As cases and regulations around artificial intelligence (AI) evolve, energy companies are beginning to find more ways to use AI.
That’s according to a new report from Morningstar DBRS, sent to Rigzone recently, which stated that companies are collaborating with AI startups and Big Tech companies to run pilot projects evaluating the practicality of using AI in their day-to-day business, as well as exploring changes to their risk management frameworks to address technological and regulatory risks arising from the adoption of AI.
“We believe that AI, which collectively includes machine learning (ML), robotics, and natural language processing (NLP), has the potential to add value to the O&G sector in three broad ways,” the report said.
“Firstly, it could significantly reduce the time for various processes by automating key workflows. Secondly, it could improve the accuracy of key forecasts by using the latest tools for predictive analytics,” it added.
“And thirdly, it could aid in real time the monitoring of assets, allowing companies to preempt potential system failures,” it continued.
In the report, Morningstar highlighted that “efficiency of key processes, such as seismic interpretation, reservoir modelling, and asset maintenance, can be increased as ML models are trained using a company’s historical data”.
“Predictive analytics, process automation, and reservoir engineering have been the most explored AI use cases by U.S. O&G companies in 2024,” it added.
Morningstar noted in the report that the adoption of AI by technology companies has been rapid but added that, traditional sectors, including the oil and gas sector, are quickly adopting AI into their business models as well.
“However, understandably, the pace of adoption for this sector has been slower because it is considered more challenging to employ AI processes for current business models, and digital competence is a key requirement to extract value,” the company said in the report.
Morningstar also highlighted several “potential challenges to AI adoption” in the report. These included “the increased threat of cyberattacks, which are likely to intensify given growing geopolitical risks”, “competition for talent with the requisite skills as O&G companies compete against Big Tech companies and technology startups”, and “the investment required to strengthen IT infrastructure and implement effective skill development programs”.
ADNOC Gas, ADNOC AI
In a release posted on its site back in August, ADNOC Gas noted that it has been a pioneer in Artificial Intelligence, Digitalization and Technology (AIDT) for the gas industry.
“The company installed one of the industry’s largest Real Time Optimizer (RTO), which is a solution that helps in analyzing operation parameters and recommends how to reduce energy consumption and emissions,” the company said in the release.
“The solution first piloted in 2018 was rolled out across 27 production trains,” it added.
In the release, ADNOC Gas noted, that, overall, $1 billion in value has been realized through deployment of AIDT in ADNOC Gas since 2016. A further $2 billion is expected over the next five years, the company said in the release.
ADNOC Gas describes itself as a world-class, large-scale integrated gas processing company operating across the gas value chain, from receipt of feedstock from ADNOC through large, long-life operations for gas processing and fractionation to the sale of products to domestic and international customers.
It supplies approximately 60 percent of the UAE’s sales gas needs and supplies end-customers in over 20 countries, the release highlighted.
In a release posted on ADNOC’s site in March, ADNOC said over 30 AI tools have unlocked significant value across ADNOC’s full value chain, “from field operations to smarter and quicker corporate decision-making”.
“AI is also supporting ADNOC’s net zero by 2045 ambition and its target to achieve near-zero methane emissions by 2030,” ADNOC stated in that release.
ADNOC describes itself as a leading diversified energy group, wholly owned by the Abu Dhabi Government.
Transformative Changes
In a release sent to Rigzone by the GlobalData team back in July, GlobalData stated that AI and robotics are leading transformative changes in the oil and gas sector.
“These technologies are reshaping how the sector approaches exploration, production, refining, and logistics, instituting a new era of innovations for heightened productivity, efficiency, sustainability, and safety,” GlobalData said in the release, which highlighted that the company had released a report on AI and robotics in oil and gas.
A release sent to Rigzone by GlobalData earlier this year outlined AI as one of the biggest themes driving growth in the oil and gas industry in 2024.
To contact the author, email andreas.exarheas@rigzone.com
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