Manuel Chinchilla da Silva

4 years ago · 1 min. reading time · 0 ·

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Manuel Chinchilla Da Silva, Venezuela, Oil and Gas Turn to AI to Cut Costs

Manuel Chinchilla Da Silva, Venezuela, Oil and Gas Turn to AI to Cut Costs

Oil and gas companies are turning to artificial intelligence to reduce costs

Artificial intelligence (AI) recently slipped into the oil and gas industry. This has been possible thanks to machine learning inventions and low data storage costs.

An obvious way in which oil and gas companies use artificial intelligence is to automate functions and forecast equipment problems. This increases production and saves money. For example, the Norwegian firm Aker BP uses an artificial intelligence program to track data obtained from one of its unmanned platforms, which detects problems that may arise so that the company can solve them and thus avoid stops.

Exxon Mobile installed an artificial intelligence program from Microsoft in its operations in the West Texas Basin. The program uses an algorithm that determines processable data in the company's global refineries to search for things like the optimal hydrocarbon mix for the company's various products. 

Electricity is used in all aspects of oil and gas production. The amount of electricity needed increases during the cold or other types of severe climates. In addition, the price per kilowatt-hour (Kwh) increases sharply during those times of maximum load. Electricity is such an important part of the operating expenses of oil and gas companies that they usually buy electricity in large quantities to save money in the long term. 

Artificial intelligence can now forecast weather conditions one or two weeks in advance. This information allows oil and gas companies to know when they are the best times to buy electricity in large quantities to cope with the coming price spikes. 

Oil Belt in Texas is seeing a sharp increase in prices. DrillingInfo, based in Austin, recently acquired PRT, which developed a machine learning tool to forecast the weather. PRT takes weather forecasts from various sources and combines them into a weighted average. The tool allows PRT to make changes in real time in the same way they do the sources to change their forecasts. That allows PRT to offer the best wind and load forecasts.

PRT offers accurate weather forecasts up to 14 days in advance. ERCOT and other ISOs can only post seven-day forecasts. The additional delivery time provided by PRT technology allows companies to know when to buy electricity in large quantities to take advantage of the best prices before they start to rise. Weather forecasting is a method that is often ignored but with artificial intelligence, oil and gas companies can save a lot of money.


OIL ANDGASTURNTOA.L. TO
CUT COSTS
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