The world’s largest oil and gas companies are increasingly turning to artificial intelligence (AI) and related technologies to reduce costs, optimize operations, and increase earnings. Although digitalization has been part of the energy sector for years, the rise of AI has brought new opportunities for innovation and efficiency.
AI and Automation in Operations
Oil and gas companies are using AI-enabled drones, robot dogs, and autonomous vehicles for routine inspections and other operational tasks. These technologies aim to lower costs while improving safety and efficiency. For example, Imperial Oil, a Canadian producer majority-owned by ExxonMobil, has made significant strides in digitalization. The company has reported US$500 million (C$700 million) in cumulative annual savings as of 2024, with expectations of reaching US$860 million (C$1.2 billion) annually by 2027.
“We’ve deployed several robotics and drone technologies, including a fully autonomous truck fleet,” said Cheryl Gomez-Smith, senior vice president at Imperial Oil’s upstream division. “These initiatives are improving safety and work efficiency by removing human workers from hazardous tasks.”
At the Cold Lake bitumen project, Imperial Oil uses two robot dogs named Spot, developed by Boston Dynamics, for inspections. Spot is able to perform nearly 70% of operator rounds, allowing staff to focus on higher-value work. The company plans to add two more Spots this quarter. Another robot, named Holly, conducts truck and undercarriage inspections at Imperial Oil’s Kearl project, while the trucks are refueled autonomously.
Imperial Oil also employs drones, which are on the verge of being AI-enabled, to extract savings in pump jack maintenance, operator efficiency, and spill reduction.
ExxonMobil, Imperial’s parent company, is also using AI to improve its operations. The company has implemented autonomous drilling in deep water, particularly offshore Guyana, using a proprietary AI-based drilling advisory system. The system helps optimize drilling parameters and enables closed-loop automation, reducing the need for human intervention.
Chevron, another U.S. oil giant, is also leveraging AI to increase profitability. In the Permian Basin, Chevron uses AI to boost productivity, reduce cycle times, and optimize operations. Since 2019, the company claims to have improved execution performance by over 80%. Chevron is also working with Percepto to evaluate the use of AI-powered drones for remote inspections, which has already led to significant work hour savings and increased monitoring efficiency.
Middle Eastern Oil Giants Embrace AI
The top national oil companies (NOCs) in the Middle East are also adopting AI technology. Saudi Arabia’s Aramco, the world’s largest oil company, uses AI to improve the accuracy of seismic data analysis and optimize drilling operations, helping to maximize production and reduce costs.
Abu Dhabi’s ADNOC has developed ENERGYai, a first-of-its-kind AI solution tailored for the energy sector. The technology has been successfully tested in a proof-of-concept trial earlier this year.
The Potential and Risks of AI
Executives in the oil and gas sector see great potential in AI, especially for predictive maintenance of heavy equipment and intelligent optimization of operations. However, some areas, like reservoir simulations and drilling functions, may face more significant risks.
“Leaders who embrace these risks and allow their teams to fail will ultimately solve the AI puzzle and gain a competitive edge,” said Abhilash Krishna, a technology consulting manager at Ernst & Young.
But AI and digitalization come with their own challenges. Increased reliance on digital tools can expose companies to greater cybersecurity risks. According to the IBM X-Force 2025 Threat Intelligence Index, the energy sector was the fourth most targeted industry in 2024, accounting for 10% of all cyber incidents.
With energy infrastructure being crucial to global operations, its vulnerability to cyberattacks makes it a constant target for hackers. As the sector becomes more digitized, oil and gas companies will need to strengthen their cybersecurity measures to mitigate these risks.
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