Artificial Intelligence Digital Twins Combat Low-cost Crude

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The oil and gas industry is at a decline in oil production growth—forcing energy service companies to revolutionize their combat efforts against low-cost crude. Kinsmen Group, engineering information management experts, propose that the oil and gas sectors who adapt to digital twin AI will reduce imminent risks and receive higher returns on their assets.

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Digital Twins are a complete, 360-degree replica of a company’s physical assets, from pipelines, pumps, and gathering systems, to heat exchangers, turbines, and compressors

The Dallas Federal Reserve predicts the oil and gas sector to cut capital spending by 15% in 2020, causing a surge of efficiency and overall industry consolidation by 2021. (1) To combat this low-cost crude, Brian Sallade, Chief Executive Officer at Kinsmen Group continuously transforms major oil, gas, and utility companies through adaptation of artificial intelligence and machine learning technologies. Under the digital transformation umbrella, Digital Twin technology improves operational insights, saves customers money, and gains them a competitive edge. A digital twin is a virtual or digital representation of a physical asset, article, or manufacturing practice.

Digital Twin Technology
Digital transformation can unlock approximately $1.6 trillion in value for oil and gas companies. (2) “Digital Twins are a complete, 360-degree replica of a company’s physical assets, from pipelines, pumps, and gathering systems, to heat exchangers, turbines, and compressors,” concludes Sallade. These virtual counterparts are created as digitalized duplicates of machines, equipment, or physical sites using sensors in a virtual world before deploying them in the real world. This technology enables modeling of process, control, and monitoring of equipment health, acting as a live model before an asset is physically built.

Digital Efficiencies Translates to Business Growth
Digital Twin technologies are used in high-risk industries and have different applications. PWC’s industry 4.0 survey measured the first movers’ advantages at 30% revenue increase, while at the same time 30% cost reduction, through utilizing historic data and advanced collaboration platforms. (3) We’re identifying a trend where digital technologies can help disrupt the industry status quo to solve key business problems. This Digital Twin framework enables operational excellence by helping oil and gas operators quickly turn massive amounts of data into wisdom that generates real-time value, including predicting asset failure, uncovering hidden revenue opportunities, and providing continuous improvement for heightened competitiveness. (4)

These trends coincide with “The Digitalization of Everything” as more tasks will eventually be automated offshore. (2)

Staying Ahead of Pitfalls Before Disaster Strikes
Industry challenges such as: oil and gas supplies, demand, prices, layoffs, and investments can fluctuate wildly. (5) Digital Twins can help companies overcome the restrictions of their aging infrastructure by optimizing their current technology and increase the production of new rigs.

That’s why more companies are now looking towards a digital transformation to drive more effective capacity, optimize operations, improve asset availability, greater scalability, shorter lead times, and more rapid response to ever-changing market conditions.(4) As experts in engineering information and specialists in services for any firms who design, build, operate and/or maintain large physical assets, Kinsmen Group believes implementing the Digital Twin Strategy and getting in front of any potential pitfall or danger before disaster can strike is paramount. Thus, the race to digital transformation among the industry giants is underway. (6)

About Kinsmen Group
Kinsmen Group is a leading team of Engineering Information Management Specialists with a passion for applying innovation to prominent oil, gas, Tier I pharmaceutical, and utility companies. Their organization strives to deliever superior business results through excellence and pragmatism each time they partner with any business, revolutionizing each with wiser decision-making, risk reduction, safety improvement, and higher returns on their investments.

Kinsmen Group is ranked as the “Best of the Best Professional Service Organizations” by Service Performance Insight Research and among the “Fastest-Growing Private Companies in America” by Inc. Magazine. To learn more, contact Kinsmen Group at

About Brian Sallade
Brian Sallade is the president and CEO of Kinsmen Group. He has built his 30-year career in leadership as CEO, spearheading SNC-Lavalin Group and BlueCielo ECM Solutions, where he maximized revenue by over fivefold. One of Sallade’s most valuable creations was the development of a turn-key solution to help pharmaceutical companies comply with regulations such as 21 CFR part 11. Now, Sallade continuously displays a wealth of business acumen in a myriad of industries, while staying true to his unique passion for engineering information management.

1. Patti, Domm. “US Oil Industry Expected to Cut Spending by 10-15% and Restructure, Dallas Fed Says.” CNBC, CNBC, 18 Feb. 2020,
2. “Digital Transformation Initiative Oil and Gas Industry.” World Economic Forum, Jan. 2017,
3. PWC. “Industry 4.0: Building the Digital Enterprise.” 2016 Global Industry 4.0 Survey, 2016,
4. Lek, Eddy, “Digital twin strategy improves offshore oil and gas production”, Offshore Magazine; April 1, 2019,
5. Charles, Collins-Chase T., et al. “Oil and Gas Digitalisation: Overcoming §101 to Obtain Valuable Patents.” Finnegan, 16 Aug. 2019,
6. McEachran, Rich, “Oil and gas sector using digital tech to drill for value”, Institute of Mechanical Engineers, December 27, 2018,
7. Holmâs, Hâvard; Sjâtil, Odd Arne; Santamarta, Sylvain; Lindseth, Sverre, Forbes, Peter; and Romanin, Pietro; “Creative Value with Digital Twins in Oil and Gas; Boston Consulting Group; October 3, 2019,

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