The oil and gas industry is using AI to enhance drill precisions as well as to manage its complex internal processes.
FREMONT, CA: Oil is among the most valuable commodities in the energy sector. Various well-established businesses in the gas and oil sector are earning huge by producing fuel and other crude oil products. However, oil companies are concerned with depleting oil reserves and a global reduction in the price of oil. Various companies are seeking the aid of technologies such as Artificial Intelligence (AI) to counter the above trend. Some of the industry giants have already incorporated AI in their business operations. Due to the many advantages associated with AI, companies are eyeing on technology to maximize their revenue and efficiency. Here are some of the primary applications of AI in the oil and gas industry.
Drilling and mining raw hydrocarbons for producing fuel and other energy resources is one of the primary operations for any oil and gas firm. The challenge involved in the above venture is to find and dig into precise spots to obtain the raw products. Moreover, drilling operations involve high risks of oil spills, accidents, and fires. In the case of offshore drilling, the water temperature can reach freezing levels and affect the drilling equipment. AI enables the firms to guide drills on landmass and ocean floor with higher precision. The advanced AI algorithms used for the above cause are trained with historical data of drilling operations.
Oil and gas firms always aim to optimize their processes to enhance production. The firms can train AI systems through a large volume of raw production data, which will enable automatic pattern recognition and segregation of the refine production data for generating analytics. Using such analytics, AI systems can build estimation and prediction models.
Oil reservoirs form the basis of running an oil and gas business. Such reservoirs need to be properly maintained to ensure the longevity of the production cycle. Various technicalities like geology, production techniques, and reservoir engineering are a part of reservoir management. Against conventional solutions involving significant manpower, oil and gas firms can train AI systems with historical data over geological information, seismic surveys, and production technicalities. AI’s capabilities will not only streamline the reservoir processes but also reduce the costs involved.
The above AI applications can significantly impact operations in the oil and gas industry. Major oil and gas firms are already investing in AI technology, coupled with long term strategies and goals.