Hardeep Singh Puri Highlights AI’s Transformative Role in Energy Sector at ENRich 2024

New Delhi: Addressing the ENRich 2024, KPMG’s Annual Innovation and Energy Conclave, Hardeep Singh Puri, Minister of Petroleum and Natural Gas, emphasized the pivotal role of artificial intelligence (AI) in transforming the energy sector. With the theme “AI for Energy,” the Minister described the convergence of AI and energy as a timely and transformative initiative, marking a critical step in shaping the future of the industry.

During his address, Puri highlighted how AI is rapidly being adopted across industries, playing a crucial role in realizing the Prime Minister’s vision of a “Viksit Bharat” (Developed India) by 2047. Focusing on the oil and gas sector, he explained how AI and generative AI (GenAI) are optimizing operations through real-time data and insights, with international oil companies making significant investments to enhance operational efficiency and improve safety while contributing to a low-carbon future.

The Minister pointed out that Indian Public Sector Undertakings (PSUs) in the energy domain are also leveraging AI and Machine Learning (ML) to enhance safety, security, and operational efficiencies. Advanced tools such as demand forecasting, customer analytics, and pricing analytics are being utilized to improve the overall customer experience in the energy sector.

In the upstream oil and gas sector, AI-enabled mechanisms, including deep learning, are employed to analyze complex seismic data for identifying potential hydrocarbon reservoirs. Additionally, AI-based predictions of drilling complications and real-time optimization of drilling parameters have proven effective in enhancing drilling efficiency and reducing operational costs.

Puri noted the comprehensive integration of AI tools across the energy value chain—from upstream exploration and production to midstream storage and downstream refining and distribution. He remarked that this shift marks a significant departure from the traditional engineering mindset that has long dominated the industry.

As an example, he highlighted the modernization of India’s National Data Repository, which has been upgraded to a cloud-based platform supported by a government investment of ₹7,500 crore. This platform enables instant access to seismic and production data, significantly improving data accessibility for industry stakeholders.

Citing research by J.P. Morgan, the Minister discussed the potential of generative AI to increase global GDP by $7–10 trillion over the next three years, leading to a substantial boost in workforce productivity and reshaping the global economy. He emphasized that India, with its growing economy, youthful population, and thriving tech ecosystem, is poised to benefit immensely from AI, with reports suggesting that AI adoption could contribute at least ₹33.8 lakh crore to India’s economy by 2030.

Puri also applauded the success of the Universal Connectivity and Digital India initiatives, which have driven a dramatic increase in internet subscribers from 251.59 million in 2014 to 954.40 million in 2024, achieving a compound annual growth rate (CAGR) of 14.26%. He praised KPMG’s efforts to foster entrepreneurship and support the start-up ecosystem through initiatives like “ENRich Labs” for innovation and co-creation with the industry.

Highlighting India’s status as the world’s third-largest hub for unicorn start-ups, following the USA and China, with a combined valuation of approximately USD 350 billion, the Minister emphasized that these start-ups are reshaping the Indian economy and transforming markets.

In the oil and gas sector, Puri noted that PSUs have established start-up funds totaling ₹505 crore. To date, 287 start-ups have received funding, with ₹271 crore already disbursed to promote innovation and growth in the sector.

He also discussed the Avinya’25 initiative, launched recently based on the success of Avinya’24. The initiative aims to encourage entrepreneurs, researchers, academicians, and students to propose innovative solutions for the future of the energy sector. The application period for Avinya’25 opened on September 30, 2024, with a submission deadline of December 2, 2024. Puri urged everyone to participate actively and contribute to the event’s success.

Concluding his address, Puri urged stakeholders to explore the untapped potential in India’s energy sector, stressing the importance of sustainable business practices that align with societal and environmental goals. With the integration of AI and a focus on innovation, the energy sector is poised for a transformative future that aligns with the global push for sustainability and efficiency.