The future of the oil and gas industry has seen a lot of change over the last few years. With the drive for more sustainable and green energy being a prime focus around the globe, researchers are turning to big data analytics and AI for the future outlook of these fossil fuels.
Researchers from Rossiiskii Universitet Druzhby Narodov (RUDN) University have presented an algorithm for enhancing economic sustainability in both fragile industries.
RUDN Study
The study composed by RUDN analyzed data from Russia’s biggest oil and gas providers – Lukoil and Gazprom – between 2020 and 2022 using a trend analysis method. Each report compared with a number from the same positions in previous periods. The authors then compared the results by leveraging integration of 4.0 technologies – such as artificial intelligence, the Internet of Things (IoT), and big data.
First published in Resources Policy, the study was prompted by a dramatic oil price crash in the first months of the global pandemic in 2020. Oil price dropped by nearly 70% in this short period, with even more crisis in 2022.
Pandemic Effects
Following the pandemic, the global demand saw energy prices rise to highs still felt today.
This dramatic shift had paradoxically had adverse effects on the industries according to researchers. Oil and gas companies aim to not create a social and ecological advantage, instead choosing to issue attractive reports on sustainable development to improve their reputation following these crises. The attention from researchers has focused on imperfections when it comes to corporate reporting for oil and gas companies.
RUDN discovered that the adoption of Industry 4.0 methods stood to significantly bolster a resilience during times of crisis, with the data collection methods and analysis bringing order to corporate reporting and government oversights.
Three Step Algorithm
Devised by RUDN economists, the algorithm is constructed of three main steps. The first is an automated collection of data using IoT tools and big data to generate extensive data sets. Following this, the second step consists of the AI analyzing all the data, culminating in the third step of generating comprehensive reports based on the findings.
This breakthrough technology of Industry 4.0 has significantly increased resilience towards the crisis in the oil sector, with a management method proposed and based on data sets automating corporate accounting and government monitoring. Sustainability reports can stimulate sustainable growth within oil and gas companies by tracking activities in the public and private sectors. That allows for a comparison of the contribution of different companies to sustainable development in the entire sector.
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