Oil & Gas

Global Data has reported that Aramco, a leading oil company, is the largest investor in artificial intelligence (AI) in the oil industry, having spent $3.5 billion on research and development last year. The company is actively investing in various cutting-edge technologies, recognizing the importance of technological advancement in future competition.

In addition to AI, Aramco is involved in 250 areas of innovation, including drone technology, robotics, and electric vehicles. AI is being utilized in oil exploration, fault monitoring, and cyber threat detection. This highlights the versatility and growing popularity of AI in various sectors.

The adoption of AI is not unique to Aramco. The oil and gas industry, traditionally slow in adopting new technology, has recently shown significant progress. U.S. shale drillers, for example, are using AI to improve drilling efficiency and increase well recovery rates, motivated by the higher production costs associated with shale drilling.

Despite being a traditional oil company, Aramco is actively embracing cutting-edge technologies to enhance its operations, even during challenging times such as 2023. The company has established the Saudi Accelerated Innovation Laboratory (SAIL) to partner with government agencies and startups in developing digital innovation products.

Aramco's approach reflects a broader trend in Saudi Arabia and the Gulf region, where efforts are being made to diversify the economy away from reliance on crude oil. The use of AI and other new technologies could not only enhance oil production but also bring down costs significantly, benefiting both high-cost producers like shale drillers and low-cost producers like Saudi Arabia.

Overall, the oil industry stands to gain numerous benefits from AI, including cost savings, more productive wells, accurate exploration, and better threat detection. Additionally, the industry has the resources to power the electricity-intensive AI technologies, further driving its adoption and integration.