Artificial intelligence (AI) refers to software-based systems that use data inputs to make decisions on their own or that help users make decisions through automated data analysis and interpretation.
Within five years, the deployment of AI will be essential to the survival of companies of all shapes and sizes across all sectors.
AI is significantly steering the trajectory for technological implementation within this sector.
For the oil and gas (O&G) industry, investment is needed to tackle difficult market conditions, and AI is the most promising technology to invest in.
Though still in the relatively early stages of advancement within the O&G industries, AI is spawning numerous cases of utilisation options.
These are based on objectives that are designed to reduce the costs associated with production while raising the overall operational efficiencies in the O&G sector.
The coming years will be more about practical uses of AI, as businesses ensure they get their money’s worth by using AI to address specific use cases.
GlobalData’s artificial intelligence in the O&G dashboard covers all you need to know about this emerging technology and its impact on the sector.
Ukraine conflict impact on artificial intelligence in the O&G sector
The recent ban on Russian O&G supplies will have a varied impact on both the buying and selling nations.
Russia is an important source of O&G supplies for the US and European countries.
Pressure on the Western Bloc to impose more sanctions on Russian oil imports due to civilian killings in Ukraine by Russian Army. Fuel prices (such as for oil) have increased due to talks of a boycott of Russian oil.
Some O&G companies are halting operations in Russia due to increasing pressure to cut ties amid civilian killings in Ukraine.
The International Energy Agency (IEA) recently published “A 10-Point Plan to Reduce the European Union’s Reliance on Russian Natural Gas”, providing short-term measures and claiming that the EU could cut Russian gas imports by more than 33%.
It also advocates for gas-to-coal switching that could account for the majority of the potential reduction in gas demand.
AI driven innovation in the O&G industry
To best track the emergence and use of artificial intelligence in O&G, GlobalData tracks patent filings and grants, as well as companies that hold most patents in the field of artificial intelligence.
Patents in AI in the O&G sector: Past 20 years
Artificial intelligence patents tracker in the O&G sector has monitored the patent filings and grants over the past two decades.
Leaders and disruptors in artificial intelligence in the O&G industry
Our leader and disruptor list for each theme is based on our analysts’ in-depth knowledge of the theme and sector and the players involved in them.
These are based on subjective opinions supported by research and analysis within the O&G sectors.
Leader lists consider global market share, position in the value chain and ability to react to emerging, disruptive trends.
Disruptor lists take into account funding, strategic partnerships, and the track record of the management team.
AI job trends in the O&G industry
GlobalData monitors live O&G company job postings mentioning artificial intelligence or those requiring similar technical skills.
Job postings by O&G companies that mention artificial intelligence can be found in our tracker.
AI jobs tracker in the O&G sector looks at jobs posted, closed and active in the sector.
AI deals activity in the O&G sector
GlobalData’s artificial intelligence deal tracker in the O&G sector monitors deals involving artificial intelligence or similar technologies over the past nine quarters.
Market forecast for artificial intelligence in the O&G industry
GlobalData estimates that the global AI platform market will be worth $52bn in 2024, up from $28bn in 2019.
Total spending on AI technology is almost certainly higher, but it is difficult to estimate specifically within the O&G industries.
There are two main reasons for this optimistic market forecast.
Firstly, AI is an intrinsic part of many applications and functions, making it almost impossible to identify revenue explicitly generated by AI.
Secondly, the range of sub-sets and technologies that make up AI can be challenging to locate and track.
In general, valuations of the overall AI market range from a few billion dollars to several trillion, depending on the source.
Rather than attempting to size the market, some companies have tried to forecast its economic impact.
A PwC report in 2017 estimated that AI would add $15.7tn to the global economy by 2030 and boost global GDP by up to 14%.
Global AI platform revenue will reach $52bn by 2024, up from $28bn in 2019.
Value chain for artificial intelligence companies in the O&G industry
As illustrated here, the value chain, big data – extremely large, diverse data sets that, when analySed in aggregate, reveal patterns, trends, and associations, especially relating to human behaviour and interactions – plays a significant role in the development of AI technology.
Big data is produced by all forms of digital activity: phone calls, emails, sensors, payments, social media posts, and much more. It is also produced by machines, both hardware and software, in the form of machine-to-machine exchanges of data.
These exchanges are particularly important for O&G companies in the current IoT era, where devices talk to each other without any form of human prompting.
Once collected, big data is typically managed in data centres, either in the public cloud, in corporate data centres, or on end devices.
Big data is covered in more detail in our Big Data report.
Top ten O&G companies with AI mentions in filings
GlobalData tracks, which oil & gas companies mention artificial intelligence in filings most over the past five years.
Influencer activity in the O&G AI companies
GlobalData tracks the mentions of artificial intelligence by pre-identified O&G sector influencers on Twitter.
Landscape for O&G AI companies
More O&G assets and use cases will incorporate AI in 2022.
The growing emphasis on the remote monitoring of O&G assets and increasing usage of robotics technologies will spur the application of AI in day-to-day operations.
Since the outbreak of Covid-19, companies are working to drive operational costs down through technology. Even small efficiency improvements can lead to considerable cost savings, considering the scale of O&G operations.
Companies are also deploying predictive maintenance technologies that rely on AI for detecting potential breakdowns.