June 9 (Reuters) – With AI rapidly becoming a buzzword across industries, oil and gas companies are exploring ways to use this technology to fuel innovation in the energy sector.
Here are 10 predictions for future applications of AI in energy, according to brokerage Jefferies.
ASSET MANAGEMENT & MONITORING
Jefferies expects energy firms to partner with tech companies to develop digital replicas of their infrastructure to manage assets and facilitate predictive maintenance, identifying defects before they occur.
Shell has partnered with Akselos, a Swiss modeling and simulation company, to use its digital-twin technology.
OPTIMIZE EXPLORATION
AI can be utilized to better map recoverable volumes from discovered reservoirs.
Shell is using AI-based technology from big-data firm SparkCognition in its deep sea exploration and production to boost oil output, potentially cutting exploration timeline to as little as nine days versus nine months.
DRILLING, WELL DESIGN
AI platforms could provide optimal designs – including placement and spacing – to maximize productivity.
In 2022, oil-field services firm Patterson-UTI (PTEN.O) CEO William A. Hendricks Jr said AI may allow one person to manage 4 rigs instead of one person per rig.
MAXIMIZING WELL PRODUCTION
AI will be utilized to monitor and adjust well output, flow rate and pressure in real-time and identify anomalies.
Range Resources (RRC.N) is testing such an AI algorithm.
MAXIMIZING RECOVERY RATES
AI could help enhance oil recovery at brownfield sites, subject to declining production and higher operating costs.
Italian oilfield services firm Saipem (SPMI.MI) is developing an AI tool to maximize well quality.
REFINERY OPTIMIZATION
AI will allow refineries to rapidly react to changing market conditions and adjust feedstock and output accordingly.
EMISSIONS DETECTION & MONITORING
AI-based imaging technology could identify methane plumes and quantify emissions volumes.
Chevron (CVX.N) has utilized machine learning and advanced technologies to detect, prevent emissions and make timely repairs.
CYBERSECURITY
AI could identify and resolve security breaches real time and pinpoint vulnerabilities to minimize breaches.
WORKPLACE SAFETY & EFFICIENCY
AI could identify potential hazards, track worker fatigue and improve efficiency.
CORPORATE & STRATEGIC DECISION MAKING
It can also help boost capital budgeting, planning and risk management.
Compiled by Arshreet Singh
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https://www.reuters.com/business/energy/jefferies-sees-ai-fuelling-next-wave-innovation-oil-gas-sector-2023-06-09/
