Artificial intelligence technology is helping the oil and gas industry increase production at lower costs and with higher efficiency.

Recent media reports indicate that artificial intelligence technology has been used to extract shale oil and gas, which can shorten the average drilling

time by one day and the hydraulic fracturing process by three days.

Artificial intelligence and other technologies could reduce costs in shale gas plays by double-digit percentages this year, according to research firm

Evercore ISI. Evercore analyst James West told the media: “At least double-digit percentage cost savings can be achieved, but in some cases it may

be 25% to 50% cost savings.”

This is an important advance for the oil industry. Back in 2018, a KPMG survey found that many oil and gas companies had begun adopting or

planned to adopt artificial intelligence. “Artificial intelligence” at the time mainly referred to technologies such as predictive analytics and machine

learning, which were effective enough to attract the attention of oil industry executives.

Commenting on the findings at the time, KPMG US’s global head of energy and natural resources said: “Technology is disrupting the traditional

landscape of the oil and gas industry. Artificial intelligence and robotics solutions can help us more accurately predict behaviors or outcomes,

such as improving Rig safety, dispatching teams quickly, and identifying system failures before they occur.”

These sentiments still hold true today, as digital technologies are increasingly used in the energy industry. U.S. shale gas regions have naturally

become early adopters because their production costs are generally higher than traditional oil and gas drilling. Thanks to technological

advancements, drilling speed and accuracy have achieved a qualitative leap, resulting in significant cost reductions.

According to past experience, whenever oil companies find cheaper drilling methods, oil production will increase significantly, but the situation

is different now. Oil companies do plan to increase production, but while they are pursuing production growth, they are also Emphasis on

shareholder returns.