Downstream Operations: Refining, Storage and Distribution
Downstream operations are the powerhouse of the oil and gas value chain, driving the highest value creation. With AI integration, companies can achieve unprecedented levels of efficiencies in the refinery processes translating into millions of dollars in overall impact. Key applications include:
Crude Blend Optimization
Crude oil blending is done by refineries to optimize product quality, meet market demand, reduce energy consumption and adhere to environmental regulations. Factors such as API gravity, sulfur content and distillation curve play a significant role in determining the blend’s final properties. AI models can analyze the properties of the crude oils available, to recommend optimal blends as per requirements. AISPAK’s CrudeAI Blendix, takes into consideration different parameters such as oil quality, market demand and operational constraints to recommend the optimal blending strategy that maximizes profitability while ensuring product quality and regulatory compliance.
Refinery Turnaround Optimization
Refinery turnarounds are planned shutdowns designed to ensure the safe, efficient, and compliant operations of refinery facilities. These periods are critical for maintenance, inspections, and upgrades, enabling refineries to operate at peak performance while adhering to safety, design and regulatory standards. AI based refinery turnaround solutions support the PMO in ensuring that the milestones are being met within the budgeted cost and timeframes. Key features include prediction of delays, scenario analysis, optimized schedules in real time and monitor project execution. C3 AI’s Turnaround optimization solutions can improve efficiencies and effectiveness of refinery turnarounds planning. These solutions take into consideration the historical maintenance and inspection data, resource availability, past equipment performance data and other equipment sensors data to not only identify the risks but also recommended data-backed solutions to minimize losses.
Energy Management Solutions
As the industry is transitioning towards Net Zero, Energy Management solutions (EMS) play a crucial role due to their ability to optimize energy usage and reduce greenhouse gas (GHG) emissions. These solutions enable seamless integration of renewable energy into oil and gas operations by leveraging data analytics and machine learning to predict energy demand and optimize production. Enel X’s energy management solutions provide a bird’s eye view of a company’s energy consumption, costs and identifies opportunities for energy savings. The solutions aggregate data from equipment line sensors, utility bills, historical consumption trends, and ERP systems to pinpoint energy-saving opportunities and optimize GHG emissions control. With these AI-based continuous monitoring solutions across the operations, companies can optimize their energy use, reduce utility bills, lower GHG emissions and accelerate the transition towards Net Zero emissions.
Supply Chain Management
Supply Chain Management (SCM) allows businesses optimize and build resilient supply chain operations – from procurement of raw materials to the delivery of finished goods. AI plays a critical role in supply chain management by enhancing visibility across multiple stakeholders in real time to ensure smooth operations. These solutions support in buying the raw materials at the right price and at the right time, inventory management, demand forecasting and aligning production schedules, and route optimization and logistics. Enhanced supply chain integration ensures real-time coordination between refineries, distributors, and retailers, minimizing disruptions and maximizing profitability. Didero is re-defining the future of procurement with their AI agents automating the entire procurement process. C3 AI inventory optimization solutions reduce inventory requirements at an SKU level while improving service levels. Companies usually use material requirements planning (MRP) software to plan their inventory, however, this traditional software rely on historic demand-based forecast, available inventory, historic lead time and target safety stock to calculate material requirements. These systems lack the ability to consider the near-real time uncertainties such as delay in supplier lead times, inaccurate demand forecast etc. leading to lower service levels. C3 AI Inventory optimization solution addresses these challenges by aggregating data from multiple data sources such as bill of materials (BOM), supplier inventory movements, demand forecasts and internal stock transfers data to model uncertainties in demand, supplier delivery times and inventory positions to optimize reorder parameters thereby minimizing inventory holding and shipping costs at an SKU level. NextBillion.ai’s route optimization solution leverages artificial intelligence to determine the most efficient paths for transportation. Traditional route optimization algorithms rely on static maps and pre-determined routes which are inefficient and not flexible. AI algorithms can identify optimal routes by analyzing data such as traffic patterns, weather forecasts, road closures and delivery constraints to minimize travel time and logistic costs.
Fuel Retail Operations
AI is revolutionizing the fuel retail sector by streamlining the operations, enhancing customer experience and strengthening security measures. Internet of Things (IoT) has been the key enabler for developing AI based solutions driving a new and improved customer experience. Inventory optimization solutions from the pump level IoT monitors, designing rewards and loyalty programs and marketing campaigns-based customer buying behavior which can be analyzed through POS data and video-based analytics to monitor and alert in case security violations. For example, Microsoft’s Azure IoT Edge AI solution and Shell have partnered to deploy AI-based video analytics solutions at gas stations in Singapore and Thailand. These solutions process data in real-time to detect potential hazards such as smoking near fuel pumps, while questionable incidents are uploaded to cloud for advanced analysis. Alerts are raised instantly, enabling swift action to prevent potential disasters.
