AI and the cloud enable energy’s transformative leap

THE current pandemic has shown the oil and gas sector how dependable enterprise operations can be upended almost overnight. Work force routines at extraction sites and refineries have been disrupted, causing unplanned outages, as we saw at the Sharara oilfield. With supply chains interrupted, parts manufactured in traditional source markets could not be delivered on time, delaying essential maintenance. Border closures and an unprecedented drop in demand have further constricted already tight economic operations.

Not only do these conditions look set to continue over the short term, but other challenges loom over the foreseeable future. A supply glut and a depressed outlook for hydrocarbon prices have been forecast over the medium term, and over the long term, oil demand could peak within two decades as fuel demand drops and pressure to act on climate change mounts.

To thrive in this brave new world, oil and gas players must respond with transformative action, taking inspiration from the industry’s bold, pathbreaking history. At AVEVA, we have made it our mission to help companies capitalize on current opportunities, while striving to protect lives and livelihoods for the companies and communities we serve.

Success in a post-pandemic world will require innovative thinking and action at scale. Here, two transformative new technologies will shape a sustainable future for oil and gas and its partner industries, and for the world around us. These are artificial intelligence, or AI, and cloud computing.

AI IS ENABLING BETTER DECISIONS

AI has been with us for over six decades. As it becomes more sophisticated, with wider use cases, it allows organizations to improve productivity. With unified smart analytics that bridge complete data stacks, teams can leverage mathematical thought processes across all their activities. Individuals are thus afforded scale and capacity that would otherwise have been unavailable: knowledge, data-led intelligence, and the capacity to recognize new opportunities. AI enables people to make better decisions — and even recommends courses of action — that enhance the capabilities of human staff. Overall, McKinsey predicts that AI will drive a 2% growth in manufacturing and energy for the next decade — or $1 trillion every year.