AI could unlock $230 billion annually in upstream oil and gas: McKinsey
The technology could boost production, cut operating costs, improve capital productivity and reshape risk and balance-sheet profiles across the value chain
A recent report by McKinsey & Company suggests that artificial intelligence could unlock approximately USD 230 billion in annual value across the global upstream oil and gas sector as the technology matures and autonomous operating modes become more common. The report estimates that AI can create value through four main channels: increasing production, reducing operating costs, improving capital productivity, and changing the risk and balance-sheet profile of assets.
The medium-term potential could reach approximately USD 125 billion annually as proven technologies are adopted more broadly, while the full-term potential of approximately USD 230 billion assumes autonomous operating modes and maximum addressability across the value chain.
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- AI could unlock $230 billion annually for upstream oil, gas sector: McKinsey economictimes.indiatimes.com
