International Journal of Trend in Scientific Research and Development (IJTSRD)

Volume 8 Issue 5, Sep-Oct 2024 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

Artificial Intelligence in Oil and Gas Industry

Matthew N. O. Sadiku1, Paul A. Adekunte2, Janet O. Sadiku3
1
Roy G. Perry College of Engineering, Prairie View A&M University, Prairie View, TX, USA
2
International Institute of Professional Security, Lagos, Nigeria
3
Juliana King University, Houston, TX, USA

ABSTRACT How to cite this paper: Matthew N. O.

Artificial intelligence (AI), as the most important general-purpose Sadiku | Paul A. Adekunte | Janet O.
technology of today, is rapidly entering industries, creating Sadiku "Artificial Intelligence in Oil and
significant potential for innovations and growth. It is reshaping Gas Industry" Published in International
Journal of Trend in
industries everywhere. It has revolutionized various sectors,
Scientific Research
including the oil and gas industry by applying advanced data and Development
analytics and machine learning to increase efficiency and (ijtsrd), ISSN:
effectiveness in hydrocarbon production. The oil and gas companies 2456-6470,
play a vital role in the economy. They are the latecomers to Volume-8 | Issue-5,
digitalization, but they are also getting more and more dependent on October 2024, IJTSRD69438
AI solutions. The benefits of AI for the oil and gas sector are pp.689-697, URL:
unparalleled. This paper discusses in detail and demonstrate how AI www.ijtsrd.com/papers/ijtsrd69438.pdf
is transforming the oil and gas sector.
Copyright © 2024 by author (s) and
KEYWORDS: oil & gas industry, petrochemical industry, artificial International Journal of Trend in
intelligence, robotics, machine learning Scientific Research and Development
Journal. This is an
Open Access article
distributed under the
terms of the Creative Commons
Attribution License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)

INTRODUCTION
The impact of AI on all spheres of human life is hard operations, improved efficiency and safety, enabling
to miss. AI has penetrated medicine, education, more autonomous and predictive drilling.
industry, business, and finance. Machine learning, for WHAT IS ARTIFICIAL INTELLENCE?
example, is a type of AI in which the program The term “artificial intelligence” (AI) is an umbrella
analyzes and identifies patterns in the data and term John McCarthy, a computer scientist, coined in
optimizes performance without being directed to do 1955 and defined as “the science and engineering of
so. As a result, the machine learns and improves
intelligent machines.” It refers to the ability of a
automatically. computer system to perform human tasks (such as
“Data is the new oil” is the highly used phrase these thinking and learning) that usually can only be
days, and in the case of oil and gas industry, it is a accomplished using human intelligence [1].
perfect metaphor. Natural gas and oil companies Typically, AI systems demonstrate at least some of
would not be successful at finding oil and gas the following human behaviors: planning, learning,
deposits without technology. Overall, the oil and gas reasoning, problem solving, knowledge
sector (O&G) has long been putting a premium on representation, perception, speech recognition,
tradition and caution rather than innovation. Now, all decision-making, language translation, motion,
companies in the industry use the latest technology to manipulation, intelligence, and creativity.
improve their processes, increase productivity, and The 10 U.S. Code § 2358 define artificial intelligence
protect their market. Many companies are actively as [2]:
working with AI in the oil and gas industry, 1. “Any artificial system that performs tasks under
developing effective solutions. AI may very well be varying and unpredictable circumstances without
the investment priority for oil and gas companies significant human oversight, or that can learn
wanting to see big advances. Through advanced data from experience and improve performance when
analysis and machine learning, AI has optimized exposed to data sets.

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2. An artificial system developed in computer concept illustration for the use of modern artificial
software, physical hardware, or other context that intelligence technologies for the production of oil and
solves tasks requiring human-like perception, gas [5].
cognition, planning, learning, communication, or
OIL AND GAS INDUSTRY
physical action.
The oil and gas industry is complex and diverse, as
3. An artificial system designed to think or act like a typically shown in Figure 4 [6]. The industry deal
human, including cognitive architectures and with lots of data coming from manufacturing
neural networks. processes. It divides into upstream, midstream, and
4. A set of techniques, including machine learning, downstream, as shown in Figure 5 [7]. The upstream
that is designed to approximate a cognitive task. summarizes the subsurface (mining) part of the
industry, including exploration, field development,
5. An artificial system designed to act rationally, and production of the crude oil/gas. The upstream
including an intelligent software agent or segment is the most capital-intensive part of oil and
embodied robot that achieves goals using gas and the segment of enormous uncertainties to
perception, planning, reasoning, learning, tackle. It covers crude oil and natural gas production.
communicating, decision making, and acting.” It includes searching for potential underground or
AI provides tools creating intelligent machines which underwater crude oil and natural gas fields, drilling
can behave like humans, think like humans, and make exploratory wells, and subsequently drilling and
decisions like humans. The main goals of artificial operating the wells used to lift the crude oil or raw
intelligence are [3]: natural gas to the surface. Companies from the sector
1. Replicate human intelligence deal with enormous uncertainties handled manually
and relied on expert knowledge, not the actual data.
2. Solve knowledge-intensive tasks
Midstream stands for storage and transportation of oil
3. Make an intelligent connection of perception and and gas. In midstream business, AI can support
action proper planning and execution, optimal route
4. Build a machine which can perform tasks that selection, etc. In contrast, it helps refiners plan
requires human intelligence optimal blending, forecasting the demand, estimating
prices, and improvising customer relationships in the
5. Create some system which can exhibit intelligent downstream business.
behavior, learn new things by itself, demonstrate,
explain, and can advise to its user. Downstream is for refinery and distribution, i.e.,
production of fuels, lubricants, plastics, and other
AI is not a single technology but a range of products. Figure 6 shows a downstream operation [8].
computational models and algorithms. The concept By embracing AI, downstream firms achieve refinery
of AI is an umbrella term that encompasses many and distribution cost reduction and reach regulatory
different technologies. AI is not a single technology compliance faster in several ways. Beyond crude oil
but a collection of techniques that enables computer and natural gas, downstream oil and gas companies
systems to perform tasks that would otherwise require benefit from AI-driven predictions of consumer
human intelligence. The major disciplines in AI demand for various products. The application of AI in
include [4]: downstream oil and gas companies involves real-time
 Expert systems monitoring systems that optimize refineries. Those
 Fuzzy logic systems monitor operations and collect data during
 Neural networks distillation, catalytic cracking, and hydrogenation.
 Machine learning (ML) They also screen data from energy meters and
 Deep learning equipment sensors. Downstream operations can be
 Natural Language Processors (NLP) optimized to minimize costs and maximize spreads.
 Robots AI predictive maintenance reduces AI downstream
These computer-based tools or technologies have processes and optimizes maintenance planning.
been used to achieve AI’s goals. Each AI tool has its ARTIFICAL INTELLIGENCE IN OIL AND
own advantages. Using a combination of these GAS
models, rather than a single model, is recommended. The oil and gas industry is highly competitive, and
Figure 1 shows a typical expert system, while Figure companies are always looking for ways to increase
2 illustrates the AI tools. These tools are gaining efficiency and reduce costs. Like every industry
momentum across every industry. Analytics can be today, the O&G sector is trying to figure out how to
considered a core AI capability. Figure 3 shows a adopt and deploy artificial intelligence and its tools.

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These forms of AI are used in the oil and gas industry big data, AI algorithms are now aiding us in solving
[8]: complex problems. When utilized together, AI and
 Machine learning: Machine learning (ML) is a big data solutions have an almost limitless range of
specific area that has seen significant deployment potential applications and can optimize a wide variety
in oil and gas in recent decades. It analyzes data of operations within the energy sector to deliver
for pattern recognition to predict outcomes. ML is improved efficiency, reliability, and sustainability. AI
often used in reservoir exploration, drilling, or helps oil and gas companies assess the value of
fault detection. Machine learning for oil and gas specific reservoirs, customize drilling, and
reduces the risk of drill-bit failures and optimizes completion plans according to the geology of the
extraction rates. area, and assess risks of each individual well. Other
benefits of AI in O&G section include the following
 Deep learning: As a more advanced form of ML,
[10].
deep learning utilizes complex neural networks
for tasks like precise seismic analysis to process  Safety: The most prevalent problem in coal
data and identify more complex details within it. mining is safety. The oil and gas industry needs to
increase the need to improve safety and reduce
 Generative AI: This is a sub-category of artificial
environmental impact. The risk of injury in oil
intelligence (AI) that aims to help the user create
and gas plants and mines is extremely high.
an image, video, or song using different
Failure to comply with safety rules and protocols
instructions called user “prompts.” It learns from
can lead to irreversible damage to health and even
existing datasets, gen AI creates, for example,
death. The industry is inherently risky, and
new data samples, emergency instructions, or
accidents can have severe consequences for both
smart summaries. Using gen AI, oil and gas
workers and the environment. AI technology can
companies and logistics providers automate
help companies improve safety by identifying
mission-critical supply chain processes.
potential hazards and implementing measures to
Generative AI in oil and gas adds resilience to
mitigate them. No one has cause to worry that
planning so all stakeholders make the supply
machine learning technology will soon replace
chain run like clockwork. In the oil and gas
manual labor entirely. Instead, it will make skilled
industry, Generative AI is a groundbreaking tool
workers more efficient, spare them unnecessary
that can transform how oil and gas experts tackle
tasks and, most importantly, improve workplace
tasks, interpret data, and convey intricate
safety.
concepts.
 Automation: By automating routine tasks and
 Natural Language Processing (NLP) and
optimizing complex operations, AI enables
Computer Vision: Interpret human language and
companies to streamline their processes and
visual data for tasks like report generation and
reduce operational costs. Employees’ routine
quality control.
tasks are being automated by AI technology,
 Edge AI: Processes data locally on IoT devices which will have the impact of freeing up time for
without relying on cloud storage or Internet employees to contribute more that is directly
connectivity. relevant to their field of expertise. AI has
 Intelligent Robots: Robots designed with AI contributed to the development of autonomous
capabilities for hydrocarbon exploration and drilling systems, which can automatically analyze
production, to improve productivity and cost- and adjust drilling parameters in real time to
effectiveness while reducing worker risk. increase efficiency and safety.

 Virtual Assistants: Online chat platform that helps  Monitoring: AI computer vision solutions can
customers navigate product databases and monitor the workplace. They can alert
processes general inquiries using natural management even about the smallest of regulatory
language. deviations. The only purpose is to keep workers
safe from serious harm.
Figure 7 shows AI use cases in oil and gas sector [9].
 Predictive Intelligence: With the proliferation of
BENEFITS sensors and other data-gathering technologies,
AI in the oil and gas industry brings numerous companies have access to more data than ever
benefits, including enhanced efficiency, cost before. Companies are heavily investing in AI-
reduction, and improved safety. Artificial intelligence powered solutions that can analyze data from
technology is being put to use in certain highly sensors and other sources to improve efficiency
specific applications. By processing and analyzing the and minimize downtime. AI technology can help

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companies make sense of this data and extract  Greater Decision-Making: In mining, fast and
insights that can inform decision-making and accurate decision-making is crucial. AI is the
drive operational improvements. Predictive bridge between decision-makers and accurate data
intelligence allows engineers to convert cross- trends. Operators can use AI to make better
sourced historical and real-time data into exploration and production decisions, and
actionable insights for drilling preparation. optimize acquisition strategies with better
 Predictive Maintenance: AI-powered predictive forecasts of lease transaction prices. Critical
maintenance models have revolutionized decisions can now be made much faster and more
operations in the oil and gas industry. It enables accurately.
the implementation of condition-based  Innovation and Improvement: AI technologies,
maintenance methods for critical infrastructure. including machine learning and predictive
Using machine learning techniques, AI can analytics, are revolutionizing traditional practices
predict failures and perform predictive in oil and gas. By automating data analysis and
maintenance on key equipment and machinery. operational processes, AI enables companies to
This helps reduce operating costs and minimize innovate in areas such as exploration, drilling, and
unplanned downtime. production.
 Operations Optimization: AI can analyze vast  Better Customer Experience: The oil industry
amounts of operational data, such as pressure, faces significant challenges in delivering
temperature, and flow measurements, to identify exceptional customer experiences. AI enhances
hidden patterns and trends. This allows customer interactions by improving service
companies to streamline their operations and delivery and responsiveness. Oil companies can
improve production efficiency. utilize AI to predict customer needs and
 Image and Video Analysis: AI enables automated streamline supply chain operations, ensuring
analysis of images and videos captured in the oil timely delivery of products.
field, making it easier to detect anomalies, leaks,  Competitive Advantage: The adoption of AI
and damage, thereby improving risk management provides a significant competitive edge by
and safety. enabling companies to operate more efficiently
 Optimizing Hydrocarbon Recovery: AI can and make data-driven decisions. AI helps in
improve reserve estimation accuracy and help optimizing resource allocation, predicting market
optimize production strategies, leading to greater trends, and enhancing operational agility, which is
hydrocarbon recovery and more efficient crucial for staying ahead in a highly competitive
exploitation of reservoirs. market.

 Emissions Reduction: By improving efficiency in  Environmental Protection: AI plays a crucial role

energy production and consumption, AI can help in promoting sustainability within the oil and gas
reduce greenhouse gas emissions associated with sector by optimizing processes to reduce
the oil and gas industry. emissions and improve energy efficiency, AI
helps companies adhere to environmental
 Risk management: AI can analyze real-time and regulations. Many oil and gas companies are
historical data to assess risk and assist in strategic actively seeking to reduce their carbon footprint
decision making to protect infrastructure and and make their operations greener, and AI comes
assets in risky situations. to the forefront in these endeavors.
 Cost Reduction: The oil industry faces formidable Some of these benefits or advantages are summarized
challenges to reduce costs, including volatile oil in Figure 8 [11].
prices, escalating operational expenses, and the
need for substantial investments in new CHALLENGES
technologies. Work in upstream oil and gas While some oil and gas companies, like BP, Shell,
industries was once considered highly labor- Saudi Aramco, and Gazprom Neft are jump-starting
intensive, but AI has helped change this their AI initiatives by investing aggressively in
perspective. Companies are now maximizing startups and R&D, several challenges are preventing
production while minimizing costs, all thanks to them to massively and rapidly implement AI in the
AI-powered process automation and predictive exploration and production of oil and gas. AI
maintenance. initiatives will not fail because of bad algorithms, but
rather because of lack of vision, late or even no
changes in the organization's operational and business

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model, due to lack of high-resolution data and poor their joint industry projects, especially between
collaboration. Other challenges of AI in O&G section competitors and especially not in strategic
include the following [7]: domains such as AI. They have to embrace open
 Experts: The success of artificial intelligence collaboration as a standard to succeed in the era
critically depends on human intelligence. To of AI once they join the race. The need to acquire
actively use AI in processes and products, the latest AI technology and talent are additional
companies must grow in-house teams composed reasons for oil and gas companies to adopt open
of data and AI specialists. This means that oil and collaboration.
gas companies will become (partially) data-driven  Cybersecurity: The integration of AI systems
companies and, that AI specialists will become increases vulnerability to cyber threats, as
irreplaceable in supporting almost all innovation interconnected systems can expose sensitive
efforts in oil and gas companies in the future. operational data. The rise in the number of
 Shortage of Talents: Finding and retaining AI physical and cyberattacks and its security
talent is a challenging task. There is a significant spending have necessitated the need for artificial
shortage of AI talent on the job market, and with intelligence tools to encrypt the working system
more and more companies getting into AI and into their enterprise's security. Video cameras as
forming their own AI groups, prospects are not sensors help in monitoring the security threats in
good for the next decade. This is especially true the utilities all day.
for oil and gas companies. Hundreds of thousands  Cultural Resistance: The oil and gas industry is
of Baby Boomers heading into retirement at the traditionally conservative, leading to resistance
same time when fewer and fewer young people among employees and stakeholders towards
have chosen to major in areas like petroleum adopting AI technologies. This cultural inertia can
engineering, geology, and other key areas of hinder innovation and the effective
expertise relevant to the industry. implementation of AI solutions. Employees may
 Partnership: Next to working more with data and be reluctant to embrace new technologies, fearing
data scientists, petroleum engineers will have to job displacement or unfamiliarity with AI-driven
learn how to work with AI assistants – products processes. Customer preferences and expectations
similar to Alexa and Siri, but focused on industry may also resist changes to established practices.
applications. In these new partnerships, the  Regulatory Compliance: Navigating the complex
challenge will be to combine best from the two regulatory landscape is a major challenge for AI
sides. AI is expected to be dominantly used by deployment in the oil and gas sector. Companies
humans to augment their decision-making must ensure compliance with various regulations
abilities rather than replace them. concerning data privacy, environmental standards,
 Quality Data: AI tools need the good quality data and safety protocols. With the global energy
of a suitable volume to be trained and then to demand escalating, companies in the oil and gas
work properly in the operational mode. Access to field face growing demands to boost operational
big and quality data is a crucial enabler and efficiency, cut expenses, and adhere to safety and
barrier for AI applications' successful environmental regulations.
development. Oil and gas fields generate large Some of these challenges are summarized in Figure 8
amounts of raw data. Still, it is not a guaranty for [11].
success as there are known issues with the quality
CONCLUSION
and accuracy of field data and overall lack of
AI is an exciting and diverse scientific field. If
large volumes of labeled data in the oil and gas
deployed ethically and properly, it has the potential to
industry. To enhance the value of data oil and gas
positively impact every field of endeavor. The
companies possess or can access, they will have
integration of artificial intelligence into the oil and
to redesign and adjust their organizational
gas industry represents a pivotal shift towards
structures and processes.
addressing the complex challenges of today’s energy
 Collaboration: Artificial intelligence is born in landscape. The O&G industry has been increasingly
open and collaborative environment as a adopting AI technology in recent years, and this trend
consequence of academia being a leading force in is expected to continue. It recognizes the power and
AI research for decades, almost without any impact that artificial intelligence can have on the
business influences. This created culture of free industry's performance. The Oil and Gas Authority
sharing. Oil and gas companies are not famous for (OGA) is deploying AI in many ways, which will

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assist them in discovering new oil & gas projections cases, benefits, examples,” September 2024,
and enhance production from existing infrastructures. https://appinventiv.com/blog/artificial-
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the following related journals: oil and gas production systems,”
 Energy and AI
https://www.linkedin.com/pulse/influence-
 The AI Journal artificial-intelligence-oil-gas-production-
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Figure 1 A typical expert system.

Figure 2 AI tools.

Figure 3 Concept illustration for the use of AI for production [5].

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Figure 4 The complexity of the oil and gas industry [6].

Figure 5 The oil and gas industry divides into upstream, midstream, and downstream [7].

Figure 6 A downstream operation [8].

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Figure 7 AI use cases in oil and gas sector [9].

Figure 8 Some of the advantages AI in O&G operations [11].

Figure 9 Some of the challenges of AI in O&G industry[11]

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