Why AI Partnerships Are Gaining Ground in Upstream Energy

Oil and gas majors are teaming up on AI, turning shared data and analytics into practical tools for efficiency and sharper decisions

16 Dec 2025

Artificial intelligence has moved out of the lab and into the oil field. In upstream energy, it is no longer a future bet but a working tool shaping how assets are planned, drilled, and produced.

A recent partnership between SLB and Shell highlights that shift. The agreement signals how data-driven decision-making is climbing the priority list for major operators, especially as margins tighten and technical challenges grow.

The collaboration pairs SLB’s digital and analytics strengths with Shell’s global upstream footprint. Its goal is straightforward but ambitious: build AI enabled tools and digital infrastructure that link exploration, drilling, and production more tightly. These functions generate enormous volumes of data, much of it still trapped in disconnected systems. Better integration means faster insights and more consistent decisions across operations.

For Shell, the effort fits a broader push to simplify work and improve performance in a demanding market. Operators face steady cost pressure, more complex reservoirs, and rising expectations around safety and reliability. AI tools that flag problems earlier, sharpen planning, or optimize production offer steady gains without large jumps in capital spending.

For SLB, the partnership reinforces a longer term strategy. The company is positioning itself as a technology partner, not just a service provider. Working closely with a major operator allows SLB to design digital tools around real operational needs, then apply those lessons elsewhere. Analysts say this approach reflects a wider industry trend toward deeper collaboration to lower risk and speed innovation.

Across the sector, observers point to data integration as a key driver of performance. Studies and field experience link smarter data use with reduced downtime and better drilling outcomes. While these are general trends rather than results tied to one deal, they show where AI is gaining ground: closer to everyday decisions.

Challenges remain. Data security, ownership, and user adoption can slow progress. Success depends on trust in digital tools and teams willing to change how they work.

Still, the direction is clear. Partnerships like this suggest an industry putting AI to practical use, building a foundation for greater efficiency and insight over time.