Opportunities in the AI-Driven Oil and Gas MarketBy CIOAdvisor Apac | Wednesday, February 06, 2019
At present, oil is traded by producers, suppliers, contractors, subcontractors, refiners, and retailers in enormous quantities and thus, any attempt to keep up with the real-time movement of crude oil is usually useless. The complex process of this network also entails significant administrative costs and creates a tendency to fraud, which is a major concern for traders.
Digital oilfield typically shows the use of online data on oilfield and resource management operations. It is a great step to manage gas and oil assets safely and efficiently than ever before. It also welcomes efficient oil and gas transactions and thus improves the entire life cycle of the product.
AI in the oil and gas market is divided by function into predictive maintenance and inspection of machinery, movement of materials, production planning, field services, quality control, and reclamation. Preventive maintenance is the largest and one of AI’s fastest-growing oil and gas market segments. Predictive maintenance aids to tackle costly downturns by forecasting equipment maintenance schedules to prevent equipment failures and thus save millions of dollars. Furthermore, the widespread increase in staff health and safety issues at production sites is also driving the growth of the global market for AI in oil and gas. AI can eliminate health and safety concerns by helping operators to manage critical tasks through automated systems without human presence.
North America is forecasted to be the largest AI market in the oil and gas industry due to the increasing use of AI technologies by oilfield operators and service providers and the strong presence of leading AI software and system suppliers, especially in the United States and Canada. The Middle East and Africa market are the fastest growing regions due to the increased investments in AI start-ups, which would increase the demand for AIs in the near future.
According to MarketsandMarkets, market research and consulting company, the global oil and gas market AI is projected to increase by 12.66 percent from 2017 to 2022 to a projected $2.85 billion by 2022. This growth is primarily driven by increased adoption of big data technology, digitization of the oil and gas industry, investment in AI start-ups, and increasing pressure to reduce production costs and increase efficiency. Thus, with the emerging developments of AI, it is expected to further increase the market value of the oil and gas industry in the near future.