The world is preparing for an oil and gas industry where completely unmanned assets are operated, inspected, and maintained by digitisation and artificial intelligence, a message Africa’s largest oil-producing country is still negotiating with.
The oil and gas sector is rapidly adopting digital tools, e.g. machine learning and artificial intelligence, to increase its efficiency in production, transport, and sale as well as helping it to decrease its total carbon footprint while facing a rising tide of renewable energy adoption.
However, Nigeria is still not sure how to proceed with old perennial problems such as inadequate oil production, poor infrastructure, and fuel subsidies, as the rest of the world moves towards artificial intelligence and innovation.
It is argued that Nigeria’s energy sector focuses exclusively on revenue generation and does not domesticate by-products, which are necessary to boost productivity and revenue in the long run. In the process, many investments have been discouraged.
Recall the Group CEO, Mr. Mele Kyari in his keynote address at the Nigeria Oil & Gas Energy Week 2023, on the theme “Redefining Nigeria’s Energy Landscape for a Sustainable Energy Future.” emphasized NNPC Ltd’s focus on making energy available and affordable to Nigerians. He highlighted the expansion of gas infrastructure projects such as the Nigeria LNG Train 7 and potential Train 8 projects. There was no mention of AI in the discussion. It depicts that NNPC doesn’t recognise the application of AI as the future in the oil and gas sector.
According to a new report published by GlobalData, a UK-based Data and Analytics Company, Saudi Aramco is leading the way for innovation by adopting cutting-edge technologies such as artificial intelligence, both in its core activities and beyond, which puts it on a path ahead of competitors.
The Saudi state-owned oil company has invested significantly in research and development compared to its peers, allocating approximately $3.5 billion in 2023, an increase of 15 per cent over the previous year, according to GlobalData said the
The head of innovation products at GlobalData, Sourabh Nyalkalkar stated “The innovation leadership map reveals how the company is employing AI in its core operations and selectively prioritizing the adoption of AI innovations in specific areas of its business. For instance, utilizing AI for oil exploration and underwater operations is a significant strategic focus where the company holds a strong leadership position.”
In a press release, GlobalData pointed out that its Technology Foresight platform had identified more than 250 areas of innovation involving Aramco, “spanning technologies poised to disrupt the oil and gas sector, such as AI, drones, robotics, electric vehicles (EVs), and hydrogen technology”.
“A recently published patent application demonstrates this usage, describing the deployment of drones in sub-surface terrain to capture images. These images are then analyzed using machine learning algorithms to detect oil spills and pollutants. Another application showcases the use of AI/ML for automating seismic data processing and providing real-time updates for sub-surface reservoir models,” Nyalkalkar said.
In addition, Aramco has developed internal cybersecurity capabilities to protect itself from cyber threats that have emerged over the past few years.
“The oil and gas industry is confronted with an array of disruptive challenges, which stem from rising energy demands, frequent threats to the supply chain, geopolitical tensions, and the transition to alternative and sustainable fuel sources.
“In response to these pressures, there is a compelling need to fervently embrace innovation. Leading this charge is Saudi Aramco, the world’s largest oil production company.
“Aramco is spearheading the innovations by embracing cutting-edge technologies like artificial intelligence, both within its core operations and beyond, which places the company ahead of the curve,” GlobalData noted.
Meanwhile, Abu Dhabi’s energy company, Adnoc generated $500 million through the use of artificial intelligence solutions last year and is increasing its efforts towards increased adoption.
The integration of more than 30 artificial intelligence tools into the entire value chain of the company, from field operations to corporate decision-making, has led to this, Adnoc said on Sunday.
Between 2022 and 2023, the number of applications reduced carbon dioxide emissions by up to 1 million tonnes equivalent to removing approximately 200 000 petrol cars off the roads.
“[AI] is one of the most important economic and social game changers of our era and it can play a crucial role in accelerating a just, orderly, and equitable energy transition.
“At Adnoc, we have integrated artificial intelligence across our operations, from the control room to the boardroom, and it is enabling us to make smarter decisions and better protect our people and the environment,” said Sultan Al Jaber, managing director and group chief executive of Adnoc.
