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AI in Oil and Gas: 7 Best Practices for Data Readiness

September 21, 2024

Artificial intelligence (AI) is transforming oil and gas operations by enhancing efficiency, improving decision-making, and reducing risks. However, the success of AI applications depends on high-quality, well-managed data. Preparing data for AI analysis requires strategic planning and adherence to best practices to ensure data is accurate, complete, and suitable for complex AI models. Here are key best practices that companies should adopt to ensure their data is ready for AI applications.

1. Standardize Data Collection & Formats

In the oil and gas industry, various data formats can hinder AI applications, which thrive on consistency. Implementing standardized data schemas and company-wide data exchange protocols (e.g., WITSML, PRODML) ensures data is uniform and interoperable, making it easier for AI systems to analyze. Standardization simplifies preprocessing for AI and enhances compatibility.

In the oil and gas industry, various data formats can hinder AI applications, which thrive on consistency. Implementing standardized data schemas and company-wide data exchange protocols (e.g., WITSML, PRODML) ensures data is uniform and interoperable, making it easier for AI systems to analyze. Standardization simplifies preprocessing for AI and enhances compatibility.

2. Ensure Data Completeness and Accuracy

AI algorithms need comprehensive and accurate data to provide meaningful insights into oil and gas operations. Fragmented or missing data can reduce the reliability of AI applications. A key step in ensuring data integrity is conducting routine data audits to catch missing, duplicated, or inaccurate records. These audits can identify and address incomplete or inaccurate data sets that could otherwise distort AI models and lead to faulty conclusions.

3. Implement Data Governance Policies

Data governance defines who is responsible for managing data, how it is accessed, and how it is protected. Strong governance ensures compliance with industry standards and protects sensitive information. Achieving AI readiness requires a solid governance framework to securely manage data collection, storage, and access. Establish a dedicated data governance team to oversee roles, responsibilities, and data access controls, ensuring secure and consistent data management practices.

4. Leverage Data Lakes for Centralized Storage

A data lake is a centralized repository for storing raw historical and real-time data in its native format until it’s needed for analysis, without requiring prior structuring or processing. In the oil and gas industry, large volumes of structured and unstructured data are generated, such as seismic data, well logs, production information, and well integrity test data. While structured data is well-organized and easy to search, unstructured data is less organized, making it harder to analyze using traditional methods. To address this, companies should leverage cloud-based data lakes to centralize data storage in its raw form, enabling AI models to more easily access and process data from various sources.

5. Prioritize Data Labeling for Supervised Learning

Supervised learning is a machine learning approach where an AI model is trained using a labeled dataset, which includes both inputs and corresponding known outputs (labels). For example, if images of cars and planes are the input, the output label would specify whether it’s a “car” or “plane.” The model’s goal is to learn patterns between the inputs and outputs to accurately predict outcomes for new, unseen data.

In the case of a predictive maintenance model for offshore rigs, labeled data is required to indicate whether equipment is in good or bad condition. Without proper labeling, AI predictions will be compromised.

To enhance the precision of AI models, companies should invest in both manual and automated data labeling processes to improve the accuracy of AI-driven models.

6. Integrate Data Security Measures

Protecting AI-ready oil and gas data from breaches or unauthorized access is a top priority considering the strategic importance of operational and geological data. Robust security measures, including encryption and access controls, are critical for maintaining the integrity of data used in AI applications. Companies must ensure their data security protocols are up-to-date and capable of protecting not only existing datasets but also the increasing volumes of data that future AI applications will depend on.

Protecting AI-ready oil and gas data from breaches or unauthorized access is a top priority considering the strategic importance of operational and geological data. Robust security measures, including encryption and access controls, are critical for maintaining the integrity of data used in AI applications. Companies must ensure their data security protocols are up-to-date and capable of protecting not only existing datasets but also the increasing volumes of data that future AI applications will depend on.

7. Prepare for Scalability

The volume of data used in oil and gas AI applications is constantly expanding. As AI adoption grows, so will the demands on data storage, processing power, and bandwidth. Being AI-ready means ensuring that your data infrastructure can scale with the volume and complexity of data. By leveraging scalable cloud solutions, companies can manage growing data volumes while maintaining the flexibility to adapt to evolving AI requirements.

Ensuring Success with AI in Oil and Gas Through Data Readiness

Oil and gas companies can position themselves for AI success by standardizing data formats, ensuring data completeness and accuracy, implementing strong governance, and utilizing scalable cloud solutions. For more information on preparing your well integrity data for AI, contact us today.

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