Day: April 18, 2015

Hi-Tech meet North Dakota. The Intersection of Silicon Valley and the Oil & Gas Industry

Come see how the Oil and Gas industry is craving Hi-Tech from Silicon Valley.

Today, we’re going to learn about two things that you wouldn’t think actually go together; high tech and oil and gas industry.

Right now, this is April 2015, crude prices are still low and because of that the upstream side of the house and the service side of the house are having to increase operational efficiency.

Now, I’ve been in this industry for a very long time and this is the first time in my entire history that I’ve seen these parts of the industry look at high tech to help increase operational efficiency. In fact, the adaptation of new technology is crazy fast for the oil and gas industry which is probably still slow compared to the rest of the world.

So, let’s talk about it a little bit, right? So there’s a lot of stuff in Silicon Valley that quite frankly is going to have to go out and meet the people in North Dakota and I’m watching it happen right now. They had this whole thing about electromatic sensors that were used in geothermal wells. The oil and gas industry is not looking at this to – look at fluid movements in an oil well, right? And that’s directly out of Silicon Valley.

And this is helping service companies like Baker Hughes, Halliburton, and Schlumberger service their upstream clients to be able to predict with a reasonable degree of accuracy the production of well in a computer model before they actually   go into real production. That is awesome.

Then, we’re also looking at something called rejuvenates. Now, rejuvenates are compounds that the service companies are offering to the service side of the house that basically increase the flow rates in the ground. Once again, this came from Silicon Valley. In fact, some of these flow rates they can double the well output without doing anything else. How cool is that?

They are also looking at big data. You know all these big operations looking at their entire portfolio, they want to look at all the wells and all the production numbers in real time. Up until just recently you could not do that. Once again, there’s some high tech companies in Silicon Valley that are working with the oil and gas industry to give the major operators that type of view which has never happened before in history. So, we think this is all really cool stuff.

If you’re a high tech company and you’re not selling to oil and gas right now, you need to be talking to oil and gas because this is the first time in history they’ll be willing to listen to you especially if you can help them with operational efficiency.

Some of this information we got from really cool article in Reuters click here to read.

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So, folks, I hope this helped. We will see you next time.