AI/machine learning

Jefferies Sees AI Fueling Next Wave of Innovation in Oil and Gas Sector

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.

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Here are several predictions for future applications of artificial intelligence (AI) in energy, according to brokerage Jefferies.

Asset Management and Monitoring
Jefferies said it 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 used 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 9 days vs. 9 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 CEO William A. Hendricks Jr said AI may allow one person to manage four rigs instead of one person per rig.

Maximizing Well Production
AI will be used to monitor and adjust well output, flow rate, and pressure in real time and identify anomalies.

Range Resources is testing such an AI algorithm.

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