(Bloomberg) – When engineers prepare to drill for oil, they know the deep underground locations where the wells must finish, but they can choose a starting point, but there are many possible routes in between.
Optimizing that underground road – Evaluating geological opportunities and challenges to make the job successful has been a time-consuming task for engineers. Now, through BP PLC's technology center in Houston, new AI-powered tools are dramatically streamlining processes, running thousands of scenarios to determine the best trajectory.
“It basically takes a few months to days to take people to do that,” said BP Executive Vice President of BP Emeka Emembolu. The technology is “a massive game changer and is delivering better results in the wells we are digging.”
Artificial intelligence is used by many companies across the oil industry. Exxon Mobil Corp. deployed technology to help develop flagship offshore discovery in Guyana. Autonomous drilling has played a role in increasing productivity seen in the US shale industry.
The possibility that this technology will provide significant operational efficiency benefits is particularly relevant to BP. Under pressure from unfortunate shareholders and offensive activist investor Elliott Investment Management, the company is trying to reverse its long-term performance by increasing growth and profitability.
After years of focusing on clean energy, oil drilling has renewed importance as BP returns to fossil fuels. Financial goals in favor of Chief Executive Murray Auchicloss' strategy should do more by curbing capital expenditures, reducing revenues, and providing more cash to shareholders.
To achieve these goals, BP is pushing AI into every part of its operations, Emembolu said in an interview in London that he will speak at the Tech Week Conference.
“Our technology agenda is at the heart of oil and gas cultivation, helping to concentrate downstream businesses and investing in disciplined transitions,” Emembolu said.
Drilling optimization tools are already in use in areas ranging from the Gulf of Mexico (a key driver of US oil production growth this year) to Azerbaijan, where BP launched its $2.9 billion natural gas project earlier this month.
In Texas' Eagle Ford Shale Formation, Emmenbor said AI-generated “morning reporting” leads the most urgently on site hands to areas where work is needed, reducing the time spent driving between sites.
Near Chicago, where BP's Whiting Refinery handles a large amount of crude oil from Canada, the company is working with Palantir Technologies Inc. to incorporate data engineers to optimize field processes to reduce costs and improve operational uptime. Facilities disruption could have a major impact on BP's revenue, as the storm led to long closings, such as the first quarter of 2024.
This technology is also used outside of the core oil and gas business. This identifies the best location for the fastest electric vehicle chargers. Help Indian drivers avoid fuel department lines with mobile notifications. We advise managers of German convenience stores on how many pastries they roast each morning.
“In terms of cost, we look at things from every scale,” says Emembolu. “Nothing is too big or too small for us to see.”
(The company will modify the name of the Shale Basin in 10 paragraphs.)
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