AI Use Cases for E&P Companies

When thinking about how E&P companies can leverage AI, three specific areas stand out. We’ve been helping E&P companies streamline financial processes for 15 years, and based on that experience, we’ve started helping companies implement AI solutions to address challenges associated with joint venture audits, well master data, and contract management.

Below are three use cases for E&P companies to use as a starting point when implementing AI.

1. Improve Joint Venture Audits

Joint venture audits are complex. Multiple parties have individual accounting systems, processes, and even potentially different accounting standards depending on the region. It’s further complicated by the fact that JV agreements tend to be lengthy and cost allocation among joint venture partners can be a source of contention.

Tangible benefits of using AI:

• Accelerated audit process
• Easy access to reliable, high-quality data
• Detection of inconsistencies within disparate systems to avoid costly errors and delays
• Reduced audit time

2. Synchronize Well Data Across Systems

Most E&P companies are managing well data across multiple systems. Accounting depends on Production, which depends on Drilling and Reserves, and so on. Manual intervention is required to manage the flow of information and update each of the systems. Currently, departments are stuck waiting on each other to move things forward. Things are out of sync and managing well data isn’t as efficient as it could be.

Tangible benefits of using AI:

• Synchronized data across systems
• Reduced manual intervention
• Better information flow and communication across departments

3. Automate Contract Management

Many E&P companies manually review hundreds of contracts and lease agreements, which increases the risk of missed renewal deadlines and compliance failures. It’s time-consuming and detracts from other valuable activities. On top of that, it’s difficult to consistently track obligations and compliance terms.

Tangible benefits of using AI:

• Significantly improved lease renewal rates
• Reduced penalties and risk from missed deadlines
• Enhanced negotiation leverage

AI Implementation Needs Industry Experience

AI implementation is most effective when paired with industry experience. AI is new, and not all AI experts know the industry (and vice versa). Implementing AI without industry experience is like a professional football player receiving advice from a fan in the stands. They think they know the sport, but they’ve never suited up for a game themselves. They miss the nuances and complexities.

We’ve helped dozens of E&P companies fix processes, and we’re combining that experience with our AI knowledge to create secure AI solutions companies can leverage immediately. Email us at info@trenegy.com to chat about any of these use cases or other challenges.