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With its ability to analyse geology, markets, and assets for quicker, more precise decision making, artificial intelligence (AI) has enormous potential to advance the energy sector.
Despite this, the industry has been slower to embrace the technology than some others, leaving millions of dollars in economic gains untapped.
Ahead of the SEAAOC Conference at NT Resources Week, Adam Cheesman of Wood told Informa why he thinks this is, and how we can break down barriers for better AI penetration.
#1 – Better understand AI’s potential
As pioneers of equipment condition monitoring, Wood works closely with its longterm clients to build predictive maintenance software, and troubleshoot critical operational challenges.
To this end, it is currently deploying an AI-powered predictive maintenance tool – maintAI – which analyses operational data to increase uptime, reduce operating costs, and minimise risk.
“The technology makes it much less likely that an asset will fail mid-operation. With smart strategies and remote monitoring, it allows us to diagnose and predict failures with accuracy, and help our clients make well-informed maintenance decisions, before they become problems,” Mr Cheesman said.
The data agrees, with maintAI having already helped several of Wood’s largescale operator clients around the world.
“One of our operator clients has seen a 28 percent reduction in annualised maintenance costs across their offshore portfolio, with another removing approximately 30 percent of maintenance backlog across seven sites within a period of six weeks.
“The technology can make a big impact at pace – and better knowledge of its benefits could certainly promote better uptake throughout the sector,” Mr Cheesman said.
#2 – Improved financial incentives
A lesser talked about, albeit important, hindrance for some AI initiatives in energy is the underlying remuneration structure for contracted services.
With most contractors charging an hourly rate, there is little incentive to pursue technologies that speed things up, especially given the upfront costs involved in AI transformation.
In light of this, Mr Cheesman believes a value generated structure is the answer.
“maintAI is outcome-focused and designed with the client in mind, with commercial models determined by the value generated – not the hours expended.
“Our approach offers an initial discovery phase to identify the opportunities for savings, with completion of a full project within 8 – 12 weeks, allowing operators to realise tangible results from their optimised maintenance portfolio.”
#3 – Better understand AI’s financial benefit
While uses cases for AI in energy are becoming better known, fewer comprehend the scale of its financial benefits.
As one example, maintAI can slash maintenance costs by around 30 percent, whilst minimising production risk, and improving plant uptime by around five percent. Across sectors, AI is expected to account for 45 percent of global economic gains, by 2030.
Mr Cheesman says the technology will be particularly useful for consolidating data.
“What I see with operators and contractors is that they have mountains of data from operating facilities – data they produce every minute of every day, and only utilise around 1 percent of.
“AI allows us to use that data and make it valuable. When you pool it together from hundreds of assets across the world – in Europe, Golf of Mexico, the North Sea etc. – it gives you an invaluable insight. You can then make decisions around your assets, which impact your operating expenditure in a big way.”
Further insight
Sharing more thoughts on AI, along with key company updates, Adam Cheesman will present at the upcoming SEAAOC Conference at NT Resources Week.
This year’s event will be held 18-19 September at the Darwin Convention Centre.
One ticket to NT Resources Week gives you access to three conferences: SEAAOC, Mining the Territory and the NT Clean Energy & Decarbonisation Forum.
About Wood
Wood is a global leader in consulting and engineering, delivering critical solutions across energy and materials markets. We provide consulting, projects and operations solutions in 60 countries, employing around 35,000 people. www.woodplc.com
About Adam Cheesman
Adam Cheesman joined Wood in 2021 as the Vice President of Strategy and Development for Asia Pacific. Adam has been in the energy sector for over 16 years and has held various leadership roles and most recently before Joining Wood, he was Regional Director for Petrofac.
He is responsible for designing and delivering Wood’s growth strategy across the APAC region and ensuring a diversified orderbook as the company navigates its way and prospers in the energy transition.
Adam has a broad experience across the energy market, having held leadership roles in both Engineering, Procurement & Construction (EPC) and also Operations & Maintenance (O&M), this includes extensive technical expertise within late life asset management and the decommissioning of existing infrastructure.
His main strengths revolve around his ability to deliver strategic growth, through his strong relationship and stakeholder management whilst also understanding what it takes to execute projects having spent the early part of his career in project management.
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