How Shell Is Harnessing AI To Transform The Energy Sector

The energy sector stands at a pivotal moment in history. As the world grapples with the urgent need to reduce emissions while meeting growing energy demands, artificial intelligence is emerging as a powerful ally in this transformation. Shell, with its century-old legacy in energy production, is leading the charge in harnessing AI to reshape both traditional operations and future energy solutions.

“AI is not a silver bullet, but it is a tool that can help us to accelerate energy transition and to reduce CO2 emissions,” explains Dan Jeavons, VP of Digital Innovation at Shell. This pragmatic yet ambitious approach is already yielding remarkable results across multiple fronts.

Revolutionary Speed In Scientific Simulations

One of the most striking achievements in Shell’s AI journey has been the dramatic acceleration of scientific simulations. Working with NVIDIA, Shell has achieved what seemed impossible just a few years ago: running complex energy simulations up to a million times faster than traditional methods.

Marc Spieler, Senior Managing Director at NVIDIA, puts this advancement in perspective: “Being able to simulate thousands or millions of years, which typically takes years to simulate and process in traditional high-performance computing ways… allows us to really look at how we’re going to handle the significant amount of emissions that are coming from everything.”

For instance, Shell has created AI machine learning models that can study carbon dioxide storage in subsurface reservoirs approximately 100,000 times faster than conventional physics-based simulation. This breakthrough allows them to more rapidly evaluate different geologies, injection rates, and pressures for carbon capture and storage projects in the screening stage – a crucial component of reaching net-zero goals.

From Vision To Reality

Shell is pushing the boundaries of AI beyond simulations into practical applications. Their Visual Remote Sensing (VERS) program leverages geospatial AI to extract insights from remote-sensing and satellite data, helping identify biofuels and optimize clean energy investments.

The company has also deployed sophisticated machine vision systems across its operations, using NVIDIA technology to monitor equipment states, detect emissions, and enhance safety. These systems can even operate at the edge, using AI to ensure workers are wearing proper safety equipment in real time, even in locations with limited internet connectivity.

Democratizing AI Across The Organization

Shell isn’t just focusing on high-end AI applications. The company has developed a robust framework for democratizing AI access across its workforce, enabling thousands of employees to develop their own AI solutions. This “citizen development” program operates within a carefully structured framework that balances innovation with security and compliance.

At the heart of this initiative is a sophisticated zoning system that categorizes AI applications based on their risk and complexity. “We have this concept of zoning where certain things, certain data types, certain applications… we can say this is a ‘green zone’ application, and we allow people to develop simpler or low-risk applications with relatively light touch controls,” explains Jeavons. More sensitive applications fall into ‘amber’ and ‘red zones’, requiring additional oversight and expertise.

The results speak for themselves, with several thousand users now actively engaged in AI development across the organization. Shell has established a thriving AI community of more than 12,000 members, supported by a comprehensive “Digital Skills” program available to virtually every employee. “The people that understand the problems of the energy sector are not necessarily people like me,” Jeavons notes. “It’s actually the people on the front line with the problem. And one of the things that we want to do is empower those people to solve those problems using AI.”

The Grid Of The Future

Perhaps one of the most fascinating applications of AI is in reimagining the power grid. As we move from centralized power plants to a distributed network of renewable energy sources, the complexity of managing the grid increases exponentially.

“In the future, because of solar battery walls, EVs, wind and everything else, we have a grid and an energy world where power is going to be developed very distributed, and it’s going to be stored and pulled back as needed,” explains Spieler. This transformation from roughly 8,000 power plants to millions of energy sources and storage points requires sophisticated AI systems to manage effectively.

Shaping Tomorrow’s Energy Landscape

Shell’s AI initiatives extend beyond operational improvements to fundamental research in areas like carbon capture and storage, biofuels, and electric vehicle infrastructure. The company is using AI-powered geospatial analysis to optimize the placement of EV charging stations and identify new sources of biofuel from crops and waste products.

The company is also revolutionizing its research capabilities, using generative AI and large language models to make decades of accumulated scientific knowledge more accessible. This approach promises to accelerate R&D cycle times substantially, allowing researchers to design smarter experiments and make faster progress in developing clean energy solutions.

A particularly innovative application involves data centers, which Jeavons describes as “energy hubs” of the future. “Data centers are going to become energy hubs… Companies like NVIDIA, but also many of the major cloud providers have been very forward leaning in their interest in decarbonization of data centers. And I think that can act as a catalyst to accelerate electrification within the broader energy sector.”

The Road Ahead

The energy transition represents one of the greatest challenges – and opportunities – of our time. Through its strategic deployment of AI, Shell is demonstrating how traditional energy companies can evolve to meet the demands of a changing world. As these technologies continue to mature, they promise to accelerate the development of cleaner, more efficient energy solutions while optimizing existing infrastructure for a more sustainable future.