Andrea Perez-Sobers
Senior Reporter
andrea.perez-sobers@guardian.co.tt
Artificial Intelligence (AI) and digital technology can significantly enhance operations in mature oil and gas basins, where resources are often harder to find due to depletion and increased operational and infrastructural challenges.
That’s from Stanley Wharton, CEO of Centre for Energy Resources and Digitalisation Technologies (CERDiT) and a part-time lecturer in prospect evaluation and petroleum economics at the UWI, St. Augustine.
Wharton said mature basins implicitly suggest that vast amounts of exploration data and a vast knowledge base exist, including legacy data from prospecting and operational activities over many years. This can be a boon for the industry in the application of AI and digital technology.
AI and digital technology, he said, can help in predictive analytics and the application of Machine Learning algorithms to leverage analytics for decision-making, efficiency, and productivity.
“Each facet of a mature basin’s activity - exploration, development, and production - can benefit from optimising processes for faster analysis and decision making and for enhancing profitability. In exploration, data analytics can help in identifying new plays through the automation of subsurface analytical processes, managing subsurface risks, drilling efficiency, completion design, and resource management. However, the existence of vast amounts of data is part of the boon,” Wharton explained.
He outlined that data must be accessible and must be rigorously cleaned before considering the benefits of AI and digital technology. Wharton added that confidentiality clauses within company and regulatory institutions may be counterproductive to data access and quick wins in implementing AI and digital technology.
Last week, at the T&T Energy Conference held at the Hyatt Regency, many CEOs of energy companies spoke about using digital technologies to improve their work time.
Asked if AI would be feasible to use during energy companies’ drilling exercises, Wharton highlighted that rig time is expensive and AI can be used to reduce costs through drilling efficiencies as it would be feasible to use during energy companies’ drilling exercises.
“Traditionally, drilling relies heavily on human expertise and experience, which can be subjective and limited by the driller’s knowledge and reaction time. AI-powered systems can continuously analyze data streams during drilling from various sensors (downhole, surface, geological) in real time for prudent decision making,” he said.
Predictive maintenance
Unplanned equipment failures during drilling operations, Wharton referenced, can lead to significant downtime, costly repairs, and even safety hazards. AI can analyze sensor data from drilling rigs, pumps, engines, and other equipment to predict potential failures before they occur.
“Specific AI applications include vibration analysis, temperature monitoring and fluid analysis. AI systems can alert maintenance personnel to potential equipment failures weeks or even months in advance, allowing them to schedule maintenance proactively and avoid costly downtime.”
Questioned on what the downside of AI is, the CEO said there are several and some are associated with strategy and planning.
He noted that one of the main downsides is the determination of the scale of implementation, identifying the purpose, and defining when to stop testing and to roll out the application. Bringing the workforce on board is key.
Also, he said there is a lack of transparency and explainability (the ‘black box’ problem); hence, a proper description of AI and what any particular application does must be articulated to workers and students alike.
While many advanced AI algorithms, particularly deep learning models, operate as “black boxes” and there is a lack of clarity in understanding specific steps and reasoning behind their decisions and to mitigate this lack of understanding, priority should be given to the development and use of explainable AI techniques, Wharton said.
There are also the risks of cybersecurity and Wharton mentioned AI systems are vulnerable to cyberattacks that can compromise integrity, availability, and confidentiality.
Additionally, he said the energy sector is a particularly attractive target due to its critical infrastructure, and essential data is also stored in data centres which can be vulnerable.
As to how many local energy companies are making use of digital technologies, he said DeNOVO Energy and Proman, along with international majors like Shell, bpTT, Woodside, EOG, and others, may also have AI embedded in operations.
He added digital technologies offer powerful tools for both detecting oil leaks (and gas leaks) and monitoring/reducing greenhouse gas emissions, contributing to a safer, more efficient and sustainable energy industry.