Monday, March 27, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Companies

AI Still Has Much to Learn About Humans in Natural Gas and Oil Industry

11 months ago
in Companies
AI Still Has Much to Learn About Humans in Natural Gas and Oil Industry
Share on FacebookShare on Twitter


Artificial intelligence (AI), which tech giant Microsoft Corp. defines as “any technique that enables computers to mimic human intelligence,” falls squarely within the digital transformation.

Exploration and production (E&P) and oilfield service (OFS) companies have been embracing digitalization for years, and the momentum is not expected to subside anytime soon. 

In a recent study, global technology market research firm ABI Research predicted that natural gas and oil companies would spend $15.6 billion on “digital transformation technologies” by 2030.

“The role of technology is evolving from helping oil and gas firms monitor their large, complex and dangerous operations, to helping them optimize their facilities to handle the volatility in their operating environments,” said ABI’s Michael Lerner, industrial and manufacturing principal analyst.

Lerner ticked off for NGI a list of ways in which E&P and OFS companies use AI. 

“To keep workers and staff safe, avoid leaks, and increase yields, oil and gas firms invest in technologies to analyze and monitor their operations, such as their wellheads or drills, deploy sensors to report on the condition of pipes and pipelines, and operations centers to keep themselves appraised,” said Lerner.

Lerner added that firms use AI to monitor local geology to understand the extent of reserves and operators to monitor local seismic activity. For instance, BP plc and ExxonMobil have demonstrated their prowess in that regard. Also applying AI is Canada-based Meg Energy Corp., which is using the technology to optimize production at its Christina Lake Facility.

“Operators also need to proactively monitor local conditions underground and another aspect requiring continuous monitoring is the weather so they can shut down facilities and evacuate staff,” Lerner said.

Digital information technology firm SoftServe’s Ted Wilson, head of energy business development, told NGI that E&Ps are also using AI to optimize production, automate control systems, support worker safety, and monitor emissions and the supply chain carbon footprint.

[Special Edition: Download “ESG Reshapes the Natural Gas Pricing & Investment Landscape” now, and access NGI’s extensive coverage of where the market is headed in 2022 and beyond.]

When asked where he sees the greatest need for AI deployment in E&P and OFS operations, Lerner said one area is using data analytics to gauge risks and run scenario plans for wellhead condition monitoring.

“Historically operators would move on to another location once the productivity of a site started to depreciate,” he said. “As new sources are often located in challenging environments, such as far deeper under the sea, operators are investing in analytics to model their active reservoirs to understand how they can increase yield levels.”

In the pipeline industry, “operators with assets in faraway locations are looking to digital technologies to perform remote monitoring,” Lerner added.

AI offers oil and gas firms additional possibilities besides automating and improving worker safety and reducing operating expenses, noted Wilson.

He said “there is a larger opportunity in the market for AI, which is for companies to understand where an AI-based system can actually augment intelligence and create areas of optimization where humans just can’t perform as well, or as fast.”

For example, Wilson noted that machine learning (ML)-based systems help geologists and geophysicists interpret massive volumes of seismic data. Additionally, he said that ML technology could help an E&P increase well output by training itself to optimize output parameters based on variables such as equipment, production, and temperature data.

What About Human Factors?

Behaving in a more human-like manner is an ongoing quest of an AI sub-discipline called cognitive AI.

Software firm Beyond Limits’ Mike Krause told NGI that cognitive AI entails making diagnoses or predictions with AI that are based on accumulated institutional knowledge.

Krause, the company’s AI solutions senior manager, said cognitive AI adds “explainability to AI outcomes in a way that’s meaningful to people.” He added the sub-specialty refers to “the inclusion of knowledge in an AI framework.”

At a relatively basic level, an example of cognitive AI would be using an image recognition algorithm to enable AI to identify a stop sign, said Krause. An example of cognitive AI in the oil and gas industry would be encoding technology to recognize a well, he added.

“I assign attributes to it like casing, perforation…all the hardware in a well,” and then various other “explainability layers” of information, he said. “Once you layer on the cognitive view, you really expand the possibilities.”

Krause underscored the importance of granular details, particularly in an industrial AI application that is recommending, for instance, how to change a factory workflow or how to drill a multimillion-dollar well.

“I want to know why, and I want to make sure that that recommendation is built on something real and that makes sense,” he said.

Cognitive AI relies more on knowledge than data,  but Krause said it still depends on capturing “that information, or that knowledge, in the first place into a system that can then be leveraged by a broad set of users across the organization.”

Although deploying AI can help to streamline an E&P or OFS firm’s operations, it also presents legal as well as ethical issues, intellectual property (IP) attorney Terrell Miller, partner with the law firm Foley & Lardner, told NGI.

“For example, loss of jobs and workforce morale are two ethical issues that can arise when AI is deployed in a manner that may replace human employees,” he said.

Wilson, however, said that the “human element” often is a key ingredient for AI deployments to succeed.

“For example, many of our best ML solutions have required deep subject matter expertise from well engineers, operations professionals, and geoscientists in order to be successful,” he said. “Data on its own is sometime powerless without being paired with the domain knowledge from the human experts who know the patterns behind it.”

The reliance on data, in turn, can create other issues, said Miller. 

From a legal perspective, the “largely data-driven” nature of AI systems carries potential issues tied to cybersecurity and data reliability, he said.

Because many AI systems are subject to IP protections, their use “in the oil and gas industry comes with very real concerns of third-party intellectual property infringement, such as patent infringement,” said Miller. “As such, it’s important to clear any use of AI systems against existing registered intellectual property or third parties.”

Otherwise, “businesses open themselves up to a greater risk of patent, or other IP litigation, which can come with significant liability exposure,” he said.



www.naturalgasintel.com

Latest Oil News

New study shows huge variation in how different oil companies manage climate

New study shows huge variation in how different oil companies manage climate

February 1, 2023
Eni Boosts Gas Production In Libya With $8 Billion Investment

Eni Boosts Gas Production In Libya With $8 Billion Investment

January 31, 2023
Can Colombia Really Replace Oil And Gas Revenue?

Can Colombia Really Replace Oil And Gas Revenue?

January 30, 2023
Oil And Gas In For Turbulent Year As Governments And Industry Butt Heads

Oil And Gas In For Turbulent Year As Governments And Industry Butt Heads

January 29, 2023
Tags: GasHumansindustryLearnNaturaloil
Previous Post

Asia Distillates-Gasoil cash differentials rise to highest since March-end

Next Post

Diversified Gas & Oil Plc closes second asset acquisition

Related Posts

New study shows huge variation in how different oil companies manage climate

New study shows huge variation in how different oil companies manage climate

by Oil Market News
February 1, 2023
0

By Jon Goldstein and Ben HmielFor the last several years, researchers have been studying methane emissions in the Permian Basin...

Eni Boosts Gas Production In Libya With $8 Billion Investment

Eni Boosts Gas Production In Libya With $8 Billion Investment

by Oil Market News
January 31, 2023
0

Given that Libya has exhibited all the stability of a puff adder on benzedrine since the West removed its longstanding...

Can Colombia Really Replace Oil And Gas Revenue?

Can Colombia Really Replace Oil And Gas Revenue?

by Oil Market News
January 30, 2023
0

Colombia’s new President, Gustavo Petro, wants to move the South American country away from fossil fuels and replace oil revenues...

Oil And Gas In For Turbulent Year As Governments And Industry Butt Heads

Oil And Gas In For Turbulent Year As Governments And Industry Butt Heads

by Oil Market News
January 29, 2023
0

Windfall taxes, price caps, and calls for more oil and gas production marked 2022 in oil and gas. It looks...

New tech could unleash NM’s clean geothermal energy potential

New tech could unleash NM’s clean geothermal energy potential

by Oil Market News
January 28, 2023
0

Canadian company Eavor Inc. has designed a new closed-loop system to tap geothermal energy in deep-underground hot-rock formations. Eavor applies...

Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

by Oil Market News
January 27, 2023
0

Veteran oilman Bob Simpson ushered a new venture to the New York Stock Exchange Friday when Fort Worth-based TXO Energy...

Next Post
Diversified Gas & Oil Plc closes second asset acquisition

Diversified Gas & Oil Plc closes second asset acquisition

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Crude Oil Shielded From Bond and Stock Market Rout

KNOT Offshore Partners shares battered as the New Year looms with charters expiring

4 months ago
U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.33% By

U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.33% By

2 months ago
$110 Price Target From RBC Capital

$110 Price Target From RBC Capital

10 months ago
Ineos to develop oil and gas project in Denmark

Ineos to develop oil and gas project in Denmark

6 months ago
Euro, stocks retreat from rally on EU stimulus plan

Euro, stocks retreat from rally on EU stimulus plan

11 months ago
ADVERTISEMENT
Libyan state oil chief stresses support across divided country

Libyan state oil chief stresses support across divided country

March 26, 2023

Iraq wins landmark case against Turkey over Kurdish oil exports

March 25, 2023

UK government expected to offer energy companies windfall tax relief

March 24, 2023

Fears of an energy price surge percolate through sector

March 23, 2023

US regulator vows ‘aggressive’ crackdown on oil and gas methane leaks

March 22, 2023

Global commodity traders open to increasing Russian oil volumes

March 21, 2023

Crude Oil

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

February 1, 2023
Oil rises after U.S. fuel stocks draw down; economic concerns loom

Oil prices settle steady on higher U.S. demand, weaker dollar

January 31, 2023
S&P 500 Down 1%; Crude Oil Drops Over 2%

S&P 500 Down 1%; Crude Oil Drops Over 2%

January 30, 2023
Russia Can’t Replace the Energy Market Putin Broke

Russia Can’t Replace the Energy Market Putin Broke

January 29, 2023

Investing

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023

Market

Libyan state oil chief stresses support across divided country

Libyan state oil chief stresses support across divided country

March 26, 2023
Iraq wins landmark case against Turkey over Kurdish oil exports

Iraq wins landmark case against Turkey over Kurdish oil exports

March 25, 2023
UK government expected to offer energy companies windfall tax relief

UK government expected to offer energy companies windfall tax relief

March 24, 2023
Fears of an energy price surge percolate through sector

Fears of an energy price surge percolate through sector

March 23, 2023

OPEC

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

February 1, 2023
‘OPEC does not control the price’: OPEC President | OPEC News

‘OPEC does not control the price’: OPEC President | OPEC News

January 31, 2023
OPEC+ Closely Watches Chinese Factory Data

OPEC+ Closely Watches Chinese Factory Data

January 30, 2023
Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

January 29, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.