Factbox: Jefferies sees AI fuelling next wave of innovation in oil and gas sector

Range Resources

09/06/2023 16:14

June 9 (Reuters) - 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.
    
    Here are 10 predictions for future applications of AI in
energy, according to brokerage Jefferies.
    
    ASSET MANAGEMENT & MONITORING
    Jefferies 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  SHELL.L  has partnered with Akselos, a Swiss modeling
and simulation company, to use its digital-twin technology.
    
    OPTIMIZE EXPLORATION
    AI can be utilized 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 nine days versus nine 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  PTEN.O  CEO
William A. Hendricks Jr said AI may allow one person to manage 4
rigs instead of one person per rig.
    
    MAXIMIZING WELL PRODUCTION
    AI will be utilized to monitor and adjust well output, flow
rate and pressure in real-time and identify anomalies.
    Range Resources  RRC.N  is testing such an AI algorithm.
    
    MAXIMIZING RECOVERY RATES
    AI could help enhance oil recovery at brownfield sites,
subject to declining production and higher operating costs.
    Italian oilfield services firm Saipem  SPMI.MI  is
developing an AI tool to maximize well quality.
    
    REFINERY OPTIMIZATION
    AI will allow refineries to rapidly react to changing market
conditions and adjust feedstock and output accordingly.
    
    EMISSIONS DETECTION & MONITORING
    AI-based imaging technology could identify methane plumes
and quantify emissions volumes.
    Chevron  CVX.N  has utilized machine learning and advanced
technologies to detect, prevent emissions and make timely
repairs.
    
    CYBERSECURITY
    AI could identify and resolve security breaches real time
and pinpoint vulnerabilities to minimize breaches.
    
    WORKPLACE SAFETY & EFFICIENCY
    AI could identify potential hazards, track worker fatigue
and improve efficiency.
    
    CORPORATE & STRATEGIC DECISION MAKING
    It can also help boost capital budgeting, planning and risk
management.

 (Compiled by Arshreet Singh)
 ((Arshreet.Singh@thomsonreuters.com; Twitter: https://twitter.com/Arshreets))