Future Digital Twin | Issue 60 by cavendish-group

Shell Urges Bold Energy Policies Enhancing Offshore Asset Integrity

Technology drives sustainability

Digital Twin Safeguards AI Value

How AI is Transforming Oil & Gas

Managing Director

Adam Soroka

Editor in Chief

Mark Venables mark.venables@cavendishgroup.co.uk

Advertising Director

Mike Smith mike.smith@cavendishgroup.co.uk

Digital twins, virtual replicas of physical assets, have rapidly gained prominence in the oil and gas industry as companies seek innovative ways to enhance efficiency, reduce costs, and improve safety. These dynamic models provide real-time data on equipment, processes, and systems, enabling operators to simulate, monitor, and optimize performance. As the industry grapples with increased volatility and the need for sustainable practices, digital twins hold significant promise in transforming oil and gas operations.

At their core, digital twins offer a powerful tool for predictive maintenance, which has been a long-standing challenge in the sector. By continuously monitoring the condition of offshore platforms, pipelines, and refineries, these virtual models can anticipate equipment failures before they occur. This not only reduces costly downtime but also helps to prevent safety incidents, which are particularly critical in high-risk environments like offshore drilling. In an industry where equipment reliability is paramount, the ability to preemptively address issues has immense value.

Beyond maintenance, digital twins also enable the optimization of production processes. By analysing data from sensors in real time, operators can adjust parameters to enhance output, improve energy efficiency, and reduce environmental impact. This level of insight is particularly relevant as oil and gas companies face increasing pressure to meet environmental, social, and governance (ESG) targets. Digital twins provide a way to identify energy inefficiencies and reduce greenhouse gas emissions, helping companies to align with global sustainability goals while maintaining operational excellence.

The potential for digital twins extends to planning and decision-making as well. By simulating different scenarios, such as changes in production rates or the impact of new regulations, companies can make more informed decisions with less risk. This ability to “test” strategies in a virtual environment accelerates innovation, reduces uncertainty, and allows for better resource allocation. Moreover, the integration of artificial intelligence (AI) and machine learning (ML) into digital twin models further enhances their ability to

learn from historical data and continuously improve predictions.

However, widespread adoption of digital twins still faces challenges. Implementing this technology requires significant upfront investment, robust data infrastructure, and a shift in organizational culture. Moreover, ensuring data security and managing the vast amounts of data generated are critical concerns. Nonetheless, as the oil and gas industry continues its digital transformation journey, the benefits of digital twins far outweigh the challenges.

In a landscape where efficiency, safety, and sustainability are more important than ever, digital twins represent a transformative force that can reshape the future of oil and gas operations.

Mark Venables Editor-in-Chief

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In a recent keynote address, Shell CEO Wael Sawan emphasizes the critical role of electrification, low-carbon solutions, and energy security in ensuring Europe’s leadership in the energy transition, while warning that without bold action and strategic infrastructure development, the continent risks falling behind in its climateneutral ambitions

Innovative technologies and advanced data solutions are transforming offshore asset integrity management, helping operators reduce costs, enhance efficiency, and extend the operational life of critical infrastructure

Digital Twin Safeguards AI Value in Engineering and Operations

By integrating digital twin frameworks with AI, industrial organizations can ensure data integrity, enhance operational decision-making, and unlock the full potential of advanced technologies, enabling a safer, smarter, and more efficient future

Digital Performance Models Driving the Future of Energy Efficiency and Collaboration

Innovative technologies such as carbon capture, digitalization, and renewable energy integration are transforming the oil and gas sector, enabling more sustainable and efficient production processes while reducing environmental impact

industrial steam grids: Challenges and opportunitiesproduction

Many steps have been taken towards decarbonising heat among industry players. Steam-based heating is now the next urgent point in industrial decarbonisation. Read this article to learn about the challenges in steam decarbonisation and why digital tools offer the best solution

Future Digital events highlight how digital performance models, including digital twins, are transforming the energy sector, enabling companies to make data-driven decisions, enhance collaboration, and streamline operations, ensuring both immediate savings and long-term improvements across the industry

Final Word: Oil and Gas Remain Essential to Global Energy Security and Economic Stability During the Transition to Renewable Energy

Mark Venables explains that despite the global push toward renewable energy, oil and gas will remain essential in the energy transition, ensuring energy security, supporting economic growth, and providing critical industrial feedstocks as cleaner energy sources scale up

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Ensuring the health and wellbeing of offshore workers is critical to maintaining productivity in the oil and gas industry, where the challenging environment and high-pressure demands amplify the need for skilled medical support and preventative health strategies.as Dave Thompson Director of UK Sales at RMI explains

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TotalEnergies begins gas production from Argentina’s Fenix Field

TotalEnergies has initiated gas production from the Fenix field, located offshore Argentina. The project, with a production capacity of 10 million cubic meters per day, features a newly constructed unmanned platform in 70 meters of water, linked to existing CMA-1 infrastructure. The gas is transported through a 35-kilometer subsea pipeline to the Vega Pleyade platform and processed onshore at Rio Cullen and Canadon Alfa.

TotalEnergies operates the Cuenca Marina Austral 1 (CMA-1) concession, holding a 37.5% stake, with Harbour Energy and Pan American Energy as partners. The Fenix development is noted for its low-cost and low-emission profile, with a carbon intensity of just nine kilograms of CO2 per barrel.

Javier Rielo, Senior Vice President for the Americas, emphasized that production began ahead of schedule, only two years after the final investment decision. The project aligns with TotalEnergies’ strategy of maintaining gas production while reducing emissions and costs, ensuring a stable gas supply to Argentina. The field is situated 60 kilometres offshore from Tierra del Fuego.

bp Taps ABS for classification and engineering verification on Kaskida deepwater project in Gulf of Mexico

bp has selected ABS to assist with its Kaskida deepwater project in the Gulf of Mexico. ABS will be responsible for classification and engineering verification of the new semisubmersible production unit involved in the project. Miguel Hernandez, ABS Senior Vice President for Global Offshore, highlighted ABS’s extensive expertise in the Gulf of Mexico, particularly in classing complex semisubmersible platforms. He noted that ABS’s role in this project extends beyond traditional classification, with the organization also providing comprehensive services for engineering review and verification, further strengthening its portfolio in highpressure, high-temperature (HPHT) projects. In addition to classification, ABS will serve as the Certified Verification Agent (CVA) for the U.S. Bureau of Safety and Environmental Enforcement (BSEE) and as the independent third-party verifier for HPHT subsea equipment. ABS will also carry out inspections and approvals for the unit’s design, construction, and equipment, working on behalf of the U.S. Coast Guard (USCG).

Weatherford expands digital capabilities with acquisition of Datagration

Weatherford International has acquired Datagration Solutions, a leading provider of data integration, analytics, and machine learning technologies. This acquisition bolsters Weatherford’s digital capabilities, positioning the company as a frontrunner in production and asset optimization for the oil and gas industry. By merging Datagration’s advanced data models with Weatherford’s existing digital platforms, such as ForeSite, CygNet, and CENTRO, the company aims to enhance decision-making, well lifecycle optimization, and operational efficiency. This integration also improves the ability to track and report emissions, helping clients manage sustainability efforts more effectively.

Girish Saligram, Weatherford’s President and CEO, highlighted the strategic importance of the acquisition, noting that it would accelerate the company’s innovation and leadership in digital transformation within the energy sector. The move is expected to create new synergies and improve operational efficiencies across Weatherford’s enterprise.

The future of oil and gas is digital

GEODynamics unveils advanced EPIC Flex Orbit Perforating System for enhanced well productivity

GEODynamics has introduced the EPIC Flex Orbit Perforating System, an innovative tool designed to extend the capabilities of its existing EPIC Flex suite. The new system offers customizable options that allow integration of addressable switches, charges, and detonating cords from various manufacturers, giving wireline companies and completion engineers flexibility in their operations.

One of the standout features of the EPIC Flex Orbit system is its advanced selforienting capabilities, which enable precise shot placement at any angle, improving well productivity. Utilizing gravity-based orientation, the system naturally positions perforating charges in the optimal direction, ensuring better alignment with well plans and reducing the need for additional tools to maintain control.

According to Ron Hickerson, Group Vice President of Downhole Technologies, the EPIC Flex Orbit gun system allows operators to adjust to wellbore conditions and field requirements in real-time, which leads to faster and more accurate completions, thereby reducing operational costs. Suitable for a range of wellbore conditions, including horizontal and deviated wells, the new system enhances charge placement accuracy for increased reservoir contact and production efficiency. By enabling quicker job completion and higher production efficiency, the EPIC Flex Orbit system is set to provide operators with significant operational and financial benefits.

ADNOC advances digital transformation with launch of AI-driven ENERGYai strategy

Abu Dhabi National Oil Company (ADNOC) has introduced its cuttingedge AI and Digital Technology strategy, known as ENERGYai, following the endorsement of His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. This innovative program aims to leverage artificial intelligence to enhance operational efficiency, sustainability, and growth across ADNOC’s energy sector.

During the UAE’s Year of Sustainability, the Crown Prince lauded ADNOC for integrating AI into its decarbonization initiatives, emphasizing the crucial role of technology in optimizing energy production while minimizing emissions. Sheikh Khaled directed ADNOC to strategically implement the ENERGYai platform to establish new benchmarks for cleaner energy production, aligning with the UAE’s climate and biodiversity objectives.

The Crown Prince also reiterated his commitment to fostering youth development, positioning it as a key element of the nation’s progress. ADNOC’s AI Lab, which focuses on identifying high-impact AI applications across its operations, was highlighted during his visit.

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bp expands partnership with Palantir to deploy AI and digital twin technology for oil and gas operations

bp has signed a new agreement with Palantir Technologies Inc. to expand their strategic collaboration, bringing advanced AI capabilities to bp’s oil and gas operations through Palantir’s AIP software. This agreement builds upon a decade-long relationship that has integrated Palantir’s software into bp’s production operations, from the North Sea and the Gulf of Mexico to Oman’s Khazzan gas fields. Palantir’s platform has played a key role in bp’s digital transformation, enhancing operational efficiency and performance through modelbased digital twin simulations.

The new AI-driven technology, supported by Palantir’s AIP software, will help bp analyse real-time data from millions of sensors across its global operations, improving decision-making processes by suggesting optimized courses of action. The platform’s transparency and security features ensure that AI recommendations are safe, reliable, and fully auditable.

Matthew Babin, Head of Energy and Natural Resources at Palantir, expressed enthusiasm for the continued partnership, emphasizing the opportunity to further improve bp’s operational efficiency with the integration of AI. Sunjay Pandey, bp’s SVP of Digital Delivery, highlighted how digital twin simulations help bp monitor and optimize production, contributing to safer and more efficient operations.

STRYDE secures multiple academic contracts for mini seismic system

STRYDE has recently won six contracts with prestigious academic institutions across the United States, Europe, and Africa, introducing its newly developed “Mini System” for seismic data collection. Designed for small-scale seismic projects, this lightweight system is tailored to meet the needs of the academic sector, enabling cost-effective and agile seismic research.

Institutions such as Rice University, the University of Exeter, and Uppsala University are using STRYDE’s technology to advance subsurface studies in fields ranging from geothermal energy to geohazard identification. The Mini System plays a key role in these efforts by providing high-density seismic capabilities, overcoming the traditional cost and logistical challenges of data collection in remote or difficult terrains.

STRYDE CEO Mike Popham emphasized the importance of the Mini System in lowering the barriers for seismic research. “By miniaturizing our technology, we’ve made it more accessible for academic researchers, fostering innovation and supporting future geoscientists,” Popham said.

Rice University, one of STRYDE’s new partners, is utilizing the Mini System for geothermal well monitoring at the Utah FORGE site, benefiting from the high density and mobility of STRYDE’s nodes.

With over 760,000 nodes deployed globally and support for more than 260 projects in over 50 countries, STRYDE continues to expand its influence across various sectors, including energy, mining, and civil engineering.

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TechnipFMC wins two major Petrobras subsea contracts for offshore Brazil

TechnipFMC has secured two key subsea contracts from Petrobras for projects in Brazil’s pre-salt fields.

The first contract, valued between $250 million and $500 million, involves the design, engineering, and manufacturing of riser flexible pipes, along with additional services such as packing and storage.

The second contract, worth between $75 million and $250 million, was awarded after a competitive bidding process and includes the supply of subsea production systems for the Atapu 2, Sepia 2, and Roncador projects. This contract also covers installation support, life-of-field services, and the option for further equipment and services.

TechnipFMC plans to manufacture and service all equipment in Brazil, leveraging its local expertise to support the continued development of the country’s presalt reserves.

Jonathan Landes, President of Subsea at TechnipFMC, emphasized that these awards reinforce the company’s leadership in flexible pipe technology and its commitment to Petrobras’s long-term vision. He also noted the company’s nearly 70-year presence in Brazil as a testament to its deep ties to the region.

ChampionX launches advanced SMARTEN Unify System for plunger lift automation

ChampionX Corporation has introduced its SMARTEN Unify control system, a state-of-the-art automation and optimization solution specifically designed for plunger lift wells. As part of the company’s SMARTEN automation product line, Unify bridges the gap between traditional SCADA controllers and standalone devices, offering a more comprehensive, AI-driven solution for well operations.

The SMARTEN Unify system leverages cutting-edge technologies such as artificial intelligence (AI), the Internet of Things (IoT), and wireless connectivity. It provides real-time insights into plunger cycle behaviours, capturing data at one-second intervals for enhanced operational visibility.

According to Paul Mahoney, President of ChampionX’s Production & Automation Technologies (PAT), Unify represents a significant advancement in plunger lift control, improving well productivity, efficiency, and profitability. The system is designed to integrate seamlessly into existing IT and SCADA infrastructures, offering a cost-effective solution that makes it easier for companies to adopt digital technologies in plunger lift wells—particularly those operating under tight margins. Jason Thompson, Senior Director of PCS Ferguson plunger lift sales, emphasized that Unify removes traditional barriers, enabling customers to apply advanced digital tools to their operations.

ChampionX’s Production & Automation Technologies segment provides a range of solutions to optimize oil and gas extraction, including artificial lift equipment, automation tools, and emissions monitoring technologies.

Halliburton launches new automated technology to enhance fracturing operations

Halliburton has introduced its Octiv Auto Frac service, an advanced technology within the Octiv Intelligent Fracturing Platform. This new service automates key aspects of fracture operations, improving efficiency and safety for both the company and its clients. Octiv Auto Frac gives customers autonomous control over their fracturing fleets, marking a significant innovation in the industry. The service is the first to offer fully automated fracturing execution, enabling operations to proceed without human intervention. The system makes real-time decisions during the pumping process, adjusting based on preset job designs and real-time conditions.

Jeff Miller, Halliburton Chairman, President, and CEO emphasized the platform’s ability to provide consistency and precision in operations. Combined with Halliburton’s ZEUS electric fracturing system and Sensori Fracture Monitoring Service, the Octiv Auto Frac platform is set to revolutionize fracturing efficiency, helping clients reduce costs while improving operational performance.

This automation technology aligns with Halliburton’s goal to offer more controlled and consistent completion execution, particularly for increasingly complex operations.

Equinor achieves major CO2 reductions with electrification of troll B and C offshore platforms

Equinor has successfully transitioned its Troll B and C platforms, located offshore Norway, to partial electrification, marking a significant reduction in emissions. The shift to shore-based power has cut annual CO2 emissions by 250,000 tonnes, a milestone aligned with the approved Troll West Electrification (TWEL) plan from 2021.

Geir Tungesvik, Executive Vice President for Projects, Drilling & Procurement at Equinor, emphasized the significance of this development, noting that the emissions reduction is equivalent to removing 125,000 fossil-fuel-powered cars from the roads. The electrification is part of Equinor’s broader effort to halve emissions from its operations by 2030.

The power is supplied from Kollsnes, northwest of Bergen, via a new electro building shared by the Troll and Oseberg fields, then distributed to the platforms through a 132 kV cable. This electrification powers the platforms’ processing systems, although the export compressors still rely on gas.

In addition to environmental benefits, the project has significantly boosted Norwegian business, with over 70% of the investment directed toward local suppliers. The reduction in CO2 emissions also represents about half a percent of Norway’s total annual emissions, with NOx emissions cut by 850 tonnes per year.

Equinor’s Kjetil Hove, Executive Vice President for Exploration & Production Norway, highlighted that recent discoveries in the Troll and Fram area will benefit from the low-emissions operations enabled by this electrification. Further electrification of Troll C is expected to cut another 200,000 tonnes of CO2 annually, contributing to a nearly 4% reduction in emissions from oil and gas production on the Norwegian Continental Shelf.

Aker Solutions, responsible for the project’s infrastructure, completed the electro modules at its Stord yard and managed all modifications on the platforms. The total investment in the electrification project amounts to N OK 8.1 billion.

The Troll A platform was the first to be powered from shore in 1996, setting the stage for these continued electrification efforts across Norway’s offshore fields.

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SLB and Aramco partner to develop digital tools for reducing industrial emissions

SLB and Aramco have entered a collaboration aimed at creating and commercializing digital solutions to reduce greenhouse gas (GHG) emissions across various industrial sectors. These efforts will be incorporated into SLB’s existing digital sustainability platform, building on a previous partnership announced in 2022.

The digital platform will help industrial companies track, report, and verify their emissions, providing the data necessary for compliance and enabling strategic measures like boosting energy efficiency, cutting methane emissions, and advancing carbon capture, utilization, and storage (CCUS) technologies.

Rakesh Jaggi, SLB’s President of Digital and Integration, emphasized the importance of data in driving decarbonization efforts, stating that the platform will leverage data on a large scale to achieve meaningful reductions in emissions. The partnership will integrate Aramco’s innovative technologies, such as its Combined Heat Power (CHP) optimization and Flare Monitoring System (FMS), into the platform.

Aramco’s Vice President and Chief Engineer, Walid A. Al Naeem, highlighted that the collaboration strengthens both companies’ ambitions to mitigate GHG emissions while fostering talent development within Saudi Arabia. This partnership aims to bring both SLB’s and Aramco’s expertise to the global energy and industrial markets.

UK offshore oil and gas industry meets 2027 emissions target four years early

The UK’s offshore oil and gas sector has surpassed its emissions reduction target, achieving 2027 goal four years ahead of schedule. Through improvements in power system efficiency and reductions in flaring and venting, companies have successfully cut emissions by over 25%, as originally outlined in the North Sea Transition Deal, according to Offshore Energies UK (OEUK).

From 2018 to 2023, the industry saw a significant 28% reduction in carbon dioxide equivalent emissions, far exceeding the initial plan. Additionally, methane emissions were more than halved during this period, seven years earlier than anticipated.

Mark Wilson, OEUK’s director of health, safety, environment, and operations, emphasized the continued importance of domestic oil and gas production, stating that it remains crucial for decades to come. “It is better financially, environmentally, and socially for energy to come from our North Sea supplies,” he noted.

The report was released on the same day as UK Foreign Secretary David Lammy’s major policy speech, which is expected to focus on accelerating renewable energy deployment and increasing climate financing.

Despite the progress in reducing emissions, OEUK has warned that without supportive fiscal and regulatory policies, oil and gas production could fall significantly by 2030. The North Sea still holds the potential to produce an equivalent of 13.5 billion barrels of domestic oil and gas.

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Halliburton unveils nextgeneration LOGIX platform to enhance drilling precision

Halliburton has launched an upgraded version of its LOGIX automation and remote operations platform, aimed at optimizing drilling performance. The LOGIX platform is designed to automate various drilling processes, enabling quicker well delivery, reducing rig time, and improving overall efficiency through intelligent automation.

By integrating downhole data with rig control systems, LOGIX enhances operational reliability and accuracy. Equipped with advanced automation controls and surface algorithms, the platform has already drilled over 12 million feet autonomously, achieving up to a 30% increase in rate of penetration (ROP).

Jim Collins, Vice President of Sperry Drilling at Halliburton, noted that LOGIX is highly customizable to meet diverse customer needs, delivering benefits such as more accurate well placement, extended bit runs, and improved reservoir contact. The platform’s latest iteration incorporates machine learning algorithms to dynamically adjust drilling parameters, optimizing performance while minimizing nonproductive time (NPT) and improving shoe-to-shoe performance.

LOGIX’s ability to adapt in real-time by analysing data from nearby wells and responding to changing geological conditions ensures consistent drilling efficiency and minimizes disruptions throughout operations. This advancement promises faster and more precise well completion, aligning with industry demands for speed and accuracy

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Halliburton introduces Clear electromechanical well intervention technology for enhanced completions

Halliburton has unveiled its new Clear portfolio, a range of electromechanical well intervention technologies designed to tackle challenges in high-angle and horizontal well deployments. This suite of tools includes surface readout telemetry for enhanced communication and precise control, offering superior performance during completions operations.

The portfolio features several advanced tools, including the ClearTrac wireline tractor, ClearCut electromechanical pipe cutters, and the soon-to-be-released ClearShift high-expansion shifters for downhole valve operations. The ClearTrac wireline tractor is particularly noteworthy for its electromechanical drive, which allows it to operate effectively in highly deviated or horizontal wells, outperforming traditional pipe-conveyed methods.

Capable of carrying payloads up to 1,000 lbs. at speeds ranging from 5 to 125 feet per minute, the ClearTrac offers a cost-effective and efficient solution for well intervention, minimizing potential health, safety, and environmental (HSE) risks.

Chris Tevis, Vice President of Wireline and Perforating at Halliburton, highlighted the significance of this launch: “Our new suite of power mechanical services will provide operators with greater reliability, precision, and power in their completion interventions.”

Additionally, the ClearCut service offers non-dangerous pipe-cutting tools that deliver precise, machine-quality cuts without the use of hazardous materials, making it suitable for a wide range of well environments.

This new portfolio is set to enhance operational efficiency, providing more precise interventions and improving overall well performance.

SLB launches Lumi Data and AI platform to accelerate digital transformation in energy

SLB has introduced the Lumi data and AI platform, a comprehensive solution designed to integrate advanced artificial intelligence (AI) technologies, including generative AI, across various energy industry workflows. This new platform aims to enhance data accessibility and collaboration by connecting subsurface, surface, planning, and operational data to improve decision-making processes.

The Lumi platform incorporates SLB’s domain-optimized AI models and the latest large language models (LLMs) to help customers rapidly scale their AI adoption. Rakesh Jaggi, President of Digital and Integration at SLB, noted that the platform is designed to overcome the complexities of the energy sector’s data ecosystems, enabling clients to implement AI workflows and accelerate their digital transformation.

Built on industry standards, the Lumi platform supports multiple cloud service providers and on-premises deployment, ensuring global accessibility. By

combining traditional and generative AI models, the platform offers enhanced capabilities for reservoir modelling, wellbore interpretation, and operational automation, all while aiming to drive more efficient, low-carbon energy production.

Additionally, Lumi integrates with SLB’s Delfi digital platform, enhancing its capabilities for real-time optimization and automation in exploration and production (E&P). The platform’s open architecture allows seamless integration of data from structured and unstructured sources, leveraging the OSDU Technical Standard and Cognite Data Fusion for improved operational insights. With a focus on security, Lumi complies with both NIST cybersecurity standards and emerging AI legislation, ensuring data integrity and compliance. This platform marks a significant step forward in SLB’s efforts to support the energy industry’s transition toward AI-driven operations.

How AI is Transforming Exploration, Production, and Refining for a Safer, More Sustainable Future

AI is enabling companies to optimize processes reduce costs enhance safety and advance sustainability initiatives throughout the energy sector

In the last few decades, artificial intelligence (AI) has evolved into one of the most transformative technologies across various industries. In the oil and gas sector, AI has significantly reshaped traditional practices, contributing to enhanced efficiency, safety, and sustainability. From exploration and production to refining and distribution, AI technologies are rapidly advancing the capabilities of oil and gas companies. This article delves into the multifaceted impact AI has on all parts of the oil and gas industry, exploring its applications, benefits, and challenges.

Seismic data interpretation and subsurface imaging

The exploration phase of oil and gas involves identifying and evaluating subsurface geological formations that may contain hydrocarbons. Seismic data interpretation, a traditionally time-consuming and complex process, has been revolutionized by AI. Machine learning algorithms, particularly deep learning models, are now capable of analysing vast amounts of seismic data to accurately predict the location of oil and gas reserves.

AI-powered systems can process seismic waves, identify patterns in the data, and create detailed subsurface images much faster than human

interpreters. Companies like ExxonMobil and BP are utilizing AI to enhance subsurface imaging, improving the precision and speed of identifying new reserves. AI also helps in risk assessment by modelling geological uncertainties and simulating different exploration scenarios.

Optimization of drilling operations

AI has also transformed drilling operations, traditionally a high-risk and high-cost endeavour. Machine learning algorithms are used to predict the best drilling paths, optimize drilling parameters, and mitigate potential hazards. Real-time data from sensors on drilling rigs are fed into AI systems to adjust drilling parameters automatically, such as rotation speed, pressure, and temperature. This real-time optimization minimizes downtime, reduces equipment wear, and lowers the risk of blowouts or other dangerous incidents.

Halliburton’s LOGIX platform uses AI to automate various drilling processes, optimizing well placement and drilling speed. By integrating data from multiple sensors, AI helps engineers make more informed decisions, ultimately improving

drilling efficiency and reducing costs.

The use of AI in production and operations

One of the most valuable applications of AI in oil and gas production is predictive maintenance. In the past, equipment failures often led to costly downtime and operational delays. AI has changed this by enabling predictive maintenance systems that monitor the condition of equipment and predict potential failures before they occur.

AI systems use sensor data—such as vibration, pressure, and temperature readings—to identify patterns that indicate equipment degradation. Machine learning models can then predict when a particular piece of equipment is likely to fail, allowing operators to schedule maintenance during planned downtimes rather than reactively fixing problems after they arise. This not only improves safety but also reduces operational costs.

BP has deployed AI-driven predictive maintenance systems across its refineries and production sites, resulting in significant cost savings and improved operational uptime. These systems have the potential to reduce unplanned downtime by as

much as 50%, according to industry reports.

AI plays a critical role in optimizing production processes by analysing vast amounts of realtime data from production facilities. AI systems monitor the performance of compressors, pumps, and other critical equipment, adjusting their operations to maximize efficiency and reduce energy consumption.

AI in refining and downstream operations

In refineries, AI-powered systems can manage complex chemical processes by autonomously adjusting variables such as temperature and pressure to maintain optimal performance. Chevron’s partnership with AI startup Baker Hughes has led to the development of machine learning models that improve refinery efficiency by predicting the outcome of chemical reactions and suggesting process adjustments in real time.

AI-driven automation also extends to logistics and supply chain management. By analysing demand patterns and inventory levels, AI can optimize the transportation of crude oil and refined products, reducing transportation costs and improving overall supply chain efficiency.

Refining crude oil into usable products like gasoline, diesel, and petrochemicals is a complex process that requires precise control of numerous variables. AI systems are increasingly being used to optimize refinery operations by managing complex chemical processes, predicting equipment failure, and improving energy efficiency.

AI models can predict the outcome of chemical reactions and adjust the process parameters in real time to optimize the yield of refined products. This level of automation helps refineries reduce energy consumption, minimize emissions, and improve overall profitability.

ExxonMobil’s partnership with IBM’s Watson is a prime example of AI being used in downstream operations. Watson’s AI-driven systems analyse vast amounts of refinery data to optimize chemical processes and reduce energy consumption, leading to significant cost savings and lower greenhouse gas emissions.

Managing supply chain with AI

AI is also transforming the logistics of transporting oil and gas products from refineries to end users. By analysing factors such as demand forecasts, transportation routes, and inventory levels, AI systems can optimize the supply chain to ensure timely delivery of products while minimizing transportation costs.

Shell has employed AI-driven logistics optimization tools to streamline the transportation of oil products to its customers. These tools use machine learning algorithms

to analyse historical data and predict future demand, enabling Shell to reduce transportation costs and improve delivery times.

Improving environmental sustainability and safety

As the oil and gas industry faces increasing pressure to reduce its environmental impact, AI is playing a crucial role in achieving sustainability goals. AI systems can analyse data from production facilities, refineries, and transportation networks to identify inefficiencies and suggest improvements that reduce energy consumption and greenhouse gas emissions.

AI-powered systems can optimize the operation of compressors, pumps, and other equipment to minimize energy use while maintaining high production levels. This has a direct impact on reducing carbon emissions and improving the overall environmental performance of oil and gas companies.

In the context of emissions monitoring, AI can analyse data from sensors placed on equipment to detect leaks of methane, a potent greenhouse gas. AI-driven systems can then alert operators to take corrective action, preventing further emissions and reducing the industry’s carbon footprint.

Safety is a top priority in the oil and gas industry, given the inherent risks associated with drilling, production, and refining operations. AI has emerged as a powerful tool for

enhancing safety by monitoring equipment, detecting anomalies, and predicting potential hazards.

AI-powered systems can analyse data from sensors on offshore platforms and drilling rigs to identify early warning signs of equipment failure or dangerous conditions, such as pressure buildups or gas leaks. By providing real-time alerts to operators, these systems help prevent accidents and improve overall safety.

Moreover, AI is being used to develop advanced robotics for performing tasks in hazardous environments, such as inspecting pipelines, cleaning storage tanks, and repairing equipment in offshore facilities. These robots, guided by AI algorithms, reduce the need for human workers to perform dangerous tasks, thereby improving safety.

Challenges and prospects of AI in oil and gas

While AI offers tremendous potential, its success is highly dependent on the quality and availability of data. In the oil and gas industry, data is often stored in disparate systems, making it difficult to integrate and analyse effectively. Poor data quality

can lead to inaccurate predictions and suboptimal decision-making.

To fully realize the benefits of AI, companies must invest in robust data infrastructure and ensure that data from various sources is accurate, consistent, and easily accessible. Efforts to standardize data formats and integrate legacy systems with modern AI platforms are critical for the successful deployment of AI in the industry.

The widespread adoption of AI in the oil and gas industry will inevitably lead to changes in the workforce. While AI can automate many tasks, it also creates new opportunities for skilled workers who can design, implement, and manage AI systems. Companies must invest in retraining and upskilling their workforce to ensure that employees can adapt to new roles in an AI-driven industry.

BP has launched initiatives to retrain its employees in data science and AI, preparing them for roles in managing AI-powered systems and analysing data to optimize operations. As AI continues to transform the industry, the demand for workers with expertise in AI and machine learning will only grow.

Ethical and regulatory considerations

The use of AI in the oil and gas industry also raises ethical and regulatory challenges. As AI systems become more autonomous, questions arise regarding accountability in the event of a failure or accident. Companies must ensure that AI systems are transparent,

reliable, and comply with regulatory standards.

Furthermore, the use of AI in monitoring emissions and environmental impact must be aligned with government regulations and industry standards. Companies must work closely with regulators to develop guidelines for the ethical use of AI in the energy sector.

Artificial intelligence is transforming the oil and gas industry in profound ways, from exploration and production to refining and distribution. By harnessing the power of AI, companies are optimizing operations, reducing costs, and improving safety, all while working towards sustainability goals. However, realizing the full potential of AI requires overcoming challenges related to data integration, workforce transformation, and regulatory compliance.

As the industry continues to evolve, AI will play an increasingly important role in driving innovation and shaping the future of energy production. Companies that embrace AI and invest in the necessary infrastructure and talent will be well-positioned to lead the industry in the years to come.

Shell Urge Bold Energy Policies for Europe’s Path to Climate Neutrality by 2050

In a recent address, Shell plc CEO Wael Sawan emphasised the critical role of energy policy in shaping Europe’s future, drawing a parallel between the post-war European Coal and Steel Community and the contemporary Green Deal. Just as past energy strategies helped stabilize Europe, Sawan highlighted the urgent need for modern policies to drive the continent toward its 2050 climate-neutrality goals.

“Europe’s ambition to become the first climate-neutral continent requires bold and swift actions, particularly in three areas: electrification, building a stronger business case for low-carbon solutions, and ensuring energy security,” he said. “While much progress has been made, the path to net zero will require substantial electrification, especially in industrial sectors where only about a third of energy consumption comes from electricity. Expanding electrification would significantly reduce emissions across homes, transport, and industry, but it also demands stronger collaboration between member states to share renewable energy resources.”

Cross-border infrastructure, Sawan argued, must be a priority to support the energy union, ensuring resilience and maximising the impact of renewable energy investments. “The European electricity market is a major competitive edge for the EU and has proved a strong lever in responding to the recent energy crisis,” he added. “The second key area of focus is creating a business environment that incentivizes low-carbon solutions such as hydrogen, carbon capture and storage (CCS), and sustainable aviation fuels.

He explained that Europe remains a key destination for investment in renewables, pointing to Shell’s efforts in expanding its e-mobility network, investing in biogas production, and developing renewable hydrogen plants. Yet, the road is not without challenges, with projects facing delays or re-evaluations due to technology risks and market conditions. For instance, Shell paused a major biofuel project to enhance its commercial viability,

underscoring the complexities that can arise when pioneering lowcarbon initiatives.

Between 2023 and 2025, Shell plans to invest up to $15 billion in low-carbon energy solutions, but Sawan called for stronger policy frameworks to attract more capital into these technologies. He specifically mentioned the upcoming EU Clean Industrial Plan as a pivotal opportunity for aligning industry and policymakers on measures that will drive demand for low-carbon products and encourage deeper collaboration on sustainability goals.

Another critical area, according to Sawan, is infrastructure development, particularly for hydrogen and CCS projects. He noted that these technologies cannot scale up without first establishing the necessary infrastructure, such as pipelines and storage facilities, which often have long lead times for construction. Sawan warned that delays in infrastructure projects could hinder the adoption of these technologies, thereby slowing Europe’s overall energy transition.

In his address, Sawan also touched on the energy security issues exposed by the 2022 energy crisis, particularly the role of liquefied natural gas (LNG) in stabilizing Europe’s energy supplies. “While Europe managed to keep the lights on last winter, it came at a significant cost to the continent’s competitiveness,” he continued. “Many industries shut down or relocated production to regions with cheaper energy, and demand for gas has yet to fully recover.

Next up for Shell

Shell’s next big project focuses on expanding its presence in the hydrogen sector with the Holland Hydrogen I plant in the Netherlands, set to become one of Europe’s largest renewable hydrogen production facilities. The plant, currently under construction, will feature a 200 MW electrolyzer capable of producing up to 60,000 kg of renewable hydrogen per day. This renewable hydrogen will primarily be used to decarbonize Shell’s Pernis refinery and other industrial processes, helping reduce CO2 emissions.

Additionally, Shell is heavily investing in carbon capture and storage (CCS) technology with the Northern Lights project. This is the world’s first open-source CO2 storage facility located beneath the North Sea, which aims to capture and store CO2 from industrial sites in Norway and Europe. This project is seen as a critical step toward achieving Europe’s climate goals and accelerating the transition to a low-carbon future.

These initiatives are part of Shell’s broader strategy to lead in clean energy solutions while meeting growing energy demand sustainably.

Five Steps on the Energy Transition

Shell’s next steps in its energy transition strategy involve significant investments in low-carbon technologies, energy security, and digital innovation. Here are the key areas of focus:

1. Investment in Low-Carbon Solutions : Shell plans to invest $10-15 billion globally between 2023 and 2025 in low-carbon energy solutions, including hydrogen, carbon capture and storage (CCS), and biofuels. They are also advancing major renewable energy projects, such as hydrogen electrolysis plants in Germany and the Netherlands.

2. Scaling Electrification: Expanding the electrification of the economy is a priority for Shell. This involves increasing the use of renewable energy, growing their electric mobility network, and enhancing infrastructure for cross-border energy sharing within the EU.

3. Strengthening Energy Security: Shell is focused on bolstering Europe’s energy security through liquefied natural gas (LNG), which remains critical for balancing seasonal fluctuations and ensuring reliable energy supplies as renewable infrastructure scales up.

4. Enhancing Business Cases for Clean Energy: Shell aims to create better market conditions for first-of-a-kind low-carbon projects by working with policymakers to develop supportive regulations and incentives, reducing risks for investors.

5. Digital Innovation and Efficiency: Shell continues to explore digital solutions that can optimize energy use, reduce emissions, and enhance operational efficiency, including advanced automation and artificial intelligence to manage complex energy systems.

These steps align with Shell’s broader strategy of navigating the energy transition while maintaining energy security and competitive business operations.

This signals a lack of confidence in Europe’s long-term energy strategy.”

Despite the progress in renewable energy, Sawan stressed that gas will continue to play a crucial role in Europe’s energy mix. He explained that geopolitical risks and seasonal fluctuations, like Brazil’s rainy season producing more hydropower, can shift global energy flows in ways that impact Europe. LNG, he argued, is currently the only technology capable of compensating for such fluctuations on a global scale.

While acknowledging the need for battery storage and smart charging to support the energy transition, Sawan underscored the present-day reality: “A single LNG tanker carries as much energy as 20 million electric car batteries,” he explained. “This demonstrates the enduring importance of LNG in meeting Europe’s energy demands, especially as the continent works to build a more sustainable future.”

Moreover, Sawan urged European policymakers to consider long-term LNG contracts, which could shield Europe from volatile energy prices and strengthen its position in global gas markets. He also highlighted the need to drive down methane emissions, a potent greenhouse gas, from natural gas production, a goal that both Shell and the EU are committed to through new regulations.

Sawan closed his remarks by calling for bolder action and implementation of energy policies. “Without even bolder action and implementation, Europe risks falling behind,” he said, emphasizing that the continent’s competitiveness and energy security depend on more aggressive and forwardlooking strategies.

At Shell, Sawan affirmed, the company is ready to play its part. With its vast experience in both traditional and renewable energy sectors, Shell is positioned to contribute significantly to the EU’s climate-neutral ambitions. “Schuman’s successors must reaffirm the pivotal role of energy for Europe’s success,” he concluded, “and draw on the industry expertise and experience available to them in the region.”

By focusing on electrification, low-carbon technologies, and energy security, Sawan believes that Europe can maintain its leadership in the global energy transition while securing its own future.

Measures open, closed and intermediate positions

Easy to install

Universal for all valves

Long battery life

Enhancing Offshore Asset Integrity with Advanced Technologies

Effective management and maintenance of offshore assets are more critical than ever in today’s energy sector to ensure sustained operations and long-term sustainability. A key factor in achieving this is asset integrity assessments, which are crucial in maintaining the safety and reliability of installations throughout their lifecycle.

Oil and gas platforms, in particular, are subject to harsh environmental conditions and complex operational challenges, making frequent inspections essential to ensure their integrity and efficiency. The primary goal of these assessments is to minimize the need for

costly and disruptive interventions, reducing both downtime and safety risks while controlling operational costs.

Data plays an increasingly pivotal role in this process by providing insights that enable more efficient maintenance of safety-critical equipment and reducing the necessity for excessive inspections. However, challenges remain in gathering, processing, and extracting full value from the vast amounts of data generated,

often spanning decades, for mature assets. The sheer volume and variety of data, collected from numerous sources, can be a significant barrier to effective decisionmaking.

Traditionally, large asset management systems rely on periodic data collection, which is later analyzed manually. This results in reactive decision-making, where a full understanding of the commercial impacts is often lacking. This reactive approach can lead to operational delays, technical complications, and higher costs if not properly addressed.

Digitalization is emerging as a solution to these challenges, enabling significant advancements in how data is managed and used. By leveraging advanced data analytics, artificial intelligence (AI), and the Internet of Things (IoT), operators are now able to optimize production, predict potential equipment failures, and streamline maintenance processes. To harness the full potential of data, the energy industry must prioritize effective data management and integrity.

A key player in this digital transformation is Imrandd, a specialist in industrial data solutions, helping energy companies make informed, efficient business decisions aligned with environmental, social, and governance (ESG) objectives. For example, Imrandd recently worked with a North Sea operator to conduct a comprehensive integrity assessment on a floating production storage offloading (FPSO) vessel. The FPSO, undergoing modifications to suit new field conditions, required the identification and prioritization of equipment needing repair, replacement, or maintenance to extend its operational life until 2035.

To achieve this, Imrandd partnered with a digital asset management specialist to provide a combined service of asset scanning, data extraction, and analysis. Their approach allowed for the efficient processing of large datasets, including external asset scans and internal inspection reports.

The partner’s web-based technology was used for inspecting critical systems such as pipework, vessels, and topside structures. This visual inspection tool uses accurate engineering data to quickly detect and quantify defects, supporting the management of the integrity cycle. Steven Saunders, Global Head of New Business at Imrandd, explained that all non-destructive testing (NDT) reports were collected, sorted, and curated for further analysis using their proprietary software, EXTRACT.

“EXTRACT automates the ingestion and consolidation of inaccessible data into a single format ready for analysis,” Saunders said. “This technology combines techniques like Optical Character Recognition (OCR) and computer vision to process vast amounts of data rapidly. With the ability to extract data from various sources, it delivers accurate, digitized insights.”

Imrandd’s EXACT tool then processed the extracted data, identifying corrosion rates and predicting the remaining lifespan of equipment. These insights formed the foundation for setting inspection intervals and planning integrity interventions, significantly improving asset integrity management and reducing operational costs.

Further external condition assessments of the FPSO were conducted, integrating data from multiple sources and establishing a comprehensive baseline for ongoing integrity evaluations. This meticulous process, validated by on-site inspections, allowed Imrandd to provide the operator with actionable recommendations that resulted in a 40-50% reduction in expected maintenance and repair costs, extending the vessel’s operational life.

Innovation continues to drive progress in offshore asset integrity. Imrandd has invested heavily in advanced technologies, such as their proprietary software ALERT, which uses AI to reduce inspection times and costs for offshore operators. These innovations are set to redefine traditional asset integrity monitoring by offering more comprehensive, efficient assessments.

Data is central to this transformation, enabling proactive maintenance planning, risk mitigation, and accurate predictions of equipment degradation. By shifting from a reactive to a preventative approach, asset owners can better safeguard the integrity of their offshore operations.

Looking ahead, continued investment in advanced technologies and digital asset management will be critical in shaping the future of the energy and industrial sectors. Digital transformation holds the key to unlocking more efficient, cost-effective, and safer operations, positioning offshore asset integrity at the forefront of this shift.

Technology drives sustainability improvements in oil and gas production

The oil and gas industry faces mounting pressure to reduce its environmental footprint and align with global sustainability goals. As the world transitions to cleaner energy sources, the sector is increasingly focused on adopting innovative technologies to enhance sustainability while maintaining production efficiency. From reducing carbon emissions to optimizing resource use, technology is playing a crucial role in reshaping oil and gas production for a more sustainable future. These advancements not only improve the environmental impact of operations but also offer economic

benefits, positioning the industry for a low-carbon future without compromising on productivity.

One of the key areas where technology is driving sustainability in oil and gas production is in emissions reduction. Carbon capture, utilization, and storage (CCUS) technologies are emerging as critical tools to reduce the carbon dioxide (CO2) emissions associated

with hydrocarbon extraction and processing. CCUS involves capturing CO2 emissions from industrial sources, such as refineries and gas processing plants, and either storing them underground in geological formations or repurposing them for industrial use. This process can significantly mitigate the environmental impact of oil and gas operations, especially in regions where decarbonization is a priority. By capturing and storing emissions, companies can continue to produce hydrocarbons while reducing their carbon footprint.

An example of CCUS in action is the Gorgon Project in Australia, one of the world’s largest natural gas developments. Operated by Chevron, this project captures CO2 from natural gas production and stores it in a deep geological formation, preventing millions of tons of CO2 from entering the atmosphere. As more oil and gas companies adopt CCUS technologies, the industry can take meaningful steps toward meeting global climate targets without halting production. Furthermore, advances in CO2 utilization, such as turning captured carbon into useful products like chemicals and building materials, provide new avenues for reducing waste and creating economic value from emissions.

The sustainable role of digitalisation

Beyond CCUS, digitalization is transforming the oil and gas industry’s approach to sustainability. Technologies such as advanced data analytics, artificial intelligence (AI), and the Internet of Things (IoT) enable companies to monitor, analyse, and optimsze their operations in real-time. By collecting vast amounts of data from sensors placed on wells, pipelines, and production facilities, these technologies help operators identify inefficiencies and reduce waste. This not only enhances the operational performance of assets but also cuts down on energy consumption and emissions. For example, AI-driven predictive maintenance systems can monitor equipment health and predict failures before they occur, allowing for

timely maintenance and preventing unnecessary shutdowns that waste energy and resources.

Moving to a renewable future

The integration of renewable energy into oil and gas production processes is another way the industry is embracing sustainability. By powering operations with renewable sources such as wind, solar, and hydropower, companies can significantly reduce their reliance on fossil fuels and lower their emissions. Offshore oil platforms, for instance, can be equipped with wind turbines or solar panels to generate electricity, reducing the need for diesel-powered generators. This hybrid approach helps to decarbonize operations while ensuring that production remains stable and reliable.

Norway has been a leader in integrating renewables with oil and gas production. The country’s offshore wind farms have been connected to oil platforms, supplying clean energy to offshore operations. Equinor’s Hywind Tampen project, the world’s first floating wind farm to power oil and gas platforms, is a prime example. By using renewable energy to power offshore platforms, Equinor is reducing CO2 emissions while continuing to produce hydrocarbons, demonstrating that oil and gas production can coexist with the push for cleaner energy.

The menace of methane

Another promising technology improving sustainability in oil and gas production is methane detection and reduction. Methane, a potent greenhouse gas, is often released during drilling and extraction activities. While methane emissions are lower in volume than CO2 emissions, they have a significantly higher impact on global warming. Reducing methane leaks is therefore critical for the industry to meet its climate goals.

Technologies such as optical gas imaging, laser-based sensors, and drones equipped with methane detection cameras are being used to monitor and detect leaks in real-time. These systems enable operators to quickly identify and repair leaks, preventing methane from escaping into the atmosphere. In addition to reducing emissions, this also enhances operational safety, as methane leaks can pose significant explosion risks. By deploying advanced detection technologies, the industry is taking proactive steps to mitigate the environmental risks associated with methane emissions.

Technology is playing an increasingly vital role in improving sustainability in oil and gas production. From reducing emissions with carbon capture and methane detection to optimizing operations through digitalization and integrating renewable energy, the industry is embracing a range of innovative solutions to align with global climate goals. Enhanced oil recovery, water recycling, and the use of digital twins are further advancing sustainability efforts, allowing companies to produce hydrocarbons more efficiently and with fewer environmental impacts. As the oil and gas sector continues to evolve, the adoption of these technologies will be critical in shaping a more sustainable future, ensuring that production can continue in a way that balances economic and environmental priorities. By leveraging the full potential of these innovations, the industry can remain competitive while reducing its contribution to climate change and fostering a more sustainable energy landscape.

Decarbonising industrial steam grids: Challenges and opportunities

If there’s one thing industrial companies have in common—from refining and metallurgical to manufacturing and food processing, it is that many require heat to power a variety of processes, often via steam. Heat is also the source of the sector’s core challenges on the pathway to decarbonisation.

Industrial heat accounts for two-thirds of industrial energy demand and over a fifth of global energy consumption. The biggest chunk of the sector’s CO2 emissions, roughly 7.5 Gigatonnes or about 21% of global CO2 emissions in 2016, arise from the generation of heat.

Many steps have been taken towards decarbonising heat, and steam-based heating is now the next urgent point in industrial decarbonisation.

The pressure to decarbonise industry is growing

Multiple forces drive the shift towards decarbonisation and future proofing industry through new technologies, including:

The relentless financial imperative for enhanced efficiency and sustainable

production shaping the survival prospects of large chemical and refining sites.

• Strict climate goals such as Net-Zero Industry Act and the Green Deal Industrial Plan, governmental regulations , and market commitments , which are all particularly impactful for public companies.

The soaring cost of natural gas, exacerbated by Russia’s invasion of Ukraine, which has further spotlighted the economic pressures, mostly in the European Union. This emphasises the urgent need for industrial players to innovate and adapt their steam-based processes to mitigate rising expenses.

Heat production is moving away from historically steady-state processes to new processes. While traditional setups were designed to maximise efficiency, they are now being challenged by increasing volatility in supply and demand driven by geopolitical factors such as trade barriers and sanctions.

Steam has become an urgent factor in decarbonisation

Although steam has always been a crucial energy carrier for industry, it has until recently been considered as a utility that is less important than core processes on the path to decarbonisation.

Contrary to sectors like district heating where optimising heat production and distribution is a clear priority, industry players are looking at multiple items on their priority lists – and steam is just one of them. Industry continuously balances and reprioritises these issues, causing steam to drop down the list.

In many industrial settings, a sizable portion of the required heat is delivered through centrally generated steam, which is distributed across the plant. Sectors such as pulp and paper manufacturing, chemicals and refining are particularly dependent on steam, with around 50% of their heat needs covered this way.

Once considered a low-margin utility service, steam has now become a critical element in the transformation towards decarbonisation. However, it comes with several challenges organisations should address before reaping the benefits of more efficient and sustainable heat production.

Five challenges of steam decarbonisation

1. Steam networks are complex

The complexity of steam as a medium is a significant hurdle as it’s complex to model and hard to measure. Steam networks often lack extensive sensor coverage and high-quality data, making it more difficult for organisations to accurately assess steam balance, flows and network conditions.

Modelling the dynamics of change across multiple pressure levels is also challenging due to many

influential factors and interdependencies. Since steam is critical for many processes, applied changes must not compromise safety or accurate demand forecasting.

2. Organisations face challenges that impact the transition

Organisational challenges complicate the transition further. Steam is often produced and distributed by an external utility, limiting control and transparency in operational planning. The outflow of experienced staff and the lack of new personnel, coupled with the loss of tacit and expert knowledge, worsens the issue, especially since many systems are still controlled by operators based on their experience.

Other obstacles in this space include complex internal setups among innovation departments, IT, and plant management, along with generational changes and varying global versus local regulations.

3. Industry needs to balance quick wins and long-term impact

The pressure to quickly reduce emissions, carbon costs and energy costs calls for swift decision-making. However, long-term decarbonisation plans should build on these short-term measures rather than replace them.

Ensuring that short-term actions do not undermine long-term goals is crucial. Systems in use need to be able to manage both current and future requirements, with a setup that is both easy and smooth.

4. Electrification changes industrial processes

Electrification is affecting both steam production and usage, forcing organisations to make decisions to adjust to new steam flows. Primary processes are also changing, adding more complexity to the situation. Steam also remains critical in many plants to ensure safety, always requiring a base level.

While we see direct impact of electrification efforts, future primary processes such as sustainable aviation fuel production are

still evolving, with new equipment still under design. This adds further uncertainty to future steam demand.

Managing all this uncertainty while also maintaining safety norms will be a critical challenge for steam grid operators in the future.

5. Flexibilisation is a key prerequisite

With electrification, more and more players are looking at flexibilisation as well. As energy systems become more reliant on variable renewable sources such as wind and solar, demand will also have to play into this as a factor.

This flexibility, coupled with more variable output due to market circumstances, will lead to new, dynamic, optimal points of efficient production. Controlling this will be another transition that the industry needs to face.

Since plants have historically been designed for steady state processes, managing such a transition and the heat generation and the underlying distribution will become critical in the next decade.

Digitalisation is the pathway to low-carbon operation

To eliminate a large portion of the sector’s emissions and run a more efficient operation, industrial companies need to decarbonise industrial steam grids by modernising their control and design approaches and tooling. Ideally, every optimisation initiative should include generation, network and usage.

Steam should be reprioritised to the Plant Manager level given how critical it is becoming for decarbonisation. Operators need to be supported in managing these systems with tools in their core processes.

However, traditional software solutions

fail to address the important specifics and complexity of steam systems, unable to handle the introduction of new and often decentralised heat sources inserted into the steam networks.

Only fully digital tools that cover the entire system can manage the complexity of steam. End-to-end tools for steam grids are key enablers in energy decision-making and measuring the impact of steam grid design changes on key performance metrics. Since steam production and distribution are complex processes, a holistic solution is needed to get the full picture.

An example of such an end-to-end technology is a Digital Twin: a digital clone of the entire steam network that combines geographical, meteorological, sensor and other permanent data with physics-based models and AI.

When applied to the industrial steam grid, it enables companies to achieve operational excellence while also facilitating safe and predictable transformative changes. This is especially important since steam is highly complex to model, calling for a combination of sensors, physics-based modelling and live learning for optimisation to bring tangible results.

Gradyent’s Digital Twin in a real-world example

The customer was evaluating the optimisation of the dispatch of steam production from multiple boilers using Gradyent’s Digital Twin solution. Operating a combined natural gas & waste-gas (Boiler 1) and natural gas boiler (Boiler 2), the company has historically relied on the natural gas boiler, mostly through fixed set-points.

The dynamic optimisation solution incorporates fuel mix & price, steam quality requirements and boiler efficiencies amongst others. The Digital Twin solution continually computes the most efficient mix of both assets to provide the steam and schedules the dispatch of the boiler accordingly. For this specific timeslot, it suggested to utilise the waste-gas boiler more and include the natural gas boiler only when needed.

An example of this can be seen in the encircled time, where in the base-case the natural gas boiler would have been used but the optimisation suggests increasing dispatch of the waste boiler. This continuous optimisation throughout the year was valued at approximately EUR 1 million and estimated to reduce CO2 emissions by 4%.

Gradyent’s solution is an end-to-end, real-time Digital Twin of your industrial steam grid, powered by physics models and AI. Get in touch to discuss how our Digital Twin can optimise, decarbonise, and transform your steam grid.

Why productivity starts with health on offshore drilling rigs

Dave

Thompson Director of UK Sales at RMI

explains

Volatility around the world has placed the oil and gas industry under considerable pressure to keep production high and supply the global economy with ample fuel, while geo-political issues in Ukraine and the Middle East have impacted global supply.

On-site, even minor delays due to illness or injury can have huge implications for productivity and performance, particularly in the remote and potentially hazardous offshore drilling sites. Illness and injury are unfortunate and inevitable in every workplace but the negative impact on productivity is amplified offshore and causes real issues for operators.

With over 20 years’ experience in supplying medical support services to the oil and gas industry, RMI understands that good physical and mental health are key to ensuring uninterrupted offshore operations, and that robust preventative policies and procedures coupled with on-site medical provision will best support business continuity.

Bespoke solutions

The nature of the industry means that locations, weather conditions and the nationality and culture of workers can differ from rig to rig. So, a standardised approach to medical provision is sometimes not possible and operators need to think carefully about which provisions are necessary to protect operational continuity at each individual site. For health and safety provision, operators have a choice between an on-site and remote approach, and the unique circumstances of each rig can determine which solution would be preferred.

Having an on-site medical team who interacts regularly with workers is an effective way to build trust between the workforce and the medical staff, which is a useful tool in employing effective prevention strategies against common injuries and illnesses.

While all personnel would have passed a medical to join the offshore workforce, it is no secret that rigs are challenging environments and prone to changes in equipment and personnel. Given these constant changes the effectiveness of the health, safety and medical services offshore can have a significant impact on the outcomes of injury treatment and prevention strategies.

RMI’s approach is first and foremost preventative. Our offshore medics support oil companies not only by employing medical screenings, but conducting ongoing wellness programs, fitness campaigns, and health and hygiene inspections to help reduce the likelihood of more significant events altogether. Although our medics are prepared to readily support an evacuation, we hope that their continual presence serves to mitigate the associated risks, costs, and project impacts of any major incident.

Prioritising mental health and wellbeing

Despite the offshore industry’s recognised workplace pressures, the stigma regarding mental health continues to be perpetuated across the oil and gas sector. For offshore sites, not only are rotational workers entering a highly controlled environment, but they also endure prolonged periods of time away from family and friends. Long shift patterns and confined working spaces on an oil rig can make it difficult for workers to maintain healthy habits. The high workload and repetitive nature of work within the oil sector has long been associated with mental ill health and exhaustion among employees. According to research

by the Chartered Institute of Personnel and Development (CIPD), mental ill health is the top cause of long-term absence (four weeks or more) for all employees. Once workers become ill or are absent due to poor mental health, this in turn can result in a devastating rise in lost productivity to organisations globally.

While varying degrees of mental health support for workers is already in place across the sector, there is still more that can be done. As a longstanding global provider of health and safety services to the offshore industry for the past 20 years, RMI remains committed to mental health support. By regularly attending mental health conferences, our personnel can maintain best practice and continuously improve their service, identifying new avenues of support, and implementing new strategies based on feedback from experts within the wider community.

The core programme of health services offered by RMI’s healthcare practitioners stationed at drilling sites around the world includes the delivery of various mental health programs, which help employees to lead a healthy lifestyle. Alongside access to 24/7 support, our medics are responsible for promoting simple practices of self-care, optimal sleep hygiene and rest, a varied and wholesome diet, regular exercise, and avoiding excessive phone use in between shifts. Medical personnel need to ensure that mental health webinars and surveys, informal workshops, and awareness-raising campaigns are all made available and front of mind, which helps to ensure that the wellbeing of offshore workers is never neglected.

As the oil industry evolves and faces new challenges, organizations will need to address the ever-changing health requirements of remotely located projects. By taking preventative measures and investing in quality healthcare providers to protect their workforce, they will ultimately ensure the continuity of their operations.

Skilled medics prevent delays

Highly trained medics are the catalyst in implementing health and safety offshore.

The remote and hazardous environments of offshore drilling rigs require medics to have a strong clinical and emergency background, while also carrying with them a set of characteristics that allow them to operate effectively and independently offshore. They need to be self-motivated, have a high degree of integrity, and be able to work independently in isolated environments.

Greater skilled medical personnel are paramount in ensuring that preventative work is carried out and that treatment does not slow down productivity. Skilled medics can make quick and effective decisions offshore between whether to move workers to seek additional care or to offer initial treatment out at sea. Decisions such as these can not only save lives but also prevent operators incurring large costs for unnecessary transit to off-site medical facilities, with subsequent impact on productivity. Skilled and experienced medics are also critical in ensuring that the preventative measures are implemented effectively. A greater understanding of the type of injury and ailment that might impact productivity offshore, as well as core HSE knowledge, will not only keep workers safe but will ensure continuity of work on the rigs themselves.

The health and wellbeing of the workforce offshore is crucial to the success and productivity of the rig, and operators should not only think carefully about the provision they want to supply but also about the skills and role that their medics should carry with them. As demand for oil and gas continues to rise globally, the ability of workers to carry out their tasks will be crucial as medical solutions become vital assets to not only protect workers but to boost productivity and continuity offshore.

Digital Twin Safeguards AI Value in Engineering and Operations

Digital twin is an enabler for any type of AI technology that industrial organizations decide to pursue. In fact, we see that Digital Twin, if effectively and successfully implemented, will safeguard a company’s AI investment. Artificial Intelligence, by definition, is a toolkit that picks up patterns in large swarms of data, understands correlation, and supports users in finding best possible answers to optimize certain scenarios, forecast an outcome, or predict events. So, no question AI will re-engineer every process, every workflow, every task, thus bringing tremendous opportunities and tangible value to organizations.

However, there is a caveat. AI is really good when data is rich, otherwise Garbage in, Garbage out. In this context, I would like to highlight Gartner’s report which states that the failure of 80% of AI projects is due to lack of quality data, thus underscoring the critical role of Trusted Engineering Data. In our opinion, Digital Twin acts as input and output

validator for AI’s success. As much as clean and trusted data is key for accurately training AI models, the availability of the right set of knowledge brought forward by the Digital Twin becomes extremely critical in confining and limiting the recommendations of the AI model in the right engineering context.

Today, accessing data with a click of a button is a common convenience, whether through smartphone applications, search engines, or platforms like LinkedIn, where you can instantly view someone’s professional history with just a single click. This convenience is similar to what is offered by the Digital Twin concept in the energy sector. We hear a lot about Digital Twin technology from vendors and consumers, but it’s important to

understand that it goes beyond its general terms.

Digital Twin is a multi-dimensional framework that combines the as-designed, asbuilt, and as-operated states of an asset, covering its entire lifecycle from inception to decommissioning. One of the key factors in achieving this is the selection and deployment of the right set of tools. For example, intelligent engineering systems ensure engineering data is populated and stored in compliance to guidelines, design tools that offer 3D and Spatial representation of the physical asset enabling immersive experiences, and finally asset information management tools that aggregate various types of information into a single pane of glass that users can interact with.

This by itself has brought a lot of convenience to the end user in the Energy industry and is seen today as a game changer, but with the infusion of AI technologies, we are witnessing a revolutionary shift. The integration of Generative AI and advanced cognitive functions is setting a new standard in how we interact with these systems. Digital Twins will soon evolve into highly intelligent entities that serve as indispensable advisors to the users, offering not only just data replication but also strategic advice, expert guidance and ultimately autonomous decision making.

How do organizations justify investing in Digital Twin?

In addition to its value in leveraging AI in the right context, Digital Twins have demonstrated a lot of value over the past decade. The most critical KPI targets for industry leaders are safety, environment and production. In other words, the key challenge is how to meet production goals while ensuring both safety of personnel and compliance with environmental regulations. While that sounds attainable, a seemingly small mistake whether at the shop level or in the engineering office, such as mislabeling a valve on a P&ID or a wrong property entered on a datasheet, can have severe consequences resulting in immediate equipment failure, leading to safety hazards, environmental damage, and financial losses.

Let us be reminded that one of the factors that led to the Deepwater Horizon catastrophic blowout in 2010 was errors in data interpretation. Therefore, meticulous attention to detail and rigorous engineering data management are crucial to prevent such catastrophes. In

this context, Digital Twin is nothing but a holistic framework that combines all efforts in ensuring consistent, complete, correct, and most importantly accessible data to the operators and engineers to make informed decisions while ensuring safety across the entire lifecycle of the oil & gas assets.

We are frequently asked about the optimal deployment approach for digital twins. In digitalization, there’s no one-size-fitsall solution. While it may seem that companies face similar challenges, the specific nuances and depth of these challenges are unique to each company. Therefore, the ideal approach should be determined on a case-by-case basis.

One approach is to start with a pilot scope, introducing the Digital Twin in a single asset, such as a unit, facility, or train, and then expanding it to other areas and plants. Another approach is to assess the current state, perform a gap analysis, and develop a targeted plan to address all the client’s needs and pain points. These approaches are iterative and dynamic in nature, requiring the involvement of key stakeholders to ensure that critical objectives are met first.

For example, in one of our recent engagements with a petrochemical company, equipment and instrument datasheets were identified as a top priority to address. This was crucial due to government regulations and industry guidelines essential for maintaining the operating licenses of their facilities. In brief, choosing the right approach greatly depends on the enterprise’s specific needs.

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Transforming the Future of Work in Energy: From Buzz to Business-as-

usual?

Often hailed as the harbinger of revolutionary change, AI has ridden a wave of hype and fascination. Few trends have captured as much attention and speculation, yet beyond the buzz, AI is starting to become entrenched in real-world applications – and this time, it’s more than just business as usual.

AI and its compatriots, including natural language processing (NLP), large language models (LLM), hybrid machine learning (ML), and generative AI, comprise a formidable team of transformational technologies.

Within the broader energy industry, the possibilities are endless:

• Faster, more reliable data processing and verification, with more sophisticated data-sharing infrastructures

Connected data sources as a foundation for accelerated innovation and collaboration• Increased autonomy and automated services in operations and maintenance

Integrated physics-based and data-driven digital twin models that together with AI augment human decision-making

• Improved asset performance management and reliability for plants from upstream to downstream

• Bi-directional data flows between systems and equipment, with Generative AI enhancing interaction to increase situational and operational awareness

Supply chain transparency and traceability across the energy value chain

Predictive analytics for improved energy efficiency

When we look at the value that can be extracted from a transformed digital strategy driven by AI, it’s easy to envision the short- and longterm benefits that are sure to follow – faster information flows and data processing, less risk, improved communication and accelerated automation. What’s difficult is identifying the path to push past the buzz and embed these sophisticated technologies into future ways of working in a way that makes sense for the industry. How will AI fit in as part of day-to-day operational processes?

It is not just about data and dashboards

We have heard it before: what matters most is not the data you have but how you use that data. Data standards are an important part of our digital future, enabling companies to collaborate and coinnovate through system interfaces that integrate in the back end. Many progressive companies

have put in place a solid data infrastructure and added select applications like a digital twin on top, making data more contextualised and accessible through simplified dashboards that make data easy to find, filter and apply.

However, data and dashboards are not enough of a springboard for AI to have the measurable value or ROI that companies expect. Instead, we need to start with a value-focused approach that zooms in on the specific use cases and services where AI can have the most influence through a digital operating model that builds on digital twin technology backed by physics-based and data-driven models. The successful implementation of an AI-infused digital strategy needs to be driven by desired business outcomes.

Driving transformation with a value-focused approach

The ability to identify the areas where AI can evolve into more than business as usual requires a degree of familiarity with today’s complex energy landscape. As a technology provider with domain and technical expertise, we can point to areas where we see the biggest potential for the

industry: Safety

• Operations and Maintenance

Performance Monitoring

Supply Chain Management

• Design and Engineering

Emissions Management

Once specific services within these potential impact areas have been identified – typically those that occur frequently and thus create identifiable, repeatable data patterns that can be used for learning and incremental automation – it becomes easier to understand how AI and its cohorts can be used to build out value-driven applications that extract information, process it and provide informed recommendations for actionable items that can be executed independently to contribute to overall improved energy efficiency.

Beyond the buzz, it is important to keep humans at the centre of work but augmented by technology that is agnostic to different data types and sources. That way, technology is a supporting function that puts the right information – not too much, and not too little, just what’s necessary – in front of the

right user to enable decision-making at a faster pace, with lower risk. The cascading effects can be exponential depending on the use case, leading to everything from minimized emissions to earlier intervention on predicted maintenance failures.

A glimpse into the AI-driven future of energy operations

Let’s take the example of an emissions management workflow for methane emissions.

Imagine an emissions reduction team manages 10 assets for a large E&P company, monitoring these facilities continuously to trend both the individual and overall carbon footprint of operations. Their primary work tool: a cloud-based dynamic digital twin, where they can access an emissions management cockpit that has been configured to show the biggest energy consumers at any given time. More than just dashboards, this cockpit shows not only where there are trends towards heightened consumption but also critical incidents that need intervention, along with recommended courses of action based on continuous real-time data feeds and informed by historical and synthetic data.

The cockpit shows a main gas turbine in one of the facilities that is consuming more energy than it should, increasing the asset’s overall carbon score. An investigation kicks off, and the team dives into the data available in the twin. Using a built-in AIpowered chat function, they make a few queries to locate the correct information in just a few clicks.

Armed with these insights, they fly to different locations virtually, looking at the flare stack or vents to identify the troublesome consumer. Data flows back and forth behind the scenes, masking the complexity of these queries. The team investigates the simulator view, seeing simulated versus actual values to get prescriptions on where to intervene. With these prescriptive outputs, they have exactly what they need: instructions on what to do and the reasoning for why.

Transforming the future of work in energy

Data turns to insights, insights turn to actions, actions turn to outcomes, and outcomes turn to prescriptive tasks that the team can execute with full transparency into the reasoning process – for almost any use case driven by business needs and expected value-based outcomes. Some customers are already starting this journey. It’s better than business as usual.

Oil and Gas Remain Essential to Global Energy Security and Economic Stability During the Transition to Renewable Energy

Mark Venables explains that despite the global push toward renewable energy, oil and gas will remain essential in the energy transition, ensuring energy security, supporting economic growth, and providing critical industrial feedstocks as cleaner energy sources scale up

As the world moves toward a more sustainable energy future, the role of oil and gas is being intensely scrutinized. Renewable energy sources such as wind, solar, and hydrogen are heralded as the keys to a decarbonized economy. However, despite the growing momentum toward clean energy, oil and gas will continue to play an essential role in the energy transition. These resources remain indispensable for ensuring global energy security, supporting economic growth, and providing the feedstocks for a variety of industries.

The fundamental reality is that the global economy is still deeply dependent on oil and gas. In 2022, fossil fuels accounted for over 80% of global energy consumption. While renewable energy capacity is growing at an impressive rate, the scale of the transition required to completely shift away from hydrocarbons is enormous. In the coming decades, oil and gas will remain essential for powering industries, transportation, and electricity grids, especially in regions where renewable infrastructure is still developing.

One of the reasons oil and gas will remain vital is the need for energy security. As the war in Ukraine and other geopolitical tensions have demonstrated, the availability of energy is deeply intertwined with national security and global stability. In a world where energy demand continues to rise, particularly in developing economies, oil and gas provide a reliable and flexible source of energy that can meet immediate needs. Until renewable energy sources are more widely available and dependable at scale, oil and gas will serve as a buffer to ensure a stable energy supply.

Oil and gas are not just energy sources, they are critical to the production of chemicals, plastics, fertilizers, and other products that modern life depends on. As the energy transition unfolds, the petrochemical industry will continue to rely on hydrocarbons as feedstocks for essential products. This includes everything from pharmaceuticals to packaging materials. Even in a future dominated by renewables, oil and gas will likely remain integral to non-energy uses, underscoring their versatility and ongoing relevance.

Oil and gas companies are evolving to support the energy transition in ways that may not be immediately apparent. Many of the leading players in the industry are investing in clean technologies such as carbon capture, utilization, and storage (CCUS), hydrogen production, and biofuels. These initiatives are designed to reduce the carbon footprint of oil and gas operations and to align with global climate goals. The skills, infrastructure, and capital available to these companies give them a unique advantage in scaling new energy technologies, making them key players in the transition toward a lower-carbon future. Natural gas, often viewed as a bridge fuel, will play a critical role in decarbonizing the global energy mix. Gas produces significantly fewer carbon emissions than coal or oil when used for electricity generation. As countries phase out coal, natural gas can help to fill the gap, providing a lower-emission alternative while renewable energy capacity continues to expand. Gas-fired power plants can also provide the reliable, on-demand energy needed to balance the intermittent nature of wind and solar power. In this way, natural gas can complement renewables and ensure grid stability as energy systems become greener.

The oil and gas sector itself must also undergo significant change. Companies must continue to reduce methane emissions, increase energy efficiency, and invest in technologies that can decarbonize their

operations. Governments will need to enforce stricter regulations and encourage investment in clean energy solutions. Collaboration between the public and private sectors will be crucial to ensure that oil and gas are used responsibly during the transition.

At the same time, policies must be crafted to incentivize the development and deployment of renewable energy sources while recognizing the continued role of hydrocarbons. Investments in infrastructure, such as modernizing grids and expanding carbon capture facilities, will be key to balancing the energy transition’s competing demands. Governments, particularly in regions dependent on oil and gas exports, will also need to carefully manage the social and economic impacts of declining demand for hydrocarbons, ensuring that workers and communities are supported throughout the transition. Oil and gas will remain essential to the global energy system for the foreseeable future. Their role in ensuring energy security, driving economic growth, and providing critical feedstocks cannot be overlooked. While renewables are undoubtedly the future, the energy transition is a complex and gradual process, requiring a balanced approach that integrates oil and gas alongside cleaner sources of energy. By reducing emissions, investing in clean technologies, and supporting innovation, the oil and gas sector can contribute meaningfully to a sustainable and secure energy future. The challenge lies in managing this transition responsibly, ensuring that the benefits of cleaner energy are realized without compromising the stability and prosperity of global economies.

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