Artificial intelligence is making its way into the oil and gas industry. As of now, the industry lags behind in adopting new technology. The involvement of artificial intelligence in the oil and gas industry will create a number of different opportunities for the companies that are part of it. The oil and gas companies are mostly using IT inside their organizations, but they really haven’t come to the idea of using IT to transform their business. They are using IT to make their organizations work, they are using IT to make their organization efficient but they have not been able to use IT to make their organization efficient and cause a new business model.
Making the most of technology in the oil and gas industry is not as simple as it sounds and it is a highly competitive market. With plenty of different tools and technologies available, it is important to keep up to date with the latest technology. Here’s a look at how you can do that in the oil and gas industry.
Why is technology important in oil and gas?
As it turns out, the oil and gas industry is one that is full of technology and innovation. The process of extracting crude oil from underground sources can be a very difficult thing to do. Yet, even with the technological advances that have been made in recent years, it remains a challenging task for many companies and corporations. In fact, without all of the tools that are available to us today, most drilling operations would not be possible at all.
The explosion in technology has made it much easier to find oil and natural gas deposits deep below the surface. When you consider how much time and effort was required in the past, you will quickly see just how important technology is to this industry. With new software and hardware becoming available almost daily, there are more ways than ever to make drilling easier and more efficient.
The oil and gas industry is one of the largest sources of greenhouse gas emissions, accounting for roughly 4 percent of global carbon dioxide emissions. That’s a figure that some companies are trying to reduce.
Tapping into new sources of energy — like solar — can diversify a company’s supply of power and reduce carbon footprints, which makes it easier to comply with increasingly strict environmental regulations.
An increase in automation technology is also opening up new ways to do business. As the industry continues to invest in automation technology, drivers will use devices instead of having to work on the ground. Eventually, that investment may lead to fewer people working on-site at all.
Other technological advances include remote monitoring systems that monitor equipment from afar, allowing for an earlier diagnosis of problems without a field visit. These systems could make it possible for individuals to oversee multiple sites from one location, improving efficiency and reducing costs for the companies employing them.
How is ML/AI used in the oil and gas industry?
The application of AI assists oil and gas companies in assessing the value of specific oil reservoirs, customizing drilling and completion plans in accordance with the geology of the area, and assessing risks associated with each well. Further, operations downstream can be optimized in order to minimize costs and maximize profits
Machine Learning and Artificial Intelligence are used in the oil & gas industry to make predictions on the following:
● Asset health
● Unused equipment
● Cluster analysis of good logs
● Recommendation systems for Oilfield services
● Recommendation systems for Oilfield products
● Predicting oil prices
● Predicting gas prices
● Predicting crude oil and condensate supply and demand balance
In their efforts to gain a competitive advantage, many oil and gas companies are using machine learning (ML) and artificial intelligence (AI) to increase efficiency, improve decision-making and reduce costs.
In the past five years, the number of energy companies using AI has skyrocketed from a small handful to more than 80 percent of the world’s largest oil and gas companies, according to a report by Accenture.
The technology is being used to extract value from existing data sets in more efficient ways, predict outcomes based on historical data, automate time-consuming processes, detect patterns in well production data to optimize production rates and identify new opportunities for revenue growth with existing assets.
What falls under the oil and gas industry?
The oil and gas industry covers a wide variety of businesses in the global market. The industry is a major part of the international economy and it has a long history that dates back to the early 20th century. A fundamental breakdown of the oil and gas industry can be found in three segments: upstream, midstream, and downstream. Oil and gas exploration and production (E&P) companies locate reservoirs, drill oil wells, and develop oil fields. Construction and maintenance of well sites are undertaken by well servicing companies.
Oil and gas companies offer many different services, ranging from exploration for new resources to manufacturing equipment for use in extracting oil and gas. The oil industry is responsible for the production of oil, gas, coal, and other fossil fuels.
It is an important part of the global economy which means that more jobs are created in this industry than in any other industry. In fact, more than 18 million people are employed by this industry around the world. Industries such as machinery manufacturing, construction, mining, transportation, and agriculture depend on the production of oil, gas, and coal to support their industries.
What is ERP in oil and gas?
ERP stands for exploration and production. It is a large, important industry that produces oil and gas. The oil comes from the ground and is used in many products. Many of these products are essential to our everyday lives.
Truck drivers use diesel fuel to drive their rigs down the highway. We heat our homes using natural gas that is piped in from out of state. The only method we have to access natural gas is through drilling wells deep into the ground. Once it is extracted, it travels by pipeline to the point of use—the “end-user.”
The ERP industry uses highly specialized tools to locate pockets of oil and gas underground, and once they are found, they drill those wells deep into the earth’s crust in order to extract the product. They also build pipelines so that the oil and gas can be transported safely to markets where they will be bought and sold on an open market.
Using artificial intelligence or technology in the oil and gas industry can improve operations and help companies to succeed. The rise of AI can also open up new markets to those companies, that are able to make the most of it. Companies need to match what AI technology can do for them and how it can provide value at a low cost. By finding smart ways of using this technology, there is so much potential for the oil and gas industry. They just need to be able to see past their own noses to realize it.