Page 49 - Policy Economic Report - October 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

AI to be instrumental in realizing Prime Minister’s vision of a “Viksit Bharat” by 2047: Minister Hardeep
S Puri at ENRich 2024

Addressing the ENRich 2024, KPMG’s Annual Innovation and Energy Conclave, Shri Hardeep Singh Puri,
Minister of Petroleum and Natural Gas, underscored the pivotal role of artificial intelligence (AI) in
transforming the energy sector. With the theme “AI for Energy,” the Minister described the convergence
of AI and energy as both timely and transformative, marking a critical step in shaping the future of the
industry. He emphasized that AI is set to revolutionize operations, drive efficiency, and accelerate the shift
towards a more sustainable energy landscape.

The Minister highlighted how AI is rapidly being adopted across industries and will be instrumental in
realizing the Prime Minister’s vision of a “Viksit Bharat” by 2047.

Focusing on the oil and gas sector, Shri Puri shared how AI and generative AI (GenAI) are optimizing
operations by leveraging real-time data and insights. He pointed out that international oil companies are
making significant investments in AI to enhance operational efficiency, improve safety, and contribute to
the transition towards a low-carbon future.

Shri Puri noted that the Indian Public Sector Undertakings (PSUs) in the energy domain are also harnessing
AI and Machine Learning (ML) to improve safety, security, and operational efficiencies at various locations.
Through advanced tools like demand forecasting, customer analytics, and pricing analytics, AI is enhancing
the overall customer experience in the energy sector.

In the upstream oil and gas sector, the Minister said, AI-enabled mechanisms such as deep learning are
being used to analyze complex seismic data for identifying potential hydrocarbon reservoirs. Additionally,
he said, AI-based prediction of drilling complications and real-time optimization of drilling parameters has
proven effective in improving drilling efficiency and reducing operational costs.

Shri Puri noted the comprehensive integration of AI tools across the energy value chain, from upstream
exploration and production to midstream storage and downstream refining and distribution. He observed
that this shift marks a departure from the traditional engineering mindset that has long dominated the
industry.

As an example, he pointed to the modernization of India’s National Data Repository, now upgraded to a
cloud-based platform. This platform supported by a government investment of Rs. 7,500 crore, enables
instant access to seismic and production data, he noted.

Citing research by J.P. Morgan, the Minister discussed the potential of generative AI to increase global
GDP by $7–10 trillion over the next three years, leading to a major boost in workforce productivity and
reshaping the global economy.

Shri Puri further emphasized that India, with its growing economy, youthful population, and thriving tech
ecosystem, is poised to benefit greatly from AI. Reports suggest that AI adoption could contribute at least
Rs. 33.8 lakh crore to India’s economy by 2030, he said.

October 2024 Page | 48