Wood Mackenzie’s recently published report, Global Upstream: 5 Things to Look for in 2025, notes that a prevailingly optimistic upstream sentiment comes at a time of high geopolitical tensions, and both supply and demand concerns, setting 2025 up to be a year of mixed messages.1 It cites the following as key themes for the year ahead: “an increased focus on efficiency, resource capture being back in vogue, strategic M&As, Americas liquids growth outside the Permian, a new wave of LNG projects”.
The report places emphasis on the importance of efficiency in upstream: “This focus is not a new phenomenon, but operators will progressively lean more heavily on artificial intelligence (AI) and other sophisticated tools to optimise costs, production and revenues. The risk of global tariffs and softer prices adds impetus.”
AI has been part of the upstream oil and gas sector for years, particularly in data analytics, reservoir modelling, predictive maintenance, and automation of drilling operations. However, what seems to be changing is the pace of adoption. Several factors are pushing companies to accelerate their AI-driven strategies, rather than just experimenting with them. Let’s look at some AI-related upstream announcements from the first few weeks of 2025.
Repsol will boost its digital programme by incorporating AI agent systems, designed and deployed with the help of Accenture and built on the NVIDIA AI platform. This will help to improve the efficiency of processes as they are scaled across all company businesses.
Baker Hughes has signed an agreement with NNPC/FIRST Exploration & Petroleum Development Company JV to deploy the Leucipa automated field production solution. Leucipa enables oil and gas companies to manage production while minimising carbon emissions, harnessing data to promote smart operations. The solution will be launched offshore in the Niger Delta, marking the first implementation of the solution in sub-Saharan Africa.
SLB has announced the opening of its Africa Performance Centre in Luanda, Angola. The 3200 ft2 state-of-the-art facility will serve as a collaborative hub for industry stakeholders, providing access to innovative digital and AI solutions within Angola and Africa.
AI is driving efficiency, but will it lead to true transformation, or is it just another overhyped tool in an industry known for slow adoption? It’s clear that companies like Repsol, Baker Hughes, and SLB are moving beyond experimental AI use and embedding it into core business processes. AI-enabled automation is becoming standard: tools like Leucipa (Baker Hughes) and recently-launched DeepSeek’s AI models are being deployed in major projects, reducing reliance on manual operations and improving real-time decision making. And the shift from cost-cutting to AI-driven growth is happening; AI is increasingly seen as a sophisticated tool to unlock new resources, boost production, and enhance exploration success rates.
In this issue of Oilfield Technology, Andrew Law at Enteq Technologies explains why the adoption of AI in drilling marks a significant evolution in the sector (p.29), and Nanoprecise Sci Corp. presents the power of AI-driven maintenance (p.39). In addition, the Drill Docs article shows us how computer vision technology is supporting shaker surveillance on offshore rigs, and how the power of generative AI will further change the process of drilling automation (p.25).
AI adoption is no longer optional or a future consideration, it’s a necessity. The companies that adapt quickly will likely lead the next decade of energy production.
1. https://www.woodmac.com/news/opinion/upstream-oil-gas-2025-outlook
