1、Oil and gas in the AI eraDrilling deep for business opportunitiesIBM Institute for Business Value|Research BriefForewordThe oil and gas industry stands at the intersection of two transformative forces:opportunities coming from the rapid evolution of AI and the global shift toward more sustainable,se
2、cure,and affordable energy sources.These dynamics are inextricably linked,and success will belong to organizations that harness the synergy between them.This synergy will accelerate operational efficiencies and business model innovation for growth and build more agile capabilities in response to evo
3、lving markets.In a new IBM Institute for Business Value(IBM IBV)survey,we see that industry leaders understand these dynamics and place AI at the heart of their strategy.59%expect AI to contribute significantly to their revenue within three years.75%say that AI investments will deliver a measurable
4、competitive advantage in this same timeframe.For an industry defined by market volatility,leveraging AI marks a fundamental shift in how oil and gas companies can gain an edgebut it requires a balance between investments in productivity and innovation.Today,many organizations target operational effi
5、ciency.Current AI spend in this area outpaces spend on innovation by three to one.64%of executives say they are significantly revamping workflows to enhance process efficiencies and reduce manual effort.Initiatives include automating seismic data interpretation in upstream operations,using AI for re
6、al-time drilling optimization,enhancing predictive maintenance in midstream pipeline networks,and optimizing refinery yields in downstream operations.Streamlining processes is essential,but building a competitive edge lies in AI-powered business model disruption.Many companies are positioning themse
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