Digitalization is also advancing inexorably in the energy sector. The oil and gas industry in particular is increasingly recognizing the enormous potential of artificial intelligence (AI) - not only to optimize processes, but above all to avoid costly downtime.
Industry in transition
According to a recent survey, 92 % of companies in the oil and gas industry are already investing in AI or are planning to do so. A key driver: the potential savings from reduced downtime and more precise maintenance.
Efficiency gains through predictive maintenance
Shell provides a prime example: thanks to AI-based monitoring technologies, the company was able to reduce unforeseen downtimes by 20 % and save 15 % in maintenance costs at the same time. This is made possible by predictive maintenance - i.e. the data-supported prediction of system failures. Modern sensor technology monitors parameters such as temperature, vibration, pressure and fill levels and compares these with historical operating data. According to studies, the forecasting accuracy is around 90 %.
Cost factor failure
The economic relevance is enormous: a single hour of unplanned downtime can quickly cost up to 500,000 US dollars - whether through contractual penalties, loss of production or environmental damage. Such scenarios can be significantly reduced with AI.
Data quality as a success factor
But AI is only as good as its database. Incorrect or incomplete data leads to so-called "AI hallucinations" - i.e. unreliable predictions. Studies show: A continuous improvement in data quality can reduce unplanned failures by up to 40 %.
Skills shortage as a brake
A key obstacle remains the lack of experts with both process knowledge from the oil and gas industry and AI expertise. Targeted training initiatives are needed here to close the technological gap.
Conclusion
Those who invest in data quality, AI expertise and predictive maintenance today can avoid downtime tomorrow and secure a strategic advantage in the long term. Artificial intelligence is no longer a topic for the future in the oil and gas industry - it is already a reality.
Sources and further links:
- World Economic Forum: AI in Oil & Gas
- Shell AI Case Study - MIT Technology Review
- International Energy Agency: Digitalization & Energy
Drivers of the price increase
Several factors are contributing to this increase:
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Energy transition and electromobility: Copper is a key component in the manufacture of electric vehicles, solar panels and wind turbines. An electric car requires around 80 kg of copper, while a conventional vehicle only uses around 23 kg. The International Energy Agency forecasts that almost half of the world's electricity will come from renewable energies by 2030, which will further drive demand for copper. metal.comviridianmetals.com
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Increase in investments: Institutional investors and hedge funds are increasing their exposure to the copper market in anticipation of further price increases due to the ongoing shortage.
Challenges on the supply side
While demand is increasing, there are several challenges on the supply side:
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Decrease in ore content: Many existing copper mines are experiencing falling ore grades, which is making production more expensive and slowing it down.
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Delays in new projects: The development of new mines requires considerable investment and time. According to UNCTAD, around 80 new mines and investments amounting to 250 billion US dollars could be required by 2030 in order to meet rising demand. UN Trade and Development (UNCTAD)
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Geopolitical risks: In countries such as Peru, Chile and Indonesia, which together account for over 40 % of global copper production, political uncertainty and regulatory changes are leading to production shortfalls and delays in projects. streetwisereports.com
Outlook
Experts predict that the price of copper could rise to up to USD 5.44 per pound by 2026, which corresponds to an increase of around USD 11 % compared to the current price. The combination of rising demand and limited supply could shape the copper market in the coming years.euronews
For investors and companies, this means that copper is playing an increasingly strategic role in the global economy. Developments on the copper market should therefore be monitored closely, as they harbor both opportunities and risks.
Note: This article is based on current market analyses and forecasts. Actual developments may differ from the scenarios presented here.
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