The integration of Artificial Intelligence (AI) in Oil and Gas Market sector has reshaped all operations in the industry by creating ‘digital oilfields’ of the future. Investment expectations for AI in oil and gas market ecosystem has been increasing from the past few years and it is expected to be twice by 2022. The AI in oil and gas industry will bring in radical changes in oilfield working force, machines, and the operating system. The oil industry must ensure that there is a timely and adequate investment so as not to lead to a supply shortage in the future. To meet the demand for crude oil worldwide, the industry is required to invest $11 trillion in the coming 20 years. The rise of machines, analytics, and digital oilfield has created new processes for exploration and production. AI helps in automated decision-making and real-time reactions to improve operational efficiencies and connect infrastructure platforms together. It makes the interaction between machines and humans better, which in turn, is changing the expectation for the industry.

AI in oil and gas market ecosystem has made the decision-making process faster by detecting patterns that human eyes cannot see and thus, take advantage of the insights quicker. AI assistants in the oil industry are helping in providing customer support assistance, identifying key details, providing actionable summaries, and in removing the need for multitasking during important tasks. With help of an AI assistant, oil and gas companies can minimize or eliminate the duplication of efforts and reduce risks. AI assistants make decisions in real-time and handle the growing complexity of engineering systems. According to our estimates, Artificial Intelligence (AI) in Oil and Gas Market Ecosystem is expected to witness growth at ~16.2% CAGR from 2019 to 2020.

Ecosystem Snapshot: Artificial Intelligence (AI) in Oil and Gas Market Ecosystem

Today, companies are investing more in AI software and technology. Ambyint Infinity operates AWS Lamda and EMR to scale automatically and securely compute resources and for data storage. AWS prefers Ambyint’s software for real-time visualization, which it is offering to the oil and gas industry. Rosneft has already set drilling data monitoring stations with artificial intelligence elements at heavy drilling rigs. Shell is planning to implement Smart Fields to increase the total amount of oil recovered from a field by 10% and enhance the rate of production. The AI technology is allowing sensors with fiber optic cables to transmit digital information about temperature, pressure, and other field conditions to control centers where engineers constantly monitor production and make swift decisions on the best manner/process for extracting oil and gas. AI technologies are helping in activating underground valves electronically for better management of the oil flow. BP North America Petroleum, Inc. has installed sensors and fiber optic networks across its the North Sea, Gulf of Mexico, and other assets to collect and interpret huge amounts of data. North America has 60% of oil below the earth’s surface due to natural seeps. Robots powered by AI will navigate these oceanic regions and detect oil seeps, and thereby contribute to protecting the ecosystem and serve as indicators for robust energy resources.

Artificial Intelligence (AI) in Oil and Gas Market Ecosystem Segmentation

Solution	Process	Application	Technology
Hardware Solutions	Reservoir Optimization	Onshore	IoT
Software & Service Solutions	Drilling Optimization	Offshore	Advance Analytics
Data Storage solutions	Production Optimization		Robotics
	Safety management		Cloud computing
	Others		Mobility
			Others

The AI in Oil and Gas Market Ecosystem size was valued at $413 Million in 2018. Energy projects in the Middle East and North Africa (MENA) region are expected to bring in about $1 trillion investments over the next five years. The GCC region is also looking to adopt new technologies in its petroleum industry to increase efficiency, reduce costs, and make processes more competent. Accenture and Microsoft are helping these regions in better decision-making. The Middle East is witnessing significant traction in the field of AI, and local entrepreneurs are working on developing region-specific AI tools for oil extraction. AI robots are helping in reducing the risk of exposure to dangerous working conditions for many employees. The U.S. has already experienced a decreasing trend of labor injuries or fatalities in the field in recent years. AI in oil and gas industry is an effort to improve employee working conditions and this is a smart investment for the oil and gas industry.

Artificial Intelligence in Oil and Gas Market Ecosystem Statistics Glimpse

There are many trends that are having an impact on the market forecast. These, when evaluated from a company’s perspective, can drive growth. Our numerous consulting projects have generated sizeable synergies across all regions and all sizes of companies.

The major players operating in the Global AI in Oil and Gas Market Ecosystem are as follows:

 

Company	Ecosystem Positioning	Total Revenue (US$)	Industry	Region
Weatherford	Solution and service	US$5.7 Billion	Oilfield services & equipment	Global
National Oilwell Varco	Solution and service	US$7.3 Billion	Oilfield services & equipment	Global
Halliburton	Solution and service	‎US$ 1.656 billion	Oilfield services & equipment	Global
Kuwait Oil Company	Solution and service	US$10.9 Billion	Oilfield services & equipment	Global
Sinopec	Solution and service	US$61.6 Billion	Oilfield services & equipment	Global

Very few markets have the interconnectivity with other markets like AI. Our Interconnectivity module focuses on the key nodes of heterogenous markets in detail. Hardware Solutions Reservoir, Optimization, Onshore, IoT, Software & Service Solutions, Drilling Optimization, Offshore, Robotics

AI in Oil and Gas Ecosystem Major Interconnectivity

Glance on AI in Oil and Gas Market Ecosystem Trends:

Trends	Process	Technology	Impact
Autonomous robots in the oil & gas industry are used for applications such as welding, drilling, pipeline inspection, etc. Autonomous robots help in performing difficult and dangerous tasks.	Production Optimization	RPA	50%
AI helps enhance data management in the oil & gas industry, which in turn, helps in reducing the overall cost.	Others	ML	0.32%
A lot of data gets generated in the oil & gas industry every day. Cloud computing has significant demand in the oil & gas industry, especially in Dubai.	Others	Cloud Computing	0.21%

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