Jun 27, 2024 - Energy & Climate
AI makes inroads in the oil patch
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Artificial intelligence is expanding in the heart of the U.S. oil patch, especially among larger firms.
Why it matters: AI's climate tech applications vs. its energy thirst gets lots of press, but new survey data underscores how AI helps incumbent industries too.
Driving the news: The Dallas Fed surveyed firms within its district, which includes the prolific Permian Basin, about their use of AI.
- Over a quarter already employ the tech, with another 24 percent planning to do so in the next year.
- It's even more common among bigger producers, with current or planned use clustered among firms producing more than 10,000 barrels per day.
State of play: Energy producers and oilfield service firms see applications around business analysis, process automation, predictive maintenance, drilling and more.
- Companies are experiencing or plan to see benefits like greater productivity and cost reductions.
The bottom line: Huge producers that are household names already employ AI, but it's moving well beyond the behemoths.
