AI, Digital Technology to Transform Energy Industry, Says Tosin Famurewa

Artificial intelligence, machine learning and other digital technologies are set to reshape the global energy industry over the next decade, but their greatest value will come from strengthening, not replacing, human expertise, according to Tosin Famurewa, Chief Business Officer and Executive Vice President of Ryder Scott.

Famurewa, an energy industry professional with more than 25 years of experience, including roles at Texaco and Chevron, said the industry is entering a period in which vast volumes of subsurface and operational data can be analysed at unprecedented speed.

He made the remarks at a panel session during the NAICE 2025 themed “Building resilient energy systems in a rapidly evolving landscape” in Lagos.

He identified decision support, reservoir management and operational efficiency as three areas where artificial intelligence could have the greatest impact over the next five to 10 years.

“AI gives us an opportunity to extract insights from data at a scale and speed that simply wasn’t possible before,” Famurewa said.

He explained that AI systems could analyse thousands of development scenarios, identify patterns and reduce the amount of time engineers spend on repetitive analytical work.

In reservoir management, he said machine learning could help operators detect production anomalies earlier, improve forecasting, optimise waterfloods and identify potential interventions before production declines significantly.

Digital twins, Internet of Things sensors and predictive maintenance could also improve operational efficiency by reducing equipment downtime and strengthening asset reliability, he added.

However, Famurewa cautioned energy companies against assuming that artificial intelligence can replace experienced professionals.

“AI doesn’t replace sound engineering judgment. It doesn’t replace understanding reservoir physics,” he said, stressing that the effectiveness of AI ultimately depends on the quality of the data and assumptions behind the models.

“At Ryder Scott, we often say that technology should make better engineers, not replace engineers.”

He said companies that gain the most from digitalisation would not necessarily be those deploying the largest number of AI applications, but those able to combine technology with experienced professionals, disciplined workflows and reliable data.

Advice to Nigerian operators

For Nigerian oil and gas operators considering digital transformation, Famurewa advised companies to focus first on specific business challenges rather than attempting to develop an all-encompassing technology strategy.

He suggested that operators could begin with issues such as improving reserves forecasting, reducing compressor downtime or enhancing drilling performance.

“Start with one business problem. Solve one problem, demonstrate value, and then scale,” he said.

According to him, technology adoption should be driven by measurable business outcomes rather than the pursuit of technology for its own sake.

Skills needed for the next generation of energy leaders

Famurewa also highlighted the changing skills required of energy professionals as the industry becomes increasingly digital and commercially complex.

While strong technical expertise will remain fundamental, he said future leaders would need to develop adaptability, business understanding, digital literacy, collaboration and integrity.

“The technical foundation will always matter,” he said, noting that the industry would continue to need highly skilled geologists, reservoir engineers, drilling engineers and economists.

But technical competence alone, he argued, would not be sufficient.

Energy professionals will increasingly need to understand finance, economics, risk and commercial considerations alongside technical analysis.

Famurewa also called for greater digital literacy among engineers and other technical professionals, saying they do not necessarily need to become data scientists but should understand how artificial intelligence, analytics and automation can improve decision-making.

He identified collaboration as another critical leadership attribute, particularly as major energy projects increasingly involve multidisciplinary teams working across organisations, cultures and countries.

Integrity, he said, would remain the foundation of effective leadership.

“Trust remains the most valuable asset in our industry,” Famurewa said.

He pointed to Ryder Scott’s emphasis on independence, objectivity and technical excellence as examples of the principles required to maintain confidence in energy-sector evaluations and advisory work.

Building reserves expertise

Famurewa also stressed the importance of strengthening technical capacity within energy companies, particularly in reserves and resources evaluation.

He highlighted the role of qualified reserves professionals and industry training in improving consistency, technical quality and decision-making within reserves committees.

He said developing professionals capable of taking responsible charge of reserves and resources evaluations would be increasingly important as companies seek to improve the quality and reliability of their technical and commercial decisions.

Sustainability and profitability can align

On the energy transition and growing investor expectations around environmental, social and governance issues, Famurewa rejected the idea that sustainability necessarily conflicts with profitability.

He argued that many sustainability initiatives can simultaneously improve operational performance and financial returns.

Reducing methane emissions, for example, can prevent the loss of saleable hydrocarbons, while improving operational efficiency can lower costs. Reducing flaring can also create commercial opportunities, while stronger governance can reduce investment risk.

“I don’t believe profitability and sustainability are competing objectives. In many cases, they’re aligned,” he said.

Famurewa urged Nigerian energy companies to view sustainability as more than a compliance requirement, arguing that responsible environmental and operational practices can strengthen companies’ long-term competitiveness and attractiveness to investors.

“The companies that will attract long-term investment are those that demonstrate both operational excellence and responsible stewardship,” he said.

For Nigeria’s energy sector, he said the challenge would be to embrace new technologies and evolving sustainability expectations without losing sight of the technical discipline, professional standards and experienced human judgment that underpin sound energy-sector decision-making.

“Technology changes. Markets change. But integrity never goes out of style,” Famurewa said.