The Power of Artificial Intelligence to Revolutionize the Oil & Gas Industry

Global oil supply appears comfortable for the next three years, but according to Market Report Series: Oil 2017, growth slows considerably after that. To keep pace with demand after 2020 means getting caught up with 21st-century technology immediately.

The oil and gas industry has long leveraged innovation, namely when it comes to drilling, but business intelligence capabilities, such as Artificial Intelligence (A.I.), have been reserved for only the largest of projects and biggest of companies.

But seeing as there is no end in sight for the era of cheap oil, the industry has no choice but to more bullheaded in the democratization of tools like A.I., automation, and IoT due to the need to operate in lower margin environments. Data and intelligence must move beyond the drill bit, into every facet of an organization.

Bring Production into the Space Age

The drilling operations have long since been in the space age. They have invested billions in the hope and prayer that some crazy new technology using thin fiber to crack through hard stone would produce oil. And voila, with one tweak on a mobile app, a rig worker can instruct a drill bit that is thousands of feet underground to hit squarely on the sweet spot.

These advances didn’t happen by being timid or risk averse. This sector is one of the most risk-oriented industries, and that nature must extend from the field all the way to the corner office. This sector cannot be left behind in a worldwide digital revolution. We must capitalize on business intelligence to get ahead.

Here’s why A.I. is key to the future of oil and gas:   

Pump by Exception

From field superintendents to operations managers, it is a struggle for all departments to get a pulse on the field. Thus, the biggest opportunity to cut costs is to pump by exception.’ By applying machine learning and A.I., oil and gas companies can make recommendations on which well sites need attention. And more importantly, which ones do not.

Without this dynamic awareness of well health and location, pumpers end up treating all wells the same. The high-priority producing wells that need more attention are just one of many among a pumper’s route, not at the top of their list. There is no way to put it there. But with A.I., there are now capabilities to call upon pumpers as needed to monitor panels, equipment, and pipelines.

Automate Work Orders

The confluence of sensors, software, mobility and connectivity in the field is allowing operators who use these automation tools to update their work order status in real time. With A.I., operations can now go from identifying to resolving field jobs in a decentralized manner while also giving field leadership on-the-ground intelligence to drive results.

The use of data and automation of well information on pumps allows oil and gas companies to perform at optimum capacity, directly impacting their bottom line. There are dozens of variables that can save millions when machine learning is applied correctly.

By creating one device that pumpers rely on, they can demonstrate movement, status, and completion of a job order. Today, there is no option, especially not a mobile one, that provides this real-time information in the field.

Improved Safety

Along with boosting productivity and reducing spend, A.I. holds the potential to enhance safety. Through data analysis, field intelligence platforms can now alert pumpers to potential safety issues and drive proactive remedial action.

My vision is to increase the automated Supervisory Control and Data Acquisition (SCADA) wells from 20% to 80%. When this happens, there is then a capacity for wells to be auto-gauged without requiring pumpers to even get out of their trucks. This reduces the risk factors for their overall safety.

Currently, SCADA equipment is cost-prohibitive, but as IoT sensors become less exclusive, and therefore more affordable, auto-gauging, where the mobile device picks up and intelligently processes data from the SCADA machines, will increase safety.

Compliance

Oil and gas is continually one of the most regulated spaces without much relief. To maintain the pace of growth without being hindered by compliance, it is mission critical for the field to have automation on compliance tasks, such as capturing data or fulfilling reporting obligations, in minutes, not days. Executives need not be bogged down with finding documents, but merely being able to pull information in real-time. The audit-ready collection of activity data in a centralized repository provides various regulatory agencies with all necessary reports.  

By having an A.I.-driven repository for audit-ready activity data, this increases efficiency in the following ways:

• All forms are configured and centralized

• All data collection is electronic and centralized

• All reports can be configured on one platform for ease of access

• The cost of compliance is reduced and compliance efficiency is increased

Space age exploration is not new to the oil and gas industry.  No longer tied down by legacy systems, oil and gas companies must continue to prioritize innovation to change their business model. As the technology and its use cases evolve, further opportunities to derive efficiencies from the intersection between technology and ingenuity can be expected to materialize. As a leader in field intelligence software, Seven Lakes is continuously updating and improving its solutions to enable its customers to benefit from new developments in the field.

If you would like to learn more about Seven Lakes Technologies A.I. solution JOYN FDG, you can read more here: https://www.sevenlakes.com/joyn.php