AI Evolution in Oil and Gas Industry
The Oil and Gas industry is one of the most dynamic sectors, constantly evolving in terms of the products it delivers to the world, and the extensive engineering expertise involved. ?The petroleum industry operations span from rig to road and marine to remote terrains of the globe. The upstream, midstream and downstream operations are at the forefront in adapting the engineering systems advancement and innovative technology services.??
Today, AI is an indispensable technology initiative in strategic and technological transformative programs across the industry. Let us discuss why business leaders believe AI-powered Material Master Data Management solutions are no longer a luxury, and a must-have component in industrial automation and achieving sustainability goals.?
Why AI is a must ?
As of 2023, the market was USD 6,705.68 billion and is expected to grow to USD 8917.40 billion by 2031. The growth has been projected at a CAGR of 3.68% from 2024 to 2031.?
The continuously rising demand and the scale of operations are the primary reasons for the industry to thrive for new operational approaches and agile business models.??
Gone are the days when economics was the sole motive behind improving process efficiency. The Oil and Gas Industry is complex, versatile in engineering and highly volatile. Today efficiency is not just about managing a “CVV” industry but also about emission control and management.??
According to the BCG Climate AI Survey 2022, 87% of respondents believe AI tools can be leveraged to address climate change. 61% agree that AI applications will help to reduce emissions.?
The scope for AI solutions in the Oil and Gas market is estimated at USD 3.14 billion in 2024 and is expected to reach USD 5.70 billion by 2029, growing at a CAGR of 12.61% during the forecast period.?
What does AI do in the petroleum industry??
In a snapshot, AI is extensively deployed in the entire value chain, including but not limited to the following examples.?
How an AI MDM platform will transform operations and efficiency??
Master data is the central hub for ERP objects such as material, vendor, customer, service, asset equipment, and spare parts. Each master has its significance and complexities in the ERP landscape. Well-defined data rules and stringent governance practices for these objects will ensure the hygiene of the database.?
AI leaves no room for human error in master data , producing more accurate classifications and technical specifications. AI-powered MDM is capable of scrutinizing large datasets faster and ensuring their accuracy, integrity ?and consistency. The self-learning AI application can recognize the patterns from input data and be trained to improve its performance over some time.?
What is the need for high-quality master data??
The AI-powered MDM solution will deliver cleansed and standardized material or equipment data to cross-stream functions such as Asset Maintenance and Procurement & Supply Chain Optimization.??
Petroleum exploration and production companies invest heavily in systems such as real-time monitoring, remote sensing systems and predictive maintenance. The reliability, safety, and efficiency of those systems are ideally based on the quality of the master data fed into them. ??
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Contact Verdantis to get tailored AI MDM solution for your oil and gas industry.?
Get in touch today: [email protected]
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Reference:?
kingsresearch.com/oil-and-gas-market-177?
mordorintelligence.com/industry-reports/ai-market-in-oil-and-gas/market-size?
gstatic.com/gumdrop/sustainability/accelerating-climate-action-ai.pdf?
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