Tech Tuesday | Future of Petroleum Industry

Petroleum is the primary source of energy for transport and household. With rapid growth of emerging economies like India, the demand for fossil fuel will increase with time. Per capita consumption of oil and gas is significant low in majority of population of the world. With growing aspirations and purchasing power of people, the per capita consumption of energy will steadily increase in coming decades. Govt. of India’s social welfare schemes like availability of clean energy for cooking to all households in India and piped gas supply to urban households require large amount of hydrocarbons in coming years.

Although there is hype around electrical vehicles, internal combustion engine will remain primary engine in automobile industry due to its efficiency, power and reliability. There are concerns that oil reserves will finish in another couple of years, which is again a fiction rather than fact. Oil companies still recover only 30 % from existing reserves due to various techno-economic reasons. If recovery factor increases by another 5%, it implies recovery of crude worth billions of dollars and reserves for another several decades. There are still huge reserves of Oil and gas present inside earth, which is sufficient to meet of our requirements for decades to come. The need of hour is use of advanced technologies related to data acquisition, interpretation and automation, which can reduce the cost of production of oil and gas. Next gen technologies like AI, ML, cloud computing and robotics can help in exploration and production of hydrocarbon. Digital transformation of this sector is in pipeline.