American Oil and Gas Reporter - September 2020 - 23

pages 23_Layout 1 9/18/2020 10:10 AM Page 1

Data Technology
Still In Early Stages
For Oil And Gas
During the last year or so we all have been hearing about the
digitization of the oil field, but there seems to be some
disagreement about what that actually means. As I read more
about data use in the field, I am not sure anyone is really right,
but I also am not sure anyone is really wrong.
As best as I can tell, it's pretty much the Wild West out there.
It reminds me of a book I once had on my shelf at the University
of Kansas, Using the Internet in the Oilfield. How far we have
come. Like many of us of a certain age, I recall pondering how
we might use this Internet thing in business. I believe we are at
that very same stage today, except this time it is with artificial
intelligence, data analytics and machine learning.
Oil and gas companies, which are traditionally slow to adopt
certain technologies, have begun to embrace this idea and now
are navigating the waters of a brand-new industry within our industry. A colleague of mine recently summed it up when he told
me that big data in the oil field is sort of like getting to (the figurative) first base in junior high-everyone is talking about it,
but no one is actually doing it. That is not to say the oil industry
isn't using data in progressively more expansive ways, in fact, I
suggest it is possible our industry is helping push the technology
forward.
At its core, the oil and gas industry thrives on controlling
costs and being efficient. Now more than ever the modern oil
field needs affordable ways to continue growing and improving
recovery while increasing margin. It is estimated that by 2025
the value of oil field AI may be as great $3 billion and new
startups are taking notice. Driven by a new path in the established
market, these young companies are developing AI technologies
that are impacting everything from company data analysis to
safety, exploration, drilling and production.
A few years ago, the most advanced AI only could advise
after the fact. For example, in the event of a failure, the system
ran analysis and advised actions to prevent similar issues in the
future. Unfortunately, this process fails to address problems as
they develop. Now the industry is using advanced sensors and
software systems to process data on the fly and help operators
make real-time decisions.
Additionally, companies are digitizing data collection, as
well as all their historical data. Companies have figured out that
all those old logs and records are a treasure trove for future exploration and operation. A few companies are even building
business models creating and digitizing data and selling it to
other companies. In essence, they are providing the raw material
for AI.
Because oil and gas sites often are located in remote areas,
it can be difficult to track and report on production and maintenance. Some operators are beginning to use sensors to track
this data remotely, eliminating the need for workers to visit
the site and create paper or PDF reports for the office. With
digitization, much of this data can be extracted automatically
and analyzed remotely, enabling timely, well-informed and
efficient decisions.

"While much of this technology is still under
development, many operators are paying
attention and have begun forming teams and
partnerships with data providers as well as
software companies.

In another space, one of the great arts of exploration
traditionally has been obtaining and analyzing seismic data. Although this information has been revolutionary in helping
identify subsurface features, interpretation occasionally can be
like reading tea leaves. AI analytics are helping address these
limitations by aggregating multiple data sources and layering
them atop each other, improving resolution to help operators hit
the mark with greater frequency and effectiveness. Fewer dry
holes mean better economics.
Meanwhile, AI is transforming everything from safety
meetings to on-site AI assistance. Systems that track actionable
items and provide summaries to help workers keep safety at the
forefront ease the real-time complex decisions that keep
operations moving forward. Additionally, AI is taking advantage
of automated systems that improve productivity but also remove
human workers from potentially dangerous environments. Other
companies are using sensor data to help predict failure of equipment and parts with high breakdown risks.
While much of this technology is still under development,
many operators are paying attention, and have begun forming
teams and partnerships with data providers as well as software
companies. At the end of the day, the oil and gas industry still
is dealing with issues and subsurface complexities that the
human eye cannot see. Because we cannot see down hole-and
the industry no longer can afford to simply drill and pray-
data, data analytics and AI will become a key part of the
evolving industry. One day I will look back on this column
and laugh like I did when I discovered the book on ideas for
how to use the Internet.
❒

JEREMY VISCOMI is a strategic

marketing expert for the oil and
gas industry. Among his many
roles, he serves as the MidContinent regional lead for the
Petroleum Technology Transfer
Council, providing independent
operators with access to emerging technology aimed at reducing
risk and growing profits.
SEPTEMBER 2020 23

American Oil and Gas Reporter - September 2020

Table of Contents for the Digital Edition of American Oil and Gas Reporter - September 2020