Artificial Intelligence is one such technology that is redefining the working of different industries. Technology is also transforming the Oil and Gas industry, as AI can have a deeper insight into the hidden facts that influence business growth. AI can easily analyze big data sets while understanding the patterns which is beneficial for the industry. AI is supporting the oil and gas industry by looking into predictive maintenance to avoid failure of costly equipment, as this helps in maintaining an optimized supply chain while focusing on smooth functioning. The technology is helping this industrial sector to make quick data-driven decisions while reducing costs and increasing overall productivity.
Studies and research work says that the AI market in oil and gas industry shall reach around $4.21 billion at a CAGR of 12.09% by the year 2028. Also, the adoption of this technology in this industry by the year 2025 will lead to 10-20% cost savings.
Benefits of AI in the Oil and Gas Industry
Some of the advantages of using AI in the oil and gas industry that are worth mentioning are-
- Better growth
- Better productivity
- Avoids spills/leaks
- Less downtime
- Better decision making
- Quick response to the market trends
- Optimizes resource use
Hurdles while using AI in the Oil and Gas Industry
Although there are several benefits of using AI in this industry but at the same time there are certain disadvantages as well like-
- Requirement for upgradation before interfacing with AI platforms
- Requirement of data science professionals for the development of customer AI models
- More prone to cybersecurity with the use of AI and automation
- Time consumption to prepare data
- More focus on security to avoid fraud attacks
How is AI revolutionizing the Oil and Gas Industry?
The different ways in which AI is reshaping the oil and gas sector are-
Better safety and maintenance- AI is capable of detecting any kind of mis-happenings via means of automated hazard detection. Spills and leaks can easily be detected in real time and this is one of the biggest advantages of this technology that assures complete security, safety and maintenance. The time required for manual inspection is more than the automated task performed by this technology. Maintenance is also assured by AI to avoid bigger failures. Quick notification helps in fixing the problem at the earliest. AI algorithms can monitor the pipeline structures and maintain schedules to ensure quality standards.
Regulatory compliance- It is important for the oil and gas industries to meet the requirements of regulatory compliance and AI is playing a major role to follow the same. ML algorithms are capable of analyzing large data sets while focusing on areas that need attention. The gaps are identified quickly to avoid any kind of obstruction that can affect compliance.
Chatbots for assistance- Voice chatbots are capable of providing complete assistance to the workers in the field. Complete instructions are given, assistance is also provided for questions and status reports by the voice chatbots to the operators.
Quality assurance- AI is capable of predicting any kind of leakage, spill or any other threat and this helps to maintain the quality standards of the oil and gas industry. AI ensures to maintain high quality standards of production and this is the requirement of the oil and gas industry.
Robotic Process Automation- RPA is helping the oil and gas industry to handle back-office work that is extremely time-consuming. RPA bots are capable of handling several tasks that puts away the role of humans while reducing errors.
Forecasting- Machine learning algorithms that are AI-based are capable of meeting the demand for forecasting. Humans might miss out the market trends but AI tools are capable of giving the correct forecast after studying the data insights. It is the forecast predictions of AI algorithms that help to know about the drilling demands that can occur in the future.
Supply chain management- Handling supply chain management in an efficient way is the biggest challenge for the oil and gas industries. Machine learning-based AI is helping industries to maintain their supply chain management for better efficiency. AI is making supply chain management to be more advanced for the overall benefit of the oil and gas industry.
Oil exploration- It has always been a tedious job to look for new hydrocarbon resources when done manually but ML algorithms can easily perform this task without much effort. AL and ML work hand in hand to help the oil and industry in finding the best oil reservoirs.
Price fluctuation- Price fluctuation can take place at any point of time in this industry and AI is really helpful, as it can easily trace the fluctuations to avoid risks. Data analytics and predictive modeling help AI in this field to take care of price fluctuation. Keeping a track of the price of oil is helpful for the companies. In case of price drop the companies can take required actions to avoid major losses.
Quick response to spills and leaks- AI in the oil and gas industry is helping majorly in quick response to any kind of oil spill or hydrocarbon leaks. Quick detection helps to avoid unexplainable loss which otherwise cannot be handled by personnel.
Analyze data- The ML algorithms used in AI technology can identify new fields with hydrocarbons after analyzing data. Also, drilling locations with more chances of oil and gas reservoirs can be located.
Artificial Intelligence has a positive impact on the oil and gas industry that is pushing this industry toward a better future ahead. The cutting-edge technology and best solutions offered by it help to optimize the operations while maintaining the supply chain management for better efficiency and productivity. There are so many benefits of using AI in the oil and gas industry that no one can stop this technology from redefining the workings of this sector. All that you need to do is to come across an experienced generative AI development company that provides you the best services that fulfill your requirements. There might be several companies that deal in this business but you have to look for the right company and make a wise choice.