Artificial intelligence makes complex data more accessible to oil and gas companies. This data science allows companies to use existing infrastructures more effectively and discover new exploration opportunities with increased efficiency. In this article, Adam Ferrari sheds light on artificial intelligence’s potential applications in the oil and gas industry internationally.
Artificial Intelligence to Lead to Significant Growth
Oil and gas are some of the most highly coveted commodities in the energy sector. In recent years, a downturn in the industry has led to an increased focus on efficiency, leading to the introduction of Artificial Intelligence to the oil and gas sector. Artificial Intelligence was valued at $2 billion in 2019 and could reach as high as $3.81 billion by 2025. As the cost of digitization continues to decline, more and more major oil and gas companies worldwide are expected to integrate loT sensors to improve upstream, midstream, and downstream operations.
With an increased concern emerging in recent years over the environmental impacts of drilling, oil and gas companies utilize innovative approaches to achieve business goals while maintaining responsible environmental best-practices.
Investments in Artificial Intelligence Across the World
Oil and gas companies are placing high capital investments for the integration of artificial technologies across the world. The Oil and Gas Authority of the United Kingdom is using AI to develop the country’s first National Data Repository (NDR) to use AI in assisting to discover new oil and gas forecasts and permit increased production from existing infrastructures.
British Petroleum (BP) also placed a significant investment in Houston-based technology company Belmont Technology to bolster its AI capabilities. Since January of 2019, they have developed a cloud-based geoscience platform nicknamed ‘Sandy’ to make the complex data produced by oil and gas exploration more accessible.
However, the implementation of Artificial Intelligence is not all so simple. Because digitization arrived in the oil and gas industry later than other sectors in the economy, there is a shortage of highly literate AI professionals to operate these systems.
North American to Hold Largest Market Share of AI
Over the next five years, North America is expected to hold the largest share of AI emergence in the oil and gas industry, thanks mainly to the United States and Canada. However, with volatile economic conditions due to the onset of the global pandemic, these figures may be difficult to forecast with high margins of error.
In an increasingly competitive oil and gas landscape, the race to implement and maximize the potential of AI systems is on across the world. As of now, it would appear that major American players such as ExxonMobil are in the driver’s seat.
Artificial Intelligence has made its arrival in the oil and gas industry. While the technology revolutionizes how companies operate and is expected to account for a 3.81-billion-dollar industry by 2025, a lack of skilled AI professionals may slow the market’s growth.
About Adam Ferrari
Adam Ferrari is the founder of the mineral acquisitions company Ferrari Energy. He is a chemical engineer by degree and is an accomplished petroleum engineer by profession. He also has experience in the financial sector through his work at an investment banking firm. Under his leadership, his company has supported numerous charitable organizations, including St. Jude Children’s Hospital, Freedom Service Dogs, Denver Rescue Mission, Coats for Colorado, and Next Steps of Chicago.