How AI Narrows the Planning-Operations Gap at Oil Refineries

Hybrid models combine engineering principles with operating data to align oil refinery plans more closely with actual unit performance (Adobe)
Hybrid models combine engineering principles with operating data to align oil refinery plans more closely with actual unit performance (Adobe)
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How AI Narrows the Planning-Operations Gap at Oil Refineries

Hybrid models combine engineering principles with operating data to align oil refinery plans more closely with actual unit performance (Adobe)
Hybrid models combine engineering principles with operating data to align oil refinery plans more closely with actual unit performance (Adobe)

Production plans at oil refineries do not always survive contact with the plant floor. Changes in feedstock quality, operating rates or equipment conditions can cause units to perform differently from planning models, affecting yields, product quality and energy consumption and forcing engineers to make manual adjustments during operations.

Industrial artificial intelligence models aim to narrow that gap by combining engineering knowledge with actual operating data, according to Hussein Zein, Emerson’s vice president for Saudi Arabia and Bahrain.

The approach does not replace the conventional models that refineries have relied on for decades. Instead, it enhances them to better represent the nonlinear behavior of units under different feedstocks and operating conditions.

“Conventional models often rely on linear or semi-linear representations of unit behavior,” Zein told Asharq Al-Awsat.

That forces planners to work with simplified assumptions that may lose accuracy as market conditions, feedstock characteristics or operating levels change.

Hybrid models allow operators to test more scenarios, adapt production decisions to changing conditions and reduce the time engineers spend manually adjusting models.

Where conventional planning falls short

Refineries use planning models to turn demand forecasts, feedstock availability, operating constraints and product specifications into executable production plans.

Linear models are easier to use in optimization, but they cannot always capture the complex interactions inside refinery units.

Reactors, separators and blending processes do not necessarily respond linearly to changes in feedstock quality, flow rates or catalyst conditions. When a plan is transferred from the model to the plant, operators may find that yields, product specifications or operating constraints differ from forecasts.

Zein said the gap appears when planning models fail to represent how units behave under actual operating conditions.

The result may be extra engineering work to adjust the plan during execution or operations running below the intended level of efficiency.

The effects can spread beyond one unit. Each unit’s output influences feedstock blending, production targets, margin forecasts, energy consumption and coordination among interconnected units across the refinery.

Predictive accuracy of up to 98.5%

Emerson and Aramco said hybrid models achieved predictive accuracy of up to 98.5% in selected refining units.

The figure reflects how closely the model’s forecasts matched actual operating performance across different feedstocks and operating conditions.

Zein said the figure was the highest level achieved in specific units — continuous catalyst regeneration units and catalytic reformers known as Platformers — and was not an average across all units or operating sites.

Teams are now working to apply the same approach to hydrocracking units and test its performance there.

Even small gaps between forecasts and actual performance can affect yields, energy consumption and production planning. They can also influence feedstock blending, production targets and margin estimates.

Zein said predictive accuracy of 98.5% in some catalytic reforming units reduces the area where margins are often lost: the difference between planned performance and actual results.

When a plan reflects plant behavior more closely, operating teams can follow blending strategies, select feedstocks with greater confidence and pursue optimization opportunities without costly adjustments during execution.

The data provided did not include a specific figure for increases in yields or margins. It linked higher predictive accuracy to narrowing the gap between planning and execution and improving operational decision-making.

Engineering meets operating data

Hybrid models begin with a first-principles foundation that includes reaction kinetics, thermodynamics and mass and energy balances.

AI then uses operational data to calibrate that foundation, allowing the model to reflect the behavior of the actual unit rather than only the theoretical process.

The approach combines the strengths of physics-based and data-driven models.

A purely physics-based model can be difficult to calibrate when trying to capture every changing detail in a real operating environment.

A model based only on data, meanwhile, may produce recommendations that conflict with physical laws or fail when it encounters conditions absent from its training data.

Zein said the hybrid approach provides “rigor and practical accuracy in a single model.”

Engineering knowledge defines the physical limits, while operating data adapts the model to the characteristics and conditions of each unit.

This is particularly important in complex facilities with equipment from different generations and systems that were not built around a unified data architecture.

It also allows refineries to use existing data while relying on engineering principles to compensate for gaps that purely data-driven models may struggle to address.

Humans remain responsible

More accurate models do not mean handing every decision to automated systems.

Zein distinguished between decisions requiring repeated calculations across a large number of possibilities and those involving safety or unusual operating conditions.

AI can support or partially automate feedstock-blending optimization, production planning across several periods and routine model maintenance, while operators and engineers retain oversight.

Decisions involving personnel safety, environmental risks or unusual operating conditions should remain under direct human control.

The aim, Zein said, is for “AI to expand what engineers can achieve without transferring responsibility for critical judgments away from the people who understand the plant.”

When an AI recommendation conflicts with the judgment of an experienced engineer, the disagreement should not be treated as a contest between humans and machines.

It may reveal a factor missing from the model or information known to the engineer that has not yet been translated into rules or data.

“A conflict between an AI recommendation and engineering judgment is a valuable signal, not a problem resolved by choosing one side,” Zein said.

When an engineer’s concern exposes a genuine gap, the model should be updated. When the system identifies an opportunity that was not previously clear, the disagreement becomes part of a process of review and learning.

Models must change with the refinery

Refinery conditions change constantly as catalysts lose activity, equipment deteriorates and feedstock characteristics shift.

Static models may gradually lose accuracy unless they are updated to reflect those changes.

Hybrid models maintain accuracy through two elements.

The first is an engineering foundation representing fixed physical laws, including thermodynamics and material balances.

The second is an AI-based component that can be recalibrated as new operating data becomes available.

This allows the models to track equipment degradation, declining catalyst efficiency and changes in feedstock properties.

It can also reduce the burden of model maintenance compared with conventional methods and give planners greater confidence that forecasts remain linked to the unit’s actual condition.

But limited data and aging equipment are not the only barriers to wider deployment.

Zein said the most common challenge is integrating models, data and workflows across planning, engineering and operations departments.

A facility may have high-quality data and modern equipment, but a project can remain confined to a single unit if it is not incorporated into daily decision-making and the organization’s operating structure.

Continuous corrosion monitoring

Industrial data can also be used to monitor corrosion, a task traditionally based on scheduled inspections or intervention after a problem emerges.

Continuous monitoring offers an updated view of equipment conditions through wall-thickness sensors, wireless communications and real-time data analysis.

Instead of asking only whether a scheduled inspection is due, maintenance teams can assess whether a particular asset requires intervention before it fails.

Zein said the conventional approach could delay production and detect a problem only after it occurred, without always providing a continuous view of how it developed.

Continuous monitoring supports maintenance decisions based on the actual condition of equipment rather than relying entirely on a fixed schedule.

It can also reduce the need for some manual measurements that may be hazardous or physically demanding for workers, but it does not eliminate human inspections.

“Human judgment and verification will remain essential,” Zein said.

Continuous data instead helps specialists focus their time on the assets most in need of intervention.

Safeguards before automation

Cybersecurity, governance and safety requirements depend on how a model is used and how directly it can affect operations.

A system that advises production planners does not require the same controls as one involved in control decisions.

Security requirements include secure architecture, access management and monitoring under established industry standards.

Governance covers model ownership, approval procedures for deployments and updates, and audit records that document changes and decisions.

Safety controls include testing models against operating limits, retaining human oversight for high-consequence decisions and providing fallback procedures when a model operates outside the range for which it was calibrated.

The appropriate controls depend on the application. An advisory system requires different safeguards from a model that can directly influence production or maintenance.

Scaling beyond one unit

Another challenge arises when a company tries to expand a successful application from one unit to an entire facility or across several sites.

Zein said the main obstacles are usually not technical. They emerge when organizations attempt to copy the same model without accounting for differences among units.

Each unit has its own feedstocks, operating range and history. Models must therefore be adapted and recalibrated rather than copied unchanged.

Scaling also requires shared data architecture, standardized modeling practices and organizational processes capable of supporting maintenance and updates across sites.

That is how industrial AI can move from a stand-alone application in one unit to a broader tool for planning and operations, while preserving engineering oversight, security controls and human responsibility for critical decisions.



Nvidia Board Meets to Decide CEO Huang's Future as Leadership Crisis Deepens

(FILE) - NVIDIA President and CEO Jensen Huang speaks during the NVIDIA Constellation All-Employee Celebration in Taipei, Taiwan, 27 May 2026 (reissued on 10 November 2026). EPA/RITCHIE B. TONGO
(FILE) - NVIDIA President and CEO Jensen Huang speaks during the NVIDIA Constellation All-Employee Celebration in Taipei, Taiwan, 27 May 2026 (reissued on 10 November 2026). EPA/RITCHIE B. TONGO
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Nvidia Board Meets to Decide CEO Huang's Future as Leadership Crisis Deepens

(FILE) - NVIDIA President and CEO Jensen Huang speaks during the NVIDIA Constellation All-Employee Celebration in Taipei, Taiwan, 27 May 2026 (reissued on 10 November 2026). EPA/RITCHIE B. TONGO
(FILE) - NVIDIA President and CEO Jensen Huang speaks during the NVIDIA Constellation All-Employee Celebration in Taipei, Taiwan, 27 May 2026 (reissued on 10 November 2026). EPA/RITCHIE B. TONGO

Nvidia's board is meeting to decide whether to oust CEO Jensen Huang, a source familiar with the matter told Reuters, as the world's dominant supplier of AI chips grapples with fallout from reports of two extramarital affairs involving its longtime leader.

Nvidia did not immediately respond to a request for comment on the board meeting, which went late into the night on Wednesday, said Reuters.

The meeting marks a sharp shift from Sunday, when Nvidia's board expressed confidence in Huang and his leadership team. Under Nvidia's bylaws, Huang can be removed "with or without cause" by a majority vote of directors. Nvidia has 11 directors and considers all but Huang independent.

Nvidia's stock slid around 7% in early Frankfurt trading on Thursday after the Wall Street Journal first reported that the company was preparing to fire Huang. If those losses hold, Nvidia will have lost about $600 billion in market value since the board announced its investigation into his relationship with a businesswoman called Alice Huang alleged to be a Chinese spy.

Revelations that US intelligence was probing Alice Huang for facilitating shipments of Nvidia chips to Chinese firms set off a series of events: Wall Street began raising questions about Nvidia's governance and Jensen Huang's personal ‌conduct, while the company's ‌board launched an internal investigation and hired outside counsel. Lawmakers also began to push for tighter curbs on chip ‌exports to ⁠China.

China has denied ⁠the allegations. Reuters was not able to contact Alice Huang for comment.

"The market is starting to price Nvidia without its founder as the likely outcome, not a tail risk," said Armina Rosenberg, portfolio manager and co-founder of Minotaur Capital, which holds Nvidia shares. "Losing Jensen would be a real blow."

Bernstein and Oppenheimer both downgraded Nvidia following the latest developments and Citi cut its target.

"A leadership transition creates an overhang on the stock given his central role in strategy, product vision, customer relationships, and investor confidence," Citi analysts wrote.

NO OBVIOUS SUCCESSOR

Huang's potential departure would leave a leadership vacuum at the roughly $4 trillion chipmaker he co-founded and built over more than three decades to become the top supplier of chips at the center of the global AI boom and US-China technological rivalry.

Huang, 63, has no obvious successor and owns about 3.6% of Nvidia's stock. He also has ⁠dozens of direct reports, underscoring the tight control he maintains over the company.

Bloomberg reported on Wednesday that Nvidia's ‌board has been working with an outside firm to identify potential replacements for Huang, citing a person familiar ‌with the situation.

Rosenberg said Chief Financial Officer Colette Kress, who has held the role for more than a decade, would be the natural choice as an interim CEO, but ‌said the bigger question was who would lead Nvidia's technology roadmap longer term.

Odds on prediction market website Polymarket shifted sharply to show an 88% chance ‌that Huang would resign or be removed by the end of the year. Odds for his successor favored Ian Buck, who oversees the business that serves Nvidia's data center clients.

The leadership upheaval comes just days before investors are set to hear from the company on its financial performance and outlook, with its quarterly results due on November 17.

Earlier on Wednesday, the New York Times reported that Huang had also had an extramarital affair with a company executive who reported to him. The relationship was with Kimberly Powell, Nvidia's vice president of ‌healthcare, the New York Times said, citing five people who worked at the company.

When reached by phone on Wednesday and asked about his relationship with Powell, Huang said, "I don't think you should be talking to me directly." ⁠He then hung up, the New York ⁠Times reported.

Nvidia and Powell did not immediately respond to requests for comment. Reuters could not immediately verify the report.

MARKET FALLOUT

US stock futures sank, with Nasdaq futures down 1%. Micron fell nearly 2% and CoreWeave dropped 6% in after-hours trading. However, shares of rival chipmakers AMD and Broadcom rose 4% and 3%, respectively.

In Asia, Samsung Electronics rose about 1% while SK Hynix dipped 2%, as Nvidia partners and suppliers assess the potential ramifications of Huang's possible ouster.

Investors and analysts said while demand for Nvidia's chips would be unlikely to drop in the near term, the broader universe of companies backed by Nvidia — largely customers building data centers that will use its chips — might suffer.

"They are financing their customers. In these types of booms or bubbles, sometimes all it takes is a slowdown to shift it into the bust phase," said Nick Ferres, chief investment officer at Vantage Point Asset Management in Singapore.

INVESTIGATION WIDENS

In a memo to employees on Sunday, Huang acknowledged being unfaithful to his wife and took "full responsibility," but gave no details about the relationship.

US President Donald Trump said he had spoken to Huang on Monday and the CEO told him that he did not know the woman linked to him was allegedly a spy. Huang is one of Trump's closest allies in Silicon Valley, and the relationship between the two dates to at least 2025.

Huang faces a potential congressional subpoena if he doesn't respond to a request to provide a closed-door briefing about the allegations of his affair with a woman alleged to be a Chinese spy.


Impossible Metals Says It Has Successfully Tested AI Seabed Mining Robot

Impossible Metals tested an autonomous AI robot that retrieved about 450 grams of polymetallic nodules from more than 4,000 meters deep in the Pacific Ocean in September. (AFP)
Impossible Metals tested an autonomous AI robot that retrieved about 450 grams of polymetallic nodules from more than 4,000 meters deep in the Pacific Ocean in September. (AFP)
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Impossible Metals Says It Has Successfully Tested AI Seabed Mining Robot

Impossible Metals tested an autonomous AI robot that retrieved about 450 grams of polymetallic nodules from more than 4,000 meters deep in the Pacific Ocean in September. (AFP)
Impossible Metals tested an autonomous AI robot that retrieved about 450 grams of polymetallic nodules from more than 4,000 meters deep in the Pacific Ocean in September. (AFP)

Deep-sea mining firm Impossible Metals said on Monday it has successfully tested an autonomous robot that uses AI to selectively retrieve critical minerals at depths of more than 4,000 meters in the ‌Pacific Ocean.

Parts of the ocean seabed contain potato-shaped rocks known as polymetallic nodules filled with copper, nickel and other minerals used in electric vehicles and electronics, reported Reuters.

Many companies in the nascent industry plan to use a vacuum-like device to retrieve those nodules, sparking controversy from environmentalists.

Impossible Metals, which is ⁠backed by Y Combinator, has developed a robot with a large claw that it says uses artificial intelligence to avoid aquatic life and reduce environmental impacts.

The test was part of a scientific expedition in September.

The robot directed itself to the seabed, retrieved about 450 grams of nodules and then returned to the surface.

Results from the test will be used to develop a larger version of the robot. The company still needs regulatory approval from the International Seabed Authority or the US government.

Separately, Impossible Metals said that the family of FedEx founder Fred Smith had participated in the company's Series A funding round, which closed earlier this year.

The company declined to provide the value of the round, but media reports put it near $25 million, ⁠an amount that values the company at roughly $110 million.

Richard Smith, a FedEx executive and vice chairman of FWS Enterprises, the Smith family office, said it was Impossible's technology that ⁠drew him in.

“It very responsibly, in an ecologically friendly way, goes down there and plucks these nodules off the seabed floor without disturbing the environment,” ⁠said Smith, who declined to provide the value of the investment but said it was “substantial.”

The Smith family is now Impossible's second-largest shareholder.


Nvidia Heads for $400 Billion Two-Day Wipeout as CEO Affair Fallout Deepens

The Nvidia logo outside Nvidia's Shanghai office building in Shanghai, China, November 10, 2026. (Reuters)
The Nvidia logo outside Nvidia's Shanghai office building in Shanghai, China, November 10, 2026. (Reuters)
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Nvidia Heads for $400 Billion Two-Day Wipeout as CEO Affair Fallout Deepens

The Nvidia logo outside Nvidia's Shanghai office building in Shanghai, China, November 10, 2026. (Reuters)
The Nvidia logo outside Nvidia's Shanghai office building in Shanghai, China, November 10, 2026. (Reuters)

Nvidia shares extended losses on Tuesday, putting the chip giant on track to shed about $400 billion in market value over two sessions as concerns mounted over the fallout from CEO Jensen Huang's affair with a Chinese businesswoman alleged to be a spy for Beijing.

The CEO's relationship with Alice Huang helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese firms, The Information reported on Tuesday, citing two people who know her. Alice Huang and Jensen Huang are not related.

The allegations have intensified scrutiny of Nvidia's governance, export-control compliance and reliance on Huang's leadership, adding to investor unease over whether massive spending on artificial intelligence infrastructure ‌will deliver adequate ‌returns.

Nvidia shares fell more than 5% after losing 4.3% ‌on ⁠Monday, when the company ⁠shed $192.08 billion in market value. Tuesday’s decline put another roughly $221 billion at risk if losses hold.

"The investment debate is whether this remains company-specific or triggers restrictions and disruption across AI infrastructure," Bank of America analysts wrote in a note. "We would not equate allegations with proven business damage."

Nvidia's board launched an internal investigation on Sunday, while the FBI is examining whether the 63-year-old Huang was targeted by a ⁠foreign intelligence operation. Huang has told employees he was unfaithful ‌to his wife but provided no ‌details about the relationship.

Alice Huang, also known as Huang Le, along with her husband and sister, ‌built a network of companies across China and Singapore to acquire Nvidia ‌chips, The Information reported.

At the center of the network was Shanghai Century Litong, a China-based company that secured preferred cloud partner status with Nvidia in 2023, giving it priority access to the company's chips, the report said.

When orders for Nvidia chips subject to ‌US export restrictions stalled, Alice Huang used ties to Nvidia and its distributors to secure supplies, helping move about 240,000 H100, ⁠H200 and some ⁠A100 chips into China, according to the report.

Century Litong rented computing capacity and operated data centers using Nvidia chips, including some barred from sale to China. Some of the chips ultimately served Alibaba, Tencent and smaller Chinese AI labs, The Information reported.

Alice Huang also held an executive position at Singapore-registered Megaspeed, which was linked to Century Litong and has been investigated by US authorities over Nvidia chip shipments from Southeast Asia to China, the report said.

The Information reported that Alice Huang leveraged her relationship with Jensen Huang to bolster her credibility while keeping her role vague and avoiding a paper trail.

Nvidia did not immediately respond to a Reuters request for comment. Alibaba, Tencent, Megaspeed and Shanghai Century Litong were not immediately available for comment outside regular business hours. Reuters could not independently verify the report.