VentureBeat featured GroundMetrics in an article last week about the underreported trend of startups putting high-technology to work on the oilfield. From the article itself:
Silicon Valley is a long way from Houston. Hackathon denizens seem to exist in a different universe than rough-and-ready oilfield crews. But tech startups are invading the oil business. Not only that, they’re succeeding despite the price rout.
Oil prices plunged in 2014 because of a supply glut spurred by the American fracking renaissance and OPEC’s decision not to reduce exports. As a result, exploration and production companies have cut budgets, laid off thousands of employees, and are fighting to rescue their balance sheets. Large oilfield services firms are in similar, or worse, positions. But a new generation of high-technology companies are stepping in to fill the gap, and investors are lining up to finance them.
Every day, we’re entirely focused on building our business, running commercial surveys out in the field, and pushing the boundaries of geophysics. Our customers see first-hand how leveraging new technology can help improve critical decision-making and optimize production. It’s nice to see VentureBeat’s more mainstream investor audience take note of this important trend in one of the largest industries out there: energy.
You can read the full article here.
Oh, and although we agree with the conclusion, we’d like to substitute “San Diego” for “Silicon Valley”:
When oil is cheap, operators have to figure out how to produce it more efficiently. New technologies like these help them do just that. Silicon Valley brains and Houston brawn make for a powerful combination.