The Digital Transformation of Shell: How ML Revolutionized the Energy Industry

The energy industry is constantly evolving, and to stay ahead, companies must embrace digital transformation. Shell, one of the world's leading energy companies, has been at the forefront of this transformation for decades. With over 100 AI applications in various stages of development and deployment, a vast data lake, and thousands of equipment being monitored using machine learning, Shell is a prime example of how technology can revolutionize an industry.

But why is digital transformation so crucial for companies like Shell? And how has machine learning and data science played a significant role in this transformation? Let's dive in and explore the innovative ways Shell has harnessed technology to power progress.

The Power of Data

In today's digital age, data is more valuable than ever before. Companies that can effectively collect, analyze, and utilize data have a competitive advantage in their industry. Shell recognized this early on and began building a strong foundation for data-driven decision-making back in the 1970s with the establishment of a statistics group. Fast forward to 2013, when Shell created a dedicated team for digital transformation. Under the leadership of Dan Jeavons, this team has been responsible for unlocking the power of data across Shell's global operations. Through the use of cloud-based infrastructure and partnerships with tech giants like C3 AI, Microsoft, and Baker Hughes, Shell has been able to accelerate and scale its digitalization efforts.

Transforming Operations with Machine Learning

One of the most significant challenges faced by Shell was how to manage its vast amounts of data effectively. With thousands of assets worldwide, it became challenging to detect anomalies or predict failures manually. That's where machine learning came in.

In 2014, an incident at one of Shell's plants led to three weeks of downtime and a significant financial loss. The incident was caused by a control valve failure that went undetected. This incident sparked the idea of using data to prevent future failures. Shell's data science department teamed up with the control valve team in Pernis, Netherlands, to develop a solution using machine learning.They started by collecting data from 15 valves and using it to train data-driven models to detect anomalies. This approach proved successful, but to scale it globally across Shell's assets, they needed a machine learning operations solution. After researching and considering building it themselves, Shell decided to partner with C3 AI. Their cutting-edge technology and predictive maintenance models were a perfect fit for Shell's needs.

The Power of Partnership

The collaboration between Shell and C3 AI proved to be a game-changer for the energy industry. C3 AI's platform enabled Shell's data scientists to deploy their applications at full enterprise scale quickly. With over 100,000 valves across Shell's operations, this partnership meant having at least one independent machine learning model per valve.

Shell's team of data scientists has a deep understanding of the energy industry, and C3 AI's platform has made it possible for them to utilize their expertise on a large scale. By leveraging machine learning and advanced analytics, they can now detect anomalies and predict failures before they occur, preventing incidents like the one in Pernis from happening again.

Scaling Digitalization Globally

One of the key benefits of partnering with C3 AI was their ability to help Shell scale its digitalization efforts globally. While machine learning models were initially developed for the control valve team in Pernis, they can now be applied to all aspects of Shell's operations worldwide.For instance, Shell is also using machine learning to optimize its shipping operations. By analyzing data from ship engines and weather patterns, they can make real-time adjustments and reduce fuel consumption, leading to lower emissions and cost savings.The energy transition towards more sustainable sources is another area where machine learning is making an impact. Shell is using data and AI to identify and prioritize opportunities for transitioning to low-carbon energy systems.

A Vision for the Future

Shell's digital transformation journey is far from over. They have plans to continue harnessing the power of data and machine learning to improve safety, increase efficiency, reduce emissions, and deliver sustainable energy solutions.And it's not just about technology; Shell is also investing in its people. They have established a Data Science Academy to train and upskill employees in data science and AI. This investment in their workforce will undoubtedly further enhance their digital capabilities.

Conclusion

The digital transformation of Shell is a testament to the power of data science and machine learning. By effectively harnessing technology, Shell has been able to optimize operations, increase efficiency, reduce emissions, and support the global energy transition towards more sustainable sources.And it's not just Shell; the entire energy industry is undergoing a massive transition, and companies that embrace digital transformation will have a competitive advantage. As Shell continues to innovate and push the boundaries of what's possible with technology, we can expect to see even more exciting developments in the future.