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This is really changing the way that engineers get work done. The speed of change in our industry requires us to think differently, act differently and support each other differently to have more impactful results in meeting the world’s energy needs.”

Keith Johnston

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Digital Engineering
Chevron

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Vice President Technology
BP

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Empowering the Future: The Role of AI in Transforming the Energy Sector Empowering the Future: The Role of AI in Transforming the Energy Sector

A Global Outlook panel at Kongsberg Digital’s Tomorrow Show – Houston, featuring experts like Hema Prapoo from Microsoft, Richard Spears from Spears and Associates, Judson Jacobs from S&P Global, and Pedro Alcântara Nunes Neto from Kongsberg Digital, delved into the transformative role of AI across industries, particularly in energy.

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Key Highlights from the Discussion

AI: A Human-Centric Approach

Hema Prapoo emphasised that AI, including tools like Microsoft’s copilot and ChatGPT, is not designed to replace humans but to enhance their capabilities. The focus is on empowering the workforce to concentrate on essential tasks rather than mundane ones, maintaining a human touch at the core of AI applications.

The Importance of Regulation

Pedro Alcântara Nunes Neto discussed the critical role of government regulations in shaping the AI landscape. The EU AI Act was highlighted as a leading framework that ensures data privacy and ethical practices in AI development. He argued that regulation should not stifle innovation but instead provide a necessary structure for tech companies to operate responsibly.

Geopolitical Dimensions of AI in Energy

Judson Jacobs raised concerns about the hype surrounding AI versus its actual impact. He shared insights on the energy sector’s adoption of AI over the past decade, which has improved operational efficiencies significantly. However, he noted the challenge lies in scaling these improvements across the industry rather than in isolated projects.

Financial Implications for the Energy Sector

Richard Spears provided a stark statistic: the upstream oil and gas sector, spending $325 billion on operations, suffers from inefficiencies that could yield up to $32 billion in annual savings through AI. He stressed the importance of improving capital deployment by leveraging AI to gain accurate forecasts about future activities, ultimately increasing investment efficiency.

The Role of AI in Leveling Global Playing Fields

The conversation touched on Africa’s growing role in the global energy landscape, with predictions that by 2050, 25% of the world's population will live there. Hema and Richard discussed innovative approaches, such as using Africa's vast hydrocarbon resources to build local data centers, minimising reliance on expensive infrastructure like pipelines.

Addressing Global Threats with AI

In response to Shane McArdle’s question about AI’s implications for national security and regulatory frameworks, Pedro pointed out that the evolving nature of warfare and cybersecurity necessitates careful management of data retention and privacy across borders, further complicating AI deployment.

Collaborative Connectivity

A recurring theme was the necessity for collaborative digital platforms to facilitate information sharing in the energy sector. Hema pointed out that while proprietary workflows should remain intact, a common digital ecosystem is vital for improving operations and encouraging partnerships among stakeholders.

Opportunities for Small Enterprises

Spears highlighted that AI technology allows smaller companies to compete on a level playing field with industry giants, enhancing innovation and investment opportunities, which could lead to a more competitive and diverse marketplace.

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Conclusion: Navigating the Future with AI

The panel concluded with a mix of optimism and caution. While the potential for AI to revolutionise the energy sector and enhance efficiency is immense, panelists acknowledged the challenges of overcoming regulatory hurdles, ensuring cybersecurity, and fostering collaboration among diverse stakeholders. Embracing a human-centric approach and maintaining innovative thinking will be crucial as industries move toward adopting AI at scale.

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