Goldman Sachs: AI Could Lower Costs for New Oil and Gas Projects

Goldman Sachs said artificial intelligence and digital technologies could significantly shorten development timelines and lower costs for new oil and gas projects, improving project economics and creating opportunities for selected oilfield services companies.

Recommendation Change

Goldman Sachs did not provide a specific recommendation, but the analysis suggests that oilfield services companies like Schlumberger (SLB) could benefit from adopting these technologies.

Analyst Rationale

Analysts believe AI can improve drilling and production efficiency, reduce the time needed to develop new fields, thereby lowering overall costs and increasing returns on investment.

Context

The outlook comes as major oil companies seek to cut costs and improve efficiency amid volatile oil prices. Schlumberger (SLB) has been among companies investing in digital technologies and AI to enhance its services.

Conclusion

While the analysis does not offer a direct recommendation, it indicates that oilfield services companies embracing AI may be better positioned to benefit from improved project economics.