By Abdulla Mohamed Al Hammadi*

The scope of artificial intelligence (AI) technologies extends across various economic sectors and life activities, providing valuable insights and analyses that enhance operational efficiency. The energy industry is no exception. 

AI has the potential to address challenges, improve energy efficiency, and optimise energy use, particularly amid the ongoing shift toward climate neutrality, rapid AI advancements, and increased investments in sustainability.

In this context, Abu Dhabi National Oil Company (ADNOC) has been integrating AI applications across its operations, leveraging technology to enhance productivity, efficiency, and emission reductions. 

As a result, between 2022 and 2023, ADNOC managed to reduce one million tonnes of CO2 emissions. AI has proven effective in reducing greenhouse gas emissions and creating zero-emission energy solutions, supporting a practical and organised energy transition.

Building on ADNOC's progress, Abu Dhabi Future Energy Company "Masdar" has entered into a strategic partnership with the global tech giant Microsoft to collaborate on AI and low-carbon solutions.

This agreement focuses on deploying low-carbon solutions in ADNOC's operations, implementing methane emissions reduction initiatives, assessing opportunities to power Microsoft's data centres with renewable energy, and developing projects for carbon capture and storage and low-carbon ammonia and hydrogen.

AIQ, a joint venture between ADNOC and G42, in collaboration with Microsoft, has developed the Agentic AI tool to autonomously and proactively enhance operational processes, reducing the time required for seismic surveys from months to days. 

AIQ has also created the ENERGY.ai solution to boost productivity, improve efficiency, create value, and cut energy emissions. ADNOC now employs AIQ's advanced reservoir management tool (AR360) in over 30 oil fields to optimise oil and gas field development.

The convergence of the energy sector and AI represents a transformative shift, leveraging big data analytics and machine learning algorithms to optimise operations, predict energy demand, and enhance energy storage and demand response systems. 

However, the integration of AI in energy also represents challenges, including cybersecurity threats, high costs, and regulatory and legal frameworks. Addressing these risks through vigilance and preparedness is crucial to unlocking AI's full potential in the sector.

The UAE is banking on AI to foster economic growth by advancing the fossil fuel industry, particularly in enhancing the efficiency of exploration, production, distribution, storage, refining, resource management, operations, and maintenance. 

AI is seen as a key driver of transformation in the oil and gas industry, with the AI market in the sector valued at approximately $2.4 billion in 2023. 

Its immense potential lies in optimising operations, enhancing safety standards, and streamlining supply chain management. In renewable energy, AI analyses production, consumption, weather, wind, and solar data to improve resource utilisation efficiency, reduce costs, and assist decision-makers with accurate economic and developmental forecasts to anticipate supply and demand levels. AI also plays a pivotal role in accelerating the transformation of the energy sector's future.

The adoption and localisation of AI applications represent an advanced step toward optimising fossil fuel extraction and usage. By embracing innovative technologies to improve processes, this transition supports progress toward renewable energy by reducing associated costs, creating favourable environmental conditions for expanding production, and enhancing the storage and distribution of renewable energy.

*The writer is the Head of the Advisory Sector at TRENDS Research & Advisory