Biggest risk to oil and gas is artificial intelligence, Microsoft executive says

CNBC/16 November 2017

Artificial intelligence (AI) poses the greatest threat to the oil and gas industry over the next five to 10 years, according to Microsoft‘s oil and gas director for the Middle East and Africa.

Speaking at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC) on Wednesday, Omar Saleh said technology disruptions over the past three years had been a “wake-up call” for all oil and gas firms.

He said AI would be of “massive importance” to the industry over the coming years, but added that it would also pose the greatest risk to the oil and gas sector overall.

The U.S. shale revolution paved the way for a three-year oil price downturn that sent crude spiraling from more than $100 a barrel in 2014 to about $60 today. That has piled pressure on the oil-dependent economies of OPEC nations and forced a round of production cuts this year.

On Tuesday, Baker Hughes GE CEO Lorenzo Simonelli said “continuous disruption” in the oil and gas industry should be viewed positively.

News Source: CNBC