By Adaobi Rhema Oguejiofor
The development and introduction of Artificial intelligence (AI) into the world and the different sectors that make it work has brought ease to the way things are being done. AI, which refers to the simulation of human intelligence processes by machines, especially computer systems, has become a global phenomenon today and every industry seems to be making plans to adjust to this new trend, as it tries to help in improving safety, reliability, efficiency, and to enhance the overall performances within various sectors including the oil and gas industry.
AIs tools are currently becoming more common and an increasing number of professionals, such as designers, engineers and manufacturers of energy equipment are all looking for ways to integrate various AI-driven technologies into their work, as automation technology using AI can be programmed in order to complete logical processes for energy firms and equipment manufacturers.
AI technology has numerous advantages, one of which is that it is flexible. This implies that AI can be used by many industries in their own different and unique ways. It can help with targeted marketing or constructing precision-based financial models and much more. Nowadays, Artificial Intelligence can also be found in other markets, such as medical equipment manufacturers, construction equipment producers, tech and engineering firms for aerospace and automotive, utilities, and oil and gas.
The technology is not just flexible in its implementation; it is also flexible in what it is compatible with. The technology can work with diverse business applications and structured or unstructured data.
Currently, both vast and remote oil and gas facilities face a number of risks, including sabotage, theft, vandalism, system failure, fire, violations of environmental regulations, and other issues that can disrupt and even paralyze businesses. Artificial intelligence, which makes video cameras and other sensors smarter than ever before, can help operators reduce these risks, as well as improve efficiency through the automation of remote monitoring and control processes.
AI tools are presently helping oil companies to digitize records, automate the analysis of data and geological maps, and potentially identify problems, such as pipeline corrosion or excessive equipment use. The possibilities are endless for petroleum firms that choose to adopt this revolutionary technology.
The integration of AI software can provide vital information in order to improve the business results of oil and gas companies in their upstream processes. This process can involve collecting and feeding recorded data from various sources, such as structured documents, PDF files, handwritten notes, and audio or video files into the AI software. Petroleum companies can then use this data to make informed decisions, as well as optimize operations and improve long-term results.
With AI, the possibilities for data collection and analysis are limitless, as it offers a significant competitive advantage to companies that choose to adopt this technology.
The uses of AI in the oil and gas industry are diverse, ranging from optimizing production by analyzing seismic and subsurface data in computer vision, predictive maintenance, and reduced maintenance costs of oil and gas equipment, to modeling and predicting oil corrosion risks. In addition, the massive investment by technology giants in this market has had a significant impact as well.
AI helps to process vast amounts of data and gain valuable operational insights, either in real-time to control systems and detect faults, or over time to improve operations and support engineering. The fifth generation (5G) enables fast data exchange between systems and lays the foundation for building smart ecosystems in oil and gas production and transportation.
Energy companies, such as British Petroleum (BP) and Shell, have made commitments to achieve carbon neutrality by the year 2050 and they are under increasing pressure to reduce their carbon footprint in line with the Paris Agreement. And, in order to meet these commitments, Shell has embraced the use of AI for predictive maintenance, whether at the equipment or whole system level, with the aim of reducing its carbon footprint. With this technology, companies are able to anticipate and manage potential equipment failures before they even occur, and this helps to also reduce greenhouse gas emissions.
A recent Ernst and Young (EY) survey revealed that 92 percent of oil and gas companies are currently investing in some form of AI, or are at least planning to do so in the next couple of years. When it comes to valuing the potential of AI for the oil and gas sector, it is important to understand that AI is not just an algorithm, a tool, a piece of software, or a process. Rather, it must be regarded as a system of technologies, data, and competencies that, when taken as a whole, is designed to complement or even replace certain human capabilities. These capabilities, such as monitoring, automation and analytics can be applied to a wide range of areas in oil and gas production.
Artificial Intelligence monitoring ensures reliable and safe operations. It makes the monitoring of operations smarter through cognitive capabilities and by empowering the Internet of Things (IoT) devices to support or even take over the tasks of humans in many production areas.
AI has the ability to detect patterns and signals in sensory data like video footage from surveillance cameras, that are beyond normal human perception. Wherever smart sensing is needed in oil and gas production or transportation, and humans and conventional technologies are stretched to their limits, AI can make a valuable contribution to ensure reliable operations.
For instance, AI-enabled surveillance cameras can detect and report theft and vandalism, monitor liquid levels in tanks using AI-driven thermal imaging, and also automatically detect accidents involving humans and call for help, among others.
And for automation, AI increases operating efficiency in remote sites, smart video cameras can control barrier systems and automate access management in remote production facilities using AI license plates and vehicle type recognition. Key objectives and benefits of AI-driven automation in oil and gas production are that it adjusts operations in real-time, it improves workers’ safety, efficiency, and output. It also minimizes unplanned downtime of heavy equipment, standardizes field operations, and helps to predict problems and issues in advance, among others.
According to the Gas Exporting Countries Forum (GECF), from optimizing operations and enhancing safety to boosting exploration and sustainability, the connection between AI and the oil and gas sector is a multifaceted one and it holds significant potentials for transforming diverse aspects of the sector.
The Secretary General of GECF, Mohamed Hamel, at a workshop recently put together by the Organization, said that although AI may seem like a relatively recent concept, its applications in the oil and gas sector have been in existence for a long period.
In his own words, “exploration, production, and marketing are domains where AI has made remarkable achievements. While we recognize the notable strides made in AI utilization within the oil and gas industry, we must also acknowledge that the advent of large language models presents unparalleled opportunities.
“We must also recognize the risks associated with AI, including data privacy and security concerns, potential bias and lack of reliability, regulatory compliance, and the displacement of certain job roles.”
He also said that in exploration, AI’s advanced algorithms and data analytics have significantly enhanced the accuracy of seismic data processing and interpretation, which has led to more informed decision-making and improved success ratios. While in production, AI-powered systems have streamlined processes, optimized drilling techniques, and enabled predictive maintenance, which results in increased operational efficiency, lower environmental footprint, and reduced costs.
Hamel said that in marketing, AI has facilitated customer analytics, demand forecasting, and targeted marketing strategies, thereby enhancing business performance and competitiveness.
Ernst and Young stated that when implemented well, AI can transform oil and gas companies, help realize new value, and engage new generations of workers. The Company is of the opinion that AI and digital technologies are designed to transform the oil and gas sector, thereby, unlocking new insights and breathing new life into old processes.