For years, artificial intelligence in oil and gas was discussed as a future opportunity. In 2026, that conversation has shifted. Across North America’s leading operators, AI is no longer being tested on the sidelines—it is actively being deployed to optimize drilling, completions, production, artificial lift, maintenance, and field operations.
Recent earnings calls reveal a common theme: operators are using AI and machine learning to lower costs, improve well performance, reduce downtime, and increase capital efficiency.
The Industry’s Technology Frontier
Ovintiv CEO Brendan McCracken described AI as one of the industry’s next major competitive advantages:
“The big technology frontier here is to use AI, pair it with that private data set that we’ve built.”
The company’s AI initiatives are focused on improving uptime, optimizing artificial lift systems, and fine-tuning frac designs. According to management, AI is helping engineers adjust more than 70 frac design variables in real time to maximize production and improve well economics.
Ovintiv also reported more than a 10% improvement in Permian oil productivity per foot since 2023, supported by data-driven optimization and operational innovation.
AI Driving Lower Costs and Higher Productivity
Expand Energy highlighted the growing impact of machine learning across its operations.
“We see room for continuing operational improvements across the portfolio and are excited about the early impact of machine learning and AI is having on lowering costs, enhancing well productivity.”
The company views AI as a key tool for improving drilling performance, reducing operating costs, and enhancing capital efficiency as it develops its Haynesville and Appalachian assets.
Real-Time Analytics in the Field
Matador Resources has integrated AI-driven analytics into nearly every aspect of its operations.
“We’re continuing to increase our integration of AI-driven analytics in pretty much every facet of our operations.”
The company processes more than 40 million operational data points per day through its MAXCOM operations center, allowing teams to make real-time decisions related to drilling, completions, production, and field logistics.
These efforts contributed to:
- 13% faster drilling and completion cycle times
- More than 70% recycled water utilization
- Significant reductions in diesel consumption through electric frac fleets
- Improved operational performance across the Delaware Basin
Reducing Downtime Through Machine Learning
Diamondback Energy is applying AI and machine learning to production optimization and field operations.
CEO Kaes Van’t Hof noted:
“There’s just kind of a lot of good things happening in the field in terms of less downtime, more automation, call it AI, call it a lot of automation impacting that side of the business.”
Diamondback is using machine learning to analyze operational data streams, optimize completion designs, and identify production enhancement opportunities.
The company reported:
- Reduced downtime across field operations
- AI-assisted completion optimization
- Improved drilling efficiency
- Production uplift from surfactant treatment programs averaging approximately 100 barrels of oil per day on tested wells
AI Becoming Embedded Across Entire Organizations
Few companies discussed AI more extensively than Devon Energy.
CEO Clay Gaspar made perhaps the most direct statement about the industry’s direction:
“The AI revolution is real.”
Devon’s internal AI platform, ChatDVN, has become a standard part of daily workflows throughout the company.
The company reported:
- More than 850 wells operating under autonomous artificial lift optimization
- AI-generated code development
- AI-assisted engineering analysis
- Smart gas lift optimization models
- Autonomous ESP and rod pump optimization
Gaspar also noted:
“We are now moving into Wave 3, where we are redesigning internal processes from the ground up with AI at the center.”
The results are already showing up in lower drilling and completion costs while improving production performance.
AI and Advanced Analytics at Scale
Occidental Petroleum views AI as a foundational component of future operational performance.
CEO Vicki Hollub stated:
“Looking ahead, this capability will only get stronger as we combine our data and technical foundation with advanced analytics and AI to further optimize development and performance.”
Oxy has already achieved billions of dollars in operational savings while applying advanced analytics across drilling, production optimization, workforce efficiency, and field operations.
Richard Jackson added:
“AI is taking on a larger and larger role across all disciplines in the company.”
Beyond the Operator: AI Across the Industry
The broader industry is embracing similar technologies.
During the Energy Future Forum, EOG Resources CEO Ezra Yacob highlighted how machine learning is being used to improve producing assets.
“The industry is doing a fantastic job applying smart technology, machine learning even some AI to producing wells.”
Examples include:
- Predictive maintenance
- Downtime reduction
- Fuel optimization
- Emissions optimization
- Automated drilling technologies
Yacob noted:
“We utilize machine learning algorithms for preventative maintenance to reduce downtime to optimize fuel use and emissions versus production.”
The Next Competitive Advantage
Historically, oil and gas companies competed through acreage positions, drilling inventory, and scale. Increasingly, the next competitive advantage may come from how effectively operators deploy AI.
The companies seeing the greatest success are not simply collecting more data. They are transforming that data into operational decisions that improve productivity, reduce costs, and increase returns on capital.
Whether it’s autonomous artificial lift optimization, AI-driven frac design, predictive maintenance, drilling automation, or real-time analytics, the evidence from 2026 earnings calls is clear:
AI has moved beyond experimentation.
It is becoming a core operating system for the modern oil and gas industry.
Artificial intelligence is rapidly becoming a competitive advantage in the oil and gas industry, with operators using machine learning, advanced analytics, and automation to optimize drilling, completions, production, and artificial lift systems. Companies including Devon, Ovintiv, Matador, Diamondback, Oxy, and Expand Energy report that AI is helping reduce costs, improve well productivity, lower downtime, and increase capital efficiency across their operations.
Author: phinds