How to use artificial intelligence to promote the application of digital transformation in the energy industry?

The oil and gas industry is experiencing significant changes and price spikes due to COVID-19 and the failure of the OPEC deal. Major countries such as Saudi Arabia lent $3 million worth of oil to Pakistan but are on the verge of canceling the agreement due to non-payment.

Such political and economic chaos has plunged the oil and gas industry into a complicated state. New influences, such as the push for green energy and the need for more customer-focused services, further added to shareholder anger. Oil and gas industry players are being forced to conduct a significant re-evaluation of energy value chains, assets and operations.

Shocking reports continue to emerge about the oil and gas industry changing its course against the wind. It is estimated that by 2050, nearly 70% of global electricity production will come from wind and solar energy. More reports suggest that by 2033, 50% of all new cars sold globally will be electric. The use of renewable energy in vehicles has come under scrutiny and is changing as technology develops. Along with all developments, advancements in digital technology have resulted in dramatic changes in the energy industry.

To bring digitization to the energy industry, the industry should treat digital transformation like other business corridors. They should bring innovative and effective solutions in terms of purpose, goals and strategies.

But we cannot conclude that the energy industry has neglected to invest in digitalization. The report shows that over the past few years, energy companies have increasingly invested in digital technologies, with global investment growing by 20% annually since 2014. In 2016, investment soared to $47 billion. Estimates suggest this investment will grow further as oil-focused digital services boost investment from $5 billion currently to more than $30 billion by 2025.

As a result, the energy sector is now open to change. As technology develops, there is increasing pressure to reduce or reduce carbon emissions and meet demand by tracking oil reserves in a cost-effective manner. As the next stage of development, the energy sector is leaning toward acquiring new workforce strategies and making data-driven decisions.

Few digital technologies are already having an impact on the energy industry

AI maps the oil reservoir:

It is a misconception that artificial intelligence (AI) is not in the energy sector The right innovation strategy to make a difference. But to bust this myth, cloud-based artificial intelligence platforms are being developed to analyze subsurface geophysical data. Cloud-based provenance tracking of data meaning provides faster solutions with more accuracy. With the help of artificial intelligence, the oil and gas industry’s drilling methods can be put to good use to track and discover underground oil and gas reservoirs. A report shows that the value of artificial intelligence in the oil and gas industry will increase from US$1.57 billion in 2017 to US$2.85 billion by 2022.

Machine learning is a safe haven:

Machine learning will help offshore companies operate over long distances without having to constantly travel to and from oil reserves. Artificial intelligence can be used to assess the potential impact of a new rig or drilling site. It also helps in assessing the environmental risks of a proposed project before those responsible. Machine learning services make work safer through instrumental implementation.

Internet of Things Predicts Mechanical Problems:

The Internet of Things (IoT) is specifically designed to connect, make work easy by accessing it from anywhere. When IoT is applied in the oil and gas industry, it plays a vital role in optimizing costs. It improves safety by enabling predictive maintenance, performance predictions and real-time risk management. IoT collects data through its connectivity with all mechanical items. Sensors will be able to detect machine failures before humans are aware of them. This prevents accidents and mainly saves money by seeing the damage before the machine breaks down.

Blockchain for easy transactions:

If you want to speed up transactions while reducing costs, the best way is to choose blockchain to handle funds. Blockchain directly connects energy producers with customers. It provides a secure environment to potentially send and receive data within the wider network functionality.

Artificial intelligence, featuring artificial intelligence technologies such as machine learning, blockchain, big data and the Internet of Things, is driving the oil and gas industry toward digitalization. The energy industry may be facing unprecedented challenges, but new technologies are emerging every day to overcome the difficulties and make the job easier.

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