In 2025, the Massachusetts Institute of Technology (MIT) released a report that jarred many in the business and investment world. This much-discussed report states that, despite investments of between $30 billion and $40 billion in generative artificial intelligence (AI), 95% of organizations receive “zero return.”  While debate has surrounded the methodology and conclusions, the report itself focuses on the two broad typologies of generative AI applications: horizontal and vertical. “Horizontal” AI includes Chatbots, co-pilots that are meant to make me, as an individual contributor, quicker, better, and faster,” said Doug Croy, Data Advisory Lead for 1898 & Co. “The value driven by horizontal AI is going to reflect on only me and how I do my work.”  They are not integrated with work processes, nor are the processes changed or optimized to take advantage of generative AI. The transformative value and measurable ROI of AI, however, come from the implementation of vertical AI, process-aligned and industry-aware solutions that apply AI to workflows and patterns across an organization. Whereas horizontal AI has broad knowledge that can help you write recipes, vertical AI solutions are focused on specific industries, domains, with knowledge of terminology, relationships, processes, logic and accuracy. For example, generative AI can identify text in technical drawings, photos and scanned documents, as well as identify objects such as pumps, valves and other equipment found in a power plant. But reading text or identifying an object is not the same as understanding context, the business process and industry-specific language and challenges.  That’s what distinguishes vertical AI; it not only identifies the object with a name or type but also understands the object’s function, behavior and purpose in relation to other objects or assets in a diagram that represents a system, including equipment hierarchies, asset relationships, and safety considerations.  “What you need

North America added 28 rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was published on January 16. Although the total U.S. rig count dropped by one week on week, the total Canada rig count increased by 29 during the same period, pushing the total North America rig count up to 769, comprising 543 rigs from the U.S. and 226 rigs from Canada, the count outlined. Of the total U.S. rig count of 543, 524 rigs are categorized as land rigs, 16 are categorized as offshore rigs, and three are categorized as inland water rigs. The total U.S. rig count is made up of 410 oil rigs, 122 gas rigs, and 11 miscellaneous rigs, according to Baker Hughes’ count, which revealed that the U.S. total comprises 475 horizontal rigs, 56 directional rigs, and 12 vertical rigs. Week on week, the U.S. land rig count dropped by one, and its offshore and inland water rig counts remained unchanged, Baker Hughes highlighted. The U.S. gas rig count dropped by two week on week, its oil rig count rose by one week on week, and its miscellaneous rig count remained unchanged week on week, the count showed. The U.S. directional rig count dropped by one, and its horizontal and vertical rig counts remained unchanged, week on week, the count revealed. A major state variances subcategory included in the rig count showed that, week on week, Texas dropped two rigs, Louisiana dropped one rig, and New Mexico added two rigs. A major basin variances subcategory included in the rig count showed that, week on week, the Haynesville basin added one rig. Canada’s total rig count of 226 is made up of 150 oil rigs and 76 gas rigs, Baker Hughes pointed out. Week on week, the country’s oil

TotalEnergies SE has signed an agreement to divest its 10 percent interest in a Niger Delta joint venture previously operated by Shell PLC to Vaaris. Chappal Energies Mauritius Ltd previously entered into a deal to buy the stake but, according to an online statement by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on September 25, 2025, failed to consummate the transaction after time extensions. The Renaissance JV, previously known as the SPDC JV when it was operated by Shell Petroleum Development Company of Nigeria Ltd (SPDC), holds 15 licenses producing mainly oil, TotalEnergies noted in a statement announcing the sale to Vaaris. The licenses contributed about 16,000 barrels of oil equivalent a day to TotalEnergies’ net production last year, the company said. “TotalEnergies EP Nigeria will also transfer to Vaaris its 10 percent participating interest in the three other licenses of Renaissance JV which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses which currently account for 50 percent of Nigeria LNG gas supply”, the statement added. The completion of the transaction, the price of which has not been disclosed, is subject to regulatory approvals and other customary conditions, according to the statement. Currently Renaissance JV is owned by Nigerian National Petroleum Corp Ltd (55 percent), operator Renaissance Africa Energy Co Ltd (30 percent), TotalEnergies EP Nigeria (10 percent) and Eni SpA’s Agip Energy and Natural Resources Nigeria (five percent). Confirming the collapse of the previous sale to Chappal, the NUPRC said “the withdrawal of a ministerial consent does not in any way rule out the possibility of a future divestment by the interested parties provided such an asset sale is in line with extant laws”. “The NUPRC affirms that in line with Section 6(h) of the Petroleum

Petroliam Nasional Bhd. appointed Mohd Jukris Abdul Wahab as its new chief operating officer, enhancing its senior leadership structure amid an ongoing legal dispute over gas assets in Sarawak.  The appointment will be effective Feb. 1, and Jukris will concurrently hold his position as chief executive officer of Petronas’ upstream business, the state-owned oil and gas company said in a statement on Monday.  The COO would support group Chief Executive Officer Tengku Muhammad Taufik in matters involving federal and state governments, The Edge reported, citing an internal note.  Petronas filed a motion with Malaysia’s apex court last week to decide on the company’s operations in Sarawak, Malaysia’s biggest state. Since 2024, it has been locked in a dispute over gas distribution rights there with state-owned Petroleum Sarawak Bhd. The company has also been struggling with declining profit amid an oil price slump, and last year announced it was cutting around 10% of its workforce. The appointment of the new COO is in line with Petronas’ “transformation ambitions amid a dynamic global energy environment,” it said in Monday’s statement. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

The billionaire Batista brothers are eyeing a billion-barrel Venezuelan oil project that stands to benefit from US President Donald Trump’s planned revival of the South American nation’s energy sector. The Batistas, who control the world’s biggest meatpacker, are discreetly positioned on the outskirts of Venezuela’s oil sector via the stake one of their business associates holds in the Petrolera Roraima project, according to people familiar with the situation.  Prior to the ouster of strongman Nicolás Maduro earlier this month, a commercial representative of the Batistas obtained a stake in a cluster of oilfields formerly operated by ConocoPhillips. Fluxus, an oil company owned by the Batistas, could join that or other petroleum developments in the country once the business outlook clears up, said the people, who asked not to be named discussing non-public information. J&F SA, the Brazilian brothers’ holding company, said in response to questions that it doesn’t have any assets in Venezuela, and is closely monitoring events.  “Once a scenario of institutional stability and legal certainty is established, we will be ready to evaluate investments,” J&F said in an email.  The Batistas have taken a cautious approach to Venezuela since the US imposed sanctions because of extensive American investments that include chicken processor Pilgrim’s Pride Corp., people familiar with their business strategy said.  Although Trump has said the Venezuelan government “stole” oil riches claimed by American companies such as ConocoPhillips during a nationalization drive almost 20 years ago, he also has evinced no desire to reverse those asset seizures. That indicates the Batistas are in pole position to help expand the country’s oil production while US and European drillers await stronger financial and security guarantees. Since Maduro’s fall, Joesley Batista has emerged as a key figure in the post-Maduro transition. Last week, he flew from Washington to Caracas for

Reliance Industries Ltd saw revenue from its oil-to-chemicals segment for the quarter ended December 2025 (third quarter of financial year 2026) increase 8.4 percent from Q3 FY 2025 to $18 billion. That was helped by a two percent increase in refining throughput with 20.6 million metric tons of crude processed in the three-month period, despite challenges in procuring oil, according to an online statement by the diversified Indian conglomerate. “Agile crude sourcing helped sustain throughput despite procurement challenges”, Reliance said. “Partial resumption of Red Sea route also benefitted operations”, it added. Reliance operates what it says is the world’s biggest single-site refinery in Jamnagar, India. The facility has a declared processing capacity of 1.4 million barrels a day. The Q3 FY2026 statement said refinery utilization was maximized “to capture high margins”. Reliance reported 18.2 million metric tons in production meant for sale, up 1.7 percent year-on-year. Reliance’s fuel retailing network under the Reliance BP Mobility Ltd brand, a joint venture with BP PLC, expanded by 14 percent year-over-year to 2,125 outlets, driving volume growth of over 20 percent, according to the statement. A “sharp increase in transportation fuel cracks and higher sulfur realization” drove a 14.6 percent year-on-year increase to $1.18 billion in petrochemicals EBITDA. The improvement in transport fuel cracks was aided by “continued disruptions in Russian supply and unplanned outages in other regions”, Reliance said. “US/EU sanctions on Russian refiners further tightened fuel markets”. On the other hand, Reliance saw “weakness in downstream chemical margins and higher feedstock freight rates”. However, it added, “Favorable ethane cracking economics and domestic market placements continued to support profitability”. At the backdrop, both global and domestic demand for oil products grew year-on-year in Q3 FY2026, partially offset by a price decline, the statement noted. “Crude oil benchmarks declined y-o-y on expectations of