Aramco predicts up to $5bn saving with a little help from AI

• Expects $3bn-$5bn tech-realised value
• AI is mapping oil and gas reservoirs
• It is also enhancing maintenance

Saudi Aramco said it is reaping larger-than-anticipated financial benefits from AI and advanced technologies as it cuts costs and boosts efficiency across its operations.

The state-owned oil giant expects to have generated between $3 billion and $5 billion in technology-realised value for 2025, chief executive officer Amin Nasser told a panel discussion at the World Economic Forum in Davos.

That would build on around $6 billion in total realised value recorded in both 2023 and 2024.

Aramco defines “technology-realised value” as gains achieved through lower capital spending, higher revenues or reduced operating costs driven by AI and other digital tools. 

Nasser said the company has deployed AI in production to more accurately map and analyse oil and gas reservoirs beneath the country’s deserts and offshore fields, Bloomberg reported.

“Our goal is to make the energy industry smarter through AI,” Nasser said, underlining that data quality is critical. 

He said Aramco’s advantage lies in nearly a century’s worth of geological data and operational experience that can be used to train and refine AI models.

AI-driven tools have already improved output at some fields and lowered costs by reducing the number of wells needed per barrel of production, according to Nasser.

He said technology has also enhanced maintenance operations, improving reliability and, in some cases, allowing the company to cut spending on anti-corrosion materials in pipelines by better understanding asset performance.

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Aramco is also exploring partnerships with hyperscale cloud providers to commercialise some of its AI applications for use across the broader energy sector. 

Additional benefits are coming from Aramco’s $7.5 billion venture capital arm, which invests in energy-related technologies that can be developed internally and deployed across its operations. 

Last October Aramco announced it would partner with Saudi Arabia’s Public Investment Fund to acquire a significant minority stake in the state-owned AI company Humain.

Aramco reports full-year earnings next month and will provide updated figures on its technology gains.