The U.S. oil industry could save more than $7 billion in wages by replacing human roughnecks with robots on rigs, according to a report from Rystad Energy.
At least two out of every 10 oil workers globally in drilling, operational support and maintenance could be replaced by automation in the field over the next decade, the energy data provider said Monday in a report. That would translate into more than 100,000 in total jobs replaced in the U.S., for example.
“Even when the Covid-19 downturn is finally past us, operators will have to continue exploring new avenues for cost reductions,” Sumit Yadav, an analyst at Rystad, wrote Monday in the report. There are, however, hurdles to overcome, including regulatory approvals as well as resistance from labor organizations, Rystad said.
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