In the past 12 years, the oil and gas industry has suffered three price collapses. The most recent downfall is caused due to an unprecedented drop in global demand due to COVID-19. As a result, the fuel prices touched 30-year lows.
Canada ranks as the world’s fifth-largest producer of oil and natural gas. Like every other country, the oil and gas industry in the Great White North faces unique challenges during the COVID-19 crisis.
In this blog, we’ll discuss the role of Artificial Intelligence (AI) in the oil and gas industry and how it can potentially help the industry recover from the COVID-19 pandemic.
Let’s get started.
The Role Of AI In The Oil And Gas Industry
Artificial Intelligence plays a significant role in the oil and gas industry. Large corporations leverage cutting edge AI and machine learning solutions to process big data and gain insights to make informed decisions.
Using AI, large oil companies can process data and spot hydrocarbon-bearing reservoirs accurately, facilitating improved planning and resource conservation. It’s particularly useful for companies to make drill-or-drop decisions with higher precision.
Moreover, AI-powered technologies, including drones and robotics, help safeguard workers’ health and safety who operate on dangerous geographical frontiers. It has led to significant improvement in accident and injury rates.
Can AI Help the Oil and Gas Industry Recover From COVID-19?
A few months ago, the global stocks market tumbled due to the price war between Russia and Saudi Arabia – it ended after both countries signed an output cut agreement.
Decreasing demand for oil and gas because of low-cost renewable energy alternatives means companies will need to transform their operating models and reposition their portfolios. Here, Artificial Intelligence may play a significant role.
Leading oil and gas producers will focus on scaling up artificial intelligence investments and incorporating the latest technologies to improve operations. Even after the crisis ends, new approaches to remote working will be a priority.
Using detailed insights from AI tools, the scale and responsibilities of field crews, teams, and management processes will be redefined to improve operational efficiency. AI will play an instrumental role in the development of agile work processes.
Canada runs some of the most generous R&D tax incentive programs in the world, which will potentially help businesses operating in the oil and gas industry harness the power of Artificial Intelligence to recover from COVID-19.
Reviving a declining oil industry doesn’t make a lot of sense amidst the energy transition. But the alternative energy choices are years from taking over the oil and gas sector completely. Therefore, it’ll be interesting to see how the industry reacts to future developments.
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