AI boosts profitability in the permian basin

Barron’s Avi Salzman recently toured Chevron’s operations in the Permian Basin. Following the visit, he wrote about how artificial intelligence (AI) is revolutionizing the oil industry and could lift its profits.

• Steady growth: Since 2012, Permian oil production has grown from approximately 1 million barrels of oil-equivalent per day (MMboe/d) to more than 6 MMboe/d.
• AI in action: AI helps Chevron extract more oil for less. It’s driving productivity, reducing cycle times and revealing the best opportunities.
• Capital discipline: Efficiencies in drilling and completions are important in a cyclical commodity business.
• Environmental impact: AI is one of the tools helping Chevron lower the methane emission intensity of its upstream operations by 60%.

• Sensors and data: Fields are equipped with sensors that provide vital information and real-time data about pressure and heat.
• Remote operations: Technicians analyze historical data and control equipment from miles away, enhancing safety and efficiency.
• Enhanced oil recovery: Artificial lift implementations have improved the production output of existing wells.
• Autonomous adjustments: Complementary to AI, software adjusts valves and detects leaks in real-time, reducing the need for human intervention.
• Optimized drilling: Improved bottom hole assembly reliability and AI can deliver insights for continuous improvements.

“AI is revolutionizing the way we work by providing us with unprecedented access to data and insights, enabling us to make better, faster decisions and unlock value in our daily work and operations,” said Balaji Krishnamurthy, vice president of Chevron Technical Center.

Read Salzman’s article “AI Is Changing Oil Country—and Pumping Up Profits” on the Barron's website.