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With the growing oil and gas crisis, Houston expert suggests an investment in tech

Now is the time for oil and gas companies to embrace modern technology solutions. Getty Images

The oil and gas industry has always been volatile. The profitability of leading companies has largely stemmed from their ability to predict future changes and therefore adapt to them. However, when a truly unpredictable situation happens, uncertainty clouds the entire market.

Such a structural shift has occurred at the intersection of the marketplace and COVID-19. The traditional energy sector must find ways to change, but it has to occur in non-traditional ways. We believe that technology will show us a way forward.

At the beginning of 2020, the oil and gas market looked optimistically at its forecasts for the year. Those predictions were left in shambles after the OPEC debacle and the novel coronavirus wreaked havoc on the world. Those events combined to cause demand shortages that led to historically low and unsustainable price points for the industry.

Therefore, we predict a lot of bankruptcies and layoffs until we see economies come back online and demand increase. However, companies with a strong cash flow and minimal debt should use this as an opportunity to turn technology into profitability, but it will require a willingness to learn and try new things.

At EAG Services & EAG 1Source, our midstream and upstream clients look to us for solutions. While they focus on combating the unknown and staying afloat, our team conducts diligent internal investigations to locate technological and infrastructure answers.

We have assembled three actionable insights in response to the shifts experienced by many oil and gas companies.

Lean into the digital age by automating your processes

The importance of accurate and timely data is at an all-time high as headcounts decrease and human capital becomes more valuable. By investing in automation, you'll increase business efficiency as a hedge against workforce risks. You will also achieve simplicity, transform your digital presence, and increase service quality and delivery.

Such tools should automatically capture, process, and extract essential data for executing routine processes. This includes information such as POP statements, invoices, meter readings, and non-operated statements that can be integrated into your Enterprise Resource Planning (ERP) System. These next-generation intelligent information systems combine workflows, content management, and automatic classification of files based on the meta-data most important to your organization.

Recognizing the value of your employee and their time goes a long way, especially in an emergency situation. It is imperative you give them tools that helps them operate as efficiently as possible so they can make rapid and informed decisions. During this time more than ever it is essential that your resources are able to quickly correlate information, and analyze and provide you with answers to determine your next move.

Provide remote access with cloud hosting

While many oil and gas companies look for ways to cut costs due to low consumer demand, cloud hosting offers you opportunities to eliminate capital purchases of IT hardware. Moving applications to the cloud not only helps protect your important data, but it inherently forces your organization into a remote work mentality.

Additionally, as team sizes and workloads shift, cloud computing offers essential flexibility to either grow or shrink, as many cloud and infrastructure hosting firms offer a "pay-as-you-use" model. Cloud computing also provides solutions for disaster recovery and business continuity by delivering data to your remote offices with enhanced security.

Establish a cybersecurity plan to protect your data

We've seen a rise in phishing attempts and cyber-attacks over the last month. Hackers recognize that people are in a unique situation, so they disguise themselves as "updates" and "signups" for news regarding COVID-19.

Do not let your employees or business assets fall victim to a cybersecurity incident. Give your staff secure access to data by providing systems with tools and software that block exploits and filter out malicious attacks.

Your company's exposure increases when corporate devices lack necessary security capabilities. This is true whether your employees connect to corporate assets from remote locations or use non-managed devices. You company should consider company laptops, change how users access corporate data, and deploy anti-virus and management tools to home-bound employees on a temporary basis.

Even with the unprecedented changes across the oil and gas industry, we've seen many businesses implement these modifications and succeed. By introducing technology that integrates their systems, they are weathering the current storm and preparing for unforeseeable threats in the future. Those who adapt and invest in technology today will be sustainable and scalable tomorrow.

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Elizabeth Gerbel is CEO of EAG Services and EAG 1Source, which provides business process, technology, and advisory services to the midstream and upstream oil and gas market,

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Building Houston

 
 

Re:3D is one of two Houston companies to be recognized by the SBA's technology awards. Photo courtesy of re:3D

A couple of Houston startups have something to celebrate. The United States Small Business Administration announced the winners of its Tibbetts Award, which honors small businesses that are at the forefront of technology, and two Houston startups have made the list.

Re:3D, a sustainable 3D printer company, and Raptamer Discovery Group, a biotech company that's focused on therapeutic solutions, were Houston's two representatives in the Tibbetts Award, named after Roland Tibbetts, the founder of the SBIR Program.

"I am incredibly proud that Houston's technology ecosystem cultivates innovative businesses such as re:3D and Raptamer. It is with great honor and privilege that we recognize their accomplishments, and continue to support their efforts," says Tim Jeffcoat, district director of the SBA Houston District Office, in a press release.

Re:3D, which was founded in 2013 by NASA contractors Samantha Snabes and Matthew Fiedler to tackle to challenge of larger scale 3D printing, is no stranger to awards. The company's printer, the GigaBot 3D, recently was recognized as the Company of the Year for 2020 by the Consumer Technology Association. Re:3D also recently completed The Ion Smart and Resilient Cities Accelerator this year, which has really set the 20-person team with offices in Clear Lake and Puerto Rico up for new opportunities in sustainability.

"We're keen to start to explore strategic pilots and partnerships with groups thinking about close-loop economies and sustainable manufacturing," Snabes recently told InnovationMap on the Houston Innovators Podcast.

Raptamer's unique technology is making moves in the biotech industry. The company has created a process that makes high-quality DNA Molecules, called Raptamers™, that can target small molecules, proteins, and whole cells to be used as therapeutic, diagnostic, or research agents. Raptamer is in the portfolio of Houston-based Fannin Innovation Studio, which also won a Tibbetts Award that Fannin Innovation Studio in 2016.

"We are excited by the research and clinical utility of the Raptamer technology, and its broad application across therapeutics and diagnostics including biomarker discovery in several diseases, for which we currently have an SBIR grant," says Dr. Atul Varadhachary, managing partner at Fannin Innovation Studio.

This year, 38 companies were honored online with Tibbetts Awards. Since its inception in 1982, the awards have recognized over 170,000 honorees, according to the release, with over $50 billion in funding to small businesses through the 11 participating federal agencies.

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