The effect of digital transformation in the oil and gas exploration industry is unprecedented.
Key Points
A whopping $4 billion was announced as losses by Shell Petroleum in 2015 after an oil and gas exploration went wrong in the Artic. Billions of dollars are lost in like manner by many oil and gas exploration companies. More.
Also, between 2013 and 2017, a total of 489 oil and gas workers were killed on the job.
This occupational health hazard also indicates that there is a need for improvement in the way that oil and gas exploration is practiced.
The implication of these human and economic problem is that the oil and gas industry has become a very risky venture.
But thanks to digital transformation that is fast changing the situation for good. Technologies such as Machine Learning and Artificial Intelligence has helped to reduce risks associated with drilling for oil and gas.
The main contributions of technology is in the aspect of decision-making, and more improved operations and processes that can make the entire oil drilling process more precise and safer.
Artificial Intelligence and Machine Learning can be applied in the following oil and gas drilling operations;
It can be applied in many other areas too. However, in the face of vast technological development in that sector, many multinational companies are yet to benefit from the potentials that technology has brought through digital transformation.
Digital transformation is the use of technology to improve business operations and services. It is a measure of how far technology has been utilized and the reality in the oil and gas industry proves that it has been poorly utilized.
The increasing awareness and market for green energy have negatively affected the oil market.
Low oil prices have been the bane of the industry in recent times. Companies in the sector are searching for a way to maximize profit and make oil and gas exploration more profitable. All these aspirations cannot come to reality if technology is not adopted.
Companies in the oil and gas drilling industry cannot afford to keep spending $150 million per oil-well drilling with just a 20% chance of success.
They need to maximize profit and limit costs now than ever before due to dwindling oil prices.
Technology will increase the chances of success and reduce the associated risks thereby restoring the lost glory of the oil and gas industry.
Contact Mesa Acres, Inc., for Energy consultancy services.
