12/6/23, 9:47 What We Know ChatGPT Can Do for the Petroleum Industry, So Far

AI/MACHINE LEARNING

What We Know ChatGPT Can Do for the Petroleum Industry,

So Far
Researchers with the Energy & Environmental Research Center
highlight the key use cases ChatGPT holds today for petrotechnicals.
April 14, 2023 By Habib Ouadi, Carrie Christianson, Lonny Jacobson, James Sorensen, Aimen Laalam
Journal of Petroleum Technology

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12/6/23, 9:47 What We Know ChatGPT Can Do for the Petroleum Industry, So Far

Source: Getty Images.

The complex and dynamic nature of the oil industry calls for the utilization of efficient
communication, data analysis, and decision-making strategies. Today, the incorporation of cutting-
edge technologies such as language models offers a distinct chance to enhance effectiveness and
output within this sector.

ChatGPT, a technology created by OpenAI, is a noteworthy illustration of the revolutionary capabilities

of such technologies in the oil and gas domain.

This article aims to examine the potential applications of ChatGPT in the oil and gas industry and the
benefits it can offer. Furthermore, it seeks to evaluate the challenges that must be overcome to
effectively integrate ChatGPT in the field of petroleum engineering while highlighting the technology's
transformative potential in augmenting productivity, efficiency, and decision making in the industry.

We also will explore the question of why oil and gas companies are willing to allocate significant
financial resources toward technological advancements and research, despite the common
assumption that artificial intelligence (AI) can solve all future problems.

Could the integration of ChatGPT in the oil and gas industry lead to an excessively intelligent
environment?

The petroleum sector has access to a wealth of information, mainly in the form of reports and
documents. However, combining and cross-referencing these heterogeneous data across various
domains poses a significant challenge.

With the help of ChatGPT, the oil industry can consolidate its data operations, including the
integration of data lakes. As many companies have already shown, integrating operational data can
lead to significant advancements in predicting operating parameters for enhanced oil recovery.

The chief advantage of ChatGPT is its ability to quickly and accurately address technical inquiries.

By recognizing complex terms and concepts, the chatbot provides thorough explanations and
examples to help users grasp complicated topics. This is especially beneficial for professionals in the
oil and gas industry who often encounter technical and complex information.

Moreover, ChatGPT delivers personalized responses to users by learning from previous interactions
and using that information to offer more relevant and useful responses in the future. This feature
enhances the user experience and simplifies the process of finding information for petroleum
industry professionals.

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Nevertheless, there are limitations to ChatGPT's accuracy, which depends on the quality of its training
data. Incomplete or inaccurate training data may lead to incomplete or incorrect responses.
Additionally, ChatGPT may struggle to interpret and understand highly technical jargon and language,
which limits its usefulness in certain contexts.

The integration of natural language processing (NLP) and AI has the potential to revolutionize the
petroleum industry by improving communication and information-sharing among the domain
professionals. An appropriately designed approach to AI can increase efficiency and productivity and
reduce cost in the petroleum industry.

In what ways may the oil and gas industry reap the rewards of integrating AI ChatGPT technology?

Predictive maintenance: ChatGPT can be trained using past data on equipment failures, enabling it
to predict when particular equipment is likely to malfunction.

This facilitates proactive maintenance scheduling, resulting in reduced downtime and cost savings.
The model can forecast equipment failure by being supplied with relevant data concerning the
equipment, operating conditions, and past failure history.

Virtual assistance: ChatGPT can act as a virtual assistant for employees, aiding them in day-to-day
activities like scheduling meetings, setting reminders, and offering industry-related information. By
incorporating it into messaging platforms, employees can engage with it efficiently.

Reservoir engineering: ChatGPT can help with data analysis by examining reservoir properties, fluid
flow, well performance, and production data. It can predict future reservoir performance based on
historical data and optimize well placement, completion design, and production strategies to
maximize production and recovery.

Drilling: ChatGPT can help with well planning by analyzing geological data and predicting potential
drilling risks. ChatGPT can also optimize drilling operations by predicting optimal drilling parameters
and providing insights into drilling fluid properties and their effects on drilling efficiency.

Additionally, ChatGPT can assist with real-time monitoring of drilling operations, identifying potential
problems and suggesting corrective actions.

Completions: ChatGPT can provide valuable insights into well completion design by suggesting
appropriate equipment selection, placement, and design. It can analyze the impact of different
stimulation parameters to optimize well stimulation operations and suggest the best stimulation
design.

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It can also monitor well stimulation operations in real time, identifying potential issues and
recommending corrective measures.

Production: ChatGPT can assist with well performance analysis by analyzing production data and
identifying potential production issues. ChatGPT can optimize production operations by providing
insights into the impact of different production parameters and suggesting the optimal production
design.

It can also assist with real-time monitoring of production operations, identifying potential problems,
and suggesting corrective actions.

Geomechanics: ChatGPT can help with rock property analysis, including rock strength and
permeability, by analyzing geophysical data. It can also help predict potential geomechanical risks
such as subsidence, fault reactivation, and induced seismicity.

ChatGPT can optimize hydraulic fracturing operations by providing insights into the optimal
placement of hydraulic fractures and analyzing the effects of different fracturing parameters.

Geology: ChatGPT can support mineral exploration efforts by analyzing geological data and predicting
the possible location of mineral deposits. It can provide valuable insights into the structural geology
of a given area and help identify geological hazards during geological mapping activities.

Additionally, ChatGPT can assist in geothermal exploration by analyzing rock properties and
subsurface temperature.

Geophysics: ChatGPT can assist with seismic data analysis by analyzing seismic signals and
identifying subsurface geological structures.

It can also help with the interpretation of potential field data such as gravity and magnetic data by
providing insights into subsurface geology and identifying potential mineral deposits. ChatGPT can
assist with real-time monitoring of subsurface processes such as fluid flow and subsidence,
identifying potential risks and suggesting appropriate actions.

Well Integrity: ChatGPT provides a tool to address technical inquiries related to well integrity
management, such as developing corrosion prevention strategies, performing well inspections, and
implementing maintenance programs.

Might the integration of new AI ChatGPT technology enable individuals to be more effi cient and
better equipped to handle daily challenges in the oil and gas industry?

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The incorporation of AI ChatGPT in the oil and gas industry can potentially provide several benefits to
professionals. The capacity of technology to analyze large volumes of data in real time has the
potential to improve decision making, particularly in scenarios where speedy conclusions are
essential and human cognitive capacities are constrained in terms of processing speed and output
production.

ChatGPT can effectively analyze the data simultaneously with the drilling operation, identify potential
risks, and provide attention to detail during the operation, unlike the fatigue that many drillers and
supervisors face in extremely difficult and exhausting conditions.

Secondly, ChatGPT's NLP capabilities can enhance communication among team members, facilitating
effective collaboration and information sharing, regardless of language barriers.

As the oil and gas industry attracts international talent, differences in language, pronunciation, and
message transfer can lead to misunderstandings. ChatGPT can overcome these challenges and
enable technical and straightforward communication.

Additionally, automation of routine tasks through technology can release staff from monotonous
duties and enable them to concentrate on more sophisticated tasks, such as monitoring and
analyzing the performance of machinery, performing preventive maintenance, and minimizing
downtime.

AI ChatGPT can provide insights and training recommendations based on individual performance and
identify areas for improvement, thereby ensuring timely project completion.

By leveraging the capabilities of ChatGPT, professionals can achieve greater operational excellence
and make more informed decisions, ultimately leading to a more successful and sustainable oil and
gas industry.

In what domains of the oil and gas industry does ChatGPT still demonstrate shortcomings and face
challenges?

Although AI tools like ChatGPT can offer solutions to some technical challenges in the petroleum
engineering industry, it is essential to acknowledge that AI is not a complete solution that can replace
all human experience and expertise. The petroleum industry is enormous and complicated, and many
technical problems necessitate a thorough comprehension of the underlying science, engineering,
and geology.

The oil and gas industry involves significant investment in technology and assets. Even small errors,
such as inaccuracies in measurements or equipment failures, can result in substantial financial
losses and in rare cases, catastrophic incidents similar to the Deepwater Horizon disaster.

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The present free version of ChatGPT relies on 2021 training data that are accessible on the Internet.
As these data are now 2 years old and the petroleum industry is continuously evolving with daily
changes in oil prices, there may be minor variations in the outcomes that ChatGPT provides.

One of the other challenges that ChatGPT faces is its limited ability to generate creative output.

Moreover, safety and environmental concerns are of paramount importance in the heavily regulated
oil and gas industry. This implies that petroleum engineering specialists must operate within
stringent regulatory frameworks that dictate their work.

While AI can aid in tackling certain technical obstacles, it cannot fully replace the expertise and
understanding required to navigate these regulatory structures. Furthermore, the development and
implementation of AI technologies like ChatGPT demand substantial investments in time, resources,
and expertise.

Generating high-quality training data and algorithms that accurately capture the intricacies of the
petroleum industry can be a laborious and costly process. Additionally, maintaining and updating AI
systems requires skilled professionals who can guarantee the system's ongoing accuracy and
relevance.

How do oil and gas companies justify investing signifi cant fi nancial resources toward technology
advancements and research, even though there is a widespread belief that AI technology alone can
solve all potential future problems in the industry?

Oil and gas companies still show a willingness to dedicate substantial financial resources toward
advancing technology and conducting research in their industry. Companies must maintain their lead
over other competitors as a part of their competitive advantage and to be up to date on market
conditions.

While AI can help in the adoption of these emerging technologies, it is not considered a substitute for
them. Due to its nature as an AI tool trained solely on preexisting data, ChatGPT cannot generate
innovation. It draws upon stored information culled from books, articles, and websites to furnish
responses in the form of complete sentences and paragraphs.

To summarize, while AI technologies like ChatGPT can be beneficial tools in the field of petroleum
engineering, they cannot entirely supplant human expertise and knowledge. The petroleum industry
is expansive and meticulously regulated, with significant attention given to safety and environmental
concerns. Developing and deploying AI technologies like ChatGPT demands substantial investments of
time, resources, and expertise and must be used in tandem with human proficiency to ensure that
the technology is used safely and effectively.

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It is crucial for companies to ensure that their employees are well-informed about the opportunities
and challenges associated with using AI tools like ChatGPT in their day-to-day work.

Overreliance on AI without proper checks and balances can result in disastrous outcomes, especially
if employees are not adequately trained to communicate the correct prompts to ChatGPT. To avoid
such risks, companies should consider providing training and education programs to help their
employees understand how to effectively utilize AI tools like ChatGPT.

As AI technology continues to evolve, it is possible that companies may need to create new positions
such as the "Prompt Creator" to ensure that the prompts given to ChatGPT are appropriate and
effective.

In addition, companies should prioritize the development of clear guidelines and protocols for the use
of AI tools, so that employees can have a better understanding of how to leverage these technologies
while minimizing risks.

By investing in employee education and training, and creating clear guidelines, companies can
ensure that the use of AI tools like ChatGPT is both safe and beneficial for their businesses.

TOPICS AI/MACHINE L EAR NING

TAGS , ,
natural language processing R&D digital transformation

Habib Ouadi

Habib Ouadi, an Oilfield Operations Specialist at EERC, focuses on oil and gas
field activities like well drilling, logging, coring, and production; enhanced oil
recovery (EOR); carbon capture, utilization, and storage (CCUS); saltwater
disposal (SWD); and facilities and well completion. He earned an M.Eng. in
Petroleum Engineering from the University of North Dakota and M.S. and B.S.
degrees from the University of Boumerdes, Algeria.
See More Stories by Habib Ouadi

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