AI Set to Drive India’s Energy Transformation- Hardeep Puri
Speaking at KPMG’s ENRich 2024, Petroleum Minister Hardeep Singh Puri underscored AI’s transformative impact on the energy sector. He highlighted AI’s potential to add INR 33.8 lakh crore to India's economy by 2030, driving efficiency and sustainability in the industry.
October 24, 2024. By EI News Network
Addressing the theme 'AI for Energy,' Puri higlighted the importance of AI and its role in revolutionising the energy sector by driving operational efficiency, improving safety, and accelerating the transition to a sustainable energy landscape. He described the convergence of AI and energy as both timely and transformative, marking a critical step in shaping the future of the industry.
He pointed out that international oil companies are heavily investing in AI to optimise operations and that Indian Public Sector Undertakings (PSUs) are also integrating AI and Machine Learning (ML) to enhance safety, security, and efficiency across their operations.
The Minister highlighted AI’s application in the upstream oil and gas sector, particularly in analysing seismic data to identify potential hydrocarbon reservoirs. AI is also proving effective in real-time optimisation of drilling processes, reducing operational costs, and improving overall efficiency.
Puri noted the comprehensive integration of AI across the energy value chain, from exploration and production to refining and distribution. He also pointed to the recent modernisation of India’s National Data Repository, now a cloud-based platform supported by a government investment of INR 7,500 crore, which provides instant access to seismic and production data. According to research cited by Puri, generative AI could boost global GDP by USD 7 to USD 10 trillion over the next three years, with India poised to benefit significantly, contributing INR 33.8 lakh crore to the economy by 2030.
Puri further emphasised the growth of India’s start-up ecosystem, now the third-largest hub for unicorns globally. He commended KPMG’s role in fostering entrepreneurship and innovation through initiatives like ENRich Labs. In the oil and gas sector, PSUs have set up funds worth INR 505 crore to support start-ups, with INR 271 crore already disbursed to 287 start-ups.
Puri also introduced the 'Avinya’25' initiative, which aims to promote innovation in the energy sector and called for active participation from entrepreneurs and researchers. Concluding his address, the Minister urged stakeholders to seize the untapped potential in India’s energy sector while aligning with sustainable business practices to support both economic growth and environmental goals.
The event also featured the release of the report titled “KPMG 2024 Energy, Natural Resources and Chemicals CEO Outlook” by KPMG in India. This report reveals a strong sense of optimism among leaders in the sector, with 78 percent of CEOs expressing confidence in economic growth over the next three years.
While 82 percent of CEOs are confident about their organisations' prospects, only 72 percent feel positive about the overall industry, reflecting diverse challenges across subsectors. The report emphasises strategic opportunities in light of global uncertainties, as CEOs focus on enhancing operating models and Environmental, Social, and Governance (ESG) initiatives.
A key finding is the growing importance of generative artificial intelligence (Gen AI), with 79 percent of CEOs believing it will necessitate upskilling rather than job losses. Talent management and diversity remain critical, with 93 percent of CEOs recognising generational impacts on workplace culture.
However, challenges such as India’s history of renegotiating deals and slow infrastructure development pose potential hurdles. Overall, the report underscores the need for innovation and sustainable practices to navigate an evolving market landscape.
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