This year artificial intelligence (AI) emerged as a game-changing technology across various industries, with the oil and gas sector standing as a prominent example of AI’s transformative potential. AI technologies, particularly machine learning (ML) and predictive analytics, have revolutionized how companies explore, extract, and manage oil and gas reserves.

However, the impact of AI in this field varies significantly between countries like the United States and Nigeria, driven by differing infrastructure, investment, and innovation capacities.

In the United States, AI has become an integral part of the oil and gas industry, particularly in optimizing exploration and production activities. A report by the American Petroleum Institute (API) revealed that over 70% of U.S. oil and gas companies have already integrated some form of AI or machine learning in their operations. The technology’s ability to analyze large sets of seismic data, predict reservoir behavior, and optimize drilling operations has led to reduced costs and improved safety in oil and gas operations. Notably, AI-powered systems help anticipate equipment failures, predict the best drilling locations, and enhance the accuracy of seismic imaging. These innovations are particularly beneficial for companies in the U.S. that are involved in shale oil production, a sector that requires high precision and cost-efficiency to remain profitable.

Meanwhile, Nigeria, despite having some of the world’s largest oil reserves, faces significant challenges in fully adopting AI technologies. As of this year, only about 15% of Nigeria’s oil and gas companies have started using AI-driven technologies, largely due to resource constraints, lack of technical expertise, and regulatory hurdles. The Nigerian oil and gas sector has long struggled with infrastructural limitations, security challenges, and insufficient investment in research and development. While Nigeria’s National Petroleum Corporation (NNPC) has taken steps to encourage technology adoption, the country still lags behind in fully integrating AI into exploration, drilling, and production processes.

One of the most striking statistics comparing the two countries is their respective oil production levels. The United States, with its advanced AI and automation systems, has reached approximately 12 million barrels per day (bpd) of oil production, a significant increase from its production levels a decade ago. On the other hand, Nigeria’s oil production has hovered around 1.5 million bpd in recent years, a sharp decline from its peak of 2.5 million bpd in the early 2000s. Experts attribute this drop to various factors, including inadequate technological adoption, outdated infrastructure, and political instability.
Dr. Magnus O. Kanu, a geophysicist with over two decades of experience in the Nigerian oil and gas sector, has played a critical role in the country’s efforts to advance seismic processing and interpretation. As the Head of Seismic Processing at Shell Nigeria, Dr. Kanu has led initiatives to deploy cutting-edge seismic workflows, including high-end technologies like reverse time migration (RTM) and machine learning algorithms to enhance subsurface imaging. His leadership in seismic data processing has been pivotal in improving Nigeria’s ability to assess geohazards, predict reservoir behavior, and optimize well placement. He emphasizes that AI, if fully adopted, could revolutionize Nigeria’s oil sector, bringing in much-needed efficiency and precision to exploration and production.

Dr. Kanu’s efforts go beyond technical expertise; he is a recognized leader in knowledge transfer and capacity building within Nigeria’s oil industry. He has worked diligently to train and mentor young professionals in seismic data processing and interpretation. His mentorship has led to the successful graduation of several engineers and geophysicists from Shell’s Graduate and Advanced Technical Programs.

“The future of Nigeria’s oil and gas sector lies in our ability to adapt and integrate technologies like AI, but we also need to invest in our people,” Dr. Kanu explains. “It’s not just about the technology itself; it’s about having a workforce capable of leveraging these innovations.”
The United States serves as a powerful example of how AI can propel a country’s oil and gas sector forward. Through AI-powered data analytics, predictive maintenance tools, and automated drilling systems, U.S. companies have reduced operational costs by billions of dollars.

For instance, Chevron and ExxonMobil are utilizing AI to predict the behavior of oil reservoirs, enhancing their decision-making processes and preventing costly operational failures. The lessons from the U.S. experience suggest that AI integration can lead to safer, more efficient, and environmentally friendly operations.

For Nigeria, the path forward involves several critical steps. First, the country needs to invest in building a strong digital infrastructure that can support AI technologies. This includes improving internet connectivity, upgrading computational power, and ensuring the availability of high-quality data for training AI algorithms. Additionally, Nigeria’s oil and gas companies must focus on upskilling their workforce to ensure they have the technical expertise required to operate AI-driven systems. Dr. Kanu recommends that companies invest in partnerships with global leaders in AI technology and create local centers of excellence that can train Nigerian engineers and geophysicists to adopt these technologies effectively.

A key lesson from the U.S. experience is the importance of collaboration. In the U.S., oil and gas companies work closely with technology firms, academic institutions, and government agencies to foster a collaborative environment for research and innovation. For Nigeria, such collaboration is essential to accelerate the adoption of AI. The Nigerian government, in partnership with international oil majors, should create policies that incentivize the use of AI in the oil sector while simultaneously providing a stable regulatory environment for technological investments.

Furthermore, Nigeria must address the security concerns that have long plagued its oil industry. AI can help improve security by enabling predictive maintenance and monitoring, but only if the necessary safety measures are in place. By creating a safer environment for both workers and infrastructure, Nigeria can enhance the effectiveness of AI in its oil and gas operations.

In conclusion, the rise of AI in the oil and gas industry marks a critical turning point for both the United States and Nigeria. While the U.S. has already made significant strides in integrating AI into its operations, Nigeria is still in the early stages of adoption. Dr. Kanu’s contributions to advancing seismic processing in Nigeria demonstrate that the country has the potential to harness AI’s full benefits, but it requires a coordinated effort across the private sector, government, and educational institutions. By investing in infrastructure, fostering collaboration, and building the necessary human capital, Nigeria can leverage AI to not only increase its oil production but also transform its entire oil and gas sector. As Dr. Kanu aptly states, “The future of the Nigerian oil industry hinges on our ability to innovate and embrace new technologies like AI to drive efficiency, sustainability, and growth.” If Nigeria can overcome its challenges and implement these recommendations, it has the potential to unlock the full value of its vast oil reserves and secure a more prosperous future for its people.