As oil and gas prices fall, the oil industry must incorporate cost-effective methods to keep up production without losing money and still provide consumers with an affordable end product. That is where AI technology comes into play. Reports reveal that the gas and oil industry currently use IA technology. Due to utilizing the technology, estimates surmise that the industry expects to grow by more than 12 percent in the next five years.
The oil and gas industry has been using AI for many years. More are experimenting with the latest technological innovations. The technological advances provide greater safety for all workers with the addition of remote automation and surveillance. AI also helps companies save money in addition to enabling them to make decisions based on more accurate information. The industry overall consists of different sectors known as upstream, midstream and downstream. Today’s technology is useful to all.
The upstream aspect of the industry involves exploration and production. During this phase, AI powers sensors and the Internet of Things to obtain and handle data. The systems are also implemented to control and monitor the drilling equipment. Some systems analyze and manage geological data that provides companies with the data necessary to determine optimal drilling locations. Other systems collect seismic data along with maintaining drilling logs, analyzing core samples and storing production information. While continually monitoring drilling locations during the extracting process, AI has the ability to detect potential drilling equipment problems before they occur. In this way, the necessary steps are taken before a disaster occurs.
The midstream phase involves processing, storing and transporting the crude oil. The same processes are used in the natural gas and liquefied gas aspects of the industry. A system known as the Petroleum Analytics Learning Machine, or PALM, provides analytical data during this phase that includes monitoring pipeline operations. The data acquired enables companies to make informed decisions while optimizing overall performance.
The final phase involves oil refineries, petrochemical facilities, natural gas, and petroleum product distributors. One AI system creates data using algorithms that provides insights as to how companies might conserve water usage while reducing costs. Other systems used by the companies are designed to enhance revenues. The technology has the ability to make financial predictions by analyzing different scenarios while reducing operating expenses.