Halliburton and AIQ Join Forces to Boost Well Efficiency

Halliburton Company HAL has announced a collaboration with Abu Dhabi-based artificial intelligence firm AIQ, to combine the RoboWell autonomous well control solution with Halliburton Landmark's iEnergy hybrid cloud. RoboWell, developed by AIQ, is the first advanced process control solution designed for gas-lifted wells supported by AI.

AIQ believes that the agreement with Halliburton's Landmark is a pivotal step toward expanding the use of AI-enabled AWC tools across the upstream sector globally. An increase in the use of AI-enabled solutions should help optimize operations and increase production across the entire oil and gas industry. Landmark's iEnergy cloud platform has been developed for the deployment, integration and management of advanced exploration and production applications. Further, the platform can also connect assets in public or private cloud environments.

Owing to the collaboration, AIQ's RoboWell autonomous well control will be integrated into the iEnergy cloud platform, making it accessible to Halliburton's customers worldwide. RoboWell enables autonomous well operations and is engineered to maximize production under specified conditions. It also supports environmental sustainability by reducing carbon dioxide emissions and upholding health, safety and environmental standards. AIQ's AI-enabled technology has achieved a 30% optimization in gas lift consumption, thereby raising the production from existing wells by up to 5%.

AIQ's management has stated that the partnership with Halliburton aligns with its wider strategy of expanding the availability of its AI-powered technologies to support the oil and gas industry worldwide. Halliburton also remarked that combining its expertise in the industry with AIQ's AI-based solutions will help provide greater efficiency and asset value for its customers.

Zacks Rank and Key Picks

Currently, HAL carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are SM Energy SM, Hess Midstream Partners LP HESM and Chevron Corporation CVX. SM Energy and Hess Midstream presently sport a Zacks Rank #1 (Strong Buy) each, while CVX carries a Zacks Rank #2 (Buy).

SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.

Hess Midstream owns, operates, develops, and acquires a wide range of midstream assets, providing services to Hess Corporation and other third-party customers. The partnership has a stable fee-based revenue model secured via long-term commercial contracts. Since Hess Midstream operates through 100% fee-based contracts, it is exposed to minimal commodity price risks.

Chevron is one of the largest publicly traded oil and gas companies in the world, with its operations spread around the globe. It is currently in the process of acquiring Hess Corporation. The acquisition is seen as a major win for Chevron, as it will give the company access to Hess' high-quality assets in Guyana and the Bakken Formation.

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