Ashish Fatnani is an enterprise solutions consultant for Halliburton. He has worked in the oil and gas industry for the past 12 years at companies including ONGC, Baker Hughes, Quest Global, and Mercedes Benz.
He holds a BS in petroleum engineering from Savitribai Phule Pune University, an MS in petroleum engineering from University of Alaska Fairbanks, and an MBA from the Indian Institute of Management Bangalore.
In this interview, TWA Editorial Board member Mani Bansal interviews Fatnani about his career, the energy transition, AI, and his advice to young professionals in the industry.
Mani Bansal (MB): In 2023 you received an MBA from the Indian Institute of Management Bangalore, ranked the third best business school in Asia Pacific by Bloomberg. How has obtaining an MBA helped you grow in your career? How did attending such a highly ranked school help?
Ashish Fatnani (AF): Obtaining an MBA from a top B-school has been transformative, enriching my skill set and strategic perspectives. Some key transformations include:
- MBA and Tech Combinations: Combining MBA skills with a technical background has been particularly beneficial in areas such as product management, technology consulting, and strategic planning for tech-driven companies. The MBA equips professionals with a broader understanding of business strategy, finance, marketing, and leadership, complementing their technical expertise in areas like artificial intelligence (AI), data analytics, and software development.
- Leadership and Innovation: The MBA experience fosters leadership development, innovation mindset, and cross-functional collaboration, essential for driving technological innovation, managing diverse teams, and navigating complex business challenges in the tech industry.
- Engineer vs. MBA Perspective: Picture an engineer as the "tech wizard" who can make the magic happen with circuits and code, while an MBA professional is more like the "strategic sorcerer" who weaves spells of market insights and business strategy. Together, they create a dynamic duo, combining technical prowess with strategic vision to conquer challenges and unlock new realms of innovation.
- Tech MBA Professionals in Oil and Gas Leading Energy Transition: Tech-savvy MBA professionals are instrumental in leading the energy transition within the oil and gas industry. Their combined expertise in technology, business strategy, and innovation enables them to drive initiatives such as renewable energy investments, clean technologies adoption, and carbon-neutral strategies. With projections indicating over $1 trillion in sustainable energy projects by 2030, tech MBA professionals play a pivotal role in reducing greenhouse gas emissions, mitigating climate change impacts, and transitioning towards a low-carbon future. Their contributions span across operational efficiency improvements, digital transformation, and strategic decision-making, unlocking new opportunities for growth and profitability while addressing industry challenges such as sustainability and digital disruption.
MB: What is your take as a business professional in the oil and gas industry? Where do you see the industry heading?
AF: The oil and gas industry is navigating a transformative landscape driven by the global push for decarbonization and the continued need for reliable energy sources. To address these complex challenges, key strategies include:
- The "Energy Company" Model: Major players are transitioning into broader energy companies. Investments in renewables (solar, wind, geothermal), electric vehicles (EV) infrastructure, and cleaner energy technologies (hydrogen, biofuels, carbon capture, storage, and utilization) are aiming to reduce dependence on fossil fuel markets, align with climate goals, and access new growth opportunities.
Operational Efficiency and Sustainability
Companies are focused on cost reduction, productivity enhancement, and streamlining operations to navigate potential market volatility. This includes:
- Investing in technologies to lower upstream emissions (e.g., methane leak detection and repair, flare gas minimization, and electrification).
- Deploying digital tools and automation solutions to optimize workflows and reduce operational costs.
- Embracing predictive maintenance powered by AI to prevent costly equipment failures, ensuring smoother operations.
- Demonstrating robust environmental, social, and governance (ESG) performance, which is crucial for investment, social license, and talent acquisition.
Partnerships and Innovation
Strategic collaborations with technology providers, startups, and research institutions are accelerating innovation in the clean energy space. Companies are increasing research and development (R&D) budgets with examples like ExxonMobil's 2023 R&D spending of $879 million (up from 2022) focused on lower-emissions biofuels and carbon capture technologies.
Service Sector Adaptation: Oilfield service companies are evolving to support the energy transition. They are developing technologies to reduce the oil and gas industry's environmental footprint, expanding into renewable energy sectors, and optimizing operational costs.
Major Acquisitions (2023–2024)
- Harbour Energy's acquisition of Wintershall Dea's upstream assets
- Occidental Petroleum's acquisition of CrownRock
- ONEOK's acquisition of Magellan Midstream Partners
- Chevron's acquisition of Hess
- ExxonMobil's acquisition of Pioneer Natural Resources
Major Investments in Energy Companies and Renewables (2023–2024)
- BP: Significant investments in solar and offshore wind projects, as well as in EV charging infrastructure.
- Shell: Acquisitions of renewable energy companies like Inspire Energy and investments in hydrogen and biofuel technology development.
- ExxonMobil: Increased focus on renewable fuels and carbon capture and storage (CCS) initiatives.
- TotalEnergies: Partnership with Adani Group in India to develop green hydrogen and renewable energy projects.
To summarize, I believe the oil and gas industry is at a crossroads. Success in the future energy landscape will necessitate strategic diversification, a relentless focus on efficiency and sustainability, embracing technological innovation, and demonstrating proactive engagement with stakeholders on the complex realities of the energy transition.
MB: Now let’s dive deeper. Do you believe we as oil and gas professionals and our companies will lead energy transition?
AF: To be very honest, yes, I am certain we will. You work for a major oil company, Shell, and you can see it within your company. If you look at reports from leading consulting firms, they all have said the same, that oil and gas companies will lead the energy transition.
In fact, a 2023 McKinsey & Company report stated the same. Oil and gas companies possess the potential to spearhead the shift towards cleaner energy sources.
A History of Transition
Private oil companies (IOCs) and state-owned oil companies (NOCs) began investing in renewable energy decades ago. This trend has accelerated, with major players increasing investments and NOCs setting ambitious net-zero targets.
Mixed Results, Growing Momentum
While success varies, customer demand for clean energy and stronger decarbonization regulations will keep this momentum going.
Valuation Impacts
Capital markets show preference for companies aligned with the energy transition. Oil and gas leaders typically need to significantly increase their low-carbon investments to reap the full benefits of higher valuations.
Unique Advantages
Oil and gas companies have advantages suited to the energy transition, including:
- Experience with large-scale offshore projects.
- Hydrogen production and transportation knowledge.
- Potential for EV charging infrastructure at existing stations.
- Decarbonization solutions expertise (e.g., CCUS).
The oil and gas industry has the potential to play a major role in the energy transition. Their resources, experience, and the increasing necessity for cleaner energy solutions position them to contribute significantly to the shift. We have already seen heavy investments from oil majors to service providers in this sector. It will grow with time.
MB: Let’s shift gears toward AI and digital transformation. Do you think AI is going to have an impact in the oil industry? Is AI a game-changer for all industries?
AF: AI's impact on the oil industry is poised to be substantial, potentially transforming operations across exploration, drilling, production, and logistics. While my insights may not delve deeply into technical details, observations from various industries and a lot of readings suggest that AI's integration can lead to significant improvements in efficiency, cost reduction, and decision-making processes.
AI is increasingly recognized as a game-changer in various sectors, including oil and gas. The ability of AI technologies like generative AI (GenAI), agentic AI, and large language models (LLMs) to analyze vast amounts of data, optimize processes, and predict outcomes can revolutionize how companies operate and compete in the modern landscape. It's crucial for professionals in the oil and gas industry to embrace AI's potential and explore how it can drive innovation and create value across their organizations.
- Exploration and Reservoir Analysis: GenAI can generate new seismic data, enhancing existing datasets, and creating detailed 3D models of potential reserves. This improves exploration efficiency and lowers costs.
- Drilling Optimization: GenAI models can predict drilling parameters for the most efficient well placement, reducing the risks and time associated with drilling.
- Predictive Maintenance: By analyzing equipment data, GenAI can predict failures, enabling proactive maintenance and reducing unplanned downtime. There is a lot which can be done here.
Agentic AI is also something which will change the game in the oil and gas industry, including
- Autonomous Systems: Agentic AI powers intelligent systems for drilling operations and pipeline monitoring. These systems can make on-site decisions to optimize processes and increase safety.
- Process Optimization: Agentic AI can autonomously control various aspects of refining and production facilities, maximizing efficiency and minimizing waste.
- Logistics Automation: Self-driving trucks and optimized transportation routing are powered by agentic AI, ensuring safe and efficient delivery of oil and gas products.
Regarding LLMs:
- Knowledge Extraction: LLMs can analyze large quantities of technical documents, reports, and historical data to uncover valuable insights and trends.
- Report Generation: LLMs can produce comprehensive reports and summaries, saving time for engineers and analysts.
- Virtual Assistants: LLMs can power virtual assistants to help field personnel and engineers with technical questions and troubleshooting.
Detailed examples of LLM include
Market Forecasting
- Price Prediction: LLMs can analyze historical price data, news feeds, geopolitical events, and supply and demand trends to forecast short and long-term oil and gas prices.
- Market Sentiment Analysis: By processing industry news, social media data, and analyst reports, LLMs can detect shifts in market sentiment towards oil and gas, aiding in investment decisions
Demand Estimation of Crude
- Consumption Pattern Analysis: LLMs can identify patterns in crude oil consumption across different sectors (transportation, industry, residential) and regions, helping predict future demand.
- Macroeconomic Factor Integration: By incorporating factors like economic growth, industrial activity, and energy policies, LLMs can build more robust demand estimation models.
Other Applications
- Risk Assessment: LLMs can process news and market data to identify potential supply disruptions, geopolitical risks, and regulatory changes that could impact the oil and gas sector.
- Contract Analysis: LLMs can assist with reviewing and summarizing complex contracts, improving negotiation processes and optimizing terms.
MB: Can you elaborate on the role of blockchain in the oil and gas industry?
- Supply Chain Transparency: Blockchain creates a tamper-proof record of the movement of oil and gas products from well to consumer. This ensures product quality, combats counterfeiting, and facilitates ethical sourcing.
- Smart Contracts: Blockchain-based smart contracts can automate royalty payments, trades, and regulatory compliance reporting, streamlining workflows and reducing friction.
- Data Security and Integrity: Blockchain's decentralized and encrypted nature ensures that sensitive data, such as operational data and geological surveys, are securely stored and protected from tampering.
- Energy Trading and Finance: Blockchain can enable peer-to-peer energy trading and the development of innovative financial instruments for the oil and gas industry. Its interesting to see how blockchain and Gen AI will disrupt the oil and gas industry.
MB: Your work history includes impressive contributions in terms of patents and publications. Can you describe how these experiences shaped your career?
AF: Definitely. Learning the patent process at Halliburton was incredibly valuable. Their emphasis on collaboration was key—having experts to help with idea refinement and critique was fantastic. I attribute much of this success to the strong mentorship and support I received at Halliburton. Having encouraging colleagues, a company culture that fosters innovation, and the broader network fostered by SPE all played essential roles in my growth. This support structure helped me file and publish three patents with Halliburton and an additional four filed during my time working at Mercedes Benz.
Beyond patents, publishing papers tied to my projects added significant credibility within sales and advisory roles. While these achievements are important, I recognize they aren't the sole measure of success.
MB: That's an insightful point. You've also been actively involved with SPE. What kind of impact has that had on your career?
AF: SPE has been a cornerstone of my development. It serves as a global network for oil and gas professionals, fostering invaluable connections and facilitating knowledge-sharing. SPE creates a sense of community within our vast industry, offering opportunities ranging from networking to conference participation.
Personally, SPE helped me forge lasting relationships, contribute to initiatives like the Members in Transition program alongside Susan Howes. It has also given me a platform to publish papers, present at conferences, and receive recognition for my work. I firmly believe SPE is vital for any oil and gas professional seeking to stay connected and build a strong, supportive network.
MB: How have you been able to stay relevant? For me personally it has been a lot of reading, joining multiple SPE forums, and upskilling myself in technology. How have you been able to do the same?
I attribute my continued relevance to adaptability, continuous learning, a strong network (especially through SPE participation), and a willingness to take calculated risks in my career progression. My LinkedIn echoes the phrase “stay hungry, stay foolish, and keep learning!”
MB: As a fellow petroleum engineer, what advice would you give to young professionals entering the industry?
AF: Certainly, I've learned a lot on my journey, and I'm happy to share some insights.
- Diversify your skillset: The energy landscape is evolving rapidly. Enhance your core petroleum engineering knowledge with complementary skills in data science, business, or environmental studies. This broader understanding will open up new opportunities and make you more versatile in a dynamic industry.
- Embrace change: Energy transitions are inevitable. Don't fear technological shifts or changes in demand. Adaptability and continuous learning are key. I've taken risks and faced failures, but each experience has been a valuable lesson that contributed to my growth. For instance, my time at Mercedes-Benz gave me insights into automotive technology that I could apply to the energy sector.
- Network and stay involved: Our industry faces cyclical challenges. Building a strong network through platforms like SPE, participating in conferences, consistently upskilling yourself, and seeking mentorship can make a significant difference. Remember, the demand for energy will evolve, and positioning yourself for the future is essential.
For Fellow MBA Aspirants
- Experiment and explore: I've experimented extensively in my career, trying out different roles and embracing new challenges. Don't hesitate to step out of your comfort zone. Continuous learning and a willingness to learn from failures can accelerate your professional growth significantly.
- Leveraging the MBA: Pursuing an MBA can be transformative, especially if your career goals align with business leadership in the energy sector. Consider a part-time MBA if you want to pivot your career without disrupting your current job.