Cracking the Shell of Energy Innovation
Shell, one of the biggest players in the energy industry, is much more than oil rigs and turbines. Behind its large-scale operations is a expanding focus on technological transformation to increase their processes’ efficiency. With Shell having over 100 AI applications across their value chain, they are increasing working towards a more technology-driven mindset. Some examples include artificial intelligence being used to analyse and optimise functions, robots being deployed in dangerous environments and computational science is being used to accelerate the development of new fuels.
One example of Shell's technological transformation is optimising their regulatory checks. Originally, sensors would have to record equipment information, and survey operating conditions. Shell has employed machine learning for predictive maintenance, allowing the technology to identify issues in equipment before they develop into failures. Instead of relying entirely on scheduled maintenance or responding after equipment breaks down, engineers can use data-driven predictions to determine when intervention may be necessary. AI is also being used in Shell's LNG process optimiser which takes information from sensors and calculates optimal equipment settings, decreasing wasted time and wasted labour force.
AI becomes even more powerful when combined with robotics. Robotic systems are implemented in dangerous environments, where sending people there could expose them to unnecessary risk. Robots can collect information, inspect equipment and support the detection of leaks and corrosion. Advances in sensors, batteries, processing power and connectivity have made these systems increasingly capable.
Another way Shell is employing technology is through their use of computer vision. Instead of cameras just recording what is happening, they can be used alongside machine-learning models to interpret what is happening. The technology is able to identify safety issues, mechanical problems and emissions. For example, its T-Pulse system uses CCTV to identify and report real-time safety issues, unsafe acts, conditions and potential leaks.
Shell is also using drones to collect information from industrial sites. Images captured by drones can be used to create 3D models- another way of understanding physical assets without relying entirely on manual inspections. These models are then used alongside digital twins. Digital twins are digital representations of physical assets, processes or environments. By combining information from sensors, engineering models and other data sources, a digital representation can reflect what is happening in the real world. For Shell, digital twins can be used alongside drones, robotics, AI and advanced analytics to understand asset performance and support decision-making. The importance of digital twins is that they connect several technologies together.
Shell's technological development is not limited to operational efficiency either. Computational science is also changing how the company develops new products. Developing a new fuel traditionally involves producing different formulations and testing their performance, which is a very expensive, tedious process. Computational science allows researchers to simulate a much larger number of possible formulations before deciding which ones are worth testing experimentally. Shell uses computational modelling to simulate different fuel formulations and predict properties such as combustion behaviour and performance, allowing researchers to narrow down the number of formulations that require conventional laboratory testing. The scale of this approach can be seen in Shell's work with Scuderia Ferrari. Shell reports that its fuel development programme involved more than two million fuel simulations over four years, supported by more than 110 technical specialists and more than 38,000 technical hours each year, demonstrating how computational science can improve the traditional research process. Instead of repeatedly designing, producing and testing different formulations, researchers can use simulations to find the most promising formulas before only testing a niche selection.
Developing an AI model or demonstrating a robot in a controlled environment comes with difficulty. Shell therefore emphasises common data structures, platforms, tools and ways of working. This allows successful approaches to be deployed more widely rather than remaining isolated experiments. This means that digital transformation is as much an organisational challenge as a technological one. Not only does data need to be accessible and reliable, but the data needs to be exchanged across different systems with ease. Employees also need to be trained to work with the technology. Additionally, cybersecurity needs to be maintained as dependence on digital infrastructure increases. Most importantly, the technology needs to create enough value to justify its implementation. In 2025, Shell invested more than $1.17 billion in research and development, combining its technical expertise with digital technologies, including AI, to accelerate innovation and scale new solutions. The company also works with external technology companies, universities, startups and other organisations to develop new solutions. Shell TechWorks focuses on identifying and developing emerging technologies from outside the energy industry, while its GameChanger programme works on developing technologies with potential applications across the energy industry.
Shell's technological transformation highlights the energy industry is shifting to a more technologically advanced sector. Technology is enabling Shell to operate more efficiently while accelerating the development of new solutions. Their greatest impact may come not from any one specific innovation, but from how they are combined to create a more intelligent, connected and adaptable energy industry.
References:
https://www.shell.com/what-we-do/digitalisation/robotics.html?utm_source=chatgpt.com
https://www.shell.com/what-we-do/technology-and-innovation/innovate-with-shell/shell-techworks.html