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The oil and gas industry could save more than US$320bn in the next five years by further digitalising operations in five key areas. (Image source: Rystad Energy)

The oil and gas industry could save more than US$320bn in the next five years by further digitalising operations in five key areas, according to Rystad Energy research

The five key areas highlighted are drilling optimisation, autonomous robotics, predictive maintenance, reservoir management, and logistics optimisation.

The oilfield services (OFS) business ecosystem is expected to undergo a significant transformation as continued merger and acquisition (M&A) activity, new business partnerships with technology firms, and greater software integration drive digital-first business strategies for key OFS players.

“We estimate that US$320bn is a modest figure, as broader digital adoption across other business domains could generate even greater value. To realise this, executives will need to deliberately prioritise digital transformation by fostering a less risk-averse business culture,” said Binny Bagga, senior vice president, Supply Chain.

Rystad notes that digital revenue streams offer more stable, resilient growth trajectories that are less exposed to the volatility of upstream capex. SLB expects its digital division’s margin to reach 35% on a full-year basis in 2025, while Viridien’s digital, data and environment (DDE) segment generated US$787mn, growing 17% and delivering adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$458mn last year.

“The investment community is increasingly valuing energy-technology narratives, with service companies that clearly articulate technology-driven and recurring-revenue strategies often commanding higher valuation multiples than those tied solely to equipment cycles. However, such premium valuations hinge on demonstrated scalability. Emphasising digitalisation is a direct pathway to creating lasting shareholder value,” Bagga said.

Nevertheless, widespread adoption of digital oilfields faces significant barriers, including substantial upfront costs for hardware, software, ongoing maintenance and cybersecurity, which impact smaller firms or those operating with legacy infrastructure in particular. To mitigate these challenges, mid-tier companies are selectively enhancing their offerings with targeted digital capabilities, while smaller niche players and specialised software vendors focus on delivering modular, custom solutions.

A marked trend in digital investment is the growing use of partnerships with technology firms, which complements internal capability building and acquisitions in the digital space. These have increased significantly, with the most significant growth observed in the past two years among leading companies such as SLB, Halliburton, NOV and Baker Hughes. This pattern highlights a clear industry shift toward digital transformation, with large suppliers actively accelerating their collaborations with technology partners in recent years.

Christian Pedersen, chief product officer, IFS. (Image source: IFS)

IFS, a leading provider of Industrial AI software, and Boston Dynamics, a global leader in mobile robotics, are collaborating to create an agentic AI system to help asset-intensive organisations manage and optimise their field operations

The collaboration focuses on serving industries where field operations are critical, including manufacturing, energy, utilities, mining, and other asset-intensive sectors.

Uniting Boston Dynamics' autonomous inspection robots with the power of IFS.ai, the agentic AI system seamlessly connects sensing, predictive decision-making and action in the field. Boston Dynamics’

Spot robots inspect industrial assets and sites, capturing critical operational data in real-time. Spot uses thermal cameras to detect overheating, can listen to air or gas leaks, read analog gauges for pressure and flow, check indicator lights, identify hazard such as spills, or detect voltage anomalies. This information feeds directly into IFS.ai where agentic AI analyses the data, makes intelligent decisions, and triggers appropriate actions.

Together, IFS and Boston Dynamics are targeting measurable improvements across three critical operational metrics:
Safety: Autonomous inspections reduce human exposure to hazardous environments while increasing inspection frequency and thoroughness
Efficiency: Intelligent automation enables faster decision-making and response times, optimising resource allocation
Uptime: Predictive insights and automated actions help prevent failures before they occur, maximising asset availability

Christian Pedersen, chief product officer, IFS, said, “Asset-intensive organisations face unrelenting pressure to improve operational performance. Together with Boston Dynamics, we’re delivering a truly autonomous system that connects the physical and digital worlds for the first time. IFS.ai and IFS Loops turn robot observations into enterprise action, from preventative maintenance scheduling to predictive failure analysis and automated anomaly detection. Data flows from the field into enterprise systems, decisions are made autonomously, and actions are executed back in the field, all within a single integrated platform.”

Dr. Merry Frayne, director of Product, Boston Dynamics, added, “This collaboration represents the future of industrial operations. Our robots excel at navigating complex environments and gathering critical data. Combined with IFS’s agentic decision-making capabilities, we're enabling organisations to achieve levels of operational excellence and safety that simply weren’t possible before.”

The partnership marks a significant quantum applications development.

An integrated energy and chemicals company, Aramco, in partnership with neutral-atom quantum computing firm, Pasqal, deployed Saudi Arabia’s first quantum computer for industrial applications

Installed at Aramco's data centre in Dhahran, this marks a significant quantum applications development in multiple sectors in the region, including energy, materials, and industrial.

While aiding Aramco's operational efficiency strategies, the development gives Pascal's quantum exploration solutions a wider reach.

Ahmad O. Al-Khowaiter, Aramco EVP of Technology & Innovation, said, “Aramco is an established technology leader, which continues to innovate through the development and deployment of advanced digital solutions that have tangible benefits. We are deploying AI and other technologies at scale to further enhance our operations, maximize efficiency and unlock value across our business. Our partnership with Pasqal is a natural progression and we are thrilled to pioneer next-generation quantum capabilities, harnessing significant opportunities presented by this new frontier in computing.”

Loïc Henriet, Pasqal CEO, said, "This is a historic milestone with Aramco. The deployment of our most powerful quantum computer yet is a piece of history and a landmark for the Middle East’s quantum future. Pasqal continues its expansion, delivering practical quantum power to industry."

Pasqal’s system installed at Aramco’s data center can control 200 qubits arranged in programmable two-dimensional arrays, offering a platform suitable for exploring advanced quantum algorithms and real-world use cases relevant to industrial operations. 

Muhammed Nadeem, SVP, Yokogawa UAE Industry and head of energy & sustainability at Yokogawa Middle East & Africa. (Image source: Yokogawa)

Muhammed Nadeem, SVP, Yokogawa UAE Industry and head of energy & sustainability at Yokogawa Middle East & Africa, speaks to Oil Review Middle East about the company’s focus at ADIPEC and its commitment to the UAE, where it has had a presence for almost 30 years 

Nadeem begins by commenting on the role of ADIPEC in setting the tone for innovation, and the alignment of Yokogawa’s values and founding principles with those of the UAE and the region – ie of AI and innovation; sustainability; and localisation.

“If we talk about AI or innovation, I would like to refer to our purpose – "Utilising our ability to measure and connect, we fulfill our responsibilities for the future of our planet," he says. This is guided by Yokogawa’s corporate brand slogan, "Co-innovating tomorrow," and involves a commitment to solving social and environmental issues through its core competencies in measurement, control, and information technology.

“On sustainability, Yokogawa focuses on three goals – well being, net zeroing and circular economy,” he continues, “and when it comes to in-country value, we are committed to contributing to the societies where we operate.”

Progressing autonomous operations

Discussing Yokogawa’s recent successes on the innovation and AI front, he shares that in the UAE Yokogawa has conducted three proof of concepts (POCs) for its new FKDPP technology, an autonomous control AI protocol that makes use of reinforcement learning technology. It can control and autonomise areas of plant operations that have up to now necessitated manual operation. Nadeem notes that these have led to potential savings and value additions in net zeroing, energy management as well as quality and safety, given the elimination of the requirement for human intervention and therefore of human error and subjectivity. One of these POCs is for an AI-powered autonomous control room for Borouge’s Ruwais facility, where Yokogawa is using AI-based technologies to analyse data, identify patterns, and predict anomalies, enabling faster corrective actions and reducing unplanned shutdown risks. The POC is also exploring how autonomous control room operations can enhance efficiency and plant performance.

“We have had similar successes recently in Saudi Arabia as well,” Nadeem adds, referring to the implementation at the Fadhili gas plant, where Yokogawa has successfully deployed multiple autonomous control AI agents working together to autonomously control and optimise acid gas removal (AGR) operations at the plant. Initial results demonstrate a 10% to 15% reduction in its amine and steam usage, around 5% reduction in power usage, improved process stability, and a significant decrease in operator manual intervention, despite ambient condition changes. “The client is very happy with the ROI,” he comments.

This combination of multiple AI involves not only agents but also some of the drivers, such as robotics. “If you can send machines into an oilfield which has a lot of sulphur content, you can save lives,” he stresses.

He adds that Yokogawa is no longer a control company but an autonomous company, as reflected in its mission statement, and is system agnostic.

Evolution of AI

On the progress of AI, Nadeem comments that we have passed the “crawling” stage and are on the “walk to run” phase. Referring to the opening remarks at ADIPEC of Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and CEO of ADNOC, he said, “People understand that without AI, as Dr Al Jaber said today, you will be nowhere. You cannot ignore it. We have moved beyond the proof of concept stage to proof of value. In fact, we are actually on the borderline between proof of value and full-flight deployment. Yokogawa has moved beyond proof of value – we are now talking about the reoccurring model, where we have already given the concept the value and it is now running. I go back to what Dr Al Jaber said this morning; we are not here to give the vision or the dream, we are here for delivery. Because the vision without the action will be hallucination – we have to deliver it.”

He adds that the shared vision and commitment of the NOCs and IOCs to AI and innovation has supported Yokogawa’s drive to put R&D and manpower resources into AI developments.
“We are very proud that our leadership has recognised that this region is at the heart not only of energy development but also innovation. So we have established our Centres of Excellence for AI, robotics and cyber security in this region, to serve the whole globe. Not in Japan, not in Europe, not in the USA but in Abu Dhabi and Dammam. This will help not only our clients but also our ability to grow and devote all our energy to the right direction.”

Turning to sustainability, he comments that this is often a natural by-product of innovation around safety and quality, as these technologies will also lead to sustainability.
“Sustainability can involve multiple goals, but let’s take for example wellbeing. If people are assisted by AI they can have a good work/life balance, right? If they are using AI, they can be more productive. Another example is energy management, where energy management savings contribute to sustainability. Well being and net zero are all built in if you go with the right products, and the right partners like your product.”

On localisation, Nadeem reiterates that one of Yokogawa’s founding values is contributing to the societies in which it operates, and that the region’s in-country value initiatives tie in with Yokogawa’s vision and founding values. “We were operating locally even before the establishment of the UAE’s ICV and Saudi Arabia’s IKTVA initiatives,” he points out. “Since 2009 we have been operating all our control system cyber security out of Abu Dhabi, Dammam, or Bahrain or Qatar, from wherever the customers are. And we are not only talking about establishing our own centres, but doing all our life cycle management out of our local centres in the region, from engineering design, to testing, delivery and after service. So we are walking the walk, not just talking the talk.”

Key message at ADIPEC

Returning to the company’s focus at ADIPEC, Nadeem says Yokogawa’s key message aligns with the ADIPEC theme of energy, intelligence and impact. “We all require energy, and to repeat one of the themes of the opening, we are not talking about energy transition but about energy addition. So we are working on renewables and hydrogen alongside our traditional oil and gas business. This is one of our key themes for this edition of ADIPEC. Then on the AI and innovation theme, we are talking about robotics and Yokogawa Chat GPT, where we help operators with their decision making, and thirdly, we are looking at circular economy, net zeroing and wellbeing. And we are now moving beyond proof of concept and proof of value to deployment.

“I’m very excited as I have taken part in ADIPEC for the past 25 years, and I was saying to some of our young people here, I don’t see it just as an exhibition and event, as I see innovations launched here becoming reality in the future. ADIPEC is creating not only the dialogue, but also the delivery.”

The solution feeds control logic to pilot control valves. (Panametrics)

Panametrics offers a safe, cost-effective and reliable ultrasonic transit time solution for hydrocarbon liquid tank dewatering

This non-intrusive technology uses the velocity of sound in the fluid and the meter signal strength standard deviation to ensure accurate and efficient performance.

Storage tanks for liquid hydrocarbons may contain residual (sometimes salty) water, originating from crude oil that has not been fully separated. Additionally, other liquid hydrocarbons may become contaminated due to improper venting or leaks from the floating roof, a damaged rainwater hose, or various other reasons.

Since water and liquid hydrocarbons have different densities and velocities of sound, water will settle at the bottom of the tank, often accompanied by bacterial decomposition of the petroleum product. To maintain product specifications, water must be avoided during further processing or in finished products.

Tank dewatering at the outlet is essential to detect the water and liquid interface. To achieve this, various methods are available, including: conductivity (the most common solution), capacity, microwave or gamma source techniques. However, most of these solutions require protrusion making them susceptible to probe build-up which can lead to reliability issues and frequent, costly maintenance or safety hazards when using gamma source.

Using the Panametrics ultrasonic transit-time method, operators can detect the fluid changes by monitoring variations in the fluid’s speed of sound and increases in the signal strength’s standard deviation due to emulsions. This solution is reliable, cost-effective, maintenance-free and highly responsive.

As the transducers are mounted outside the pipe, they are not prone to wear and tear over time. By detecting even the slightest changes in the fluid’s velocity of sound and signal strength, the Panametrics solution feeds control logic to pilot control valves. This guides water and contaminated liquid hydrocarbons to the water treatment and slops units, while directing the liquid hydrocarbon to the treatment unit or plant outlet (ships, trains, trucks, pipelines) without wasting time and money due to contaminated products.

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