This article and the accompanying slide deck are part of a series exploring how companies in specific industries can adopt the mindset, expertise, and ambition required to win in an AI-first world.
AI is already helping oil and gas (O&G) to become more efficient, profitable, and competitive. As these companies face rising business pressures from changing regulations, volatile prices, geopolitical changes, more complex business portfolios, and environmental commitments, AI will become even more essential for their future success.
Unlike financial services and software development, the O&G sector is grounded in the physical, not the virtual, world. But increasingly, leaders in O&G will be AI-first companies. They will place AI and AI agents at their core in order to dramatically transform how hydrocarbons are extracted, refined, and sold.
Companies adopting AI early are already seeing significant benefits. For example, AI has allowed them to streamline operations, to shrink processes from months to weeks, and to cut the cost of operating in harsh environments by a sixth. Indeed, AI promises a dramatic impact on the financials of O&G overall. Companies taking full advantage of AI in their operations will be able to deliver incremental profits reaching as much as 30% to 70% of their EBIT over the next five years. What’s more, AI will allow O&G companies to accelerate their carbon footprint reduction.
Across the O&G Value Chain
The impact of AI will reach the whole 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, AI will significantly reduce the time required to analyze geological and seismic data, making it faster and cheaper to identify promising drilling sites. Real-time AI analytics can also optimize drilling parameters, reducing costs and downtime.
Another example is Methane. AI, a platform that identifies and measures emissions sources across operations, thus enabling upstream companies to create targeted, cost-effective abatement initiatives. Using AI tools like drones and sensors, Methane.AI helps companies significantly cut their emissions, improve efficiency, and support environmental goals.
Refining. AI agents can optimize 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 personalized customer interactions, dynamic pricing, and optimized 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, Reshape, and Invent.
The Deploy Phase. O&G can achieve quick wins by automating simple tasks, such as troubleshooting equipment issues or streamlining reporting processes––and immediately boost productivity by 10% to 15%.
The Reshape Phase. Companies can 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, which deliver substantial efficiency gains and significantly reduced downtime.
The Invent Phase. Businesses can use AI to enable further innovation, creating entirely new products and services such as personalized energy-saving solutions or predictive exploration tools. With adequate human oversight, AI agents eventually could run operations in specific areas, such as drilling.
The Reshape and Invent phases promise O&G the greatest added value from their AI investments. That’s where meaningful opportunities lie to change rather than just tweak the business—and where the roots of an AI-first company can take hold.
Shifts in Tech, Teams, and Workflows
Becoming an AI-first organization 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 organizational structure and talent. Rather than relying solely on IT departments, companies need to let business teams directly handle AI using flexible, secure technology platforms tools. This allows companies to move quickly and innovate more easily.
Using AI to tackle common challenges like outdated systems and poor data integration are good places for O&G businesses to begin.
Talent plays a key role too. Companies should actively train employees to work with AI agents, and they need to hire new talent skilled in AI. To encourage teams to experiment and adapt to new technologies, company leaders should clearly demonstrate how AI benefits their daily work.
Keep in mind that companies needn’t attempt big, complicated changes all at once. Using AI to tackle common challenges like outdated systems and poor data integration are good places for O&G businesses to begin. These represent practical AI projects that easily fit into existing workflows. A clear focus on solving specific business problems with AI will lead to real and lasting improvements.
How to Start
Companies ready to start their AI journey should take these practical steps:
- Lead with a clear vision and roadmap. Frame AI as a business enabler and define a phased approach toward AI-first maturity.
- Build a business-led AI agenda. Focus AI on solving operational and financial pain points identified by business leaders.
- Strengthen data and technology backbones. Upgrade platforms and ensure seamless data flows across the business.
- Equip your workforce for the shift. Upskill critical roles, embed AI literacy, and enable teams to embrace change.
- Deploy fast and show impact. Start with quick wins that demonstrate clear value and build momentum for broader adoption.
- Create space to scale. Reinvest early in scaling successful AI projects and funding foundational enablers.
AI will allow O&G companies to stay competitive, agile, and profitable. The future will belong to those who innovate quickly and integrate AI deeply into their core operations and strategy.
