Reimagining energy: the AI-native oil and gas company

AI is already helping oil and gas companies to become more efficient, profitable, and competitive. With rising business pressures from changing regulations, volatile prices, geopolitical shifts, more complex business portfolios, and environmental commitments, AI will grow still more essential for future success.

Unlike financial services and software development, O&G is grounded in the physical, not the virtual, world. But increasingly, leaders in the sector will be AI-first companies. Placing AI and AI agents at their core will dramatically transform how hydrocarbons are extracted, refined, and sold.

Early adopters are already seeing significant benefits. With AI, they have streamlined operations, shrunk processes from months to weeks, and cut the cost of operating in harsh environments by a sixth. Companies fully integrating AI in their operations will be able to deliver incremental profits reaching 30% to 70% of EBIT over the next five years, while reducing their carbon footprints.

Across the value chain

AI’s impact will reach along the entire O&G value chain, with distinct opportunities in each segment.

Upstream. O&G faces complex and costly exploration and production processes, which AI can dramatically improve. For example, it will significantly reduce the time to analyse geological and seismic data, making it faster and cheaper to identify promising drilling sites. Real-time AI analytics can optimise drilling parameters, reducing costs and downtime. Platforms like Methane. AI can identify and measure emissions across operations, enabling targeted, cost-effective abatement.

Refining. AI agents can optimise refiners’ production schedules, manage maintenance autonomously, and enhance operational reliability. Companies using AI-driven digital inspections and automated scheduling reduce downtime and lower operational costs.

Fuel retail operations. This business faces intense competition and fluctuating consumer demands. AI enables personalised customer interactions, dynamic pricing, and optimised inventory management, improving both sales and customer satisfaction. Recommendations and consumer insights derived from AI agents can help retailers anticipate consumer needs, improve engagement, and boost profitability.

An AI-first plan of action

To harness AI's full potential, leading companies follow a three-step strategy:

• Deploy. Generate quick wins by automating simple tasks like troubleshooting equipment issues or streamlining reporting processes––and immediately boost productivity by 10% to 15%.
• Reshape. Use AI and AI agents to enable deeper transformation by overhauling core workflows. Examples include autonomous scheduling of refinery maintenance and real-time guidance for field personnel, for substantial efficiency gains and reduced downtime.
• Invent. Leverage AI to enable further innovation, creating entirely new products and services like personalised energy-saving solutions or predictive exploration tools. With human oversight, AI agents could eventually run specific operations, such as drilling.

The Reshape and Invent phases promise O&G the greatest return on AI investment. They offer meaningful opportunities to transform, rather than just tweak, the business.

Shifts in tech, teams, and workflows

Becoming an AI-first organisation requires significant shifts in technology, team structure, and workflows. Companies need to move beyond using AI as a support tool and instead integrate it deeply into their operations. Essential investments in data infrastructure and employee training, along with clear business strategies, are crucial for successful transitions.

For O&G, AI-first also means making important changes in organisational structure and talent. Rather than relying solely on IT departments, companies need to let business teams directly handle AI using flexible, secure technology platform tools. This allows companies to move quickly and innovate more easily. Companies should train employees to work with AI agents, and hire new talent skilled in AI.

Companies can start their AI journey with these practical steps:

• Lead with a clear vision of AI as a business enabler, and roadmap defining a phased approach
• Build a business-led AI agenda, focused on solving operational and financial pain points
• Strengthen data and technology backbones, upgrading platforms and ensuring seamless data flows
• Equip your workforce for the shift, including upskilling critical roles and embedding AI literacy
• Deploy fast, starting with quick wins that demonstrate value and building momentum for wider adoption
• Create space to scale through reinvestment and funding foundational enablers

AI will help O&G companies to stay competitive, agile, and profitable. The future belongs to those who innovate quickly and integrate AI into core operations and strategy.