Artificial Intelligence and Oil & Gas Industry – Partnership towards sustainable future

Climate change is a reality and is the biggest threat to mother earth! An estimated 65% of global industrial greenhouse gas emissions over the past two centuries are directly linked to the activities of oil and gas companies. As many see the oil and gas industry as a major source of pollution, the move towards sustainability is becoming the cornerstone of all strategies and plans of oil conglomerates. Many oil and gas companies have embarked on an environmental management journey to promote environmentally sound industrial development.

  • Abu Dhabi National Oil Company (ADNOC) announced its plan to reduce its greenhouse gas emissions intensity by 25% by 2030. As part of its sustainability initiative, ADNOC agreed to limit the freshwater consumption ratio to below 0.5% of total water use.

  • BP has pledged to eliminate carbon emissions from its operations and reach net-zero carbon emissions by 2050 or sooner.

While individuals like Jeff Bezos have pledged $10 billion to combat climate change, oil and gas companies are adopting innovative technologies to improve environmental performance. The interest in technologies such as artificial intelligence and machine learning is steadily increasing among oil and gas companies. Many energy companies are now adopting AI-powered technologies to achieve their business goals while reducing environmental impact. Many companies are now adopting AI-based data analytics to augment E&P capabilities and discover new exploration opportunities. The other major application areas include:

  • Predictive maintenance

  • Machinery and plant inspection

  • Production planning

  • Field services

  • Quality control

  • Distribution and marketing

Oil companies are now integrating AI technologies into their upstream, midstream, and downstream operations. British Petroleum & AI

In January 2020, the oil and gas giant made an investment of USD 3.6 million in Chinese AI energy management tech company R&B to support BP Alternative Energy’s focus on low-carbon power and digital energy BP also acquired the majority stake in fiber optic innovation company Fotech with an aim to integrate Fotech Fibre optic sensing solutions which are invaluable in protecting pipelines. In January 2019, it invested USD 5 million in Houston-based AI startup Belmont Technology to use AI for accelerating its exploration activities. Belmont develops a cloud-based geoscience platform, called Sandy, using AI. With the investment, BP is planning to leverage Sandy to interpret geology, geophysics, historic and reservoir project information to create unique “knowledge-graphs.” Aker BP & AI

In March 2019, Aker BP, partnered with AI Company, SparkCognition, to use artificial intelligence for accelerating its predictive capabilities. SparkCognition’s flagship product “Spark Predict” uses artificial intelligence algorithms to protect the health of machine assets, predict downtime, minimize maintenance costs, and optimize schedules. Aker BP also made a strategic partnership with global industrial artificial intelligence software-as-a-service (SaaS) firm Cognite to explore the potential of robotics in the offshore oil and gas platform. With the acquisition, the companies will together work to use robotics systems to carry out safer, more efficient and sustainable offshore operations. Baker Hughes & AI

In 2019, the US-based Baker Hughes, released its first AI application developed by the Baker Hughes - joint venture. The application, called BHC3 Reliability, uses machine learning models to identify anomalous conditions that can upend equipment and processes. The applications alert operators to take action to prevent downtime. In February 2020, the Baker Hughes and joint venture also launched a new AI software to optimize oil and gas production. The product, BHC3 Production Optimization, uses artificial intelligence to allow well operators to view real-time production data and predict future production. The oil and gas player also entered into a three-way deal with and Microsoft Azure to boost the adoption of artificial intelligence te