Exxon Mobil, one of the world’s largest oil and gas companies, could be the top artificial intelligence (AI) stock to own long-term, according to investment expert Jared Dillian. In a recent encounter at a Florida diner with an intrigued retiree named Mike, Dillian explained how AI could benefit Exxon, particularly in five ways:
1. Production Optimization – AI could extract valuable insights from geological surveys, sensors, and production sites, improving output and reducing costs.
2. Maintenance Optimization – AI could help predict equipment failures, minimizing costly downtime.
3. Safety and Risk Optimization – AI could enhance safety in an industry where regulation and liability are significant concerns.
4. Supply Chain Optimization – AI could streamline transportation routes, reduce operational costs, and better predict future margins.
5. Energy and Waste Optimization – AI could drive greater energy efficiency, reduce waste, and produce environmental efficiencies.
While people tend to associate AI with technology companies, Dillian proposed that the oil and gas industry could be the next big player in AI. Although Exxon already has proprietary technologies and expert employees, AI could provide even greater optimization, reducing costs and increasing margins. As Dillian explained to Mike, AI would enable Exxon to reduce production costs to an impressive $15 per barrel, maximizing profitability. Investors should look beyond the obvious and consider companies that could leverage AI to their advantage, such as Exxon Mobil, for gains in the long-term.
