(Photo illustration: Getty Creative)
Cyclical commodity market volatility, permutations of supply and demand, operational risks, resource management and capital planning are daily challenges that occupy the hearts and minds of energy companies. But their response to the age-old need to make smarter, more efficient decisions in the age of energy transition now involves a new-age tool: artificial intelligence (AI).
From traditional to renewable, AI is reshaping the sector and revolutionizing the way energy is produced, distributed, managed and ultimately consumed. More than 90% of all oil and gas companies have invested in AI innovations, according to EYand those who have not yet done so plan to do so imminently.
Power generation companies have also gradually turned to it for their next-generation systems and have in many ways been early adopters of AI in the energy space. The deployment is driven by growing demand for improved throughput, operational efficiency and sustainability.
AI as a Service
The use of AI, and by extension that of quantum computing, machine learning, robotics and advanced data analytics as well as the Industrial Internet of Things (IIoT), is not new in the energy sector. I remember having such conversations with energy sector executives almost a decade ago. What’s new is the proliferation of AI and the myriad use cases the industry is discovering.
Take traditional energy to start. Oil and gas companies are using digital tools for surface analyzes and advanced geological assessments to optimize exploration, including better techniques for mapping recoverable volumes of discovered reservoirs, drilling and well designs, and to monitor and adjust well flow, flow rate and pressure in real time. time.
(Photo illustration: Getty Creative)
Integrated oil and gas majors are turning to AI to optimize their refineries and make their downstream assets more responsive to changing demand permutations by adjusting production and feedstock requirements, as well as emissions detection and monitoring . In particular, AI-based imaging technology has advanced by leaps and bounds to identify methane plumes and quantify emissions volumes.
Apart from traditional energy, the renewable energy and power generation segments are deploying AI for grid management, energy storage, smart power infrastructure for residential and commercial buildings, renewable energy supply and demand forecasting, nuclear power plant monitoring, carbon capture, utilization and storage (CCUS) and more.
Both segments of the energy sphere are deploying AI and extensive digital tools to reduce downtime, asset tracking and maintenance through the use of ‘digital twins“, defect detection, training and health and safety management, efficient inventory management and procurement, optimized logistics, back-office process optimization and last but not least – one of the most important operational considerations. critiques of the modern industrial age – cybersecurity.
While no cybersecurity solution is 100% foolproof, the industry is quickly recognizing how AI-based solutions could help identify and remediate security vulnerabilities in real-time and identify vulnerabilities to minimize breaches that occur in the first place.
AI tools are also bringing profound changes to the industry’s approach to brownfield and greenfield projects, delivering optimal designs and construction solutions, faster turnaround times and final installations more productive.
(Photo: Getty Creative)
Things can only get bigger
Based on examples of deployed solutions and anecdotal evidence provided by nearly 30 companies, I believe there are currently at least 75 potential use cases for AI in the energy complex, many of which are reported in this article. In addition, the opportunity grows from year to year.
According to the International Energy Agency (IEA), the AI market in the energy sector could currently be worth $13 billion, while Mordor Intelligence estimates oil and gas sector spending alone at $13 billion. just over $3 billion for 2024.
This year’s ADIPEC conference and exhibition in Abu Dhabi, United Arab Emirates, lends weight to these industry projections. The event, often considered the world’s largest energy conference and exhibition, attracting nearly 200,000 participants each yearhas allocated a record 40,000 square feet of exhibition space specifically dedicated to energy AI for its latest edition which will be held from November 4 to 7.
“As creators and curators of industry dialogue, we see the adoption of AI in the energy sector as a clear market reality. Our groundbreaking new exhibit recognizes this industry trend. something we have been working to gradually integrate into our program for ADIPEC for almost a decade,” said. Christopher Hudson, president of dmg eventsthe company organizing the event.
The exhibition will highlight the impact AI can have on the energy value chain, while also revealing its imminent demand on global energy systems. It will also engage leaders in the energy, technology and government sectors to develop a “strategic roadmap for further integration of AI into the energy landscape,” Hudson added.
This is after the IEA described energy and AI as the new “power couple”, no doubt with all the puns intended.
Ultimately, as the think tank points out, AI has the power to give the energy sector much-needed agility and flexibility in the transition era and solve the problem thorny business of improving supply and demand forecasting. Simply put, energy AI has gone from being a nascent industry to a multi-billion dollar opportunity.
