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How Do Oil Companies Use AI for Better Decisions?

From volatile pricing to sustainability, oil companies face what seems like an ever-deepening well of issues. The three streams composing O&G are increasingly turning to artificial intelligence and its technological solutions like AI computers to dig out of each stream's unique issues. 

Oil and Gas Industry's Three Streams and AI

The monolith that is the Oil and Gas (O&G) industry is divided into three sectors called "streams." Companies in the Upstream scour potential sites for crude oil and natural gas. Those in the Midstream move that raw materials to processing and storage facilities. Finally, the Downstream sector refines the stored oil and gas into petroleum products and distributes them to customers (e.g., gas stations, retail, etc.). 

O&G looks to use artificial intelligence to solve each stream's specific issues, such as finding new sources of crude and natural gas. AI is technology aiming to mimic human thinking within a computer, like the ability to reason or learn from past experience. Techniques to do so range from machine learning to natural language processing. 

O&G Industry Issues and How AI Resolves Them

Artificial intelligence is finding use among the three streams in the following five areas: 

Exploration

Exploration involves all the processes and methods to locate new oil and gas deposits. Exploration is primarily an Upstream activity, and companies involved spend millions each year going over geographic landmarks, performing seismic surveys, and drilling exploratory wells for these elusive deposits. 

Machine learning, or ML, is heavily used in Exploration. A part of Industry 4.0, this form of AI can process seismic data, well logs, and geological formations far faster and with greater accuracy than more traditional, manual methods. Upstream companies can thus maximize their chances of finding oil and gas deposits with the least amount of resources. Based on the data gathered, ML can also be used to prolong the use of existing oil and gas fields by finding previously undiscovered sources.  

Drilling

Drilling creates a (usually) deep hole in the earth to get to the crude oil and natural gas. Also a part of the Upstream, oil drilling is a complex and dangerous activity. New deposits must be precisely targeted, as missing them can lead to costly extra drilling, environmental damage, and possibly endanger workers. Also, many sites are inhospitable to drilling, with deposits in the deep desert, under frigid waters, and far underground. 

AI like Deep Learning (DL) is used to resolve these issues. A more advanced form of machine learning, DL is used when extreme mathematical precision is needed. Its complex neural networks can examine seismic data and identify its more complex elements. Thus, drill operators should be likelier to hit that elusive deposit with such information. 

Maintenance

Unsurprisingly, equipment suffers considerable wear and tear in the O&G industry. Drills wear out, processing tanks get corroded from harsh chemicals, and oil pipes develop leaks. Traditional maintenance methods are either reactive or scheduled, both costly to companies and ineffective in maintaining equipment in tip-top shape.

AI is being used to deal with both issues across all three streams. Sensors on O&G equipment can monitor in real-time thanks to technologies like Internet of Things (IoT). Workers are alerted 24/7 of any issue. Also, data drawn from IoT can be used for predictive maintenance, allowing maintenance and repair crews to fix issues or replace parts before they disrupt operations or prove hazardous to crews. 

Safety

Worker safety is a significant concern among the three streams. For example, many crews work in confined spaces like pipes and tanks. Leaks of toxic gases and chemicals in such places can quickly take down anyone present without protection. Worker fatigue is another threat given the long work hours in the industry, especially in the Upstream. 

AI can minimize many of these hazards. As covered earlier, predictive maintenance ensures equipment is properly maintained or replaced before wear-and-tear makes them a danger to workers. Smart sensors can monitor gas and water levels in real time, alerting workers via their rugged industrial tablets if they reach dangerous levels. Workers can wear similar sensors to monitor everything from their location to fatigue levels, further improving their safety. 

Back office

O&G employs over 11 million people worldwide. The industry is also highly regulated, with each country requiring numerous permits, regulations, and standards. Processing all these back-office operations is a time-consuming and costly affair.

AI can automate many of these processes. Resumes can be scanned to determine the best candidates for the job. Natural language processing can go over shipping documents and invoices to extract the correct information for report generation and other forms of paperwork. The overall result is increased efficiency, time-saving, and reduced operational costs.

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Picking the Right AI Industrial Computers for Oil and Gas

Industrial computers are the best choice for the three streams, as consumer-grade PCs are simply not built to withstand the harsh conditions typical of most O&G sites. Built by true tech manufacturers, industrial PCs come with such features as:

 

  • Resistance to hazardous chemicals thanks to a rated IP65 sealed front bezel and fanless design, which prevents dust, liquids, and other particulates from entering the PC.
  • Vibration resistance through a rugged design and build to withstand shock, drops, and the heavy vibrations of machinery common throughout the streams. 
  • Longevity due to few moving parts, industrial-grade materials, and a low fail rate

Industrial PCs built to run AI applications like industrial AI Box PCs have additional features: 

  • Graphic Processing Unit, which performs intense parallel processing necessary for machine learning, deep learning, and natural language processing. GPUs reduce the time involved, making the chips essential in all but the lightest AI tasks.
  • Central Processing Unit for non-AI operations like data storage and accessory connectivity.
  • Memory and data storage, or RAM and HDD / SDD, to process and store the data handled by AI applications. AI PCs should be equipped with as much of both as possible. 

Manage Your O&G Streams With Cybernet Industrial AI Computers 

Oil and gas companies face a gusher of challenges in today's world, with demands to be ever-increasingly profitable while being environmentally sustainable, to name just a few. The industry's three streams – Upstream, Midstream, and Downstream – are turning to artificial intelligence as a pipeline to direct such challenges into profitable outcomes.

Contact the team at Cybernet Manufacturing if you and your company are looking for AI computer solutions. Team members will happily go over the special features of our industrial PC lineup that make them right for the O&G industry, regardless of what stream you belong to. We have pre-built models ready to plug in and start processing at your sites. Have a custom model in mind? Give us the details! We're an original equipment and design manufacturer, and control our PCs entirely, from their design to the materials used. We're confident we can build the right AI computer solution to meet your exact specifications.

About Joel Arellano

Joel Arellano is the Marketing Content Manager at Cybernet Manufacturing. After earning his bachelor's in business at California State Polytechnic University, Pomona, he worked in a wide variety of companies and industries like aerospace and automotive, to name just a few. When Joel is not writing about the healthcare and industrial sectors, he's either reading, gaming, or spending way too much time on social media.