According to a study published by Insure Insights, the global AI in the oil and gas market is projected to grow at a CAGR of 12.3% during the forecast period. Artificial intelligence is a diverse scientific field, with machine learning and data science as a significant two application of the technology in the oil and gas industry. The oil and gas industry is inclining towards modern technologies, specifically Artificial Intelligence, to maximize and enhance their efficiency and revenues. The AI links information together, identifies new connections and workflows, and uses them to create a robust image of BP’s subsurface assets. It has wide applications in the oil and gas industry, such as AI, which helps in developing algorithms that offer accurate and precise intelligence to guide drills on the water as well as land. Precision drilling helps in reducing the risk of accidents, fires, oil spills, and improves the rate of penetration.

Top Driver: Reduced Oil Prices and Added Advantages of AI

The significant factor driving the global AI in the oil and gas market is the plunge in oil prices worldwide. This has forced the oil and gas operators to increase the overall production due to tightened margins. AI aids in optimizing production by identifying the areas of inefficiency. These systems can be trained on large volumes of raw production data that offers the automatic recognition of patterns and refining the data to generate analytics. AI systems can be trained on the data of technicalities such as seismic interpretations, geology, management of reservoir, production, and others and help in field surveillance, thereby reducing the reservoir maintenance costs, reservoir engineering. Hence, these significant factors are expected to boost the AI in the oil and gas market during the forecast period.

Predictive Maintenance to be the Largest Segment in the Market

Among Function the market is segmented into Production planning, Field services, Predictive maintenance and machinery inspection, Material movement, Quality control, Reclamation. The predictive maintenance segment is expected to be the largest segment is expected to fuel the market in the forecast period. The ability of the predictive maintenance to predict the possibility of equipment failure is expected to be the reason for its wide acceptability and huge share in the market.  On the basis of type the market is segmented into hardware, software, hybrid. On the basis of application, the market is segmented into upstream, downstream and midstream.

Increase in Adoption of AI technologies to Benefit North America Market

North America is anticipated to be the largest market for Artificial Intelligence in Oil and Gas market due to surge in the adoption of AI technologies by oilfield operators and service providers. Furthermore, the strong presence of prominent AI software and system suppliers, especially in the US and Canada would propel the market growth in the next few years. The Middle East and Africa is the estimated to be growing market due to rising investments in start-ups for AI implementation, which would further boost the demand for AI in the near future.

Players to Focus on AI in Oil and Gas Market

The global market is expected to stay fragmented with the increase in the number of new entrants in the coming years. IBM, Intel, Microsoft, Accenture, Google, Microsoft, Oracle, Numenta, Sentient technologies, Inbenta, General Vision, Cisco, FuGenX Technologies, Infosys, Hortonworks, and Royal Dutch Shell among others could be at the forefront of the competition in the global market.

IBM Research Brazil: In April 2019, Russian oil and gas company Gazprom Neft has signed a research cooperation agreement with IBM Research Brazil to leverage artificial intelligence (AI) to enhance geological information processing. The agreement will see more than 30 Gazprom Neft research geologists and IBM Research Brazil machine-learning research scientists collaborate and share their expertise in the Cognitive Geologist research project

Infosys: In February 2020, Infosys, a global leader in next-generation digital services and consulting, announced a definitive agreement to acquire Simplus, one of the fastest growing Salesforce Platinum Partners in the USA and Australia. Simplus is a recognized leader and advisor in cloud consulting, implementation, data integration, change management and training services for Salesforce CPQ and Billing applications.