Supply chain disruption is a major threat for oil and gas operators, affecting production, storage, and workforce. In fact, Motive’s Physical Economy Outlook 2024 shows that supply chain disruption is the most pressing challenge for oil and gas leaders (49%), followed by economic instability (45%) and extreme weather events (41%).
Roadblocks like these have taken a toll on energy operations, causing billions of dollars in losses. With so much uncertainty, oil and gas leaders have turned to technology as a rare aspect of operations they can control. They’re putting their hopes into artificial intelligence (AI), and they’re doing it now.
Taking stock of their challenges, leaders are seeing how AI and computer vision work together to solve complex problems. With the help of AI, computer vision can alert to objects and actions that put businesses and their workers at risk. When workers exhibit unsafe driving behaviors like texting and close following, or fail to wear personal protective equipment like hard hats, the technology is able to instantly alert managers and workers so they can correct the behavior before it leads to an accident.
Capabilities like these are changing the way businesses operate, leading to safer, more productive outcomes for teams that need it most.
Key takeaways:
- Global conflicts have exacerbated supply chain disruption, causing erratic fluctuations in oil prices.
- 49% of oil and gas leaders listed supply chain disruption as their primary challenge, followed by economic instability (45%) and extreme weather events (41%).
- AI-powered tools give oil and gas operators real-time visibility and control. This proactive approach mitigates risk and propels the industry toward a new realm of opportunity.
Behind every supply chain breakdown are obstacles like geopolitical tensions and natural disasters. Each has far-reaching consequences for oil and gas operations. Even the slightest disruption can cause labor shortages, delivery delays, and rising costs. Given the remoteness of energy operations, ensuring that workers have the supplies and real-time support they need is critical.
Real-time visibility and complete control are in demand
To turn the tide, oil and gas leaders need complete visibility into their operations. Unfortunately, few of them have it. One in three physical economy leaders say they don’t have enough visibility to perform their jobs effectively.
This incomplete view into fleet operations leads to accidents, lost vehicles, and fraud. On average, oil and gas leaders estimate they lose 17% of their fleet payments to fraud; 43% believe fraud is impacting their business, yet they aren’t sure how to find it. In the meantime, leaders are working in the dark.
AI is creating a new realm of opportunity
To address these challenges, businesses are increasing their AI investment. More than 92% of oil and gas companies invest in AI or plan to in the next two years. Nearly 20% of oil and gas leaders use AI every day. Half of them use fleet management software, and 40% plan to use it this year.
Doug Barnette, Vice President, Health, Safety, and Environment at KLX, is among the 20% who use AI daily. To gain visibility into their 2,000-vehicle fleet, KLX invested in AI dash cams last year. The investment has transformed their operations.
“With AI, our ability to respond to vehicle incidents is greatly enhanced,” Barnette says. “With Motive AI Dashcams alone, we cut our incident rate in half in the first six months. Having real-time visibility is critical. As much as you think you know where your safety performance stands, without telematics and AI Dashcams, you really don’t know where safety performance stands or where it’s going.”
Barnette isn’t alone in turning to AI. Across the physical economy, investment is soaring. Motive’s Physical Economy Outlook shows that:
Recognizing AI’s transformative power, oil and gas leaders are stepping into the next frontier. Energy businesses will always have to navigate global dependence and unforgiving terrain. But thanks to AI, they won’t have to do it alone.
Join the movement of forward-thinking energy leaders harnessing the transformative power of AI. Revolutionize your oil and gas operations today.
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