Financial Services Association, March 19 (Editor Zhou Ziyi) In the past ten years, the most traditional oil and gas industry has also begun to open up to digital technology and automation, and has also embraced all new things digitalization and artificial intelligence. Now, these technologies are helping the industry reduce costs and increase efficiency, and produce more oil and gas with less money.

According to reports, the petroleum industry is using artificial intelligence to improve drilling operations in shale areas and increase the recovery rate of fracturing wells, which is a very important step for the petroleum industry. Recently, the petroleum industry also seems to prefer using computers for seismic surveys and pipeline monitoring.

The top priority

Generative artificial intelligence (AIGC) is transforming almost every field of humanity and is embedded in more and more aspects of everyday life, businesses, and society.

According to a recent survey of energy, natural resources and chemical (ENRC) industry CEOs published by KPMG (KPMG), nearly two-thirds (64%) of respondents believe investing in AIGC is a top priority, and 48% expect to see a return on investment within three to five years.

Anish de, global head of ENRC at KPMG International, said, “Generative AI is very different from the blockchain, metaverse, and other fleeting technologies we've talked about in the past. Everyone knows this is real and everywhere. While the technology is still in its early stages, people are still figuring out how to use it.”

In fact, as early as 2018, a KPMG survey found that many oil and gas companies are already using artificial intelligence or are planning to adopt artificial intelligence soon. Of course, at the time, artificial intelligence usually referred to techniques such as predictive analytics and machine learning. However, facts have proven that artificial intelligence is indeed very useful and deserves the attention of oil company executives.

Reduce costs and increase efficiency

Digital technology is indeed being used more and more widely in the energy industry.

According to data from energy industry data provider Kimberlite International Oilfield Research, in the past five years, by using artificial intelligence technology, contractors have reduced the time required for drilling by about two weeks and the average time for hydraulic fracturing by three days. Saving one day means saving one day's expenses.

Additionally, the new technology has enabled contractors to drill longer horizontal wells, which has significantly increased the production capacity of shale blocks.

According to well-known investment bank Evercore ISI, artificial intelligence and other technologies could reduce the cost of shale gas by double digits this year. Evercore analyst James West said, “This will result in significant cost savings, which can be at least double digits, but in some cases it may even save 25% to 50% of costs.”

The technology is being tested not only in shale strata, but also in offshore oil fields. SLB, the world's largest oil service provider, announced in January that it had independently drilled five wells off the Brazilian coast, cutting drilling time by 60%.

Jesus Lamas, president of SLB's oil well construction division, said that in the next three to five years, 15% of oil wells will be controlled autonomously by artificial intelligence. He pointed out that this technology may not only be the key to reducing drilling costs, but also to helping the industry meet its climate change goals, which means more efficient drilling means less energy per well.

Additionally, it is worth mentioning that digital technology such as artificial intelligence can help solve the shortage of talents in the oil and gas industry. Many young people obviously don't like the physical requirements of working in oil fields, but with artificial intelligence, automation and other technologies, young people don't seem to mind working in the oil and gas industry as long as they can work in an office.