The oil sector, traditionally conservative, faces its own challenge: reinventing itself to remain relevant in a world undergoing profound technological transformation.
With innovations such as artificial intelligence, advanced robotics, and big data analysis, oil companies are driving an unprecedented modernisation, where innovation redefines every stage of production, from exploration to distribution.
However, this change is not only about profitability; it is a crucial step to adapt to new demands for efficiency and sustainability.
Cutting-edge Technology for a New Paradigm
The exploration of new deposits has significantly evolved thanks to artificial intelligence and the large-scale processing of geological data. Now, advanced algorithms analyse three-dimensional seismic data with a precision that reduces the margin of error in exploratory drilling, optimising investments in this critical stage.
Extraction has become more efficient due to "smart fields," where IoT (Internet of Things) sensors monitor variables such as pressure, temperature, and flow rate in real time. Predictive systems detect anomalies before they turn into problems, while drones inspect kilometres of pipelines—tasks that once took weeks of manual labour.
In refineries, the transformation is equally profound. Technology allows real-time monitoring and adjustment of chemical reactions in refining processes, optimising energy use and reducing waste. Robotic automation has taken over dangerous operations, while augmented reality assists technicians in complex maintenance tasks.
Logistics and distribution have also joined this digital wave. Blockchain systems ensure product traceability, while route optimisation algorithms reduce transport costs. In service stations, mobile applications enable contactless payments and personalised loyalty programmes.
Together, these technological innovations drive efficiency and safety at every stage of the process, allowing the oil industry to adapt to a more competitive and constantly changing environment.
GenAI: On the Verge of Revolution
With the emergence of generative artificial intelligence in the business arena, the oil industry has found a way to challenge its own limits, paving the way for a more strategic management of resources. Among its standout applications is the ability to generate predictive maintenance plans that can prevent costly operational interruptions. These plans anticipate and schedule interventions before critical failures occur, leveraging real-time data to identify early signs of wear or potential equipment breakdowns. To gauge its impact: an oil platform producing 200,000 barrels per day could lose up to $8 million from just 12 hours of unplanned downtime.
In the field of exploration, GenAI is accelerating processes significantly. Some companies have reduced exploration times from nine months to just a few days, using advanced subsurface image analysis. This optimisation is made possible by generative AI's ability to swiftly process vast volumes of geological data and deliver precise insights in record time.
Generative AI is also revolutionising infrastructure design through the creation of digital twins—virtual replicas of facilities that allow multiple scenarios to be simulated before physical construction. This not only optimises the design of pipelines and plants but also improves safety and reduces development costs.
For oil service companies, generative artificial intelligence (GenAI) represents not only an optimisation tool but also a significant opportunity to diversify their business model. By developing and offering advanced AI solutions as complementary services, these companies can expand their product portfolio beyond the oil sector, tapping into emerging markets and the demand for innovation across various industries.
A More Sustainable Horizon
In addition to diversifying their income sources, the adoption of advanced technologies is also transforming oil companies’ approach to sustainability.
Statistics project a notable growth in this trend. According to a report by the International Energy Agency (IEA), the clean technology market, currently valued at $700 billion, will reach $2 trillion by 2035, equalling the current global crude oil market value.
"The clean technology market is set to multiply in value over the next decade, progressively reaching the level of fossil fuel markets," predicts Fatih Birol, IEA’s executive director. This milestone reflects the growing importance of clean energy in the global energy landscape. Major oil companies are responding to this transformation with innovations such as carbon capture, digital emissions monitoring, and the integration of renewable energy into their operations.
However, the path to sustainability still faces significant challenges: according to data from Deloitte, oil companies' direct spending on low-carbon fuels and technologies represents only 4% of their capital expenditure, highlighting the need to accelerate the sector’s energy transition.
Catalysts of Change
Digital transformation is not a journey taken with generic tools but with strategic solutions that act as true catalysts of change. In this landscape, platforms like RISE with SAP emerge as paradigms of comprehensive innovation, designed to orchestrate business transformation from its core.
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