by the numbers
Houston rises as emerging hub for $6B global AI in oil and gas industry, per new report
Houston is emerging as a hub for the development of artificial intelligence in the oil and gas industry — a global market projected to be worth nearly $6 billion by 2028.
This fresh insight comes from a report recently published by ResearchAndMarkets.com. The research outfit says North America leads global AI growth in oil and gas, with Houston playing a pivotal role.
“With AI-driven innovation at its core, the oil and gas industry is set to undergo a profound transformation, impacting everything from reservoir optimization to asset management and energy consumption strategies — setting a new standard for the future of the sector,” says ResearchAndMarkets.com.
The research company predicts the value of the AI sector in oil and gas will rise from an estimated $3.2 billion in 2023 and $3.62 billion in 2024 to $5.8 billion by 2028. The report divides AI into three categories: software, hardware, and hybrids.
As cited in the report, trends that are sparking the explosion of AI in oil and gas include:
- Stepped-up use of data
- Higher demand for energy efficiency and sustainability
- Automation of repetitive tasks
- Optimization of exploration and drilling
- Enhancement of safety
“The oil and gas industry’s ongoing digitization is a significant driver behind … AI in the oil and gas market. Rapid adoption of AI technology among oilfield operators and service providers serves as a catalyst, fostering market growth,” says ResearchAndMarkets.com.
The report mentions the Open AI Energy Initiative as one of the drivers of increased adoption of AI in oil and gas. Baker Hughes, C3 AI, Microsoft, and Shell introduced the initiative in February 2021. The initiative enables energy operators, service providers, and vendors to create sharable AI technology for the oil and gas industry.
Baker Hughes and C3 AI jointly market AI offerings for the oil and gas industry.
Aside from Baker Hughes, Microsoft, and Shell, other companies with a significant Houston presence that are cited in the AI report include:
- Accenture
- BP
- Emerson Electric
- Halliburton
- Honeywell
- Saudi Aramco
- Schlumberger
- TechnipFMC
- Weatherford International
- Wood
Major AI-related trends that the report envisions in the oil and gas sector include the:
- Digital twins for asset modeling
- Autonomous robotics
- Advanced analytics for reservoir management
- Cognitive computing for decision-making
- Remote monitoring and control systems
“The digitization trend within the oil and gas sector significantly propels the AI in oil and gas market,” says the report.
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This article originally ran on InnovationMap.