Oil IT Journal Volume 29 Number 2


Seismic interpretation now ‘70% more efficient’

EAGE Digital keynote from BP outlines path to huge hike in geophysical efficiency thanks to AI. Key tools of the new trade bought not built.

This article is approximately 337 words long. Click here if you would like to request a complimentary copy.


Clouds hacked

Tietoevry reports another ransomware attack. Firewall Times enumerates multiple breaches at Google, Azure and Amazon.

This article is approximately 248 words long. Click here if you would like to request a complimentary copy.


Shorting AI

Oil IT Journal editor Neil McNaughton rewatches The Big Short and wonders if peak AI/GenAI will herald the next financial meltdown. He has a crack at writing a film script for the next Big Short. And yes, blockchain is in there too, in the form of ‘BlockShorts’: NFTs – of course!

I rewatched ‘The Big Short’ the other day, a great telling of the shenanigans that caused the 2008 financial meltdown and how a few canny operators made a killing by short-selling mortgage-based securities that had risen to unsustainable levels. The Big Short got me thinking, what’s next? What stocks have risen to possibly unsustainable heights that might be worth a contrarian bet. But first, a word of warning. What follows is idle editorial speculation that in no way constitutes financial advice.

As readers of Oil IT Journal know I am a skeptic in most IT-related ‘breakthroughs’. A reader recently described one of my rants as ‘a well-crafted assassination attempt rather than a level-headed analysis’. I accept the ‘well crafted’ bit! But IT can and does get things very wrong*, as witnessed by the ongoing dreadful UK Post Office scandal. An interesting facet of the AI/GenAI hype is whether it will break the cycle of more-or-less failed IT projects. In the interest of editorial consistency I am bound to bet that it will not, that the wheels will come off the GenAI bandwagon as we approach and pass ‘peak AI’.

So where do we place our short bet? For companies like Google, Microsoft and Amazon, shorting AI will probably not get you very far. These companies all have many other irons in the fire and anyhow, for a software company in a downturn, it just has to let go a few thousand programmers and wait till things get back to ‘normal’. But what about a company that is up to its eyes in AI and has built up an empire of real-world, tangible hardware? You see where I am going (you are probably thinking ‘get on with it’). For yes, my hypothetical big short for the AI era is Nvidia.

Those of you who follow matters financial more closely than I do will probably be laughing their heads off at this. Shorting Nvidia is just too 2022, as a quick internet search** reveals. Pundit Jim Cramer called Nvidia a ‘loser’ in September 2022, advising his listeners to short the stock. The following year Nvidia shares rose 90% and it was the unfortunates who took Cramer’s advice that were the losers, to the tune of some $5 billion. Today (26 April), according to The Motley Fool, the Wall Street consensus on Nvidia stock is still ‘buy’. A chart from BNP Paribas of the price of an Nvidia short is particularly telling. An Nvidia short option cost around $4 mid 2023 before dropping precipitously as the strength of Nvidia’s growth became apparent. Today the same option it costs practically nothing. But before you rush out an place a bet (for around one third of a US cent) on an Nvidia short, remember, you will be in hock for around $200 if The Fool has it right!

So no, I will not be shorting Nvidia. But that does stop me from imagining what will happen if the AI bandwagon hits the buffers. So here goes for an outline script for The AI Big Short. Of course the script needs a bit of a revamp. Lets have some more spicey financial action – perhaps in the form of NFT-backed options on the options all registered on a blockchain naturellement! ‘BlockShorts’ perhaps, marketed with memes inspired by SpongeBob SquarePants. People buy these beyond-speculative ‘instruments’ in droves. The GameStop brigade pitches in but divides quickly into the ‘shorters’ and ‘short-the-shorts’ camps. Many are unsure which scenario they are buying into ...

Fast forward to the denouement. The downturn in the AI business arrives. But, just like in The Big Short, that does not mean that short sellers just say thank you and cash in. Finance does not give up easily and erects multiple obstacles in the path of the short sellers. Accountants maintain a glossy outlook even though things are slipping away. They are helped by the banks who renege on various components of the BlockShort shorted shorts. Governments in countries that are building AI gigafactories chip-in (ha ha!) with taxpayers’ money to keep stocks pumped-up. Passing ‘peak AI’ heightens global risk which is conveniently shifted to the taxpayer. Those short sellers who have manage to hang-on get screwed as a foreign bad actor hacks the blockchain and walks away with remaining BlockShorts even though they aren’t worth anything anymore. Credits roll and we cut to a Caribbean island (or maybe a beach in North Korea) and watch the BlockShort influencers party as the world wonders what happened.

* Writing recently in the Financial Times, the UK Government’s former chief digital officer Mike Bracken, opined that ‘Big IT is a failed 90s model that has ruined too many lives.

** I say internet search because I have been using Ecosia just to see if one can exist without Google. One can!


Book Review: Artificial Intelligence in Earth Science

Sun, Cristea and Rivas’ new book proves to be an extraordinary compendium of data science techniques used in ‘earth science’ of the geographical and earth-observational flavor.

This article is approximately 700 words long. Click here if you would like to request a complimentary copy.


Esri European Energy GIS conference 2003, London

BP’s controlled (paper!) charts. Subsurface data visualization in the Caspian Sea. OMV on GIS in engineering turnarounds. LiveEO’s satellite-based pipeline risk analysis. Esri’s copious ‘geoanalytical’ offering. The PUG Knowledge Hub.

This article is approximately 599 words long. Click here if you would like to request a complimentary copy.


OSDU breathes deeply, slows down

Software release cadence reduced to allow struggling users to catch up.

This article is approximately 179 words long. Click here if you would like to request a complimentary copy.


OSDU vs OEDA.

The Open Group vs Palantir! A Spotify for the energy industry.

This article is approximately 750 words long. Click here if you would like to request a complimentary copy.


Software, hardware short takes …

Accept Development’s XBRL Validator. Alice Technologies has released Alice Core. The new 4.6 edition of . Pegasus Vertex’s CEMLab/CEMPro+. Cogent DataHub. Teledyne OLCT 100 XPIR. NV5 Geospatial’s Envi DL. FDT Group certifies Flowserve’s Logix valve positioners. New IsatisNeo from Geovariances. New Grapher from Golden Software. Kitware CMB and OpenFOAM. Beta release of NVIDIA AI Workbench. One Stop Systems’ Gen 5 4U Pro: AI at the edge. CNES new Orfeo Toolbox. PaleoScan 2023.1.2. BakerHughes’ Panametrics T5MAX. New RockWorks Toolbox. Seeq AI Assistant. TrapTester 7.3. Velo 3D Developer. Oracle’s 50th.

This article is approximately 841 words long. Click here if you would like to request a complimentary copy.


Chit-chat from the AI/Digital Transformation front line

Linux Foundation: New ‘Open Platform for Enterprise AI’. SEI-CERT: ‘LLMs to fix code? Not so fast!’ Esri: ‘Is digital transformation still a thing?’

This article is approximately 458 words long. Click here if you would like to request a complimentary copy.


Out with 15926 – in with the new IDO

PCA hears from U Western Australia prof on new ontology-based industrial reference ontology. ISO 15926 fundamental assumptions revisited.

This article is approximately 262 words long. Click here if you would like to request a complimentary copy.


AVEVA World 2023 San Francisco - Oil, gas, and energy track

Petrabytes floats OSDU-PI System link for real time. Dianomics FogLAMP IoT. DAS data processing at the FLEdge.

This article is approximately 450 words long. Click here if you would like to request a complimentary copy.


Folks, facts, orgs …

Movers & shakers hail from Software Underground, aeSolutions, AspenTech, Audubon, BP, Codesys, Cognite, Eliis, Enterprise Ethereum Alliance, Halliburton Labs, LongPath Tech, NIST IT Lab, OPC Foundation, PRCI, PTAC, Pickering Energy Partners, Resources for the Future, S&B, Viking; EU. Deaths: Treitel, Chaney.

This article is approximately 447 words long. Click here if you would like to request a complimentary copy.


Done deals

AOS acquires Ocean Specialists. DNV rejigs cybersec units. Databricks bags Einblick. Dril-Quip, Innovex Downhole merge. Energy Freelance rolls-out EnergyHire. Expro acquires Coretrax. Montrose bags Two Dot. Geoteric Holding AS buys Foster Findlay Associates. Petrofac reviews strategic and financial options. SLB buys into Aker Carbon Capture. Velo3D reports loss. Vysus sells ModuSpec business.

This article is approximately 367 words long. Click here if you would like to request a complimentary copy.


GenAI for maintenance

Siemens Senseye offers generative AI for maintenance engineering. Oil IT Journal asks ‘who’s in charge, computer or engineer?’

This article is approximately 170 words long. Click here if you would like to request a complimentary copy.


Regulatory round-up

USA: IRA cash for emissions control. PHMSA funds pipeline safety. Climate disclosure rule postponed. Canada: XOM reporting exemption. RRC challenges EPA. UK: NSTA - decommission compliance ‘patchy’, North Sea Area Plans, Digital Consents, new Digital Energy Platform. Norway: NPD/ Petroleum Safety Authority names/scope changes.

This article is approximately 480 words long. Click here if you would like to request a complimentary copy.


Standards stuff …

ESRS and GRI sign MoU for sustainability reporting. Modelica CRML simulation language released as an open standard. API opens webstore for standards and technical docs. CFIHOS V2.0 released. ECJ rules on public access to standards. IOGP updates positioning data exchange standard. ISO publishes ‘artificial intelligence management system’. ESI updates OpenFOAM open source CFD package. XBRL sustainability reporting updated.

This article is approximately 537 words long. Click here if you would like to request a complimentary copy.


Sales, partnerships, deployments …

Databricks Asset Bundles for TotalEnergies. Shell deploys ABL Effio. ABL gets LLOG contract. ADS Services teams with Geolog Intl.. AGR signs with Equinor. Acoustic Data gets Iraq contract. Berkana teams with Pipecom. Chevron teams with the Fab Foundation. Cognite signs MoU with ANYbotics. AkerBPA deploys Turbulent Flux VFM. DeepOcean inspects Equinor pipelines. Helix gets framework deal from Talos. Kahuna teams with PXO. TotalEnergies rolls out Copilot. Optime Subsea ro provide Equinor ROCs. Northern Endurance Partnership, Shell select TechnipFMC

This article is approximately 689 words long. Click here if you would like to request a complimentary copy.


Safety first …

RelyOn Nutect safety for ExxonMobil. Codesys virtual safety controllers. CSB finds well control practices inadequate. Equinor reports Behavior Lab success. IOGP on KPIs for process safety. ‘Incredible’ improvement in land transport fatalities. ISN – ‘oil and gas has highest fatality rate’. RealWear Navigator Z1 safety wearable.

This article is approximately 630 words long. Click here if you would like to request a complimentary copy.


New NVIDIA solver speeds oil and petrochemical process modeling

Nvidia CUDSS beings GPU-acceleration to Honeywell’s sparse matrix solver.

This article is approximately 145 words long. Click here if you would like to request a complimentary copy.


Jobs and the US Energy Transition

Where will the jobs axe fall? MIT maps US ‘employment carbon footprint’.

This article is approximately 280 words long. Click here if you would like to request a complimentary copy.


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