If you feel that the O&G exploration market is not a place to be those days, you should have gone to the PETEX last week. The PETEX 2018 main theme was “Exploration, a new optimism” and by the way, I come back from London plenty of optimism!
Yes, I know the market is still depleted. Very few seismic vessels and seismic crews are shooting on the earth and it seems that the investors in the major operators and contractors are much expecting additional cost-cutting than new oil and gas discoveries.
But as said by William Zimmern, Economist at BP, (exploration expenditures are still necessary before to land softly in a more renewable energy world and the current exploration budgets are insufficient to find the fossil energy still needed by the planet. More in the excellent BP review
Phil Loader from Seacrest Capital Group was even more bullish and persuasive. He noticed that the exploration market collapsed before the oil price collapsed. The exploration market collapsed at a time the E&P was too expensive for operators to develop the fields and inefficient to find new reserves. This time is now behind us. We don’t drill any more stupid and unnecessary exploration well at an astronomic cost, we don’t consider any more than a gas province is a waste of time and money, our industry is now hiring more talents than making redundancies. So for him, exploration has never been so interesting, innovating and challenging, really a place to be.
Lydia Rainforth from Barclays confirmed this point. The produced bbl per head has never been so low in the industry and the cost base is now under control. But more interesting, is to notice that the industry is now rapidly adopting the AI technology and has already proved to make some substantial gains using it. But it is still the beginning of the journey. According to her, a geoscientist working for a major operator spend 50% of his time doing some routine works and 50% some high-value jobs. If AI should make possible that he spends only 20% on routine and 80% on high-value jobs, the results and profits of our industry would be tremendous again and more important attractive for the young talents.
So, AI was on all the booths, on almost all the posters, in almost all the presentations. It was also the topic of a specific workshop organized jointly by the PESGB and the EAGE at the end of the PETEX. The first talk of the workshop was done by Yves le Stunff, CDO at TOTAL.
Yves said that digitalization is considered as a journey at TOTAL. TOTAL has already gained experience from the various feasibility studies and pilot projects conducted in the past few years and is now able to focus where the AI can make substantial benefits. And, according to TOTAL, the two domains where AI can impact the more are the seismic interpretation and the set-up of geosciences assistant based on the information understanding from a large set of documents and data.
So, knowing that AgileDD is working in the marketplace where to be,
knowing that the AI is the hottest topic for our industry and
knowing that detecting information is the more impactful domain for AI implementations in exploration and production,
What could be more attractive than an AgileDD squirrel?