In a transformative shift, artificial intelligence (AI) is making waves in the oil and gas industry, promising to revolutionize the exploration and production of hydrocarbons. As companies grapple with the challenges of extracting “difficult-to-recover” reserves, AI offers new hope for maintaining profitability and efficiency in both well-developed brownfields and newly discovered greenfields.
Newly discovered greenfields are no less challenging. Located in harsh environments like the Arctic’s shelf, characterized by complex geometries, or found deep beneath layers of seawater and salt, these fields require advanced technologies that drive up costs and question the feasibility of profitable extraction.
Enter AI: A Game Changer
Decision-makers in the industry have traditionally relied on expert knowledge and manual assessments to make high-stakes, long-term investment decisions. This approach often results in biased and uncertain outcomes due to the lack of comprehensive data. However, AI systems, trained with the right field data, are poised to change this paradigm by providing objective, data-driven insights that can significantly speed up the assessment process and reduce dependence on expert opinions.
AI in Upstream Operations
Exploration:
AI is transforming the exploration phase, which involves creating 3D geological models through geophysical and petrophysical studies. Traditional methods, such as seismic surveying and well logging, are time-consuming and heavily reliant on expert interpretation. AI-powered tools can now accelerate seismic data processing, dramatically reducing the time and subjectivity involved. Modern deep learning techniques enable quicker, more accurate identification of subsurface boundaries, expediting the entire exploration process.
Petrophysical Interpretation:
In well logging, which provides detailed information about subsurface properties, AI algorithms trained on historical data can interpret results with comparable accuracy to human experts but at a fraction of the time. This advancement eliminates much of the subjectivity and accelerates the process, allowing for more efficient resource allocation and decision-making.
Field Development:
Once geological models are established, reservoir engineers use them to forecast oil and gas production under various development schemes. AI offers substantial improvements here as well. By speeding up numerical simulations, enhancing upscaling procedures, and refining history matching techniques, AI makes field development planning faster, less biased, and more objective. These advancements are crucial for optimizing production strategies and ensuring the economic viability of oil and gas projects.
Future Prospects
The integration of AI into upstream operations marks a significant leap forward for the oil and gas industry. By making exploration and production processes more efficient and objective, AI helps companies overcome the challenges of extracting difficult-to-recover hydrocarbons. This technological shift is essential for sustaining profitability in an era where traditional methods often fall short.
As AI continues to evolve, its role in the industry is expected to expand further, offering new opportunities for innovation and efficiency. The oil and gas sector, long known for its reliance on expert knowledge and manual processes, is on the cusp of a new era driven by data and technology.
