ESG & Transition
How AI is Powering the Path to Net Zero in Oil and Gas
29 Aug 2025
Discover how AI is helping heavy industries reach net zero goals by cutting emissions, boosting efficiency, and accelerating green innovation for a faster energy transition.
Executive Summary
AI is transforming how heavy industries approach decarbonisation. In oil and gas, the technology can detect methane leaks and reduce flaring in real time, while enabling process optimisation for significant energy savings. AI is also propelling clean-technology innovation, from low-carbon cement to carbon capture and renewable integration. The International Energy Agency (IEA) estimates that AI could help cut around 1.4 gigatonnes of CO₂ emissions by 2035, which is roughly 4 per cent of global emissions. While not a silver bullet, AI is a critical accelerator on the journey to net zero.

The Invisible Emissions Problem
Methane, with eighty times the warming potential of CO₂, is a key contributor to climate change. For decades, much of it leaked unseen from wells and pipelines, translating to rogue emissions discreetly escaping into the atmosphere. Now, AI-empowered drones and satellites can detect methane plumes, once invisible to the human eye, and trigger rapid interventions.
Equally important are predictive algorithms that anticipate equipment failures leading to spills or flaring. By forecasting the future misstep of a machine, they permit maintenance before harm is done. Marathon Oil, for instance, doubled its inspection frequency through AI-driven monitoring, surpassing regulatory demand and significantly reducing methane emissions.
Small Gains, Substantial Impact
Petrochemicals have long been the beating heart of industrial-scale operations: massive, complex, and hungry for energy. On paper, a 2 per cent efficiency improvement looks ordinary. But when applied to a refinery the size of a small city, that single-digit percentage, noted in an IEA analysis, represents a staggering amount of saved fuel and reduced emissions.
The story is one of cumulative gains. When advanced process control systems are combined with optimisation algorithms, they enable predictive maintenance that keeps equipment operating at peak performance. According to the World Economic Forum (WEF), this dual function, lowering both energy use and costs, creates a reinforcing cycle of efficiency. Each finely tuned machine becomes a small step toward decarbonisation. When multiplied across thousands of assets, this impact is transformative.
Beyond Optimisation: AI as an Engine of Innovation
AI’s influence is not limited to unlocking efficiency; it also sparks discovery. In materials science, an MIT-led project harnessed AI to analyse data on over 1 million compounds, revealing 19 alternatives to the carbon-heavy cement clinker. The sustainability implications for construction, one of humanity’s oldest industries, are profound.
In the domain of carbon capture, the IEA observes that AI can cut costs by up to 30 per cent via fine-tuning capture systems and identifying the most suitable geological repositories. The technology also plays a decisive role in managing renewable energy integration. By orchestrating grids that combine solar, wind, storage, and conventional supply, AI balances fluctuations in demand and generation.
An emblematic advance is “dynamic line ratings”, an AI-driven method that increases electricity transmission capacity by as much as 40 per cent. Such innovations ensure that more renewable power flows to industrial operations, expediting the decline of fossil dependence.

The Promise… and the Catch
Of course, climate intervention is anything but straightforward. It is estimated that AI could help cut 1.4 gigatonnes of CO₂ emissions by 2035, around 4 per cent of the global total. Boston Consulting Group (BCG) goes further, suggesting between 5 and 10 per cent AI-driven emissions reduction by 2030. These are numbers that matter. Yet, even with such promise, implementation remains a challenging proposition.
Look closely at adoption, and the limits are clear. A 2024 DNV survey reported that while nearly half of oil and gas professionals planned to use AI, only 15 percent had managed to deploy it at scale. Enthusiasm, in other words, outpaces reality. Scaling up requires not only technology but also trust, integration, and investment.
AI acts as a 24/7 smart surveillance system for industrial emissions, transforming compliance into proactive decarbonisation
An Indispensable but Partial Ally
Artificial intelligence is emerging as an indispensable tool for industrial decarbonisation. It provides vision where human eyes cannot see, precision where human practice is wasteful, and invention where imagination alone falls short.
Still, its effectiveness depends on scale, integration, and policy. AI cannot, by itself, rescue the climate. Without it, the path to net zero becomes longer and steeper. With it, there is a chance that industries as carbon intensive as oil and gas can move with the urgency the climate crisis demands.

Walid is an Imperial and NYU alumni, currently working in applied AI applications for the energy sector. The Applied Computing team can be reached at info@appliedcomputing.com