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How Artificial Intelligence Could Trigger a Natural Gas Boom in Europe
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LONDON, March 5, 2024 /PRNewswire/ — When the use of seismic surveys became commonplace, Oil and gas drillers used to drill only in spots the human eye could detect from seismic and other data, but that’s all changing now. The next round of onshore discoveries is being aided by new Artificial Intelligence and Machine Learning software that sees what we can’t, forever disrupting the exploration game. Companies mentioned in this release include: Alphabet Inc. (NASDAQ:GOOGL), Amazon.com, Inc. (NASDAQ:AMZN), C3.ai, Inc. (NYSE:AI), Microsoft Corporation (NASDAQ:MSFT), International Business Machines Corporation (NYSE:IBM).
It’s been used around the world, and now, it’s being deployed in Austria and Germany by junior explorer MCF Energy (MCF.V; MCFNF.QX), the North American company that is the first to offer investors exposure to European natural gas since Russia invaded Ukraine.
MCF saw the value of this technology early on and has used it extensively wherever possible in their search for gas in Europe, according to its CEO, James Hill.
Natural Gas Paradise Beyond the Human Eye
In the past, humans only picked prospects to drill visually from the 3D seismic aided by visual hydrocarbon indicators in the data. Now, thanks to new software, they can drill in places they never would have before. AI and Machine Learning see what we can’t.
MCF Energy has both—the power of AI to see beyond the human eye, and prospects with a previously drilled well that produced gas in Austria, along with two previous discoveries in Germany. MCF has just started drilling at its Welchau prospect in Austria.
When this 40-day drill is complete, MCF is planning to move the drill rig to Germany, where it will re-open an oil and gas play of over 110 square kilometers in the Lech and East Lech concessions, which have already seen two historical discoveries and three previously drilled wells at Lech.
They’re not drilling blind, or with limitations of the human eye.
“The Machine Learning technology that MCF Energy is using allows for the computer to ‘see’ information within seismic data which the human eye cannot. This technology is a game changer and is only now being discovered by other operators,” MCF Energy’s Hill told Oilprice.com recently.
Using Paradise software, MCF Energy’s key AI analyst, advisor Deborah Sacrey, has a prediction success rate of over 80% for drilling in areas that are not visual to humans on the data. She has 9 discoveries of this nature to her name, according to the company.
Paradise software isn’t proprietary, but only a small field of experts have the ability to use it effectively, and MCF Energy (MCF.V; MCFNF.QX) has the advantage of having one of its developers on its board.
The power of supercomputing has now reached the point of being able to sample data within a 3D seismic volume and break down the waveforms into over 50 “neurons” that each have different attributes of waves. Those “neurons” are then matched up to well information in both dry and producing wells. And comparing this treasure trove of data then yields a unique set of “neurons” that identify gas, oil, porosity and many other factors that control production.
According to Sacrey, Paradise analyzes seismic data 15 times more densely than other existing software, allowing it to distinguish very thin beds of deposition in the subsurface and see thin streaks of porosity that the human eye cannot.
Paradise’s Fault Detection uses deep learning and machine learning to detect faults automatically, and generates attributes to extract meaningful geological information.
Paradise software applies Self-Organizing Map (SOM) unsupervised machine learning to reveal stratigraphic facies and their distributions, and captures facies based on distinctive seismic patterns using Convolutional Neural Network (CNN) deep learning technology.
How AI Is Changing Exploration & Discovery
The oil and gas industry is AI’s and Machine Learning’s biggest cheerleader.
Forbes calls the changes “profound,” noting that the world’s top 20 oil and gas producers all have major AI strategies for every point along the chain.
Mordor Intelligence projected oil and gas spending on AI to close out 2023 at $2.38 billion, and to reach $4.21 billion by the end of 2028.
Now, as MCF Energy (MCF.V; MCFNF.QX), prepares for its first drill in Germany, it’s armed with a significant AI and Machine Learning advantage for targeting drills in plays abandoned by supermajors decades ago, before Europe realized it couldn’t survive on cheap Russian gas anymore.
MCF’s Lech prospect in Germany came with a modern 3D seismic survey of over 160 square kilometers of 3D seismic data to apply new Paradise Machine Learning technology to. “Using this,” said Hill, “we were able to identify the gas-bearing zones precisely and compare them to the rest of the area. We compared the known gas-bearing area in Lech with the rest of the survey covering Lech East and identified multiple prospects with great potential.”
Paradise’s AI – Machine Learning Workbench distinguishes thin beds and Direct Hydrocarbon indicators while identifying and calibrating detailed stratigraphy and automatically detecting faults and revealing fracture trends. It also classifies seismic facies, isolates geobodies and calculates potential oil and gas volumes.
“This proven technique greatly reduces the risk in drilling and helps target the best possible places and depths to drill these wells,” Hill said, adding that it has had a prediction success rate of over 80% when it comes to predicting the geology to identify previously unseen discoveries.
Big Tech is Turning the Oil and Gas Sector on Its Head
Google Cloud, a product of Alphabet Inc. (GOOGL), is redefining the oil and gas industry’s approach to digital transformation with its cutting-edge AI and cloud technologies. Through strategic partnerships with industry leaders such as Schlumberger and Baker Hughes, Google Cloud is enabling these companies to leverage cloud computing, data analytics, and machine learning to optimize operations, enhance exploration efficiency, and reduce environmental impact.
The partnership with Schlumberger, for instance, has resulted in the DELFI cognitive E&P environment, which utilizes Google Cloud’s AI and data analytics capabilities to revolutionize oil and gas exploration and production.
Amazon Web Services (AWS), a product of Amazon (AMZN) has emerged as a key technology partner for the oil and gas industry, offering cloud services that enable companies like BP and Shell to harness the power of AI, machine learning, and data analytics for operational improvement and innovation.
The partnership with BP, for example, showcases how AWS’s cloud computing capabilities can accelerate digital transformation efforts, streamlining data management and enhancing decision-making processes.
C3.ai (AI) stands at the forefront of AI innovation in the oil and gas industry. Through partnerships with industry leaders like Baker Hughes and Shell, C3.ai is directly contributing to the sector’s digital transformation, leveraging AI to tackle some of the most challenging operational issues faced by oil and gas companies.
The collaboration with Baker Hughes, forming the BHC3 alliance, exemplifies how AI technology can be applied to predict maintenance needs and optimize operations, thereby improving safety and reducing downtime. Shell’s deployment of C3.ai’s applications showcases the potential of AI to impact operational decision-making and efficiency significantly, setting new standards for the industry.
Microsoft ( MSFT), through its Azure platform, is leveraging its cloud computing, AI, and machine learning capabilities to drive innovation and efficiency. And strategic partnerships with companies like Chevron and Schlumberger are fueling the digital transformation of the oil and gas sector.
The collaboration with Chevron, for instance, utilizes Microsoft’s cloud to streamline data analysis, enhancing the speed and efficiency of decision-making processes. Similarly, the partnership with Schlumberger through the DELFI environment integrates Azure’s AI and data analytics to innovate in exploration and production workflows.
IBM (IBM) is at the cutting edge of integrating AI and cognitive computing technologies into the oil and gas industry, significantly enhancing operational efficiencies and predictive capabilities. Even ExxonMobil and Halliburton are using its IBM Watson platform.
IBM’s collaboration with ExxonMobil leverages Watson’s power to analyze geological data and improve the accuracy of exploration activities. This partnership exemplifies how AI can transform data into actionable insights, leading to more efficient resource discovery and extraction processes.
By. James Stafford
Forward-Looking Statements
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that large oil and gas companies will continue to focus on offshore natural gas resources; the impact of AI technologies on the oil and gas industry and its ability to identify valuable exploration targets; that domestic onshore natural gas assets in Europe will provide a more affordable energy source than offshore resources; that demand for natural gas will continue to increase in Europe and Germany; that Russia will not supply the majority of natural gas in Germany and Europe; that natural gas will continue to be utilized as a main energy source in Germany and other European countries and demand for natural gas, and in particular domestic natural gas, will continue and increase in the future; that MCF Energy Ltd. (the “Company”) can replicate the previous success of its key investors and management in developing and selling valuable energy assets; that the natural gas projects of the Company will be successfully tested and developed; that the Company can develop and supply a safe, domestic source of energy to European countries; that natural gas will be reclassified as sustainable energy which will support the development of the Company’s assets; that imports of liquified natural gas will not be sustainable for Europe and that European countries will need to rely on domestic sources of natural gas; that the Company expects to obtain significant attention due to its upcoming drilling plans combined with Europe desperate for domestic natural gas supply; that the upcoming drilling on the Company’s projects will be successful; that the Company’s projects will contain commercial amounts of natural gas; that the Company can finance ongoing operations and development; that the Company can achieve its business plans and objectives as anticipated. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the expected benefits from using AI technologies may not be as significant as expected, that large oil and gas companies will start focusing on the development of domestic natural gas resources; that the natural gas resources of competitors will be more successful or obtain a greater share of market supply; that offshore liquified natural gas assets will be favored over domestic resources for various reasons; that alternative technologies will replace natural gas as a mainstream energy source in Europe and elsewhere; that demand for natural gas will not continue to increase as expected for various reasons, including climate change and emerging technologies; that political changes will result in Russia or other countries providing natural gas supplies in future; that the Company may fail to replicate the previous success of its key investors and management in developing and selling valuable energy assets; that the natural gas projects of the Company may fail to be successfully tested and developed; that the Company’s projects may not contain commercial amounts of natural gas; that the Company may be unable to develop and supply a safe, domestic source of energy to European countries; that natural gas may not be reclassified as sustainable energy or may be replaced by other energy sources; that the upcoming drilling on the Company’s projects may be unsuccessful or may be less positive than expected; that the Company’s projects may not contain commercial amounts of natural gas; that the Company may be unable to finance its ongoing operations and development; that the Company can achieve its business plans and objectives as anticipated; that the Company may be unable to finance its ongoing operations and development; that the business of the Company may be unsuccessful for various reasons. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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