McKinsey estimates that full adoption of AI could erode about $24 billion in the valuation of oilfield service and equipment companies, including $7 billion in the near term. The sector could recover roughly $20 billion of that by applying AI to its own cost structures, such as supply chain and back-office functions, but the remaining $4 billion gap depends on commercial models evolving to capture the upside of AI-enabled improvements, whether through performance bonuses, paid digital services or contract wins. (Source: McKinsey & Company – click the image to enlarge)
