Barrels, Not Buzzwords: Inside Devon Energy’s AI Takeover

From AAPG

Most oil and gas companies treat AI like a side project. They have a small team in a back office trying to make it work. Devon Energy did something different. They made AI their operating system.

It’s a shift that’s paying off in a big way. They aren't just talking about tech; they're seeing it show up in their production numbers and their bottom line. Here is how they moved past the hype and started getting real results.

1. It’s an Operating System, Not a Science Project

Devon’s leadership made it clear from the start: AI isn't here to impress investors. It’s here to change how work gets done. Their internally developed platform, ChatDVN 3.0, is now used by more than half of the company every day.

When that many people use a tool, it means the culture has bought in. It isn't just for data scientists anymore. Engineers in South Texas are using it to find better ways to manage wells, and those ideas are being copied and applied in North Dakota and Wyoming instantly.

2. Better Drilling and Lower Costs

The results in the field are hard to ignore. By using AI agents to monitor drilling in real time, Devon has cut their drilling costs by 12% and completion costs by 15%.

These tools analyze massive streams of data from the rig as it happens. They recommend changes on the fly to keep things moving faster without giving up on safety. In places like the Williston Basin, these efficiencies are saving about $1 million per well. That’s a massive win in a market where every dollar counts.

3. The 5% Production Uplift

One of the biggest wins isn't underground—it's at the surface. Devon uses AI to manage "super systems," which are groups of 20 to 30 wells tied into the same gas lift and compression setup.

Instead of an engineer manually turning valves and tuning variables, AI models adjust the gas injection rates in real time. The result? A 3% to 5% boost in production and a lot less downtime. In a mature field, getting 5% more oil without drilling a new well is like finding money on the ground.

4. Smart Eyes on the Assets

Devon is also using AI to keep their sites safe and clean. They have cameras across their operations that "view" images and compare them to data streams.

The AI can identify potential leaks, spills, or equipment issues before they become a problem. It even monitors flaring equipment to make sure it’s working right. If it sees something off, it alerts an operator immediately. It’s like having a safety inspector on every site, 24 hours a day.

5. Partnering with the Giants

Devon didn't build this alone. They use the scale of Microsoft Azure and Databricks to handle their massive data needs. By moving their workloads to the cloud, they've made it easier for people in all parts of the company to access the data they need. It turns a messy "data estate" into a clear, usable tool for everyone from the field to the back office.

6. The Future is Predictive

Devon is already looking at what’s next. They plan to start using AI to convert standard video into usable data by 2026. This will help them find even more ways to improve safety and spot substandard operations.

They’re proving that the future of the oil field isn't just about drilling faster. It's about operating smarter.

The Nexus Takeaway: If you aren't building a culture that actually uses data, you're just buying expensive gadgets. Devon Energy shows that when you put AI at the center of your operations, it stops being a buzzword and starts being a barrel.