Leveraging AI & ML to meet O&G companies’ challenges – Times of India

  • Lauren
  • January 25, 2023
  • Comments Off on Leveraging AI & ML to meet O&G companies’ challenges – Times of India

Building a robust ecosystem of products, services, competence builders, accelerators, alliances, and solution partners to address the current challenges is the need of the hour
The O&G sector has been overtaken by uncertainties, especially after the Covid-19 breakout. Following the sudden steep fall in demand because of the 2020 lockdowns, the industry is now expected to raise production and open up its strategic reserves to face the sudden spurt in demand caused by such factors as sanctions on Russia, the world’s largest oil exporter. Prices are galloping northwards and, along with adverse conditions, O&G companies have been forced to remain resilient and be ready to tackle any unprecedented situation that may arise.
Over the past two years, the supply chain disruptions brought about by the pandemic and government-imposed targets to cut down emissions have forced companies to strategize for greater automation and improved remote asset monitoring and control. Also, companies have accelerated their renewable energy capacity mechanism to reinforce their position in the future energy scenario. With advanced digital technologies, energy companies are trying to streamline and optimize their resource portfolios, develop innovative approaches for energy transition, and meet their environmental needs. The new initiatives have also hiked employment rates, as companies continued to ferret out new talents and train their existing employees to work in the changed environment.
Top energy players are now concentrating on combining their digital strategies to achieve the highest returns from energy diversification and reach net zero operations by 2050. It is now essential to build critical capabilities with advanced technologies and formulate action plans for seamless implementations to add value for customers while remaining cost-competitive.
Towards Smart Energy Goals
The energy industry is riding the digital headwind and getting benefits from the fast-changing Industrial Internet of Things (IIoT) and Cloud technologies, lower equipment costs and government incentives. But, companies still face impediments in achieving their desired returns and operational efficiency. Here are some key challenges that require immediate attention…
Oil Exploration: Looking for new O&G reservoirs involves time and cost and error-prone processes of excavating ocean beds
Predictive Maintenance: Equipment components operate in extreme environmental conditions, increasing risk of failure
Smart Integration: Protocols used to match current equipment with the old fail to support inter-device communication, hindering proactive action
Cybersecurity: Complexities of data flow between various assets have increased cybersecurity threats
Production Forecasting: Complexities of multi-stage O&G supply chain often create uncertainties, such as over-production or inability to meet demand, resulting in revenue loss
Challenges have forced companies to seek solutions in advanced technologies, like Big Data Analytics, ML and AI. Some instances of how the three technologies increase operational efficiency…
O&G Exploration
Upstream O&G companies—those involved in identification/discovery and exploration, drilling and extraction of crude oil from below the earth’s surface—are using AI and ML in their operations. Engineers are using AI-based models in exploration activities to determine reservoir rock properties, seismic attributes, and so on.
Maintenance Operations
Over the past few decades, companies have understood the efficacy of IIoT and reading sensor data to identify possible future failures. ML algorithms are being adopted widely for maintenance work. ML platforms are providing important insights into maintaining operational uptimes.
Production Optimization
O&G businesses must improve control over their oilfields and make fast decisions to achieve operational efficiencies. ML and AI can help them overcome productivity impediments, automate routine processes and predict oil resource availability and demand trends.
Virtual Power Plants
Renewables have increasingly replaced O&G in energy generation, helping companies to invest in distributed energy models which allow them to generate power from both non-renewable and renewable sources. But operation and management of distributed energy resources (DERs) are becoming more complex with increasing DER capacity and growing needs for charging facilities for EV. As DER capacity worldwide is expected to grow to 3.2 TWh by 2030, companies in the UK, US, Australia, South Korea, Japan and Germany are leveraging virtual power plants (VPP) to improve the reliability and stability of their grid. As a distributed power generation model, VPPs make energy distribution flexible, affordable, as well as reliable.

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Disclaimer Views expressed above are the author’s own.

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Source: https://news.google.com/__i/rss/rd/articles/CBMiYmh0dHBzOi8vdGltZXNvZmluZGlhLmluZGlhdGltZXMuY29tL2Jsb2dzL3ZvaWNlcy9sZXZlcmFnaW5nLWFpLW1sLXRvLW1lZXQtb2ctY29tcGFuaWVzLWNoYWxsZW5nZXMv0gFiaHR0cHM6Ly90aW1lc29maW5kaWEuaW5kaWF0aW1lcy5jb20vYmxvZ3Mvdm9pY2VzL2xldmVyYWdpbmctYWktbWwtdG8tbWVldC1vZy1jb21wYW5pZXMtY2hhbGxlbmdlcy8?oc=5