Artificial intelligence in oil and gas upstream: Trends, challenges, and scenarios for the future
Open accessAbstract
We analyze how artificial intelligence changes a significant part of the energy sector, the oil and gas industry. We focus on the upstream segment as the most capital-intensive part of oil and gas and the segment of enormous uncertainties to tackle. Basing on the analysis of AI application possibilities and the review of existing applications, we outline the most recent trends in developing AI-based tools and identify their effects on accelerating and de-risking processes in the industry. We investigate AI approaches and algorithms, as well as the role and availability of data in the segment. Further, we discuss the main non-technical challenges that prevent the intensive application of artificial intelligence in the oil and gas industry, related to data, people, and new forms of collaboration. We also outline three possible scenarios of how artificial intelligence will develop in the oil and gas industry and how it may change it in the future (in 5, 10, and 20 years).
AI snapshot
Written from the paper’s full text.
TL;DR
This review analyzes how AI is being applied in oil and gas upstream to accelerate processes and reduce risk, drawing on the author’s involvement in dozens of AI projects. It also outlines non-technical barriers around data, people, and collaboration, and presents positive, realistic, and negative scenarios for AI penetration over 5, 10, and 20 years.
Key findings
- In petrophysical interpretation, an ML algorithm trained on historical well logs achieved 92% accuracy versus manual interpretation and was about 1000 times faster; a second manual interpretation by the same experts matched the first at 91% accuracy.
- Reported or expected accelerations include seismic interpretation by a factor of 10–1000, reservoir simulation by 100–1000 times (Table 1: 200–2000), and well-treatment effect estimation 100+ times faster; AI-aided drilling is expected to reduce non-productive time by 20–40% and failures by up to 90%.
- Scenario forecasts for AI in upstream: positive scenario predicts 40–50% cost savings at E&P by 10 years; realistic scenario predicts 10–15% cost savings; negative scenario predicts no significant margin growth and possible end of the oil century in 20–30 years.
- Data and collaboration barriers are central: the UK’s oil and gas National Data Repository contains 130 TB covering more than 12,500 wellbores, 5000 seismic surveys, and 3000 pipelines, while U.S. AI-related companies raised $18.5 billion in 2019.
Methods
- The paper is a review and analysis based on learnings from dozens of AI projects performed with the author’s involvement over the last three years for leading oil and gas upstream companies.
- Projects covered geological assessment of reservoirs, drilling optimization, reservoir engineering/field development, and production optimization, as summarized in Table 1.
- The paper reviews AI application possibilities, algorithms, data availability, non-technical challenges, and develops three qualitative scenarios for AI development in the industry over 5, 10, and 20 years.
Limitations
- The paper does not include a dedicated limitations section. It states that its scenarios assume no major technological breakthroughs in energy and no social storms affecting energy demand trends, and that the Covid-19 crisis will not permanently change the main postulates of the industry.
- Evident from the text: the scenarios are qualitative forecasts rather than validated quantitative models, and the evidence draws heavily on the author’s own project experience and selected industry examples.
- Evident from the text: the paper identifies persistent data-quality, labeled-data scarcity, AI talent shortage, and limited cross-company data sharing as barriers, which constrain the generalizability and near-term applicability of its projections.
Model-written summary. Check it against the paper before relying on it.
Integrity signals
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Cites
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Claims the paper makes
0 of 56 cited sources checked · 0 supported · 0 flagged
- Findingown data
Internal trials for industrial partners demonstrate that a solid portion of well logging measurements could be easily reconstructed with ML.
“internal trials we did for industrial partners demonstrate that a solid portion of the well logging measurements could be easily reconstructed with ML.”
Quote in the paperSubstantial claim - Findingown data
In the authors' automated interpretation algorithm based on machine learning, the accuracy of ML interpretation versus manual interpretation was 92%.
“The accuracy of ML interpretation versus manual interpretation was 92%.”
Quote in the paperSubstantial claim - Findingown data
The ML interpretation was about 1000 times faster than the manual interpretation.
“The ML interpretation was about 1000 times faster than the manual.”
Quote in the paperSubstantial claim - Findingown data
A second manual interpretation of the same data by the same experts versus the first manual interpretation showed an accuracy of 91%.
“the second manual interpretation versus the first manual interpretation showed an accuracy of 91%.”
Quote in the paperSubstantial claim - Findingown data
A tool for automated mapping of reservoir rock properties over an oil region (using none gradient optimization + interpolation techniques) speeded up the manual mapping procedure from several weeks to several seconds.
“Tool for automated mapping | None gradient | Speeded up the | |”
Quote in the paperNot a substantial claim
- Findingnone given
The drilling telemetry tool maximized the contact between the wellbore and the pay zone.
“Maximizing the contact |”
Quote in the paperNot a substantial claim - Findingnone given
A data-driven tool for an objective forecast of efficiency of well treatment campaigns (using gradient boosting + expert based feature selection) gave 100+ times faster estimation of the well treatment effect.
“Data-driven tool for an | Gradient | 100 + times faster | Up to 20% growth of |”
Quote in the paperNot a substantial claim - Findingnone given
A tool for rock typing based on images of rock samples (using deep neural networks) achieved ~1,000,000+ times speedup.
“Tool for rock typing based on | Deep neural networks | ~1.000.000 + times | |”
Quote in the paperNot a substantial claim - Findingown data
A tool for extracting geological information from well logs (using gradient boosting) achieved 100+ times speedup.
“Tool for extracting the | Gradient boosting | 100 + times speedup | mapping = making a more |”
Quote in the paperNot a substantial claim - Premisecitation
Many examples exist where an entirely data-driven or hybrid model helps optimize pump regimes, prevent unexpected failures, and save on maintenance-on-schedule.
“There are many examples when an entirely data-driven or a hybrid model containing physics-driven and data-driven math helps optimize the regimes, prevent unexpected failures, and save on maintenance-on-schedule [ 36 , 37 ].”
Quote in the paperNot a substantial claim0 of 2 sources checked- cites [36] J. Sneed, “Predicting ESP lifespan with machine learning,” 2017, doi: 10.15530/urtec-2017-2669988. source
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- cites [37] D. Guo, C. S. Raghavendra, K. T. Yao, M. Harding, A. Anvar, and A. Patel, “Data driven approach to failure prediction for electrical submersible pump systems,” 2015, doi: 10.2118/174062-ms. source
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- Premisecitation
Difficult-to-recover oil and gas reserves have dominated over the last ten years.
“The dominance of “difficult-to-recover” oil and gas reserves over the last ten years [15]”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [15] US EIA, “Shale gas resources: an assessment of 137 shale formations in 41 countries outside the United States,” 2013.
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- Premisecitation
Nearly all newly discovered hydrocarbon reservoirs are difficult, being located in harsh environments, geometrically complex, under thick seawater and salt, or poor in permeability.
“Nearly all of the newly discovered hydrocarbon reservoirs are also difficult.They might be [17] : (1) located in places with harsh environmental conditions (e.g., in Arctic's shelf); (2) complex in terms of geometry (e.g., thin and winding layers of oil-saturated rocks with lots of cracks); (3) under the very thick layer of seawater and salt minerals (e.g., offshore Brazil); or (4) poor in terms”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [17] US EIA, “Incorporating international petroleum reserves and resource estimates into projections of production,” 2011.
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- Premisecitation
There is no single scientifically adequate framework for upscaling.
“There is no single scientifically adequate framework for upscaling [30][31][32]”
Quote in the paperNot a substantial claim0 of 3 sources checked- cites [30] Barker, 1997, A critical review of the use of pseudorelative permeabilities for upscaling, SPE Reserv Eng source
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- cites [31] Farmer, 2002, Upscaling: a review, Int J Numer Methods Fluids source
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- cites [32] Pickup, 2005, Multi-stage upscaling: selection of suitable methods
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- Premisecitation
Classical machine learning and deep learning are dominant approaches used in AI applications in the upstream sector and the whole oil and gas industry.
“Classical machine learning and deep learning are dominant approaches used in AI applications in the upstream sector and the whole oil and gas industry [8] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [8] Li, 2020, Applications of artificial intelligence in oil and gas development, Arch Comput Methods Eng
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- Premisecitation
Even when developed by third parties, AI solutions have to be customized to the business context and data a company has.
“Even when developed by third parties (and given for free, like Google's TensorFlow) AI solutions have to be customized to the business context and data a company has [46] .”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [46] Ng, 2016, What artificial intelligence can and can’t do right now, Harv Bus Rev
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- Premisenone given
Without access to large and good enough training data, AI algorithms are significantly less useful, sometimes useless.
“Common to all mentioned AI approaches is that without access to large and good enough training data, AI algorithms are significantly less useful, sometimes useless.”
Quote in the paperSubstantial claim - Premisenone given
Physics-driven models for predicting well treatment effect produce very rough estimates due to lack of precise knowledge of the near-wellbore formation's physical properties.
“physics-driven models for predicting the well treatment effect produce very rough estimates due to the lack of precise knowledge of the near-wellbore formation's physical properties.”
Quote in the paperSubstantial claim- Rests on an assumption: Well treatment costs are significant and comparable with the cost of well construction.
- Premisecitation
Modern pattern recognition techniques based on deep learning have started to accelerate seismic interpretation by a factor of 10-1000.
“Modern pattern recognition techniques based on deep learning have started to dive into this seismic-related operation, accelerating the interpretation by a factor of 10-1000 [19] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [19] Cunha, 2019, Seismic fault detection in real data using transfer learning from a convolutional neural network pre-trained with synthetic seismic data, Comput Geosci
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- Interpretationreasoning
AI techniques add value in the optimization of secondary seismic surveys at the same asset.
“Still, they add value in the optimization of the secondary surveys at the same asset.”
Quote in the paperSubstantial claim - Interpretationcitation
Several challenges prevent oil and gas companies from massively and rapidly implementing AI in exploration and production.
“several challenges are preventing them to massively and rapidly implement AI in the exploration and production of oil and gas.”
Quote in the paperSubstantial claim - Premisecitation
Modern surrogate reservoir models with a new computation engine based on deep neural networks promise 100-1000 times the conventional models' speedup while keeping similar functionality.
“Modern surrogate reservoir models with a new computation engine based on deep neural networks compress the mathematical problem dimensionality and approximate the time derivatives promise 100-1000 times the conventional models' speedup while keeping similar functionality [ 28 , 29 ].”
Quote in the paperNot a substantial claim0 of 2 sources checked- cites [28] Temirchev, 2020, Deep neural networks predicting oil movement in a development unit, J Pet Sci Eng source
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- cites [29] M. Simonov et al., “Application of machine learning technologies for rapid 3D modelling of inflow to the well in the development system,” 2018, doi: 10.2118/191593-18rptc-ru. source
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- Premisecitation
Single-criterion approaches have historically dominated decision-making in the upstream.
“the single-criterion approaches have historically dominated decision-making [14] .”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [14] Strantzali, 2016, Decision making in renewable energy investments: a review, Renew Sustain Energy Rev source
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- Interpretationreasoning
AI specialists will become irreplaceable in supporting almost all innovation efforts in oil and gas companies in the next 10 years.
“AI specialists will become irreplaceable in supporting almost all innovation efforts in oil and gas companies in the next 10 years.”
Quote in the paperSubstantial claim - Interpretationcitation
The mathematics of recommender systems and interpolation capabilities of machine learning will enable recommendations on making secondary surveys cheaper with a minor loss in the value of acquired information.
“The mathematics of recommender systems [20] and interpolation capabilities of machine learning algorithms will enable proper recommendations on making the secondary surveys cheaper with a minor loss in the value of acquired information.”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [20] Portugal, 2018, The use of machine learning algorithms in recommender systems: a systematic review, Expert Syst Appl source
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- Interpretationreasoning
Investments to well treatment campaigns are always at high risk.
“The investments to the well treatment campaigns are always at high risk because of two things.”
Quote in the paperNot a substantial claim- Rests on an assumption: Well treatment costs are significant and comparable with the cost of well construction.
- Premisecitation
Oil and gas companies are much quicker to adopt new technologies than to experiment with and change their business models.
“As oil and gas companies are much quicker to adopt new technologies than to experiment with and change their business models [12]”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [12] Tekic, 2019, From disruptively digital to proudly analog: a holistic typology of digital transformation strategies, Bus Horiz source
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- Premisecitation
The oil and gas industry is very data-rich.
“The oil and gas industry is very data-rich [48] .”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [48] Hajizadeh, 2019, Machine learning in oil and gas; a SWOT analysis approach, J Pet Sci Eng source
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- Premisecitation
In principle, all conventional brownfields are producing more water than oil.
“In principle, all conventional brownfields are producing more water than oil [16] .”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [16] 2013
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- Premisereasoning
Experts' bias is involved in figuring out the final selection of well treatment procedures for a particular set of wells.
“The second relates to the experts' bias involved in figuring out the final selection of the well treatment procedures for a particular set of wells.”
Quote in the paperSubstantial claim- Rests on an assumption: Well treatment costs are significant and comparable with the cost of well construction.
- Premisecitation
Saudi Aramco invested in Earth Science Analytics, a startup developing the next generation of petroleum geoscience AI software.
“Saudi Aramco invested in Earth Science Analytics, a startup developing the next generation of petroleum geoscience AI software [67] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [67] 2020
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- Premisecitation
Finding and retaining AI talent is a very challenging task.
“However, finding and retaining AI talent is a very challenging task.”
Quote in the paperNot a substantial claim0 of 2 sources checked- cites [50] 2017
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- cites [51] 2019
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- Premisecitation
No manipulation can help with bad data.
“While using smarter algorithms may help in getting better results from datasets of limited size, no manipulation can help with bad data [56] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [56] S. Ransbotham, D. Kiron, P. Gerbert, and M. Reeves, “Reshaping business with artificial intelligence.,” 2017. doi: 10.3934/dcdsb.2008.10.925. source
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- Premisecitation
University labs are another important source of novel AI technology and AI talent.
“University labs are another important source of novel AI technology and AI talent [51] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [51] 2019
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- Interpretationcitation
The largest oil and gas companies are active in acquiring AI startups.
“The largest oil and gas companies are active in acquiring AI startups.”
Quote in the paperNot a substantial claim - Premisecitation
Only 8% of firms engage in core practices that support the widespread adoption of AI.
“However, this is not a specific problem of the oil and gas industry -only 8% of firms engage in core practices that support the widespread adoption of AI.”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [76] Fountaine, 2019, Building the AI-Powered organization, Harv Bus Rev
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- Interpretationreasoning
Petroleum engineers will not disappear.
“petroleum engineers will not disappear.”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [52] Mathieson, 2019, The end of petroleum engineering as we know it
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- Premisecitation
AI tools need good quality data of a suitable volume to be trained and then to work properly in the operational mode.
“AI tools need the good quality data of a suitable volume to be trained and then to work properly in the operational mode.”
Quote in the paperSubstantial claim - Premisecitation
The majority of AI initiatives are ad hoc pilots focused on a discrete business process.
“At the same time, the majority of initiatives are ad hoc pilots focused on a discrete business process [76] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [76] Fountaine, 2019, Building the AI-Powered organization, Harv Bus Rev
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- Interpretationreasoning
Data challenges drive technical efforts in improving AI systems and their further practical usage in the exploration and production of oil and gas.
“Data challenges (across industries, not only in the oil and gas) drive technical efforts in improving AI systems and their further practical usage in the exploration and production of oil and gas.”
Quote in the paperSubstantial claim - Interpretationreasoning
This talent shortage is especially true for oil and gas companies.
“This is especially true for oil and gas companies.”
Quote in the paperNot a substantial claim
- May combine two claims. 34
- The quote only partly states this claim. 3
- Classified as probably not a substantial claim. 41
May combine two claims.
Findingown dataBased on the authors' evidence, the critical challenges to AI implementation in oil and gas are related to the new profile of people the industry requires, the central importance of data, and the need for open collaboration.
“Based on our evidence, the critical challenges are related to the (new) profile of people the industry requires, the central importance of data, and the need for open collaboration.”
Quote in the paperSubstantial claimMay combine two claims.
Findingnone givenPetrophysical interpretation is a rather time-consuming process, and the result depends strongly on the interpreter.
“The petrophysical interpretation is a rather time-consuming process, and the result of the interpretation depends strongly on the interpreter (i.e., expert).”
Quote in the paperSubstantial claimThe quote only partly states this claim.
Findingown dataA tool for detecting drilled rock type and potential failure using real-time drilling telemetry (using a combination of machine learning algorithms) achieved up to 20% time saving and up to 15% money savings at well construction.
“Tool for detecting the drilled | Combination of | Up to 20% time saving | Maximizing the contact |”
Quote in the paperSubstantial claimProbably not a substantial claim: may not pass S3 (load-bearing), S4 (based).
Findingnone givenThe well treatment forecast tool gave up to 20% growth of marginality of the investments to the campaigns.
“Up to 20% growth of |”
Quote in the paperNot a substantial claimThe quote only partly states this claim.
Findingnone givenA tool for accelerating conventional reservoir simulations (using deep neural networks) accelerated by a factor of 200 to 2000.
“Tool for accelerating the | Deep neural networks | Accelerating by a | Making it possible to screen |”
Quote in the paperSubstantial claimThe quote only partly states this claim.
Findingnone givenThe reservoir simulation tool made it possible to screen through much more field development scenarios for selecting the most optimal one.
“Making it possible to screen |”
Quote in the paperSubstantial claimMay combine two claims.
Findingown dataThe automated mapping tool removed human errors causing wrong mapping, making a more accurate definition of right hydrocarbon targets.
“Removing human errors |”
Quote in the paperSubstantial claimClassified as probably not a substantial claim.
InterpretationreasoningAI is bringing a new approach in developing oil and gas fields, one in which data is key.
“AI is bringing a new approach in developing the oil and gas fields, one in which data is key.”
Quote in the paperSubstantial claimProbably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.
PremisecitationThe first steps in using AI and ML in the upstream are being made and are becoming increasingly popular.
“the first steps in using artificial intelligence and machine learning in the upstream are made, becoming increasingly popular [13] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [13] Shafiee, 2019, Decision support methods and applications in the upstream oil and gas sector, J Pet Sci Eng source
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Classified as probably not a substantial claim. May combine two claims.
Premisenone givenCompanies in the upstream deal with enormous uncertainties handled manually and relied on expert knowledge, not actual data.
“sector deal with enormous uncertainties handled manually and relied on expert knowledge, not the actual data.”
Quote in the paperSubstantial claimMay combine two claims.
PremisecitationPioneering efforts on predicting the efficiency of hydraulic fracturing jobs and ML-based analysis of injectivity issues have already been made.
“Pioneering efforts on predicting the efficiency of hydraulic fracturing jobs [40] and ML-based analysis of injectivity issues [41] have already been made.”
Quote in the paperNot a substantial claim0 of 2 sources checkedProbably not a substantial claim: may not pass S4 (based). May combine two claims.
InterpretationreasoningAI systems, trained with the right field data, can offer significant help by speeding up the asset assessment process and making it more objective or expert-independent.
“For both questions, AI systems, trained with the right field data, can offer significant help by speeding up the asset assessment process and making it more objective or expert-independent.”
Quote in the paperNot a substantial claimClassified as probably not a substantial claim.
Study design and conductnone givenThe paper's analysis utilizes learnings from dozens of AI projects performed with the authors' involvement over the last three years for leading oil and gas upstream companies worldwide.
“The paper utilizes learnings from dozens of AI projects performed with the authors' involvement over the last three years for leading oil and gas upstream companies worldwide.”
Quote in the paperSubstantial claimProbably not a substantial claim: may not pass S2 (checkable).
Interpretationnone givenThe success of artificial intelligence critically depends on human intelligence.
“The success of artificial intelligence critically depends on human intelligence.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S3 (load-bearing), S4 (based). May combine two claims.
Interpretationnone givenWith the development and implementation of AI-aided drilling support systems working with real-time drilling telemetry, non-productive time can be significantly reduced down to 20-40% on average and failures decreased down to 90%.
“We expect a significant reduction of the non-productive time down to 20-40% on average with a considerable decrease in failures down to 90% with the development and implementation of AI-aided drilling support systems working with real-time drilling telemetry.”
Quote in the paperNot a substantial claimClassified as probably not a substantial claim. May combine two claims.
InterpretationreasoningStrong dependence on expert opinion and the insufficiency of appropriate input data for traditional modeling tools result in biased and uncertain answers.
“Strong dependence on expert opinion and the insufficiency of appropriate input data for the traditional modeling tools result in biased and uncertain answers.”
Quote in the paperSubstantial claimProbably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.
InterpretationreasoningMany reservoir engineers use tricks to perform upscaling in a way that seems correct to themselves, introducing a strong bias to the reservoir model.
“many reservoir engineers use tricks to perform it in a way that seems correct to themselves.It introduces a strong bias to the reservoir model.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S2 (checkable).
InterpretationreasoningFurther development of algorithms based on optimization math and programming will enable full-scale recommending systems for well treatment design and campaign planning.
“We expect that further development of algorithms based on optimization math and programming will enable full-scale recommending systems.The recommending systems will help select the particular well treatment design for a particular well and plan the well treatment campaigns.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S2 (checkable).
InterpretationreasoningTo actively use AI in processes and products, companies must grow in-house teams composed of data and AI specialists.
“to actively use AI in processes and products, companies must grow in-house teams composed of data and AI specialists.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S1 (asserted), S2 (checkable), S3 (load-bearing), S4 (based). May combine two claims.
Interpretationnone givenMachine or deep learning could make history matching faster and less biased.
“trying to involve a machine or deep learning to make history matching faster and less biased.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S3 (load-bearing), S4 (based).
Interpretationnone givenThere is a low probability that AI techniques will optimize the physical part of the first seismic surveying at an asset.
“There is a low probability that the AI techniques will optimize the physical part (i.e., amount, cost, and placement layout of sensors) of the first seismic surveying at an asset.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S2 (checkable), S3 (load-bearing), S4 (based). May combine two claims.
Interpretationnone givenAI-tools exclude people from many processes and lead to numerous possibilities for operational and business model innovations, making it possible to do things differently at the architectural level.
“AI-tools exclude people from many processes and lead to numerous possibilities for operational and business model innovations, making it possible to do things differently at the architectural level.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.
PremisecitationThe upstream is the most capital-intensive and important of the three segments in the oil and gas business.
“The upstream is of particular interest as it is the most capital-intensive and important of the three segments in the oil and gas business [13] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [13] Shafiee, 2019, Decision support methods and applications in the upstream oil and gas sector, J Pet Sci Eng source
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PremisecitationAI solutions are not generic and cannot be just bought.
“AI solutions are not generic -they cannot be just bought.”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [46] Ng, 2016, What artificial intelligence can and can’t do right now, Harv Bus Rev
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InterpretationreasoningA deep learning algorithm trained on multiple cases of manual upscaling could increase objectiveness and speed of the upscaling process.
“This could be done well with a deep learning algorithm trained on multiple cases of manual upscaling.The outcome here would not be only the increased objectiveness but also the increased speed of the upscaling process.”
Quote in the paperNot a substantial claimMay combine two claims.
PremisecitationThe primary target of AI and other digitalization efforts in oil and gas companies is to improve efficiency, typically by accelerating processes and reducing risks.
“their AI's primary target (and other digitalization) efforts are to improve efficiency.In practice, that typically means to accelerate processes and reduce risks [ 8 , 11 , 13 ].”
Quote in the paperSubstantial claim0 of 3 sources checked- cites [8] Li, 2020, Applications of artificial intelligence in oil and gas development, Arch Comput Methods Eng
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- cites [11] Lu, 2019, Oil and gas 4.0 era: a systematic review and outlook, Comput Ind source
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- cites [13] Shafiee, 2019, Decision support methods and applications in the upstream oil and gas sector, J Pet Sci Eng source
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InterpretationreasoningGenerative architectures of deep neural networks, if properly trained on multiple manually conducted extrapolation exercises, can accelerate the process by a factor of 1000+.
“we expect that, if properly trained on multiple manually conducted extrapolation exercises, generative architectures of deep neural networks can accelerate the process by a factor of 1000 + .”
Quote in the paperNot a substantial claim- Rests on an assumption: The interpolation of petrophysical properties into the seismic cube is the most time-consuming and subjective part of the geology modeling workflow.
Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.
PremisecitationGoodfellow, Bengio, and Courville estimated that around 5000 labeled examples are needed for acceptable performance with supervised deep-learning, and at least 10 million labeled samples are required to match or exceed human-level performance.
“Goodfellow, Bengio, and Courville [47] estimated that to achieve somehow acceptable performance levels with the most interesting form of today's AI (i.e., supervised deep-learning), around 5000 labeled examples are needed for training.While to match or exceed human-level performance, at least 10 million labeled samples are required.”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [47] Goodfellow, 2016
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InterpretationreasoningThe development of these greenfields requires expensive technologies and makes the profitability of further oil production questionable.
“The development of these greenfields requires expensive technologies and makes the profitability of further oil production questionable.”
Quote in the paperSubstantial claimMay combine two claims.
PremisecitationThere are known issues with the quality and accuracy of field data and overall lack of large volumes of labeled data in the oil and gas industry.
“Still, it is not a guaranty for success as there are known issues with the quality and accuracy of field data and overall lack of large volumes of labeled data in the oil and gas industry [48] .”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [48] Hajizadeh, 2019, Machine learning in oil and gas; a SWOT analysis approach, J Pet Sci Eng source
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PremisecitationThe oil and gas industry is famous for its risk-averse culture and poor innovation management practices.
“This may be one of the core problems for the oil and gas industry famous for its risk-averse culture and poor innovation management practices [48] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [48] Hajizadeh, 2019, Machine learning in oil and gas; a SWOT analysis approach, J Pet Sci Eng source
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PremisecitationBP invested in Belmont Technology, a startup aiming to boost the company's AI and digital capabilities in its upstream offshore business.
“BP invested in Belmont Technology, a startup aiming to boost the company's AI and digital capabilities in its upstream offshore business [68] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [68] offshore-technology.com, “BP invests in artificial intelligence for upstream business,” 2019. https://www.offshore-technology.com/news/bp-artificial-intelligence-investment/ (Accessed 23 Apr 2020).
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PremisecitationThe UK's oil and gas National Data Repository contains 130 terabytes of geophysical, infrastructure, field, and well data, covering more than 12,500 wellbores, 5000 seismic surveys, and 3000 pipelines.
“It contains 130 terabytes of geophysical, infrastructure, field, and well data, covering more than 12,500 wellbores, 5000 seismic surveys, and 3000 pipelines [64] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [64] Oil and Gas Authority, “Oil and gas authority open data,” 2019. https://data-ogauthority.opendata.arcgis.com/ (Accessed 23 Apr 2020).
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PremisecitationThis created culture of free sharing and open publishing, which companies across industries had to embrace as a standard to succeed in the era of AI.
“This created culture of free sharing (e.g.GitHub) and open publishing (e.g.arXiv), which companies across industries (and across the globe) had to embrace as a standard to succeed in the era of AI [ 62 , 63 ] once they joined the race.”
Quote in the paperNot a substantial claim0 of 2 sources checked- cites [62] Chesbrough, 2003, The era of open innovation, MIT Sloan Manag Rev
Not checked in the free run.
- cites [63] Von Hippel, 2016
Not checked in the free run.
- Rests on an assumption: AI is born in open and collaborative environment as a consequence of academia being a leading force in AI research for decades, almost without any business influences.
Probably not a substantial claim: may not pass S2 (checkable). May combine two claims.
InterpretationreasoningThe adoption of AI demands not just data science and AI skills but a new way of thinking about problems rooted in deep understanding of the processes and core logic of tasks.
“So, it is not that just data science and AI skills are in demand due to the adoption of AI, but a new way of thinking about problems oil and gas companies face, rooted in deep understanding of the processes and the core logic of tasks.”
Quote in the paperNot a substantial claimMay combine two claims.
InterpretationreasoningAccess to big and quality data is a crucial enabler and barrier for AI applications' successful development.
“Thus, access to big and quality data is a crucial enabler and barrier for AI applications' successful development.”
Quote in the paperSubstantial claimMay combine two claims.
InterpretationreasoningOver time, the role of petroleum engineers will become crucial, as otherwise wrong questions may be asked and existing human mistakes amplified.
“Over time, this will become a crucial role, as otherwise the wrong questions may be asked and existing human mistakes amplified”
Quote in the paperSubstantial claim0 of 1 sources checked- cites [53] Wired, “Artificial intelligence makes bad medicine even worse,” 2020. https://www.wired.com/story/artificial-intelligence-makes-bad-medicine-even-worse/ (Accessed 23 Apr 2020).
Not checked in the free run.
Probably not a substantial claim: may not pass S3 (load-bearing).
PremisecitationAmbyint has spent over a decade to build its repositories of high-quality production and optimization data that is used to train and improve their solutions.
“One of good examples is Ambyint, a VC-funded AI-driven startup focused on oil and gas production optimization, which has spent over a decade to build its repositories of high-quality production and optimization data that is used to train and improve their solutions [58] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [58] GE Ventures, “AI Startup to Boost Oil & Gas Production Optimization,” 2018. https://www.ge.com/ventures/news/artificial-intelligence-startup-ambyint-announces-115-million-series-investment-boost-oil-gas (Accessed 23 Apr 2020).
Not checked in the free run.
Classified as probably not a substantial claim.
InterpretationreasoningThe need to acquire the latest AI technology and talent are additional reasons for oil and gas companies to adopt open collaboration.
“Next to data access, the need to acquire the latest AI technology and talent are additional reasons for oil and gas companies to adopt open collaboration.”
Quote in the paperSubstantial claim- Rests on an assumption: The ability to question everything and efficiently experiment with data allows AI-born startups to attract attention and record investments.
Probably not a substantial claim: may not pass S2 (checkable), S3 (load-bearing), S4 (based).
InterpretationreasoningCapability to update the pre-trained model on-the-fly will significantly increase the applicability envelope for the AI-aided tools.
“Capability to update the pre-trained model on-the-fly will significantly increase the applicability envelope for the AI-aided tools.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S3 (load-bearing).
PremisecitationGE and Statoil jointly invested in Ambyint.
“For example, GE and Statoil jointly invested in Ambyint [58] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [58] GE Ventures, “AI Startup to Boost Oil & Gas Production Optimization,” 2018. https://www.ge.com/ventures/news/artificial-intelligence-startup-ambyint-announces-115-million-series-investment-boost-oil-gas (Accessed 23 Apr 2020).
Not checked in the free run.
Probably not a substantial claim: may not pass S3 (load-bearing).
PremisecitationIn 2019 AI-related companies in the U.S. raised $18.5 billion, almost 2 billion more than in 2018.
“In 2019 AI-related companies in the U.S. raised $18.5 billion, almost 2 billion more than in 2018 [66] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [66] venturebeat.com, “AI startups raised $18.5 billion in 2019, setting new funding record,” 2020. https://venturebeat.com/2020/01/14/ai-startups-raised-18-5-billion-in-2019-setting-new-funding-record/ (Accessed 23 Apr 2020).
Not checked in the free run.
Probably not a substantial claim: may not pass S3 (load-bearing).
PremisecitationThe UK's oil and gas National Data Repository is one of the first large oil and gas open data releases.
“The UK's oil and gas National Data Repository is one of the first large oil and gas open data releases.”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [64] Oil and Gas Authority, “Oil and gas authority open data,” 2019. https://data-ogauthority.opendata.arcgis.com/ (Accessed 23 Apr 2020).
Not checked in the free run.
Probably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.
Interpretationnone givenThe AI-related oil and gas ecosystem comprises many different players - companies and organizations from different sectors, with different AI development stages, different strategies, and priorities.
“The AI-related oil and gas ecosystem comprises many different players -companies and organizations from different sectors, with different AI development stages, different strategies, and priorities.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S3 (load-bearing).
PremisecitationQuick adaptation studies are under intensive research.
“Such quick adaptation studies are also under intensive research [ 60 , 61 ].”
Quote in the paperNot a substantial claim0 of 2 sources checked- cites [60] D. J. Rezende, S. Mohamed, I. Danihelka, K. Gregor, and D. Wierstra, “One-Shot generalization in deep generative models,” 2016.
Not checked in the free run.
- cites [61] P. Wang, L. Liu, C. Shen, Z. Huang, A. Van Den Hengel, and H. T. Shen, “Multi-attention network for one shot learning,” 2017, doi: 10.1109/CVPR.2017.658. source
Not checked in the free run.
Classified as probably not a substantial claim. May combine two claims.
InterpretationreasoningAI initiatives will not fail because of bad algorithms, but rather because of lack of vision, late or even no changes in the organization's operational and business model, due to lack of high-resolution data and poor collaboration.
“AI initiatives will not fail because of bad algorithms, but rather because of lack of vision, late or even no changes in the organization's operational and business model, due to lack of high-resolution data and poor collaboration.”
Quote in the paperSubstantial claimMay combine two claims.
InterpretationreasoningThe role and required skillset of petroleum engineers will change.
“Just their role and required skillset will change.”
Quote in the paperSubstantial claimMay combine two claims.
PremisecitationShell, Saudi Aramco, and Chevron invested together in AI startup Maana, which partnered with Microsoft to use its cloud computing platform Azure.
“Shell, Saudi Aramco, and Chevron invested together in AI startup Maana, which partnered with Microsoft to use its cloud computing platform Azure [69] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [69] Houston Chronicle, “Backed by Big Oil, tech startup launches new partnership with Microsoft,” 2019. https://www.chron.com/business/energy/article/Backed-by-Big-Oil-A-I-startup-launches-new-13682135.php (Accessed 23 Apr 2020).
Not checked in the free run.
Probably not a substantial claim: may not pass S2 (checkable).
PremisecitationSucceeding in the digital competition is not about technology only.
“Succeeding in the digital competition is not about technology only [12] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [12] Tekic, 2019, From disruptively digital to proudly analog: a holistic typology of digital transformation strategies, Bus Horiz source
Not checked in the free run.
May combine two claims.
PremisecitationThere is a significant shortage of AI talent on the job market, and prospects are not good for the next decade.
“There is a significant shortage of AI talent on the job market [ 50 , 51 ], and with more and more companies getting into AI and forming their own AI groups, prospects are not good for the next decade.”
Quote in the paperSubstantial claim0 of 2 sources checked- cites [50] 2017
Not checked in the free run.
- cites [51] 2019
Not checked in the free run.
May combine two claims.
PremisecitationWhile open innovation is becoming standard in the tech sector, oil and gas companies are not famous for their joint industry projects, especially between competitors and especially not in strategic domains such as AI.
“While open innovation is becoming standard in the tech sector, oil and gas companies are not famous for their joint industry projects, especially between competitors and especially not in strategic domains such as AI [48] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [48] Hajizadeh, 2019, Machine learning in oil and gas; a SWOT analysis approach, J Pet Sci Eng source
Not checked in the free run.
- Rests on an assumption: Oil and gas companies are not known for their agile, lean, and bottom-up development approaches but for strict jurisdiction division and waterfall processes and procedures.
Probably not a substantial claim: may not pass S3 (load-bearing).
PremisecitationSmall data learning enables training the AI algorithms with a small number of examples.
“One of the key directions here is small data learning [59] that enables training the AI algorithms with a small number of examples.”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [59] M. Olson, A. J. Wyner, and R. Berk, “Modern neural networks generalize on small data sets,” 2018.
Not checked in the free run.
Probably not a substantial claim: may not pass S3 (load-bearing), S4 (based).
PremisereasoningSome universities like Skolkovo Institute of Science and Technology and West Virginia University already started implementing special educational programs that are a healthy mix of data science and petroleum studies.
“some universities like Skolkovo Institute of Science and Technology (Russia) and West Virginia University (US), already started implementing special educational programs that are a healthy mix of data science and petroleum studies.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S2 (checkable).
InterpretationreasoningTo successfully innovate in the AI-era, oil and gas companies will need petroleum engineers with a strong sense of data science and the ability to identify and design tasks to be solved by AI.
“To successfully innovate in the AI-era, next to data scientists oil and gas companies will need petroleum engineers with a strong sense of data science and the ability to identify and design tasks to be solved by AI.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S3 (load-bearing). May combine two claims.
PremisecitationStrategy plays a key role and is a driving force of digital transformation, and top management commitment is essential to assure the success of AI and other transformative efforts.
“Thus, strategy plays a key role and is a driving force of digital transformation [7] , and top management commitment is essential to assure the success of AI and other transformative efforts [74] .”
Quote in the paperNot a substantial claim0 of 2 sources checked- cites [7] Kane, 2015, Strategy, not technology, drives digital transformation, MIT Sloan Manag Rev
Not checked in the free run.
- cites [74] Roberts, 1988, What we’ve learned: Managing invention and innovation, Res Manag
Not checked in the free run.
Probably not a substantial claim: may not pass S2 (checkable), S3 (load-bearing), S4 (based). May combine two claims.
InterpretationreasoningData's central role and growing convergence will drive the nature of connections between members of the evolving and enlarging oil and gas ecosystem, defining how risk should be managed, value distributed and collaboration orchestrated.
“Data's central role and growing convergance will drive the nature of connections between members of the evolving and enlarging oil and gas ecosystem, defining how risk should be managed, value distributed and collaboration orchestrated.”
Quote in the paperNot a substantial claimProbably not a substantial claim: may not pass S2 (checkable). May combine two claims.
InterpretationreasoningThe role of petroleum engineers will be to ensure that the right problems are identified for applying AI, that the right data is collected, and that solutions fit the physical and process reality.
“Their role will be to ensure that the right problems are identified for applying AI, that the right data is collected and that solutions fit the physical and process reality.”
Quote in the paperNot a substantial claimMay combine two claims.
Interpretationown dataArtificial intelligence is an emerging trend in oil and gas, and there are applications that have already brought countable value.
“It is clear that even though artificial intelligence is an emerging trend in oil and gas, there are applications that have already brought countable value.”
Quote in the paperSubstantial claimProbably not a substantial claim: may not pass S3 (load-bearing), S4 (based).
InterpretationreasoningTo compete with tech giants, leading universities and startups over the same talent, oil and gas companies have to fight negative attitudes toward fossil fuel industries.
“Next, to compete with tech giants like Google, Yandex, IBM, and Amazon, leading universities and cool startups worldwide over the same talent -oil and gas companies have to fight negative attitudes toward fossil fuel industries.”
Quote in the paperNot a substantial claim- Rests on an assumption: Oil and gas companies have to fight negative attitudes toward fossil fuel industries to compete for AI talent.
Probably not a substantial claim: may not pass S3 (load-bearing).
PremisecitationIn April 2020, oil prices went negative.
“The flavor of failing that industry experienced two times in the last five years, especially the last one (April 2020) in which oil prices went negative, maybe the right trigger to start transforming their business models [75] .”
Quote in the paperNot a substantial claim0 of 1 sources checked- cites [75] Andriole, 2017, Five myths about digital transformation, MIT Sloan Manag Rev
Not checked in the free run.
The paper relies on this without support.
In many cases, money invested in extra drilling, well treatment, or enhanced oil recovery in brownfields does not pay off.
“In many cases, money invested in these actions does not pay off, leaving the brownfields in a slow process of dying.”
The paper relies on this without support.
The interpolation of petrophysical properties into the seismic cube is the most time-consuming and subjective part of the geology modeling workflow.
“This interpolation is probably the most time consuming and subjective part of the whole geology modeling workflow.”
The paper relies on this without support.
Well treatment costs are significant and comparable with the cost of well construction.
“The well treatment costs are significant and comparable with the cost of well construction.”
The paper relies on this without support.
The amount of oil and gas recoverable from conventional brownfields with cheap waterflooding is very small.
“the amount of oil and gas recoverable with cheap waterflooding is very small.”
The paper relies on this without support.
Oil and gas companies have to fight negative attitudes toward fossil fuel industries to compete for AI talent.
“oil and gas companies have to fight negative attitudes toward fossil fuel industries.”
The authors state this as an assumption.
The absence of major technological breakthroughs within the energy area and social storms affecting current energy demand trends in the coming years.
“Assuming the absence of the major technological breakthroughs within the energy area and social storms affecting current energy de-mand trends in the coming years, we can visualize three possible scenarios of AI spreading in the oil and gas upstream.”
The authors state this as an assumption.
The Covid-19 crisis will not permanently change the main postulates of the industry.
“Here we assume that Covid-19 crisis will not permanently change the main postulates of the industry.”
The authors state this as an assumption.
Strong and committed leadership in the key companies and good data platforms are in place.
“Assuming strong and committed leadership in the key companies and that good data platforms are in place, one may expect very rapid growth of AI capabilities for the upstream applications followed by AI tools for decision making at various levels.”
The paper relies on this without support.
The algorithms and their developers are not responsible, but the responsibility is still with the decision-makers getting the advice from the AI and AI users.
“The practice says that the algorithms and their developers are not responsible, but the responsibility is still with the decision-makers getting the advice from the AI and AI users.”
The paper relies on this without support.
Oil and gas companies are not known for their agile, lean, and bottom-up development approaches but for strict jurisdiction division and waterfall processes and procedures.
“Oil and gas companies are not known for their agile, lean, and bottom-up development approaches but for strict jurisdiction division and waterfall processes and procedures -that has to be changed.”
The paper relies on this without support.
We have very few sources of geophysical and production data, and they are of questionable quality.
“We have very few sources of geophysical and production data, and they are of questionable quality.”
The paper relies on this without support.
The small data learning attracts serious attention of researchers worldwide, but there is no substantial progress as of now.
“The small data learning attracts the serious attention of researchers worldwide, but there is no substantial progress as of now.”
The paper relies on this without support.
The ability to question everything and efficiently experiment with data allows AI-born startups to attract attention and record investments.
“The ability to question everything and efficiently experiment with data allows AI-born startups to attract attention and record investments.”
The paper relies on this without support.
Oil and gas fields generate large amounts of raw data.
“Oil and gas fields generate large amounts of raw data.”
The paper relies on this without support.
AI is born in open and collaborative environment as a consequence of academia being a leading force in AI research for decades, almost without any business influences.
“Artifical intelligence is born in open and collaborative environment as a consequence of academia being a leading force in AI research for decades, almost without any business influences.”
The paper relies on this without support.
Even though many companies announce bringing some of their data to the open-source and claim the necessity of cross-company and cross-border data sharing, the reality is rather pessimistic now.
“Even though many companies announce bringing some of their data to the open-source and claim the necessity of cross-company and cross-border data sharing, the reality is rather pessimistic now.”
Claims other papers make about this one
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Sophisticated AI for energy applications demands significant high-performance computing (HPC) resources, leading to high capital/operational costs and substantial energy consumption.
“Sophisticated AI for energy applications demands significant high-performance computing (HPC) resources [3,20], leading to high capital/operational costs and substantial energy consumption [5,18].”
From Addressing Challenges for the Effective Adoption of Artificial Intelligence in the Energy Sector (2025) · cites this paper as [3]
Ensuring AI reliability, especially for autonomous control, is a major concern, linked to model complexity and fault handling.
“Ensuring AI reliability, especially for autonomous control, is a major concern, linked to model complexity and fault handling (Section 3.1.5)[3,20].”
From Addressing Challenges for the Effective Adoption of Artificial Intelligence in the Energy Sector (2025) · cites this paper as [3]
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Self-citation
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Sorted by citations
A review of Earth Artificial Intelligence
Sun, Z., Sandoval, L., Crystal-Ornelas, R., Mousavi, S. M., Wang, J., Lin, C., Cristea, N., Tong, D., Carande, W. H., Ma, X., et al. (2022) · Computers & Geosciences · doi:10.1016/j.cageo.2022.105034 · Cited by 271 · see citing works
Utilization and challenges of artificial intelligence in the energy sector
Park, C., & Kim, M. (2026) · Energy & Environment · doi:10.1177/0958305x241258795 · Cited by 15 · see citing works
- Authors
- Koroteev, D., & Tekic, Z.
- Affiliations
- Skolkovo Institute of Science and Technology (RU)
- Corresponding author
- Koroteev, Dmitry
- ORCID
- Koroteev, Dmitry
- Venue
- Energy and AI
- Publisher
- Elsevier BV
- Published
- 2021-03
- Volume
- 3
- Pages
- 100041
- ISSN
- 2666-5468 (ISSN-L)
- OpenAlex
- W3117732367
- Semantic Scholar
- 77f65c1beb5868a8a9960491e818b3811b4325d9
- Cited by
- 285
- References
- 48
- Citations by year
- 2026: 47 · 2025: 74 · 2024: 57 · 2023: 50 · 2022: 35 · 2021: 22
- FWCI
- 10.51
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Energy and AI (publishedVersion, cc-by-nc-nd)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Funders
- Skolkovo Institute of Science and Technology
- Saudi Aramco
- Samsung
- Topics
- Physical Sciences › Computer Science › Artificial Intelligence › Artificial Intelligence Applications
- Social Sciences › Decision Sciences › Management Science and Operations Research › Impact of AI and Big Data on Business and Society
- Physical Sciences › Engineering › Ocean Engineering › Oil and Gas Production Techniques
- Keywords
- artificial intelligence, oil and gas industry, upstream oil and gas, artificial intelligence applications, data availability, AI adoption barriers, de-risking, future scenarios, digitalization of energy
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