From the Wellbore to the Neural Network: How the World’s Biggest Oil Companies Are Betting on AI

What is LNG?Liquefied natural gas (LNG) is natural gas that has been reduced to a liquid state, through a process of cooling. LNG is odorless, colorless, non-toxic, and non-corrosive, but hazards include flammability after vaporization into a gaseous state, freezing, and asphyxia. It is typically 85-95% methane, which contains less carbon than other forms of fossil fuels, and also contains tiny amounts of ethane, propane, butane, and nitrogen. Why does LNG matter to energy security?In order to solve the energy trilemma—which means finding a balance between affordability, environmental sustainability, and energy security—LNG is essential. Since it effectively removes pollutants like SOx and NOx, liquefied natural gas (LNG) is acknowledged as a more environmentally friendly fuel substitute that helps to lower greenhouse gas emissions. It is the cleanest burning hydrocarbon that provides a clean solution to industrial sectors that need a high calorific value and the most difficult to electrify. It also can be used in a variety of industries, including power generation, manufacturing, and transportation. Natural gas power generation emits 45% to 55% less greenhouse gasses than coal. In developing economies, it will replace traditional biomass in heating and cooking which helps to reduce the health impacts of localized emissions from other fuels. As a fuel for heavy-duty road transportation, LNG has also demonstrated a notable decrease in emissions (both greenhouse and particulate) when compared to alternative fuels, thus helps diversify the fuel mix and lower air pollution. The benefits of using LNG in the oil and gas industry and its role in clean energy transitionsThe oil and gas industry is playing an important role in the energy transition by providing affordable and reliable energy. The industry is working through many cross-sector initiatives on the scale-up of quantification and resolution of methane emissions. An increasing number of oil and gas companies are part of the growth in the renewable energy sector investing in and producing energy through renewable technologies, in particular, wind, solar power, and biofuels. By reducing greenhouse gas emissions from operations through energy efficiency, flare reduction, and methane management, as well as increasingly powering operations with low-carbon or renewable energy sources, the oil and gas industry can considerably contribute to a net zero future. And through the increasing adoption of improved engine-fuel system efficiencies and the development of low-carbon mobility technologies like electric vehicles, biofuels, liquefied natural gas, ammonia, and hydrogen fuel cells, companies are also helping their customers to reduce their emissions.Strategic deal trends and projects in LNG in oil & gas industryGlobal demand for LNG is expected to continue growing. According to McKinsey, LNG demand is projected to grow by 0.5 percent from 2035 to 2050, with more than 200 million metric tons of new capacity required during this period. The share of LNG in the global gas supply is expected to increase from 13% to 23% by 2050, as it meets demand growth and replaces declining pipeline and domestic gas. The urgency to meet this demand is intensifying due to growing energy demand from regions such as Asia and the declining supply of domestic gas and the interruption of piped supply (such as Russian piped gas supply to Europe).

This year's Welcome Party Member event is taking an exciting step by integrating with the Oil & Gas 101 session from the Science Course Division. Taking place in the Auditorium Pascasarjana at ITS on Thursday, October 5th, this combined event is split into two key segments: department introductions and Oil & Gas 101.The event kicks off with a warm welcome from the master of ceremonies, followed by an opening speech to set the stage. Subsequently, the spotlight shifts to the introduction of each department in SPE ITS SC by directors and heads of divisions. This provides members with a snapshot of the different aspects and work programs that SPE covers.Following these department presentations, an interactive question-and-answer session follows. Here, members had the chance to engage with the Board of Directors and the Heads of Divisions to seek clarification and dive deeper into SPE ITS SC’s work programs. This open dialogue gave members a platform to address specific queries and concerns they might have had about the organization's activities. Many took advantage of this forum to delve into the finer details of SPE ITS SC's work programs, seeking a better understanding of how they could actively participate and contribute.Once the first session wrapped up, the second segment started—Science Course Division's Oil & Gas 101. In this segment, the speaker provides a comprehensive overview of the oil and gas industry fundamentals. Abdul Quddus Al Kahfi as the speaker thoughtfully breaks down the intricacies of the industry, highlighting its three crucial operation stages: Upstream, Midstream, and Downstream. Additionally, the audience gains insights into the latest developments and innovations shaping the sector's landscape. The primary goal here is to provide SPE ITS SC members with a robust and foundational understanding of this field.As with the department introductions, the Oil & Gas 101 session is followed by an engaging question-and-answer segment. Several members posed intriguing questions, reflecting their eagerness to delve deeper into the materials presented and their genuine interest in the future prospects of the oil and gas industry.To cap things off, participants had the opportunity to put their newfound knowledge to the test with the Petroquiz, managed by the Research and Information Division. This exciting quiz is a chance to apply what they've learned and add a touch of friendly competition to the event. All in all, this integrated Welcome Party Member presented an insightful and engaging experience for all participants.“The welcome party for new members by SPE ITS SC was very fun and valuable. Because from this event, I gained a lot of new knowledge and met other members who have the same interest in the petroleum industry.” Giody, a first-year student in Marine Engineering who won the Petroquiz, explained that he decided to attend the welcome party because he has a strong desire to learn more about the oil & gas sector in Indonesia. He felt that attending the event strengthened his decision to join SPE ITS SC as a member and he hoped that this would be a place for him to grow and learn more about the oil and gas industry. Written By: Arya Nugraha Aulia Rahman Yusup

Early in 2024, there is a heightened risk of disruptions to the global oil supply due to the conflict in the Middle East —a region that supplies one-third of the world's seaborne oil trade— especially for oil flows that pass through the Suez Canal and the Red Sea. The International Energy Agency (IEA) has warned that the US and UK airstrikes on Houthi targets in Yemen in response to attacks on tankers in the Red Sea have expressed worries  about the potential for an escalation of the conflict. This important trade route handled almost 10% of the world's seaborne oil commerce in 2023, or about 7.2 million barrels per day (mb/d) of crude and oil products, as well as 8% of the world's trade in liquefied natural gas (LNG). The primary alternate shipping route around the Cape of Good Hope in Africa prolongs voyages by up to two weeks, which puts strain on international supply systems and raises the cost of freight and insurance.Stable oil prices despite escalating tensionsOil companies are taking a cautious stance in response to these escalating geopolitical tensions in the Middle East. Mike Sommers, CEO of the American Petroleum Institute, has expressed worries about the growing chance of the crisis intensifying and derailing oil supplies. And although Oil prices have stayed comparatively steady despite the tensions; some experts attribute this to the impact of economic considerations on oil prices. Thus far, the Houthi raids and other Red Sea disruptions—such as the diverting of supplies away from the Suez Canal—have not had a substantial effect on energy prices. Experts have cautioned that tensions in Iran, particularly around the Hormuz, may have an impact on oil prices and that the longer the violence in Gaza continues, the more likely it is that a regional crisis may break out. The closure of important trade routes, which would have previously led to a significant increase in energy prices, has not had the same effect due to the market's confidence in the availability of supply.Assessing Supply and DemandThe World Bank's Commodity Markets Outlook in October 2023 provided a preliminary assessment of the potential near-term implications of the conflict. In a "medium disruption" scenario, the global oil supply would be reduced by 2-4 million barrels per day, initially increasing oil prices by 21% to 35%. In a "large disruption" scenario, with a reduction of 5-10 million barrels per day, oil prices could increase by 56% to 75% initially. Additionally, The IEA has revised its forecast for oil demand upward, anticipating a larger increase in global oil demand in 2024. The IEA's forecast indicates a balanced oil market, with world oil demand expected to grow by 1.1 million barrels per day in 2024, and non-OPEC supply growth projected to reach 1.2 million barrels per day. This balanced outlook is significant, considering the potential impact of the geopolitical tensions and disruptions in the Red Sea on the global oil supply. The agency's assessment of a "comfortable" oil market in 2024, despite the disruptions in the Red Sea, reflects the resilience of the oil market due to factors such as ample oil and gas supply, weaker demand in certain countries, and the ability of tankers to find alternative routes to deliver oil and gas products. ConclusionWhile the present upheavals and wars aren't having a big effect on the world energy markets, the international community should still be prepared and pay close attention to the Middle East's ongoing volatility. The developing scenario in the region could result in further escalation and have an effect on the energy landscape. Thus, in 2024, it will still be imperative to keep an eye on Middle Eastern geopolitical developments and any potential effects they may have on the energy markets.Written By: Arya Nugraha Aulia Rahman YusupReferences:Oil prices steady despite Middle East tensions, but risks are rising | Oil and Gas News | Al JazeeraOil Market Report - January 2024 – Analysis - IEAConflict in Middle East Could Bring ‘Dual Shock’ to Global Commodity Markets (worldbank.org)Geopolitical tensions in Middle East bear risks for oil supplies — IEA - Business & Economy - TASSIEA's Birol predicts 'comfortable' oil market despite Red Sea disruption | Reuters

Recognizing the alarming statistics of self-harm and suicide, often associated with mental health challenges, and understanding the significance of physical health in shaping individual well-being, the Community Outreach Division of SPE ITS SC has taken initiative by organizing a seminar titled "HEAL: Healthy Empowerment and Active Living," in collaboration with Ikatan Psikologi Klinis (IPK) HIMPSI.“The Community Outreach Division initiated this idea, recognizing the alarming statistics in global and local contexts, including Surabaya. Mental and physical health issues are on the rise and could become a significant problem for families and communities in the coming years. To counteract this trend, we organized this event with the hope of making a positive impact now and expanding our influence in the future.” said Afrizal Randy as the PIC of the event.This collaboration with HIMPSI was established based on the shared alignment of visions between the two. The decision was also influenced by the esteemed reputation of HIMPSI, recognized as the most extensive professional psychology organization in the country. Boasting a network of 2900+ active Clinical Psychologists among 3800+ verified practitioners spread across Indonesia, HIMPSI brings a wealth of experience and expertise to enhance the success and credibility of this event.Taking place on Saturday, November 25th, 2023, at Auditorium Pascasarjana, this event garnered substantial attendance, drawing participants not only from ITS but also attracting students from other places including UNAIR and UNTAG.The event kicked off with a speech from Kavindra Natha Wilasa, as the Director of Public Relations at SPE ITS SC, highlighting the importance of mental and physical well-being. This insightful introduction paved the way for the main event—a seminar led by Mrs. Cita Juwita Alwani Rozano, S.Psi., M.Psi., as the psychologist representing Ikatan Psikologi Klinis (IPK) in the Himpunan Psikologi Indonesia Jawa Timur section. Mrs. Cita commenced by providing valuable insights into the importance of mental health and overall well-being. Building upon this foundation, she then delved into emotional intelligence, shedding light on its profound impact on mental health, and sharing practical strategies for better emotional control. Mrs. Cita also addresses prevalent issues that many people struggle with, offering guidance on fostering a healthier relationship with social media. Additionally, she shared valuable insights on overcoming procrastination, a hurdle that many, particularly the younger generation, grapple with in today's fast-paced world.Following the informative session, the atmosphere heightened during the engaging Q&A session with Mrs. Cita responding to queries from the audience. The committee facilitated audience interaction by offering a Slido link for those who wanted to ask questions, ensuring a more open and accessible platform for engagement This facilitated an open environment where numerous participants seized the opportunity to share and seek advice on their personal mental health problems. From minor anxiety issues to more profound struggles with depression, the audience actively participated in the conversation. The questions also spanned various aspects of life, from romantic relationships to academic struggles, showcasing the diverse and candid nature of the discussions prompted by Mrs. Cita's insights. As part of SPE ITS SC, the Public Relations and Community Outreach division aims to broaden its influence beyond the oil and gas sector. Their mission also revolves around community well-being, and the coordination of seminars addressing mental and physical health stands as a significant step in making a positive contribution to the community. “We are committed to not only maintaining current initiatives but also expanding them to have a larger more meaningful impact to the community“ Afrizal concluded. Written By: Arya Nugraha Aulia Rahman Yusup