The Australian fossil fuel industry is predicted to be among the first to adopt artificial intelligence systems.
GlobalData says the O&G market’s “strong overall decline” in value from 2013 to 2017, due to crude oil price drops, is an indicator of the need for adaptability.
GlobalData technology research director Dustin Kehoe says even mega-sized oil and gas businesses could be disrupted.
“Volatility is the new normal in the O&G industry,” he says, “Our research shows the O&G sector to be big users of software-defined networking and wireless technology today.
“There are many factors influencing global energy prices such as geo-politics, changes in energy consumption, substitution, increasing regulation and current OPEC policies,” Kehoe explains.
“However, the use of technology will help reduce costs, increase productivity and streamline business processes across a supply chain with hundreds of touchpoints,” he adds.
Kehoe says AI will offer benefits for a range of operations, from extraction to distribution, yet only 10% of businesses take advantage of these benefits.
GlobalData says areas such as natural seep detection and drilling operations will mean improved site planning and a more efficient extraction process when “mapping the digital oilfield”.
“In the not too distant future, the industry will see even more innovation such as intelligent robots, virtual assistants, augmented, virtual reality and drones which will offer sweeping improvements across the supply chain from site exploration in the digital oilfield to last mile distribution,” Kehoe says.
GlobalData suggests the industry’s key strategists prepare early and start adapting.
“The industry should also consider new approaches to managing extreme uncertainty, such as Design Thinking, Lean Startup, and others, when the end-state is uncertain,” Kehoe advises.
“While technology is not exactly seamless, people and culture are often the biggest obstacles to a successful transformation,” he concludes.
