BP Puts AI at Heart of Efforts to Boost Performance
(Bloomberg) -- When engineers prepare to drill for oil, they know the spot deep underground where the well must end and can choose their starting point, but there are many possible routes in between.
Optimizing that subsurface path — evaluating geological opportunities and challenges to ensure a successful job — has been a time-consuming task for engineers. Now, through BP Plc's technology center in Houston, a new AI-powered tool is dramatically streamlining the process and running thousands of scenarios to determine the best trajectory. You may be interested in
'It basically takes the time it would've taken people to do that from months down to days,' said BP Executive Vice President of Technology Emeka Emembolu. The technology 'is a massive game changer and it's getting us better outcomes in the wells we're drilling.'
Artificial intelligence is being used by many companies across the oil industry. Exxon Mobil Corp. deployed the technology to help develop its flagship offshore discovery in Guyana. Autonomous drilling has played a role in productivity improvements seen in the US shale industry.
The potential for this technology to deliver significant gains in operational efficiency has particular relevance for BP. Under pressure from unhappy shareholders and aggressive activist investor Elliott Investment Management, the company is seeking to reverse a long period of poor performance by boosting growth and profitability.
After several years of focusing on clean energy, oil drilling has renewed importance as BP pivots back toward fossil fuels. The financial targets that underpin Chief Executive Officer Murray Auchincloss's strategy reset all require doing more with less — curbing capital expenditure, cutting costs, raising returns and giving more cash to shareholders.
To help achieve these goals, BP is pushing AI into every part of its operations, Emembolu said in an interview in London, where he will be speaking at the Tech Week conference.
'Our technology agenda is central to growing oil and gas, central to helping us focus our downstream business and to invest in the transition with discipline,' Emembolu said.
The drilling optimization tool is already being used in fields from the Gulf of Mexico — a key driver of US oil output growth this year — to Azerbaijan, where BP earlier this month advanced a $2.9 billion natural gas project.
In the Eagle Ford shale formation in Texas, Emembolu said an AI-generated 'morning report' is directing field hands to locations most urgently in need of work and reduce the amount of time spent driving between sites.
Near Chicago, where BP's Whiting refinery processes large volumes of crude from Canada, the company is working with Palantir Technologies Inc. to embed data engineers to optimize processes on site to reduce costs and improve operational uptime. Disruption at the facility can have a significant impact on BP's earnings, such as in the first quarter of 2024 when a storm led to a lengthy shutdown.
The technology is also being used outside of core oil and gas businesses — identifying optimal locations for the fastest electric-vehicle chargers; helping Indian motorists avoid lines at fuel stations with mobile notifications; advising German convenience store managers on how many pastries to bake each morning.
'In terms of costs, we're looking at things from all scales,' Emembolu said. 'Nothing is too big or too small for us to look at.'
(Company corrects name of shale basin in 10th paragraph.)
More stories like this are available on bloomberg.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
41 minutes ago
- Mint
Iran Warns of Retaliation to UN Watchdog's Nuclear Censure
(Bloomberg) -- Iran warned it will retaliate following a decision by the United Nations atomic watchdog to censure the Islamic Republic over its nuclear program, deepening a crisis that's also drawn in the US and Israel. The International Atomic Energy Agency's board of governors approved a resolution in Vienna on Thursday that deemed Iran in non-compliance of its international obligations, setting up a potential referral to the UN Security Council for a renewal of sanctions. Iran will 'consider appropriate responses, including initiating the process of withdrawing from the Treaty on the Non-Proliferation of Nuclear Weapons,' Iran's ambassador to UN, Saeid Iravani, said ahead of the vote, according to the state-run IRNA news agency. The breakdown in nuclear diplomacy comes alongside a corresponding rise in regional tensions. The US ordered some staff to depart its embassy in Baghdad and authorized families of military service members to leave the region, officials said, while US President Donald Trump said he's growing less confident about the prospects for a successful deal to impose new limits on Iran's nuclear program. Iran warned it could hit US military assets in the Middle East if the talks collapse and the Islamic Republic is attacked. Oil prices rose the most since October on the mounting tensions, before paring gains on Thursday. Negotiations between Iran and the Trump administration have stalled over whether or not Tehran's engineers will retain their right to enrich uranium. The US and Israel have publicly insisted Iran can't possess that key technology — critical for producing the fuel needed for nuclear reactors and bombs. 'A comprehensive deal is likely contingent on the US allowing Iran to retain some domestic enrichment capacity,' analysts at the Eurasia Group wrote in a note this week. Iran has previously offered to end its ramp up of highly-enriched uranium in exchange for sanctions relief, after producing a record volume over the last quarter. That material could quickly be turned into the fuel for the equivalent of 10 bombs, should Iran's leadership take the political decision pursue weapons. The IAEA's vote was highly divided, with 19 in favor — led by the US and European nations — and three against, including China and Russia. There were 11 abstentions. Russian diplomats, who have been asked by the Trump administration to facilitate a diplomatic solution with Iran, cautioned that passing the IAEA vote of censure carries significant risks. 'The adoption of the presented resolution will significantly reduce the chances' of a diplomatic resolution, wrote Moscow's IAEA envoy Mikhail Ulyanov in a statement. Instead, 'such an escalation will have the most negative consequences both for the IAEA and for the entire non-proliferation regime.' More stories like this are available on
&w=3840&q=100)
Business Standard
3 hours ago
- Business Standard
Block deals, IPOs surge as investors race to tap India's booming market
The South Asian nation saw $6.4 billion raised through share sales in May, the highest monthly total since December 2024, according to data compiled by Bloomberg Bloomberg India's market for share sales is warming up after a several dull months, as companies and shareholders cash in on a buoyant stock market. The South Asian nation saw $6.4 billion raised through share sales in May, the highest monthly total since December 2024, according to data compiled by Bloomberg. Block trades worth $5 billion were the biggest contributors, marking the busiest month for such deals since March last year. The momentum has carried into June, with at least 10 blocks raising $1.2 billion in the first week alone. Indian stocks are now positioned for more gains after the central bank on Friday delivered a bigger-than-expected interest rate cut and injected further liquidity into the banking system. This has supported a rally that's already underway, with the benchmark NSE Nifty 50 Index rebounding from its April lows, which were triggered by concerns over US President Donald Trump's broad tariffs. 'Right now, investors are saying, 'I need exposure to India — and I need it fast,'' said Sunil Khaitan, a managing director leading financing in India at Goldman Sachs Group Inc. 'Block trades remain the quickest and most efficient way to get that exposure.' The recent torrent of deals stands in contrast to the lull earlier in 2025, when local deals cooled off after a record-breaking year. India even ceded its position to Hong Kong as the world's second-largest market for share sales in the first three months of the year, weighed down by an unexpected slowdown in economic growth and cautious corporate earnings forecasts. Some of the largest recent block trades include British American Tobacco Plc's $1.5 billion sale of tobacco manufacturer ITC Ltd.'s shares, Singapore Telecommunications Ltd.'s $1.5 billion selldown of wireless carrier Bharti Airtel Ltd.'s stock and billionaire Rakesh Gangwal's $1.4 billion disposal of shares in IndiGo's parent company. Private equity firm Carlyle Group and South Korean automaker Hyundai Motor Co. were also among those paring their India holdings. The flurry of activity with blocks appears to be spilling over to IPOs. HDB Financial Services Ltd. recently secured a nod from the securities regulator for a first-time sale that could raise $1.5 billion. Prudential Plc's Indian asset management venture is also nearing a filing for a listing expected to fetch as much as $1.2 billion, according to people familiar with the matter. Better-than-expected corporate earnings and decent economic growth provide a robust backdrop for deals, which could include billion-dollar IPOs later this year, said Samarth Jagnani, Morgan Stanley's head of global capital markets for India and Southeast Asia. 'The second half will be better,' he said. Despite the recovery, Indian deals remain well below last year's $66 billion record. Total share sales — including IPOs, placements and blocks — have raised $15.5 billion so far this year, 29% lower from the year-ago period, according to Bloomberg-compiled data. Some IPOs are also moving ahead with tamer valuations: Solar-pump maker Oswal Pumps Ltd. this week said its IPO was looking to raise Rs 13.9 billion ($162 million), lower than what it targeted last year.
&w=3840&q=100)
Business Standard
3 hours ago
- Business Standard
Rupee gains for sixth day on weak dollar; opens higher at 85.43/$
The Indian Rupee extended its gaining streak to its sixth day on Thursday amid lower crude oil and softer crude oil prices. The domestic currency appreciated 8 paise to open at 85.43 against the greenback, after closing at 85.51 on Wednesday, according to Bloomberg. The currency has gained 0.13 per cent so far this month. The Indian rupee, which gained in the previous session, is expected to open higher as the dollar index weakened further, according to Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP. However, Asian currencies remain range-bound, he noted. The rupee is likely to trade within a range of 85.25 to 85.75, with dips being bought, Bhansali said. "Importers may consider short-term hedging near 85.25, while exporters are advised to wait for levels above 85.75 to hedge." The dollar index trades slightly lower, a day after the US inflation came in lower than expected. The consumer price index, excluding the often volatile food and energy categories, increased only 0.1 per cent from April. Following the inflation print, calls for the Federal Reserve to slash rates came from all sides. However, trade tensions remained after President Donald Trump said he would set unilateral tariff rates within two weeks. This came after the Chinese and US agreed to defuse the trade tensions. China will supply rare earths and magnets 'up front', and the US will allow Chinese students into its universities as part of a trade agreement. Amidst all this, the dollar index, which measures the greenback against a basket of six major currencies, was down 0.24 per cent at 98.39. The dollar slid on Thursday amid signs of a softer US stance on tariffs and rising expectations of Fed rate cuts after weaker CPI data, Bhansali said. The US is reportedly preparing a partial evacuation of its embassy in Iraq and allowing military dependents to leave parts of the Middle East. Following these developments, oil prices shot up to their highest in more than two months. Brent crude price was down 0.50 per cent to $69.42 per barrel, while WTI crude prices were lower by 0.45 per cent at 67.84, as of 9:15 AM IST.
