MINISTRY FOR EDUCATION AND SCIENCE, RUSSIAN FEDERATION FEDERAL STATW AUTONOMOUS ORGANIZATION OF HIGHER EDUCATION «NOVOSIBIRSK NATIONAL RESEARCH STATE UNIVERSITY» (NOVOSIBRSK STATE UNIVERSITY, NSU) Faculty Economics Chair Political Economy Department 38.04.02. Management Master Educational program Oil and gas Management GRADUATE QUALIFICATION PAPAER MASTER'S DISSERTATION Kvasova Alena Sergeevna Paper title Application of artificial intelligence for the predicting of CO2 emissions from energy consumption «Admitted to defense» Scientific Supervisor, The head of the chair: Ph.D., Assoc. Professor D-r of Econ. Sciences, Professor Provornaya I.V./………... Filimonova I.V./………….. «……»………………20…г. «……»………………20…г.. Date of defense: «……»………………20…г. Novosibirsk, 2017 2 INTRODUCTION .................................................................................................................................... 3 CHAPTER 1. ANALYSIS OF APPROACHES AND METHODS OF DEVELOPMENT AI ............. 5 1.1 TERMINOLOGY AND HISTORY OF ARTIFICIAL INTELLIGENCE DEVELOPMENT ............................... 5 1.2 USSR AND RUSIAN EXPERIENCE .................................................................................................. 8 1.3 FOREIGN EXPERIENCE ................................................................................................................ 10 CHAPTER 2. METHODOGICAL APPROACH OF BUILDING AND LEARNING NEURAL NETWORK AND IT’S APPLICATION IN OIL AND GAS INDUSTRY .......................................... 14 2.1 GENERAL PRINCIPLES OF BUILDING NEURAL NETWORKS ............................................................ 14 2.1.1 Processing units ..................................................................................................................... 15 2.1.2. Connections between units ................................................................................................... 15 2.1.3. Activation and output rules .................................................................................................. 16 2.2 TRAINING OF ARTIFICIAL NEURAL NETWORKS ............................................................................ 19 2.2.1. Modifying patterns of connectivity ...................................................................................... 19 2.3 APPLICATION OF THE NEURAL NETWORKS IN OIL AND GAS INDUSTRY ........................................ 20 2.4 AI APPLICATIONS IN DRILLING SYSTEM DESIGN AND OPERATIONS........................................... 21 2.5 AI IN WELL PLANNING OPERATIONS ........................................................................................... 21 CHAPTER 3. THE APPLICATION OF NEURAL NETWORK FOR THE PREDICTING CO2 EMISSIONS FROM ENERGY CONSUMPTION ............................................................................... 26 3.1 CHARACTERISTIC OF FACTORS THAT INFLUENCE CO2 EMISSIONS .............................................. 26 3.2 THE PROPOSED MODEL FOR ESTIMATION CO2 EMISSION PROBLEM ............................................ 28 CONCLUSION ...................................................................................................................................... 32 REFERENCES ....................................................................................................................................... 33 3 Introduction The global energy market structure has changed dramatically. The sharp decline in oil prices over the past two years - is not the result of someone's conspiracy, this is the new market equilibrium that has occurred as a result of innovative breakthroughs in oil and gas production. Accordingly, the advantage will be the one who will be able to quickly adapt to new realities - to reduce costs and improve production efficiency. Until now, the best change was shale revolution. Technology will become a new engine of growth. From "smart fields" to the price forecasts - the methods of artificial intelligence is often referred to one of the driving forces of technological breakthrough in oil and gas industry. Nowadays, the main vector of development is directed towards what can be called the fast track, “digitization” of the oil industry - automation, reducing the direct involvement of people in the increasing number of processes, and (most importantly) reduces the "human factor" and the probability of errors in management decisions. Technologies, which are based on artificial intelligence, allow dealing with these tasks. Main fields of application artificial intelligence in the oil and gas industry can be divided into three areas: exploration, production and strategic planning. In exploration the use of artificial intelligence allows more effectively interpret seismic data and exploration drilling. As a consequence, it reduces the number of wells drilled and tests conducted to determine the characteristics of the deposits, resulting in savings of time and money. The relevance of the research paper caused by the fact that climate pollution due to the carbon emission became an important and serious problem that affects the countries from the different aspects, health, climate, agriculture, economics, and tourism. Since the 1965 the amount of CO2 is rapidly growing. Many scientists consider the global warming due to CO2 emission is dangerous and threat the world more than terrorism. There is a direct link between the growth of carbon dioxide emissions and the increase in the average global air temperature. Adjusting the energy policies is a necessary process to void pollution problem, and keeping the atmosphere clear and clean The degree of elaboration of the theme is increasing every year. Artificial intelligence gained its development in 50s, and since then a huge amount of talented scientists from different countries reached a great progress in creating intelligent machines and deep learning. The result of their work was creating such systems as neural networks, expert systems, fuzzy logic, natural language systems and others. The application in E&P industry has more than 16 years of history with first application 4 dated 1989 for well log interpretation; drill bit diagnosis using neural networks and intelligent reservoir simulator interface. It has been propounded in solving many problems in the oil and gas industry which includes, seismic pattern recognition, reservoir characterisation, permeability and porosity prediction, drill bits diagnosis, estimating pressure drop in pipes and wells, optimization of well production, well performance, portfolio management and general decision making operations and many more. The aim of this work is the investigation of features of application artificial intelligence in the oil and gas industry and the examining of methodological approach of building and learning the neural networks. To achieve this goal in the course of the study it is necessary to solve a number of tasks: 1. To investigate the terminology of AI and to highlight a summary of various papers and articles in order to assess the impact on the development of AI different Russian and foreign scientists 2. To study the theoretical foundations of building and learning the neural networks and highlight some benefits of artificial intelligence application in oil and gas industry. 3. Analyze the modern ways and computer software of the application of neural networks. 4. Providing a solution to forecast the poison CO2 gas emerged from energy consumption. Make a conclusion about effectiveness and perspectives of this model for industry. Develop some proposals for the oil companies. The subject of the study is the methodological foundation of constructing and learning neural networks The object of the study is the amount of carbon dioxide emissions caused from energy consumption The structure of the course paper reflects the unity, content, logic, and the results of the study on the problem of application of artificial intelligence. The main structural elements of the paper are: the introduction, 3 chapters, conclusion, and list of references. The novelty of the work caused by the fact that in Russia, application of Artificial Intelligence gained its development relatively not long time ago, due the changing in oil and gas industry and sharp fall in oil prices. This new technologies will become vital for every country and oil and gas operators, and not only will help to control and decrease environmental damage from consumption of energy but also bring them technological competitive advantage. 5 Chapter 1. 1.1 Analysis of approaches and methods of development AI Terminology and history of Artificial intelligence development Artificial Intelligence (AI) has attracted interest from researchers for more long before the present century. Only in the middle of the 20th century when computer technologies gained the active development, fundamental and application-oriented operations on Artificial Intelligence became possible The study of artificial intelligence (AI) is a scientific field, located at the crossroads of a number of disciplines: сomputer science, philosophy, cybernetics, psychology, mathematics, physics, chemistry, etc. The term "artificial intelligence" is usually used to refer to the ability of a computer system to perform the tasks inherent human intelligence (for example, problems of inference and learning). Any task, algorithm of solving problems which is not known in advance (or its data is incomplete), can be attributed to problems in the field of AI. This, for example, playing chess, reading the text, the text translated into another language, and so on. [10] The term of "artificial intelligence" - was proposed by John McCarthy in 1956 at the workshop with the same name in Dartmouth College (USA). [7] The seminar was devoted to the development of methods for solving logic rather than computing tasks. In English, this phrase does not have the slightly fantastic anthropomorphic coloring which it has acquired a rather unsuccessful Russian translation. The word intelligence means "the ability to talk intelligently", rather than "intelligence", for which there is intellect term. In explaining his determination, John McCarthy points out: "The problem is that while we can not as a whole to determine which computational procedures we want to call intelligent. We understand some of the mechanisms of intelligence and do not understand the rest. Therefore, under the intelligence within that science refers only to the computational component of the ability to achieve goals in the world " [12] Lets consider one of the possible definitions of artificial intelligence. Artificial Intelligence (AI) - is a software system that simulates human mindset on the computer. To create such a system is necessary to study the process of human thinking, solving particular tasks or decision-making in a particular area, to identify the main steps of the process and to develop software tools that reproduce them on the computer. 6 A member of the Russian Association for Artificial Intelligence gives the following definition of artificial intelligence [11]: 1) Scientific direction in which are formulated and solved the problem hardware or software simulations of human activities that have traditionally been considered to be intelligent. 2) Property intelligent systems to perform functions (creative), which are traditionally considered the prerogative of man. This intelligent system - it is a technical or a software system that can meet the challenges traditionally considered creative, belonging to a particular domain, knowledge of which is stored in the memory of such a system. Intellectual structure of the system consists of three main blocks - knowledge base, solver and intelligent interface that allows for a communication with a computer without special software for data entry There are several types of artificial intelligence, among which are the three main categories: 1. ANI, Artificial Narrow Intelligence. It is an AI, specializing in one particular area. For example, can beat the world chess champion in a chess game, but that's all what it can do. 2. AGI, Artificial General Intelligence. This AI is a computer whose intelligence resembles a human, that is, it can perform all the same tasks as men. Professor Linda Gottfredson describes this phenomenon as follows: "General AI embodies the generalized thinking skills, among which also notes the ability to justify, plan, solve problems, think abstractly, to compare complex ideas, learn quickly, use that experience." 3. ASI, Artificial Superintelligence. Swedish philosopher and a professor at Oxford University Nick Bostrom gives the following definition of superintelligence "This is intelligence that surpasses the human in almost all areas, including scientific inventions, general knowledge and social skills" [13] In AI allocate the following directions of development: Expert Systems (ES), or sometimes referred to as a system based on knowledge (SBK); Natural-language systems (NL-system); Neural networks (NN); Fuzzy systems (fuzzy-logic), Evolutionary methods and genetic algorithms Knowledge exctraction system 7 Some of the background work for the field of neural networks occurred in the late 19th and early 20th centuries. This consisted primarily of interdisciplinary work in physics, psychology and neurophysiology by such scientists as Hermann von Helmholtz, Ernst Mach and Ivan Pavlov. This early work emphasized general theories of learning, vision, conditioning, etc., and did not include specific mathematical models of neuron operation. [1] McCulloch and Pitts were followed by Donald Hebb, who proposed that classical conditioning (as discovered by Pavlov) is present because of the properties of individual neurons. He proposed a mechanism for learning in biological neurons. After the first computers were created their possibilities in terms of the speed of calculations have appeared to be more than human, therefore in scientific community the question has arisen: what borders of opportunities of computers and whether machines will reach the level of human development? In 1950 one of pioneers in the field of computer facilities, the English scientist Alan Turing, writes article under the name "Can Machines Think?" [3], which describes the procedure by which it will be possible to determine the moment when the machine will be equal in terms of intelligence with a human, called the Turing test. The first practical application of artificial neural networks came in the late 1950s when Frank Rosenblatt and his colleagues demonstrated their ability to perform pattern recognition. Interest in neural networks had faltered during the late 1960s because of the lack of new ideas and powerful computers with which to experiment. During the 1980s both of these impediments were overcome, and research in neural networks increased dramatically. New personal computers and workstations, which rapidly grew in capability, became widely available. In addition, important new concepts were introduced. Since then, artificial neural networks have been improved and applied in aerospace, automotive, defense, transportation, telecommunications, electronics, entertainment, manufacturing, financial, medical and the oil and gas industry to name a few. [1] Information technology actively and successfully penetrates into all spheres of human activity. Artificial intelligence is an integral part of computer science, but it is significantly expanding its capabilities, allowing you to solve the problem of poorly formalized. Soon after the recognition of artificial intelligence a separate branch of science was divided into two areas: neurocybernetics and "black box Cybernetics". These areas are developing almost independently, significant differences in methodology and technology. And only now become apparent tendency to unite these parts back together. 8 1.2 USSR and Rusian experience Russian nobleman, an inventor - Semen Nikolayevich Korsakov (1787-1853) – who was involved with an early version of information technology and artificial intelligence pioneer, set the task of strengthening intelligence capabilities through the development of scientific methods and devices, in common with the modern concept of artificial intelligence, as a natural amplifier. In 1832 S.N. Korsakov published a description of the five, invented by him mechanical devices, so-called "intelligent machines", for the partial mechanization of mental activity in search of problems, comparison and classification. In the design of his machines Korsakov first time in the history of computer science applied perforated cards, which played the role of a kind of data bases, and the machines themselves are essentially forerunners of expert systems [4-5]. In 1965-1980 was born a new direction - situational control (corresponding to the representation of knowledge in the western terminology). The founder of this scientific school became prof. - Pospelov D.A. Were crated special models of knowledge representation [Pospelov 1986]. Thus that the relation to new sciences in the Soviet Russia always was alerted, the science with such "defiant" name hasn't avoided this fate too and has been given a hostile reception in Academy of Sciences [Pospelov, 1997]. Fortunately, even among members of Academy of Sciences of the USSR there were people who weren't frightened of so unusual phrase as the name of the scientific direction. Two of them have played a huge role in fight for recognition of AI in our country. It were academicians A. I. Berg and G. S. Pospelov. [7] After 1960s at the Moscow University and the Academy of Sciences carried out a number of pioneering research, headed by Veniamin Pushkin and DA Pospelov. Since the beginning of 1960 M.L. Tsetlin and colleagues developed issues related to the training of finite automates. In 1964, in Leningrad was published Sergey Maslow’s "Inverse method for the classical predicate calculus," which first proposed methods automatically search for proofs of theorems in the predicate calculus. Only in 1974 at Committee on the system analysis at presidium of Academy of Sciences of the USSR the Scientific council on a problem "Artificial intelligence" has been created, it was headed by G. S. Pospelov, D. A. Pospelov and L. I. Mikulich have been elected his deputies. M. G. Gaaze-Rapoport, Yu. I. Zhuravlev, L. T. Kuzin, A.S. Narinyani, D.E. Okhotsimsky, A. I. Polovinkin, O. K. Tikhomirov, V. V. Chavchanidze were a part of council at different stages. [7] In the late 1970s created Dictionary of Artificial Intelligence, three-volume reference on Artificial Intelligence and Encyclopedic Dictionary of computer science, in which the sections of "Science" and "Artificial Intelligence" includes, among other sections of the computer science. The term "computer" 9 in the 1980s became widespread, and the term "cybernetics" is gradually disappearing from circulation, remaining only in the names of the institutions that have emerged in the era of "cybernetic boom" of the late 1950s - early 1960s [6]. This view of artificial intelligence, wasn’t supported by West due to the fact that boundaries of sciences are differ there. In 1980-1990 active researches in the field of representation of knowledge are conducted, languages of representation of knowledge, expert systems (more than 300) are developed. At the Moscow University the recursive functions language - REFAL language is created by V.F. Turchin. In 1988 created the AIA - Artificial Intelligence Association. Its members include more than 300 researchers. President of the Association unanimously elected D.A. Pospelov, an outstanding scientist, whose contribution to the development of artificial intelligence in Russia can not be overestimated. The largest centers - in Moscow, St. Petersburg, Pereslavl, Novosibirsk. The Scientific Council of the Association consists of the leading researchers in the field of AI - VP Gladun, VI Gorodetsky, GS Osipov, E. Popov, VL Stefanyuk, VF Khoroshevsky, VK . Finn Tseitin, A. Ehrlich, and other scientists. In the framework of the Association conducted a lot of research, organized by the school for young professionals, seminars, workshops, every two years going joint conferences, published scientific journal. [7] The level of theoretical research in Russia on artificial intelligence was no way below the world. Unfortunately, since the 80s on applied research is beginning to affect the gradual lag in technology. At the moment, the lag in the development of intelligent systems industry is about 3-5 years. Table 1.1 The periodization of the achievements of Russian scientists in the study of AI Period Authors Achievement 1956 Scientists from Dartmouth College The term "artificial intelligence" - (AI) was proposed at the workshop of the same name After 1960s 1964 1965-1980 1974 Veniamin Pushkin and D.A. At the Moscow University and the Academy of Pospelov, M.L. Tsetlin and Sciences carried out a number of pioneering colleagues researches. Tselin developed issues related to the training of finite automates. Sergey Maslow in Leningrad was published Maslow’s "Inverse method for the classical predicate calculus," which first proposed method automatically search for proofs of theorems in the predicate calculus. Prof. D.A. Pospelov Was born a new direction - situational control (corresponding to the representation of knowledge in the western terminology). Were crated special models of situation representation – representation of knowledge. G.S. Pospelov. At Committee on the system analysis at presidium Members of council: D.A. of Academy of Sciences of the USSR, Scientific Pospelov L.I. Mikulich, M.G. council on a problem "Artificial intelligence" has 10 Gaaze-Rapoport, Yu.I. been created, it was headed by G. S. Pospelov. Zhuravlev, L. T. Kuzin, A.S. Narinyani, D.E. Okhotsimsky, A.I. Polovinkin, O.K. Tikhomirov, V.V. Chavchanidze 1980-1990 1988 – till now 2014 V.F. Turchin. Active researches in the field of representation of knowledge are conducted; languages of representation of knowledge, expert systems (more than 300) are developed. At the Moscow University the recursive functions language REFAL language is created President - D.A. Pospelov. Members V.P Gladun, VI Gorodetsky, G.S Osipov, E. Popov, V.L Stefanyuk, V.F Khoroshevsky, V.K . Finn Tseitin, A. Ehrlich Artificial Intelligence Association was created. Its members include more than 300 researchers. The largest centers - in Moscow, St. Petersburg, Pereslavl, Novosibirsk Vladimir Veselov, Yevgeny Demchenko Program was developed, which could first pass the Turing test. Chat bot Eugene Goostman during the competition Turing Test - 2014 was able to fool 33% of the jury, who felt that they communicate with the person (30% gain was necessary to pass the test). Table 1.1 The periodization of the achievements of Russian scientists in the study of AI Table 1.1 shows the time periods of researches about Artificial Intelligence by different authors who’s great impact on this topic are hard to underestimate. Nowadays, besides the AIA, also "Skolkovo" is an active developer in the field of artificial intelligence carried out at the innovation center. At present, most attention is paid to the center of robotics. Regular is carried out conferences - «Skolkovo Robotics”, in which the visitors have an opportunity to communicate with the robots and their designers. Also, research in the field of artificial intelligence holds by the company Yandex, which applies its innovations into a search engine. [8] 1.3 Foreign experience The first work in which the main results were obtained in this direction were made McCulloch and Pitts. In 1943, their computer model of neural network based on mathematical algorithms and theory of brain activity has been developed. They hypothesized that neurons can be simplistically viewed as devices that operate on binary numbers, and termed this model "threshold logic." Like its prototype biological neurons McCulloch-Pitts were capable of learning by adjusting the parameters describing the synaptic conductance. Researchers have proposed the construction of a network of electronic neurons and showed that such a network can do almost anything imaginable numeric or logical operations. McCulloch and Pitts have suggested that such a network is also able to learn, recognize patterns, generalize, t. E. Has all the features of intelligence. [9] 11 Further we will combine the decades of researches trough different stages to sum up the main important things in this science field. Conditionally possible to allocate 7 stages in the development of artificial intelligence, each of which is associated with a certain level of development of artificial intelligence and the paradigm being implemented in a particular system. Stage 1 (50s) (neurons and neural networks) It is associated with the first consecutive action machines with very small by today's standards, resource capacity memory, speed and class tasks. It was a purely computational problem for which solutions were known circuits and which can be described in some formal language. To the same class belong and challenges for adaptation. Stage 2 (60s) (heuristics) The "intelligence" of the machine added search engines, sorting, simple operations for the compilation of information, do not depend on the meaning of the data being processed. It has become a new starting point in the development and understanding of the challenges of automation of human activity. Stage 3 (70s) (Knowledge Representation) Scientists had recognized the importance of knowledge (in scope and content) for the synthesis of interesting algorithms for solving problems. In this meaning the knowledge with which mathematics is not able to work, i.e., expert knowledge, not of a strictly formal nature and is usually described in a declarative form. It is the knowledge of experts in various fields of activity, doctors, chemists, researchers, etc. Such knowledge were called expertise, and thus the system operating on the basis of expertise, became known as systems consultants and expert systems Stage 4 (80s) (Learning machine) The fourth stage of ischemic stroke was a breakthrough. With the advent of expert systems in the world started a new stage of development of smart technologies - the era of intelligent systems consultants who offers solutions, justify them, were able to learn and to develop, communicate with a person at his usual, although limited, natural language . Stage 5 (90s) (Automated machining centers) The increasing complexity of communications and tasks require a new level of "intelligence" providing software systems, systems such as protection against unauthorized access, information security resources, protection against attacks, semantic analysis and search for information in networks, etc. And the new paradigm of the development of advanced systems of protection of all types of steel intelligent systems. They allow you to create a flexible environment in which the solution provided all the required tasks. Stage 6 (2000s) (Robotics) 12 Scope of robots is quite wide and extends from the autonomous lawn mowers and vacuum cleaners to modern models of military and space technology. Models equipped with the navigation system and all kinds of peripheral sensors. Stage 7 (2008) (Singularity) Creating artificial intelligence and self-replicating machines, the integration of human with computers, a significant stepwise increase in capacity of the human brain at the expense of biotechnology. Table 1.2. Periodization of foreign achievements in Artificial Intelligence research Period Authors Achievement 1941 Konrad Zuse Built the first working program-controlled computer. 1943 Warren McCulloch and Walter Pitts Published «A Logical Calculus of the Ideas Immanent in Nervous Activity”, computer neural network model was developed based on mathematical algorithms and theory of brain activity. Introduced the artificial neuron term. Like its biological prototype McCulloch-Pitts neurons were capable of learning by adjusting the parameters, describing the synaptic conductance. 1949 Donald Hebb In his paper «The organization of behavior”, 1949, described the main principles of neuron learning. 1950s Frank Rosenblatt 1950s Alan Turing Writes article under the name "Can Machines Think?", which describes the procedure by which it will be possible to determine the moment when the machine will be equal in terms of intelligence with a man, called the Turing test. 1956 John McCarthy and Scientists from Dartmouth College The term "artificial intelligence" - (AI - artificial intelligence) was proposed at the workshop of the same name in Dartmouth College (USA). 1957-1958 Frank Rosenblatt Proposed a model of the electronic device, which was supposed to simulate the processes human thinking, and the first operating machine was demonstrated two years later, which could learn to recognize some of the letters, written on cards, which tray to its "eyes", reminding movie camera. 1970s 1980s 1997 2006 Invention of the perceptron network and associated learning rule, which demonstrated its ability to perform pattern recognition Edward Shortliffe An exert system, which is based on medical data could identify Bruce Buchanan, the disease and could calculate the required dose of antibiotics Stanley N. Cohen John Hopfield, David 1)The use of statistical mechanics to explain the operation of a Rumelhart and James certain class of recurrent network, which could be used as an McClelland associative memory Supercomputer Deep Blue 2)The back propagation algorithm for training multilayer perceptron networks Deep Blue won a World Champion - Harry Kasparov in chess Were introduced deep learning algorithms for uncontrolled training neural networks with one or more layers Table 1.2. Periodization of foreign achievements in Artificial Intelligence research 13 In the Table 1.2 we can clearly observe the main classic papers in this field, by foreign authors and stages of development of Artificial Intelligence through years. In recent years, interest in artificial intelligence systems has increased significantly. At the same time, the level of development of modern technologies allows you to create a system, only adding intelligence into our lives (autopilot system, robot vacuum cleaner, washing machine with an odd logic, etc.), not reproducing human intelligence fully. The development of artificial intelligence are engaged in many of the largest IT-companies such as Google, Facebook and Microsoft, which lay out the results of their research in open access. In addition, in recent years the market has seen quite a number of start-ups. However, as a rule, companies like lightning giants buy successful startups. For example, the Google company recently purchased a startup DeepMind fabulous $ 500 million. As practice shows, in promising startups invest considerable financial means. For Zuckerberg, Musk (and Ashton Kutcher) has recently invested about $ 40 million in Vicarious company that taught the computer to understand the CAPTCHA. We can confidently say that the scope of artificial intelligence today is experiencing a real upturn. At Stanford online course, which was held in 2013 and was dedicated to artificial intelligence, it recorded more than 150 000 people. More recently, TED has announced a competition to develop (a device with artificial intelligence) that is able to adequately perform with his speech at their conferences. Every two years, leading scientists and researchers in the field of artificial intelligence are collected at the international conference IJCAI, which analyzes the current developments in this area and discussed further prospects. 14 Chapter 2. Methodogical approach of building and learning neural network and it’s application in oil and gas industry 2.1 General principles of building neural networks The first attempt to create and study of artificial neural networks is considered to be the work of J. McCulloch and W. Pitts «A logical calculus of the ideas related to the nervous activity" (1943), which formulated the basic principles of neurons and artificial neural networks. Although this work was only a first step, many of the ideas described in it, remain relevant today. Artificial neural networks induced by biology because they are made up of elements, features which are similar to most of the functions of the biological neuron. These elements can be arranged in a manner that may correspond to the anatomy of the brain, and they show a large number of properties that are inherent in the brain. For example, they can learn from experience, can generalize the previous precedents on new cases and identify the essential features of the input data, which contain surplus information. Neural networks are a set of parallel calculations, consisting of a plurality of interacting simple processes. Each simple calculation takes place in the neuron. Neuron is a simple element, consisting of synapses (inputs and outputs) and the body of the neuron, which occur computation. [14] It is similar to the brain in 2 ways: 1. The knowledge acquired during the training network; 2. To maintain knowledge is used power of interneuron connections, called as synaptic weights. An artificial network consists of a pool of simple processing units, which communicate by sending signals to each other over a large number of weighted connections. A set of major aspects of a parallel-distributed model can be distinguished (cf. Rumelhart and McClelland, 1986 (McClelland and Rumelhart, 1986; Rumelhart & McClelland, 1986)): a set of processing units ( “neurons”, “cells”); a state of activation 𝓎𝑘 for every unit which equivalent to the output of the unit; Connections between the units. Generally each connection is defined by a weight 𝜔𝑗𝑘 , which determines the effect which the signal of unit j has on unit k; a propagation rule which determines the effective input 𝑠𝑘 of a unit from its external inputs; an activation function 𝐹𝑘 , which determines the new level of activation based on the effective input 𝑠𝑘 (𝑡) and the current activation 𝑦𝑘 (𝑡) (i.e., the update); an external input (aka bias, offset) 𝜃𝑘 for each unit; a method for information gathering (the learning rule); 15 an environment within which the system must operate, providing input and if necessary error signals. Figure 2.1. The basic components of an artificial neural network. The propagation rule used here is the ‘standard’ weighted summation. 2.1.1 Processing units Each unit performs a relatively simple job receive input from neighbors or external sources and use this to compute an output signal which is propagated to other units. Apart from this processing a second task is the adjustment of the weights. The system is inherently parallel in the sense that many units can carry out their computations at the same time Within neural systems it is useful to distinguish three types of units: input units (indicated by an index i) which receive data from outside the neural network, output units (indicated by an index o) which send data out of the neural network and hidden units indicated by an index h whose input and output signals remain within the neural network. [15] During operation units can be updated either synchronously or asynchronously. With synchronous up dating all units up date their activation simultaneously; with asynchronous up dating, each unit has a (usually fixed) probability of up dating its activation at a time t and usually only one unit will be able to do this at a time. In some cases the latter model has some advantages. 2.1.2. Connections between units In most cases we assume that each unit provides an additive contribution to the input of the unit with which it is connected. The total input to unit k is simply the weighted sum of the separate outputs from each of the connected units plus a bias or offset term 𝜃𝑘 : 𝑠𝑘 (𝑡) = ∑ 𝑤𝑗𝑘 (𝑡)𝑦𝑗 (𝑡) + 𝜃𝑘 (𝑡). 𝑗 (2.1) 16 A different propagation rule introduced by Feldman and Ballard (Feldman & Ballard, 1982), is known as the propagation rule for the sigma-pi unit: 𝑠𝑘 (𝑡) = ∑ 𝑤𝑗𝑘 (𝑡) ∏ 𝑦𝑗𝑚 (𝑡) + 𝜃𝑘 (𝑡). 𝑗 (2.2) 𝑚 Often the 𝑦𝑗𝑚 are weighted before multiplication. Although these units are not frequently used, they have their value for gating of input, as well as implementation of lookup tables (Mel, 1990). 2.1.3. Activation and output rules We also need a rule, which gives the effect of the total input on the activation of the unit. We need function 𝐹𝑘 , which takes the total input 𝑠𝑘 (𝑡) and the current activation 𝑦𝑘 (𝑡) and produces a new value of the activation of the unit k: 𝑦𝑘 (𝑡 + 1) = 𝐹𝑘 (𝑦𝑘 (𝑡), 𝑠𝑘 (𝑡)). (2.3) There are a lot of activation functions, lets list the most common: Linear function: neuron output is equal to its potential; Step function: neuron assumes the value 0 or 1 depending on the 𝑠𝑘 (𝑡) and step size; Linear with saturating: linear transformation on the interval between the two values A and B (in other intervals is equal to 0); Multithreshold: output value takes values q, q-1 defined by steps; Sigmoid (S-shape) function: specifies the logistics functions 𝑦𝑘 = 𝐹(𝑠𝑘 ) = 1 1 + 𝑒 −𝑠𝑘 (2.4) Sometimes the hyperbolic tangent is used, yielding output values in the range [-1, +1]. Gauss function: 𝑦𝑘 = 𝐹(𝑠𝑘 ) = 1 √2𝜋𝜎 𝑒 (𝑥−𝑎)2 2𝜎 2 (2.5) Combinations of neurons are forming the neural network. There are many different types of networks; they can be classified by the following features [14]: 17 • Structure relations • Rule of signal propagation in the network • The right combination of incoming signals • Rules for calculating activity signal • Learning rule Here are a few types of networks that solve the main problem: the multilayer perceptron or a multilayer network with a direct link (MLP), a network with radial basis functions, self-organizing features of the map (SOFM - Kohonen network), discrete network Hopfield bidirectional associative memory (BAM), recurrent network, Boltzmann machine, probabilistic neural network (PNN), a modular neural network (BP-SOM). The task of forecasting values solves the multi-layer perceptron network with radial basis functions. The remaining tasks solve the problem of classification (SOFM, PNN) or pattern recognition. In terms of architecture, the NA can be considered as a directed graph with weighted connections in which artificial neurons are nodes. According to the architecture of the National Assembly relations can be grouped into two classes (Figure 2): Direct distribution network, which graphs have no loops, and recurrent networks, or networks with feedback. The most common family of networking first class, called Multilayer Perceptron; neurons are arranged in layers and have a one-way communication between the layers. Figure 2.2 Architecture of neural networks 18 Fig. 2.2 shows typical networks of each class. Direct distribution networks are static in the sense that a given input, they produce a set of output values, not dependent on the previous state of the network. Recurrent networks are dynamic, since by virtue of the feedback inputs to their modified neurons, leading to a change in network state. [23] As for this pattern of connections, the main distinction we can make is between: ▪ Feed-forward neural networks, where the data from input to output units is strictly feed forward. The data processing can extend over multiple (layers of) units, but no feedback connections are present, that is, connections extending from outputs of units to inputs of units in the same layer or previous layers. ▪ Recurrent neural networks that do contain feedback connections. Contrary to feed-forward networks, the dynamical properties of the network are important. In some cases, the activation values of the units undergo a relaxation process such that the neural network will evolve to a stable state in which these activations do not change anymore. In other applications, he changes of the activation values of the output neurons are significant, such that the dynamical behavior constitutes the output of the neural network. [20,28] Nowadays exist a huge amount of theoretical knowledge about neural networks. In order to classify all information, the short categorization of paradigm were created and represented in Table 2.1 Table 2.1 Classification of main neural network paradigm Name of the neuroparadigm Single layer perceptron Authors R. Rosenblatt Year 1959 Back Propagation 1960-е Counter Propagation R. Rosenblatt, M. Minsky, S. Papert R. Hecht-Nielsen Instar Network Outstar Network Artificial resonance-1 (ART-1 Network) Hopfield Network S. Grossberg S. Grossberg S. Grossberg, G. Carpenter J.J. Hopfield 1974 1974 1986 Hamming Network R. W.Hamming 1987 Kohonen Network T. Kohonen 1984 maximum search network (MAXNET) R.P. Lippman 1987 maximum search network with direct links (Feed-Forward MAXNET) Bi-directional auto-associative memory (BAM Network) Boltzman machine R.P. Lippman 1987 B. Kosko Second half of 80 1985 J. Hinton, T. 1986 1982 Area of application Pattern recognition, classification / categorization Pattern recognition, classification, prediction Pattern recognition, image restoration (associative memory), data compression Pattern recognition Pattern recognition Pattern recognition, cluster analysis Search and recovery of data on their fragments Pattern recognition, classification, associative memory, reliable transmission of signals in noisy environments Cluster analysis, pattern recognition, classification Together with the Hamming network, as part of Neural Network pattern recognition systems Together with the Hamming network, as part of Neural Network pattern recognition systems Associative memory, pattern recognition Image recognition, radar signals, sonar 19 Neural Gaussian Classifier Genetic training algorithm Sejnovsky, H. Szu R.P. Lippman J.Holland, D.Goldberg 2.2 1987 1975 1988 Pattern recognition, classification Training neural networks recognition sonar signals Training of artificial neural networks The ability to learn is a fundamental property of the brain. In the context of the ANN training process has the following definition. Neural network training – is a set up the network architecture and the weights for the effective implementation of the special task. The purpose of training is the selection of synaptic coefficients, which would allow solving the task satisfactorily. Various methods to set the strengths of the connections exist. One way is to set the weights explicitly using a priori knowledge. Another way is to train the neural network by feeding it teaching patterns and letting it change its weights according to some learning rule. [15] There is the classification of learning situations in two distinct sorts. These are: Supervised learning or Associative in which the network is trained by providing it with input and matching output patterns. These input output pairs can be provided by an external teacher, or by the system, which contains the network (self supervised). Unsupervised learning or Self-organization in which an (output) unit is trained to respond to clusters of pattern within the input. In this paradigm the systems is supposed to discover statistically salient features of input population. Unlike the supervised learning paradigm, there is no a priori set of categories into which the patterns are to be classified; rather the system must develop its own representation of the input stimuli. 2.2.1. Modifying patterns of connectivity Both learning paradigms discussed above result in an adjustment of the weights of the connections between units according to some modification rule. Virtually all learning rules for models of this type can be considered as a variant of the Hebbian learning rule suggested by Hebb in his classic book Organization of Behaviour (1949) (Hebb, 1949). The basic idea is that if two units j and k are active simultaneously, their interconnection must be strengthened. If j receives input from k, the simplest version of Hebbian learning prescribes to modify the weight with: ∆𝑤𝑗𝑘 = 𝛾𝑦𝑗 𝑦𝑘 (2.6) ,where 𝛾 is a positive constant of proportionality representing the learning rate. Another common rule uses not the actual activation of unit k but the difference between the actual and desired activation for adjusting the weights: 20 ∆𝑤𝑗𝑘 = 𝛾𝑦𝑗 (𝑑𝑘 − 𝑦𝑘 ), (2.7) in which 𝑑𝑘 is the desired activation provided by a teacher. This is often called the Widrow-Hoff rule or the delta rule. 2.3 Application of the neural networks in oil and gas industry Over the past decade, the use of machine learning, predictive analytics, and other artificial intelligence-based technologies in the oil and gas industry has grown immensely. These technologies have advanced over the last 18-24 months as the drop in oil price has driven companies to look for innovative ways to improve efficiency, reduce costs and minimize unplanned downtime. Artificial Intelligence is an area of great interest and significance in petroleum exploration and production. Over the years, it has made an impact in the industry, and the application has continued to grow within the oil and gas industry. The application in E & P industry has more than 16 years of history with first application dated 1989, for well log interpretation; drill bit diagnosis using neural networks and intelligent reservoir simulator interface. It has been propounded in solving many problems in the oil and gas industry which includes, seismic pattern recognition, reservoir characterization, permeability and porosity prediction, prediction of PVT properties, drill bits diagnosis, estimating pressure drop in pipes and wells, optimization of well production, well performance, portfolio management and general decision making operations and many more. The successful application of artificial intelligence techniques as related to one of the major aspects of the oil and gas industry, drilling capturing the level of application and trend in the industry. [16] Machine learning (ML) has had a slower adoption rate in the oil and gas industry and though there are many supporters there are also many skeptics about the real value it can bring. Neural network technology of artificial intelligence having an increasing application in the development of smart sensors, information processing systems (SDI) in the oil and gas and other strategically important industries. They allow you to create a neural network model of automation objects and applied neural network systems, through which significantly facilitates the control of a technical condition of the oil and gas industry, realized their structural and parametric identification, carried out with the use of neural networks learning algorithms. [17] The efficiency of industrial systems in the oil and gas industry, created on the basis of artificial neural networks is determined: - The adequacy of the achieved degree of neural network models of automation objects, which largely depends on the proper choice of structural and functional organization (BOM) used neural networks; 21 - Preliminary data processing quality, realized by neural setya- mi smart sensors and data analyzers; - The presence of neural network analyzers information processing functions, the need for intelligent real-time analysis of the data (datamining) [18] 2.4 AI Applications in Drilling System Design and Operations One of the major aspects of the oil and gas industry is drilling operational section. The drilling industry is a technology dependent industry. It is considered to be the most expensive operations in the world as they require huge expenses to be spent daily. Therefore, any sorts of tools that can improve the drilling operation at a minimal cost are essential and demanded during pre and post planning process of any activity. The number of publications on the application of AI in drilling operations indicates that this is a potential methodology to re- duce drilling cost, increase drilling operation safety, by using previous experiences hidden in reports or known by experts. The complexity of the drilling operations and the unpredictable operating conditions (uncertain- ties regarding tool/sensor response, device calibra- tion and material degradation in extreme downhole pressure, temperature and corrosive conditions) may sometimes result in non-accurate drilling data, hereby misleading the driller about the actual down- hole situation. The indulgence of smart decisionmaking models and optimized real-time controllers in the drilling system can also, therefore, provide the driller with a number of quick and intelligent propositions on key drilling parameters and on suitable preventive or corrective measures intended to bring the conditions back to an optimum drilling stage (Dashevskiy et. al, 1999). 2.5 AI in well planning operations Designing a well for safer and faster operations and economic budget requires complex and experience- based decision-making. Chief input information sources for an efficient well plan are normally offset well data, reservoir models and drilling simulation results. AI has been tested in different well plan- ning phases by experts all over the world. Figure 3 shows some potential prospects as related to well planning. 22 Drill bit selection Mud and fructure gradient prediction AI in well planning Casing shoe depth and collapse pressure determination Oilfield cement quality and performance estimation Platform selection (offshore) Trajectory and directional mapping Figure 3.1. Potential applications of AI in well planning sector Selection of drill bits as per formation characteristics has been one of the most prospective sec- tors benefiting by the application of AI (figure 3.1). Trained artificial neural networks (ANNs) have been an important tool for decoding data, categorizing the empirical relationships and optimized bit selection based on user defined information database. The database may include IADC bit codes for typical rock formations, rock strength data, geology, compaction characteristics and conventional ROP values corresponding to the rocks. Hence after the user input on the data, the ANNs have the ability to correctly learn the codes and numerical values and select the suitable bit for a particular drilling environment, whether it’s a PDC, roller cone, diamond insert or a hybrid. Input data 1)Geological data Carbonate, salt, Sandstones, Grain size 2)Rocks Mechanics Rock streangth, Friction angle, Vibration impact 3) Well drilling data ROP, Layer Thickness, Formation top. 4) Location data Formation name, Age, loation ANN User input for new variable data and ANN learning Output Bit type Performance prediction Operating guidlines Figure 3.2. Base layout for drill bit selection by ANNs (National Oilwell Varco, 2013) Casing collapse occurrence and depth determination can also take neural network approach using a 23 simple spreadsheet program with BPNN basis. As previously used in Middle-east and Asian countries, a back-propagating network of user-defined number of internal (hidden) layers can be connected to input and output layers to provide an ’experienced’ estimate on casing collapse depth for the wells to be drilled. The data layer can have a number of inputs such as location, depth, pore pressure, corrosion rate, casing strength etc. to analyze and pro- vide feed on expected collapse depth and probability of casing collapse (e.g. in years). [19] Input data 1)Total well depth 2) Corrosion weight factor 3) Failure time factor 4) Zone factor 5) casing grade and streanth 6)Latitude and longitude of well 7)Geiligical anomalies Output BPNN (2-3 layers) Collapse depth Probability of collapse in 5 years (0 to 1) Figure 3.3. Base layout for casing collapse and depth prediction by BPNNs A basic layout of the method is provided in figure 5. However, the approach is relatively new and still needs further up gradation on its result accuracy and generalization of input data. Among the broader applications of AI methods, ANN, BPNN are widely used in drilling practices. Table 3.1 consists from a list of application of AI techniques and their purposes since their emergence in drilling operation area of oil and gas. [24-26,29,30] Table 3.1. Timeline AI techniques application in drilling practices Drilling Sector Application AI Approach Researcher(s) Year Well Planning Bit selection ANN National Oilwell Varco 2013 Gradient prediction GRNN Sadiq and Nashwi 2000 Casing collapse prediction BPNN Salehi, Hareland, Ganji, Keivana and Abdollahi 2007 Cement quality / Performance estimation ANN Fletcher, Coveney and Methven 1994 Offshore platform selection Hybrid (BPNNGA) Wang, Duan, Liu and Dong 2011 24 Directional map- ping CBR Mendes, Guilherme and Morooka 2011 BHA monitoring ANN Dashevskiy, Dubinsky and Macpherson 1999 Bit wear control ANN Gidh, Purwanto and Ibrahim 2012 Drag and slack-off load prediction ANN Sadiq and Gharbi 1998 DS vibration con- trol ANN Esmaili, Elahifar, Thonhauser and Fruhwirth 2012 Hole cleaning effi- ciency estimation BPNN/MLR Rooki, Ardejani and Moradzadeh 2014 Well Stability Kick, loss, leakage monitoring ANN Jahanbakhshi and Keshavarzi 2012 Problem- Solving Stuck-pipe control and corrective mea- sures BPNN / (ANNGA) Hybrid Shadizadeh, Karimi and Zoveidavianpoor 2010 Pattern Recognition Real-time drilling risk FR / CBR Lian, Zhou, Zhao and Hou 2010 Drilling equipment condition ANN Yamaliev, Imaeva and Salakhov 2009 Determination of feasible drilling procedure as per drilling conditions CBR Popa, Malma and Hicks 2008 Procedural Optimization Critical Decision Making The main goal of seeking smart machine methods is to predict the occurrence of some problems based on previous experience with reasonable cost and time. The reliability of the method depends on the accuracy of prediction and the error between the actual and the predicted class labels of the problem. According to Kecman (2001), many scientific and engineering fields have recently applied artificial intelligence to predict common and serious problems. They seek AI methods due to the complications of most today problems, which are hard to be solved through the traditional methods, or what is called hard computing. The benefits of AI techniques are highlighted as follows (after [21]; Medsker 1996; Medsker 1996; Tu 25 1996. and Benghanem 2012): ▪ The leverage AI techniques has over other modeling techniques is their ability to model complex; non-linear processes without any form of relationship assumption between input and out- put variables. ▪ As a developing and promising technology, AI has become extremely popular for prediction, diagnosis, monitoring, selection, forecasting, Inspection and identification in different fields. ▪ AI are more accurate than other models and empirical models for predictions using linear or nonlinear multiple regression or graphical techniques. ▪ AI has a great potential for generating accurate analysis and results from large historical databases. The kind of data that most engineers may not consider valuable or relevant in conventional modeling and analysis processes. ▪ AI tools have the ability to analyze large quantities of data to establish patterns and characteristics in situations where rules are not known and sometimes in many cases make sense of incomplete or noisy data ▪ AI tools are cost effective. ANN as example has the advantage of execution speed, once the network has been trained. The ability to train the system with data sets, rather than having to write programs, may be more cost effective and may be more convenient when changes become vital. ▪ AI tools can implicitly detect complex nonlinear relationships between independent and de- pendent variables. ▪ AI tools can be developed using multiple different training algorithms ▪ Tackle boring tasks and can complete task faster than a human with less errors and defects Like any other tool, AI techniques have their own limitations. An example is ANN, which is often tagged as black boxes that merely attempt to map a relationship between output and input variables based on a training data set. This raises some concerns regarding the ability of the tool to generalize to situations that were not well represented in the data set (Lint et al., 2002). However one proposed solution in addressing the black box problem is the combination of multiple AI paradigms into a hybrid solution (e.g., combining neural networks and fuzzy sets into neuro-fuzzy systems) or integrating AI tools with more traditional solution techniques. 26 Chapter 3. The application of neural network for the predicting CO2 emissions from energy consumption 3.1 Characteristic of factors that influence CO2 emissions One of the main pollutants of the atmosphere is carbon dioxide. In the XX century. There is an increase in the concentration of CO2 in the atmosphere, the share of which has increased by almost 25% since the beginning of the century, and by 13% over the past 10 years. The release of CO2 into the environment is inextricably linked with the consumption and production of energy. Environmentalists warn that if it is not possible to reduce the release of carbon dioxide into the atmosphere, then our planet expects a catastrophe, associated with an increase in temperature due to the so-called greenhouse effect. The essence of this phenomenon is that ultraviolet solar radiation passes through the atmosphere with a high content of CO2 and methane CH4 rather freely. Reflected from the surface, infrared rays are delayed by an atmosphere with a high content of CO2, which leads to an increase in temperature, and consequently, to climate change. Anthropogenic sources of CO2 emissions to the atmosphere include: burning of fossil and non-fossil energy sources for obtaining heat, generating electricity, transporting people and cargo. Some types of industrial activity, such as, for example, cement production and gas utilization through their flaring, lead to significant CO2 emissions. With the onset of the industrial revolution in the middle of the 19th century, anthropogenic emissions of carbon dioxide into the atmosphere progressively increased, which led to a disruption in the carbon cycle balance and an increase in the concentration of CO2. The main sources of CO2emissions in the United States are described below: 1) Electricity. Electricity is a significant source of energy in the United States and is used to power homes, business, and industry. In 2015 the combustion of fossil fuels to generate electricity was the largest single source of CO2 emissions in the nation, accounting for about 35 percent of total U.S. CO2 emissions and 29 percent of total U.S. greenhouse gas emissions. The type of fossil fuel used to generate electricity will emit different amounts of CO2. To produce a given amount of electricity, burning coal will produce more CO2 than oil or natural gas. 2) Transportation. The combustion of fossil fuels such as gasoline and diesel to transport people and goods was the second largest source of CO2 emissions in 2015, accounting for about 32 percent of total U.S. CO2 emissions and 26 percent of total U.S. greenhouse gas emissions. This category includes transportation sources such as highway vehicles, air travel, marine transportation, and rail. 27 3) Industry. Many industrial processes emit CO2 through fossil fuel combustion. Several processes also produce CO2 emissions through chemical reactions that do not involve combustion; for example, the production and consumption of mineral products such as cement, the production of metals such as iron and steel, and the production of chemicals. Fossil fuel combustion from various industrial processes accounted for about 15 percent of total U.S. CO2 emissions and 12 percent of total U.S. greenhouse gas emissions in 2015. Note that many industrial processes also use electricity and therefore indirectly cause the emissions from the electricity production. Energy consumption is viewed as the major source of greenhouse emissions [31]. Energy consumption from 1970–2010 for the Organization of the Petroleum Exporting Countries (OPEC) has increased by 685%, while the emissions of CO2 increased by 440% as a result of burning fossil fuels within the same period. Therefore, energy consumption and CO2 emissions of the OPEC countries have drastically increased [32]. In 2015, the five largest emitting countries and the European Union, which together account for two thirds of total global emissions, were: China (with a 29% share in the global total), the United States (14%), the European Union (EU-28) (10%), India (7%), the Russian Federation (5%) and Japan (3.5%). The 2015 changes within the group of 20 largest economies (G20), together accounting for 82% of total global emissions, varied widely, but, overall, the G20 saw a decrease of 0.5% in CO2 emissions in 2015. [33] Global temperatures have continued to rise, making 2016 the hottest year on the historical record and the third consecutive record-breaking year, scientists say. Of the 17 hottest years ever recorded, 16 have now occurred since 2000. The Earth's temperature has risen since record-keeping began in the 19th century. Warming began to accelerate around the 1980s. [34] An accurate prediction of CO2 emissions can serve as a reference point for an OPEC secretariat to propagate the reorganization of economic development in member countries with the view of managing CO2 emissions. Evidence of CO2 emission dangers can easily be used to convince member countries to embark on economic development that can result to minimal petroleum consumption and reduced CO2 emissions. In view of the economic implications of reducing CO2 emissions, reduction of the CO2 emissions in OPEC countries must be enforced with caution. [33] 28 3.2 The proposed model for estimation CO2 emission problem The neural network structure that used for the carbon estimation is a multi-layer feed forward network. As explained before the network consists of an input layer with 20 neurons, one hidden layer, and an output layer. The input layer consists of four inputs data the global oil, natural gas, coal, and primary energy consumption. The hidden layer function is a nonlinear and consists of 5 neurons. The hidden units are fully mapped and connected to both the input and output. The activation function of the hidden units provides the network nonlinearity. The neurons optimal number of the hidden layer was selected by several trials. The network was trained using the Back Propagation (BP) algorithm. The number of neurons in hidden layer is selected to be 5. The output layer consists of one output neuron producing the corresponding carbon emission estimation. The output layer node has a linear activation function. The ANN developed models is shown in Figure 3.1. Figure 3.1 Developed Neural network structure As inputs were chosen variables such as: the global oil, natural gas (NG), coal, and primary energy (PE) consumption on the CO2 emission estimation. The data were trained since 1965-2010 and tested since 2010-2015. The back propagation algorithm can be simply explained and shown from the flow chart in Figure 3.2. Figure 3.1 Back propagation flow network diagram 29 Different validation criterion were used to find out the percentage of error difference between the actual and estimated values as shown in Equations: Manhattan distance 𝑛 𝑀𝐷 = (∑ |𝑦𝑖 − 𝑦̂| 𝑖 ) 𝑖=1 Euclidian distance (3.1) 30 2 𝑛 (3.2) 𝐸𝐷 = √(∑ |𝑦𝑖 − 𝑦̂| 𝑖 ) 𝑖=1 Mean magnitude of relative error 𝑁 |𝑦𝑖 − 𝑦̂| 1 𝑖 𝑀𝑀𝑅𝐸 = ∑ 𝑁 𝑦𝑖 (3.3) 𝑖=1 ,Where y and 𝑦̂ are the actual and estimated values based on the proposed model and N is the number of measurements used in the experiment, respectively. Figure 3.1 Neural network’s convergence curve On this figure we can see the downshift Standard error with the rising numbers of iterations. This means that the process of neural network’s learning is very effective and network could forecast with a small amount of errors. 31 Table 3.1 MD, ED, MMRE for ANN model training and testing data for the carbon emission estimation Model MD ED MMRE Training 61,1885 614,214 0,0078 Testing 125,602 606,65 0,0160 The ANN was trained by the back propagation learning algorithm. The proposed ANN model results show that ANN was capable of producing high estimation capabilities. This is clearly seen from the obtained results and the shown relationship between the actual and estimated responses. Table 3.2 Actual and estimated carbon dioxide emission 34000 33000 32000 31000 30000 29000 28000 27000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Again, we can see that the ANNs proved its ability in solving the carbon-estimating problem from a given set of example. In comparison with regression results, neural network shows a greater forecast quality with less standard error. 32 Conclusion The author has performed the research work directed on: the investigation of the artificial intelligence terminology and highlight a summary of various papers and reports associated with artificial intelligence development and applications; the observation of the theoretical foundations of building and learning the neural networks; The analysis of the current ways of the application of neural networks in the oil and gas industry and Providing a solution to forecast the poison CO2 gas emerged from energy consumption. Were made a conclusion about effectiveness and perspectives of this model for industry. This goals, allows author to make the following conclusions: 1) Oil and gas industry structure has changed dramatically last years. New market realities with low oil prices merge energy companies to decrease their costs and increase production efficiency in order to stay strong in such environment. And one of the right ways to do that is to implement new technologies to production. The most smart and fast learning technologies today are the artificial intelligence. 2) Climate Pollution due to the Carbon Emission (CO2) from the different fossil fuels is considered as a great and important international challenge to many researchers 3) Artificial Intelligence is an area of great interest and significance in petroleum exploration and production. Over the years, it has made an impact in the industry, and the application has continued to grow within the oil and gas industry. 4) The research of the author has allowed revealing that the first practical application of artificial neural networks came in the late 1950s when Frank Rosenblatt and his colleagues demonstrated their ability to perform pattern recognition. Then, only after 80s started the new, active stage of the development of AI, when the computer power reached significant level. In the 1990s, scientists have made a breakthrough in this area by offering solutions built on the basis of neural networks. The proposed development quickly was proven to be effective in solving a number of problems, ranging from the analysis of the bank's customers to pay and ending with the prediction of exchange rates and the predictions of the presidential election results. 5) AI techniques characteristic include ability to learn from examples; fault tolerant managing noisy and deficient data; ability to deal with non-linear problems; and for prediction purpose and generalization at high speed once trained. 6) Artificial neural networks, fuzzy logic and evolutionary algorithms are the most commonly used AI techniques today in various petroleum engineering applications; oil and gas reservoir simulation, production, drilling and completion optimization, drilling automation and process control. 33 7) Application of AI have a lot of advantages such as: time saving, minimizing risk, saving cost, improving efficiency and solving many optimization problems, also AI has a great potential for generating accurate analysis and results from large historical databases. 8) The proposed network architecture is able to produce very good estimation results in both training and testing cases with small number of differences. 9) Predicting CO2 is significant for the adaptation of climate change policies as well as for offering a reference point for using alternative energy sources with the view to reduce CO2 emissions. 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