Artificial Intelligence Analysis
Artificial Intelligence (AI) and Machine Learning (ML) have been used in the oil and gas industry for the past several years, initially in operational areas where robots complete tasks that pose human safety risks. In more recent years, AI has been used to determine valve positions, pump speeds, pressure, temperatures and flow rates, as well as to predict decline curves and in back-office accounting and finance activities. In 2019, AI, ML and Natural Language Programming (NLP) are moving into the realm of contract analysis.
Leasehold is one of the most critical factors in determining an energy company’s worth. The sheer number of leases, amendments, assignments, unit declarations, operating agreements and other documents is a monumental challenge to manage. Add in the lack of uniformity and they are almost impossible to organize, manage and update.
Upstream and midstream companies are saving both time and money with human-assisted AI analysis of their contracts. Using AI, ML and NLP, a company can catalog and organize all obligations across all prospects and query those obligations by pre-set parameters, giving them a near-immediate snapshot of a single point in time. This streamlined delivery of information is valuable for an operator developing a prospect and it is invaluable in merger, acquisition and divestiture transactions.
As with any technology, garbage in will result in garbage out. Successful management of an AI project requires tech-savvy landmen with a deep understanding of lease and contract provisions. TWW personnel are experienced in:
- Ensuring incoming data is clear and high-quality. We scrub incoming contracts to remove any incorrect, incomplete, improperly formatted, duplicate, or outlying data. Otherwise, the machine learns the wrong things.
- Measuring the quality of the output. NLP “learns” by human review, so our Quality Control team applies their knowledge of contract provisions when they review output and correct as necessary.
- Improving the AI platform for all by reporting critical discrepancies and recommending improvements tailored to client parameters.
To find out how TWW can use AI to assist you with your exploration or due diligence project, contact firstname.lastname@example.org today!