AI in oil and gas to reach $7.99bn globally by 2031

The global oil and gas industry is estimated to invest $7.99 billion in AI tech by 2031, according to Allied Market Research.

Increasing at a CAGR of 13.5% from 2022 to 2031, the data company pointed to “excellent” fault detection and quality improvement; reduction in costs related to production and maintenance, and enhanced safety and security standards, as key drivers in the growth of the market.

However, Allied Market warned “significant” reduction in demand for fossil fuels and high emission of carbon dioxide and other greenhouse gases continue to restrain market growth.

The appetite for oil and gas reduced during 2020 as Covid-19 led to a decline in demand, according to the data company. The lack of workers saw the sector press pause on many activities such as drilling and extraction, and government authorities postponed R&D investments due to the economic uncertainty.

Fast-forward two years, the implementation of advanced technologies such as AI has increased, with the industry seeking new solutions such as predicting the outcomes of mining operations.

Based on region, North America held the largest market share in 2021, accounting for around two-fifths of the global AI in oil and gas market – it is expected to maintain its lead status by 2031.

Asia-Pacific is projected to register the fastest CAGR of 15.2% from 2022 to 2031, owing to measures taken to fulfill the rise in demand for fuel with increase in passenger cars in the region.

AI solutions are quickly becoming more common across several markets, with the technology poised to revolutionise the way enterprises function. That was according to DeepMind chief business officer Colin Murdoch.

It is also quickly becoming an attractive area of technology. Most recently, Hyundai Motor Group launched its $400 million Boston Dynamics AI Institute to spearhead the sector, focusing on resources across the areas of cognitive AI, athletic AI and organic hardware design.