Filings buzz in oil and gas industry: 54% increase in artificial intelligence mentions in Q2 of 2021
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Filings buzz in oil and gas industry: 54% increase in artificial intelligence mentions in Q2 of 2021

By Patrick Scott 26 Oct 2021

Mentions of artificial intelligence within the filings of companies in the oil and gas industry rose 54% between the first and second quarters of 2021.

Mentions of artificial intelligence within the filings of companies in the oil and gas industry rose 54% between the first and second quarters of 2021.

In total, the frequency of sentences related to artificial intelligence between July 2020 and June 2021 was 287% increase than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings.

When companies in the oil and gas industry publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Artificial intelligence is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.

To assess whether artificial intelligence is featuring more in the summaries and strategies of companies in the oil and gas industry, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned artificial intelligence at least once in filings during the past twelve months - this was 72% compared to 39% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to artificial intelligence.

Of the 50 biggest employers in the oil and gas industry, Baker Hughes Co was the company which referred to artificial intelligence the most between July 2020 and June 2021. GlobalData identified 53 artificial intelligence-related sentences in the United States-based company's filings - 1.1% of all sentences. Tokyo Gas Co Ltd mentioned artificial intelligence the second most - the issue was referred to in 0.8% of sentences in the company's filings. Other top employers with high artificial intelligence mentions included Reliance Industries Ltd, ENEOS Holdings Inc and Idemitsu Kosan Co Ltd.

Across all companies in the oil and gas industry the filing published in the second quarter of 2021 which exhibited the greatest focus on artificial intelligence came from SK Inc. Of the document's 1,494 sentences, 48 (3.2%) referred to artificial intelligence.

This analysis provides an approximate indication of which companies are focusing on artificial intelligence and how important the issue is considered within the oil and gas industry, but it also has limitations and should be interpreted carefully. For example, a company mentioning artificial intelligence more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into artificial intelligence have been successes or failures.

GlobalData also categorises artificial intelligence mentions by a series of subthemes. Of these subthemes, the most commonly referred to topic in the second quarter of 2021 was 'smart robots', which made up 73% of all artificial intelligence subtheme mentions by companies in the oil and gas industry.