Resources

Oil & Gas

AI has the ability to transform the Oil & Gas industry by introducing unprecedented efficiencies, enhancing exploration, optimizing production, and mitigating safety risks.

Over the past few decades, the industry has invested significantly in instrumentation, industrial automation, and SCADA for process control and safety. While these systems excel at what they were designed for, they lack the predictive capabilities and other intelligent capabilities of AI like object and anomaly detection.

Use Cases

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Exploration and Reservoir Characterization

AI algorithms analyze geological data to predict the location of oil and gas reserves with higher accuracy. Machine learning models interpret seismic and subsurface data, reducing the risk and cost associated with exploration. Enhanced reservoir characterization enables more precise modeling of oil fields, facilitating optimal resource extraction.

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Drilling and Completion Optimization

AI-powered tools assist in designing well placement and drilling paths, optimizing drilling operations, and reducing non-productive time. They predict equipment failure enabling proactive maintenance, and automate real-time decision-making during drilling to improve safety and efficiency.

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Production Optimization

AI systems analyze production data to maximize oil recovery, using predictive models to manage field production and automate control systems. They enable smart field management through the use of digital twins, creating virtual models of oil fields for simulation and analysis.

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Equipment Maintenance and Reliability

Predictive maintenance powered by AI enhances equipment reliability and longevity. By monitoring machinery conditions and predicting failures before they occur, AI helps avoid costly downtime and improves overall equipment effectiveness.

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Supply Chain and Logistics Optimization

AI optimizes the Oil & Gas supply chain, from forecasting demand to automating inventory management. By analyzing market trends and logistics data, AI ensures a more responsive and cost-effective supply chain.

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Health, Safety, and Environmental Protection

AI contributes to safer work environments by monitoring operational parameters and predicting hazardous situations. This goes far beyond detecting personal protective equipment (PPE) adherence, where the AI can differentiate the type of PPE required depending on a defined area’s hazards. It also detects specific hazardous worker behaviors using human pose estimation to accomplish everything from unsafe lift practices to worker down. It aids in environmental monitoring, detecting spills, and ensuring compliance with environmental regulations.

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Energy Efficiency and Emissions Reduction

AI systems optimize energy use and reduce greenhouse gas emissions by monitoring and controlling energy consumption across operations. This is crucial for the industry's move towards more sustainable practices.

Metrics

The Global AI in Oil and Gas Market size is expected to grow from USD 2.67 billion in 2023 to USD 4.63 billion by 2028, at a CAGR of 11.68% during the forecast period.

AI Market in Oil & Gas

In 2021, the rate of job-related injuries and illnesses for the oil and gas industry in the United States was 1.6 per 100 workers. This figure has been consistently decreasing during the period in consideration, aside from the most recent figure. Technology has played a major role in this reduction, and AI has the potential to decrease it even further.

Oil & Gas Injury and Illness Rate

High production or machine downtime is a growing scourge in the global oil and gas industry. An Aberdeen research found that the cost of unplanned downtimes worked out to around $260,000 every hour in 2016. When focusing on the causes of this downtime, a recent study conducted by Vanson Bourne for Service Max found that human error was the leading cause at 23%, while 70% of the surveyed companies had a complete lack of knowledge about their equipment condition.

Rising Costs of Unplanned Downtime

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