Machine Learning: Can AI change Oil and Gas?


In the most simple terms, Machine Learning takes a data set and using some algorithm to predict or forecast based on historical data, what the outcome will be in the future. When an appropriate model is selected, it will provide the organization a recommendation regarding the amount of inventory to carry based on historical data and correlations with different external factors. So in a way if oil prices fall below 50/barrel, Machine Learning can help oil and gas organizations predict what level of inventory to carry the following year based on the oil price trend. No longer would organizations have to use fuzzy forecasts to make demand predictions, correlation models will significantly help them understand the inventory requirements.