would speed up their onboarding and let them start contributing more quickly.
Chatbots can help employees get ahead in their careers, taking into account their preferences and professional goals.
With the help of a chatbot, businesses may make various mental health tools available to their staff. It includes stress management advice and details on where they can find professional therapy.
Chatbots can help workers find a better balance between their work and personal lives. This happens by giving them information about the best ways to relax and manage their time.
These are just a few use cases.
Chatbots driven by artificial intelligence can help the oil and gas business to retain its workers by making it easier for workers to get the help they need when they need it.
Overall, it is evident that AI in the oil and gas industry is causing significant changes. Artificial intelligence is a helpful tool for businesses in this industry. It has several benefits ranging from increased efficiency and production to better cybersecurity and employee retention.
Don’t allow AI’s complexity to discourage you from reaping its rewards. Instead, let Perfomatix assist you in doing so in a way that minimizes disruption to your business.
Contact us to know more on how we can help you!
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