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| Artificial Intelligence in Oil and Gas Market |
The artificial intelligence (AI) in
oil and gas market is witnessing increased deployment as it helps oil and gas
companies maximize profitability by optimizing operations and minimizing costs.
AI enables exploration and production companies to discover reservoirs, drill
wells, enhance recovery from fields, and analyze data to gain key operational
insights more efficiently. It has various applications across upstream,
midstream, and downstream operations including reservoir exploration,
production optimization, drill optimization, equipment inspection, demand
forecasting, and more.
The
Global artificial intelligence (AI) in oil and gas market is estimated to be
valued at US$ 2.99 Bn in 2024 and is expected to exhibit a CAGR of 12% over the
forecast period 2024 to 2031.
Key
Takeaways
Key players operating in the artificial intelligence (AI) in oil and gas market
are Google, IBM, SAS, Accenture Plc., Baidu, Inc., H2O.ai., Microsoft
Corporation, Oracle Corporation. AI has potential to transform oil and gas industry
by augmenting workflows with automation and assisting human decision making. It
helps reduce exploration costs and time by assisting with seismic data
analysis, reservoir modeling. Assisted history matching and reservoir
surveillance further helps maximize production.
Oil and gas companies are increasingly adopting Artificial
Intelligence in Oil and Gas Market Size solutions to gain operational
efficiencies and optimize production. AI helps predict demand more accurately,
schedule field operations efficiently and reduce downtime. It analyses data
from wells and reservoirs to detect anomalies and predict failures and
maintenance needs. This optimizes uptime and asset performance.
Major players are expanding their AI offerings and capabilities globally to
gain new customers in international markets. They are partnering with national
and independent oil companies to implement AI-driven pilot projects. This is
increasing acceptance of AI-driven digital transformation across the oil and
gas value chain.
Market key trends
One of the key trends in the Artificial
Intelligence In Oil And Gas Market Size And Share is the increased
adoption of AI and machine learning for upstream exploration. Advanced
analytics of seismic data helps map reservoirs more accurately reducing time
and costs for exploration. AI expedites interpretation of massive volumes of
data like well logs, seismic surveys etc. to identify potential drilling
locations earlier. This is improving success rates and yields from new wells.
Porter’s Analysis
Threat of new entrants: Low investment requirements for AI software, can easily
enter the market.
Bargaining power of buyers: Large
oil and gas companies can negotiate better contracts and pricing with AI
vendors.
Bargaining power of suppliers: Few
major players dominate the AI solutions for oil and gas market.
Threat of new substitutes: Emerging
Alternative energy sources can replace oil and gas over long term.
Competitive rivalry: Intense
competition between major AI players to gain more revenue share in the market.
Geographical Regions
North America region accounts for the largest share of the artificial
intelligence in oil and gas market currently due to presence of major oil and
gas companies and AI technology providers. The Asia Pacific region is expected
to grow at the fastest CAGR due to rising adoption of AI solutions for oil and
gas exploration activities especially in China and India.
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Intelligence in Oil and Gas Market
About
Author:
Money Singh is a seasoned content
writer with over four years of experience in the market research sector. Her
expertise spans various industries, including food and beverages,
biotechnology, chemical and materials, defense and aerospace, consumer goods,
etc. (https://www.linkedin.com/in/money-singh-590844163)
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