Hardeep Singh Puri Highlights AI's Transformative Potential for India's Energy Sector at ENRich 2024

The Minister highlighted the increasing adoption of AI across various industries and its alignment with the Prime Minister’s vision of a “Viksit Bharat” (Developed India) by 2047.

At the ENRich 2024, KPMG’s Annual Innovation and Energy Conclave, Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, emphasized the critical role of artificial intelligence (AI) in revolutionizing the energy sector. Under the theme “AI for Energy,” the Minister described the convergence of AI and energy as a timely and transformative development, essential for shaping the future of the industry. He asserted that AI is poised to enhance operational efficiencies and facilitate a transition toward a more sustainable energy landscape.

The Minister highlighted the increasing adoption of AI across various industries and its alignment with the Prime Minister’s vision of a “Viksit Bharat” (Developed India) by 2047. In particular, he noted significant investments by international oil companies in AI technologies aimed at improving safety and operational efficiency while contributing to a low-carbon future.

Focusing on India's oil and gas sector, Shri Puri pointed out that public sector undertakings (PSUs) are leveraging AI and Machine Learning (ML) to boost safety and operational efficiencies. Tools such as demand forecasting and customer analytics are enhancing the customer experience in the energy sector.

In the upstream oil and gas segment, the Minister explained how AI-driven deep learning techniques analyze complex seismic data to identify potential hydrocarbon reservoirs. Moreover, AI is effectively predicting drilling complications and optimizing drilling parameters in real time, significantly improving drilling efficiency and reducing operational costs.

Shri Puri emphasized the comprehensive integration of AI across the entire energy value chain, from upstream exploration and production to midstream storage and downstream refining and distribution. He noted that this shift represents a move away from the traditional engineering mindset that has historically dominated the industry.

As a notable advancement, he pointed to the modernization of India’s National Data Repository, now upgraded to a cloud-based platform with a government investment of ₹7,500 crore. This platform facilitates instant access to seismic and production data, enhancing the efficiency of data management in the sector.

Citing research from J.P. Morgan, the Minister discussed the potential of generative AI to contribute an additional $7–10 trillion to global GDP over the next three years, thereby boosting workforce productivity and reshaping the global economy.

Shri Puri expressed optimism regarding India's potential to leverage AI, especially given its burgeoning economy, youthful population, and robust tech ecosystem. He mentioned reports indicating that AI adoption could add ₹33.8 lakh crore to India's economy by 2030.

He also praised the success of the Universal Connectivity and Digital India initiatives, which have dramatically increased internet subscribers from 251.59 million in 2014 to 954.40 million in 2024, reflecting a compound annual growth rate (CAGR) of 14.26%.

The Minister commended KPMG's efforts to support entrepreneurship and nurture the start-up ecosystem through initiatives like “ENRich Labs,” fostering innovation and collaboration within the industry.

Addressing India's growing start-up ecosystem, he noted that the country is now the third-largest hub for unicorn start-ups globally, after the USA and China, with a combined valuation of approximately USD 350 billion. These start-ups are actively reshaping the Indian economy and transforming various markets.

Shri Puri also discussed the establishment of startup funds totalling ₹505 crore by Oil and Gas PSUs, which have funded 287 start-ups to date, with ₹271 crore already disbursed to encourage innovation and growth within the sector.

He introduced the ‘Avinya’25 initiative, following the success of Avinya’24, aimed at encouraging entrepreneurs, researchers, academicians, and students to propose innovative solutions that will influence the energy sector's future. The application period for Avinya’25 began on September 30, 2024, with a submission deadline of December 2, 2024. Shri Puri encouraged active participation to ensure the initiative's success.

In conclusion, the Minister urged stakeholders to explore the untapped potential within India’s energy sector, stressing the importance of sustainable business practices that align with both societal and environmental objectives.