Eye on the future: The tech transformation of energy logistics

The energy industry is no stranger to complexity. From remote offshore rigs to high-security refineries, moving resources quickly and efficiently has always been a major challenge. And as global demand grows unabated, so too will the need for smarter, more resilient supply chains. Technology is set to answer that call with Artificial Intelligence (AI), the Internet of Things (IoT) and automation.

Imagine having a crystal ball that predicts a disruption before the first alarm bell rings. That’s exactly what AI-powered predictive could do. By processing vast amounts of data – from weather patterns and geopolitical risks to equipment performance – it will be able to map out a range of scenarios and flag potential delays before they happen. And that foresight would enable companies to devise contingency plans to proactively re-route shipments, adjust schedules or secure alternative suppliers.

Transformational
AI is set to play a transformational role in managing inventory, helping businesses anticipate demand fluctuations and fine-tune stock levels. This will be especially important in the oil, gas and renewable energy business as it evolves to meet ever growing demand, helping maintain lean inventory levels to save companies from excessive storage costs and supply shortages.

It’s an industry where downtime can mean millions lost, so knowing where everything is –and in what condition it is in – is crucial.

Sensors on cargo, pipelines and vessels provide real-time updates on location, temperature and security, allowing companies to monitor their shipments from start to finish. GAC has already started to use such technology in our support for the energy industry, including at our warehouse in Dubai.

In crude oil transport, IoT sensors will track temperature and pressure fluctuations, ensuring everything stays within safe limits. Meanwhile, geofencing alerts would let operators know if a shipment enters or leaves a designated area, reducing the risk of theft or unauthorised access.

Sensors on oil rigs and storage tanks will detect early signs of wear and tear, allowing maintenance to be scheduled before issues escalate, to prevent costly downtime, enhance worker safety and minimise environmental risks.

Taming the systems
From automated storage and retrieval systems (AS/RS) that streamline warehouse operations to drones inspecting offshore platforms, these technologies have the potential to improve efficiency while reducing the need for manual labour in high-risk environments.

They would also optimise the management of offshore supply vessels. By integrating automation, service craft would be routed more efficiently, fuel efficiency optimised and timely deliveries ensured. AI scheduling tools could also help manage docking times, cutting congestion at ports and avoiding unnecessary delays.

Even customs clearance could get a tech upgrade. AI-powered documentation systems stand to help verify compliance with international regulations, speeding up paperwork and reducing errors. That will mean faster border crossings and fewer logistical headaches.

“Technology could be harnessed to give real-time visibility of shipments,” Pokorny says. “That means fewer surprises, better security and a more efficient supply chain overall.”

Digital Lab
GAC is embracing technology to improve its operations, and has set up its own Digital Lab to explore, examine and implement its applications.

One of the key achievements is the global implementation of an AI-powered solution for automating crew management in shipping. It automates the extraction of information - for which GAC is duly authorised - to populate the Crew module of its Shipping applications. Since August 2024, GAC has processed an impressive 16,000+ documents in this way. And with 2-3 minutes of employee time saved for each one compared to entering the data manually, that mounts up to about 800 hours, or nearly a month’s work for five people!

GAC is also applying its intelligent document processing initiative to logistics. Since November 2023, the Bahrain office has successfully implemented AI-driven processing with a “human in the loop” for customs operations. Meanwhile, GAC Egypt is getting ready to go live automating manual work in its logistics operational applications. And in Norway, the process has been automated by extracting data from customers’ documents to update logistics applications and eliminate entry by operators. More than 7,500 documents have been processed since the system went live in November 2023.

In Dubai and Oman, finance departments are using RPA with bots (virtual robots) performing repetitive tasks like reconciliation and invoice registration tasks to boost efficiency. Those bots have already completed 880 operations without human interference.

Risk management
While embracing innovation, GAC is taking a cautious approach - not because of the technology itself, but due to the potential risk of putting core operations in the hands of a technical supplier. If something happens to that supplier, the work has to go back to manual again.

Cybersecurity measures also have to be solid. Securing IT systems and firewalls is just as important as tracking shipments.

“GAC is carefully considering all the implications and necessary precautions and procedures that need to be put in place,” adds Pokorny. “Our way is to carefully examine the options, analyse the risks and only proceed when we are fully confident that we can ensure complete security for ourselves and our customers.”

Embracing innovation
Technology is redefining the way energy players operate. AI, IoT and automation will become integral to the way many companies work. Those who embrace such innovation and adopt it in a considered, intelligent way gain a serious edge, with greater reliability, lower costs and a more resilient supply chain.

“When fully matured, tried and tested, automated processes will ultimately free up people to focus on the bigger picture - solving problems, improving efficiency, and delivering better service.”