SLB and Shell’s Partnership
The oil and gas industry is undergoing a major digital transformation, and SLB and Shell’s Partnership signals how critical artificial intelligence (AI) is becoming to upstream operations. According to Reuters, SLB announced that it is collaborating with Shell to develop digital and AI-powered tools designed to improve performance, efficiency, and decision-making across upstream oil and gas assets.
The collaboration focuses on building agentic AI-powered solutions that enhance the capabilities of technical experts and decision makers—not only at Shell, but across the wider energy industry. As upstream operators face increasing pressure to cut costs, reduce emissions, and improve asset performance, AI-driven technologies are emerging as a key competitive advantage.
What Is Agentic AI in Upstream Oil and Gas?
Agentic AI refers to intelligent systems that can act with a degree of autonomy, setting goals, reasoning through complex problems, and recommending actions based on real-time data. Unlike traditional analytics tools, agentic AI goes beyond reporting insights—it actively supports decision-making.
In upstream oil and gas operations, where engineers manage vast volumes of geological, drilling, and production data, agentic AI can significantly improve efficiency. These systems can analyse thousands of variables simultaneously, identify operational risks, optimise drilling and production strategies, and continuously learn from outcomes.
By embedding AI agents into upstream workflows such as reservoir management, drilling optimisation, and production planning, companies can accelerate decisions while improving accuracy and consistency.
Enhancing Human Expertise with AI-Powered Solutions
Both SLB and Shell have emphasised that the goal of the SLB and Shell’s Partnership is to augment human expertise, not replace it. Upstream operations depend on highly skilled professionals—geoscientists, petroleum engineers, and operations managers—whose experience remains critical.
Agentic AI acts as a digital assistant, enabling experts to focus on higher-value tasks while AI handles data-intensive analysis. This human-in-the-loop approach is especially important in safety-critical environments such as offshore drilling and complex reservoir development. By combining human judgment with AI-driven insights, upstream operators can improve operational reliability, safety, and performance.
Improving Efficiency, Performance, and Sustainability
The partnership comes at a time when energy companies are under pressure to improve capital efficiency while meeting emissions reduction targets. AI-powered digital tools offer a scalable way to achieve both. Agentic AI can help reduce non-productive time, improve well placement, optimize production rates, and lower operational emissions through better energy and asset management. Even small efficiency gains can generate significant cost savings and environmental benefits when applied across large upstream portfolios.
For SLB, the collaboration strengthens its position as a digital technology leader in the energy sector, expanding beyond traditional oilfield services. For Shell, the partnership aligns with its broader digital strategy to modernize operations and remain competitive in a rapidly evolving energy landscape.
What This Means for the Future of the Energy Industry
While Shell will be the primary user of these AI solutions initially, both companies have indicated that the technology will be adaptable for the wider energy industry. This suggests that agentic AI could become a standard tool in upstream oil and gas operations, similar to digital twins and advanced seismic imaging.
As volatility, complexity, and decarbonization pressures continue to reshape the industry, partnerships like the one between SLB and Shell highlight a clear trend: the future of upstream energy will be driven by data, digital platforms, and artificial intelligence as much as by physical infrastructure.
