How Artificial Intelligence and Big Data Can Save Oil and Gas Companies in Crisis

RUDN University economists and their colleagues have analyzed data from Russia's largest oil and gas companies in 2020 and 2022 and proposed an algorithm to improve the sustainability of the industry. The key factor here is Industry 4.0 technologies - artificial intelligence, the Internet of Things, big data, and other technologies. In the first three months of 2020, oil prices plummeted by nearly 70%. In 2022, the oil and gas market faced a new crisis. However, contrary to expectations, world energy prices rose, which had a negative impact on the oil and gas industry. The RUDN University economists and their colleagues studied the performance of large oil and gas companies and concluded that the so-called Fourth Industrial Revolution or "Industry 4.0" approach will help them better navigate the crisis. Modern methods of data collection and analysis will assist in standardizing company reporting and government control. Elena Popkova, a professor and PhD in economics at RUDN University, said, "The goal of oil and gas companies is not to create social and ecological advantages, but to release attractive sustainable development reports during times of crisis to enhance their reputation. Therefore, recent research has focused on the flaws in the reports of oil and gas companies." The economists conducted a study using reports from Lukoil and Gazprom, Russia's two largest oil and gas companies. For this purpose, the authors employed trend analysis, comparing each report item with multiple previous similar items. The focus of this study was the Brent crude oil prices during the economic crises of 2020 and 2022. The obtained results were then compared with theoretical models, and a methodology for the sustainable development of oil and gas companies was formulated. The algorithm proposed by RUDN University economists consists of three key steps. The first is automated data collection, for which they suggest using the Internet of Things and big data to generate a large dataset and systematize it. The second step is data analysis using artificial intelligence. Finally, with the help of artificial intelligence, the obtained results are summarized and a comprehensive report is generated. The breakthrough technologies of Industry 4.0 significantly enhance the oil industry's ability to respond to crises. Management approaches based on datasets automate company accounting and government monitoring. Sustainable development reports can stimulate the sustainable growth of oil and gas companies by tracking the activities of both the public and private sectors, and can also compare different companies' contributions to the overall sustainability of the industry.