Houston-based startup makes a splash with cloud technology for E&P in oil sector

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This energy tech startup is using tech to change the game within the exploration and production industry. Photo via Getty Images

A Houston area environmental and energy tech company offers a new pay-as-you-go SaaS application that uses chemistry, physics, artificial intelligence, and cloud technology to build simulation platforms for major exploration and production companies.

AquaNRG Consulting's new technology has already been used by major independent E&P companies, helping to increase energy production and optimization. With new products like aiRock™, it uses cloud-based technology to simulate the physical and chemical processes in natural and human-made porous media driven by data.

The company, founded in 2017 by Babak Shafei, a Ph.D. in Earth and Environmental Sciences, uses data chemistry-physics in a new scientific methodology that uses data-driven methods including machine learning to complement and enhance theoretical modeling on reactive transport modeling (RTM) principles.

"We have been working on the product while also thinking of new ways to provide services needed in the energy industry for a number of years," says Shafei.

Babak Shafei founded Houston-based AquaNRG. Photo courtesy of AquaNRG

AquaNRG has been awarded three prestigious Small Business Innovation Research grants totaling $1.4 million from the US Department of Energy and National Science Foundation.

Shafei says that his team of in the research lab continues to develop and improve the set of techniques that can optimize the oil and gas industry. The technology offers a number of solutions in the geology area, including geochemistry or petrophysical calculations, or even in the environmental area for biogeochemistry and remediation calculations.

"Our technology is oriented to big data and big computing," says Shafei. "The platform is armed machine learning and artificial intelligence that uses the chemistry-physics methodology while using a cloud-based application that is very popular and essential for the energy sector."

Shafei says that during the ongoing coronavirus crisis, the digitization of the energy industry has only increased, and helped AquaNRG grow their brand. They plan to use this upward push to their advantage, by expanding their business and thinking well into the future.

"Our team of researchers is focused on our product and our offerings," says Shafei. "There's a lot of exciting things on our mind, including different verticals in terms of new hiring and new facilities, we're looking forward to rolling forward with that."

Nicolaus Radford — CEO, CTO, and co-founder of Houston Mechatronics Inc. — joins the Houston Innovators Podcast to discuss his plans to take his cloud robotics company global. Photo courtesy of HMI

Houston robotics company founder plans to take his startup global

houston innovators podcast episode 45

What do space and the ocean have in common? Both have a lot left to explore — while also having environments that aren't so easy for human exploration. A former robotics expert at NASA, Nicolaus Radford founded his cloud robotics company six years ago to create a fleet of robots that can help better complete the tasks that offshore industries need.

Radford remembers his time at NASA and how the organization was looking for opportunities to incorporate more public-private partnerships. Through some meetings and tours, Radford began to see that there was an emerging interest in underwater robotics.

"It became evident that not only was there a huge desire and requirement for what people wanted to do under water, but Houston was likely an epicenter for it," Radford says on the Houston Innovators Podcast.

With this in mind — and an entrepreneurial itch — Radford started Houston Mechatronics Inc. in 2014. He's grown the company through a few venture capital raises and across the energy biz and into new industries. Now, he's looking to take the company global with plans for opening new offices in the United Kingdom and in the Asia Pacific region.

"We're absolutely going to be a global company," Radford says, explaining that new clients in these areas are what's calling for the new offices. "The next 12 months of this company are going to be extremely vibrant and dynamic."

Radford also discusses how the pandemic has affected his business and his challenges raising a round in the episode of the podcast. You can listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes
In a decade, there will be five times as many satellites as there is now, and we're going to need a better way of keeping track of them. Cognitive Space, lead by Guy de Carufel, has a solution. Courtesy of Guy de Carufel

Houston entrepreneur using cloud-based AI technology in space and satellite applications

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There are around 2,000 satellites up above our heads, but in the next 10 years, that figure will have surpassed 10,000. As the number of satellites goes up, it'll be harder for companies to manage them.

Houston-based Cognitive Space lead by Founder and CEO Guy de Carufel recognizes this as an opportunity to engage artificial intelligence and cloud technology. De Carufel spoke with InnovationMap about his company, how it will grow, and the role Houston plays in the evolving space exploration industry.

InnovationMap: How did you come up with the idea for your company and technology?

Guy de Carufel: From my experience working at [JSC], I understand the traditional way of commanding spacecraft and how you interface with that from the ground station point of view. In the industry, it's changing very quickly in terms of new companies that are launching constellations of satellites. We're currently at an inflection point where the satellite industry is expected to grow up to five folds in the next 10 years because of the large companies building up these satellites. There are around 2,000 satellites active right now, and that's expected to grow to over 10,000 in the next 10 years.

With all these satellites, you're going to need to manage these assets. Having an operator look at each satellite is not going to cut it. It's not going to be enough for all these satellites. I've been investing and researching in AI technology and machine learning, and I came up with a different way of approaching the problem, and it's a cloud-based approach to [managing the satellites.]

IM: What got you interested in space initially?

GC: Just the excitement of the new frontier. It's still one of the only places that we have a lot of exploring to do, and that got me into space in general and then aerospace engineering, which I got my master's degree in.

IM: What are some of the challenges of introducing a new technology in such a rapidly changing industry?

GC: Traditionally, the aerospace industry is very conservative and doesn't adopt change very quickly. Especially from NASA's point of view and large corporations' point of view, it takes a lot of effort to implement changes — and there's reasons behind that. Space crafts are very expensive to launch and mistakes are very costly. The industry doesn't necessarily like to take too many risks, but that's changing quickly. Now, there are a lot of startups in what's called "new space." You have a lot of companies being funded by venture capital. These startups are willing to take a lot more risks.

IM: How is this growth in satellites going to affect things here on earth?

GC: One of the reasons there's been new interest in space is there are new market forces that are pushing the industry in new directions where you have new uses for space assets. One of them is obviously worldwide connectivity, so internet from space. You have a lot of companies investing billions into that.

The other market force is to have real-time insight into what's going on in the world through imagery. There's a need for tracking transportation and logistics, as well as farming and mining. All of this will have a profound impact on the economy in general.

Industrial IoT, which basically just means everything will be connected, and in order to operate these remote devices, you're going to have to have real-time knowledge of what's going on, and one of the ways to do that is with real-time imagery. It's not something that can be done with today's technology, and we want to be able to position ourselves to be able to enable that market trend.

IM: Has NASA changed with the times? Does it still have the same role in space exploration in "new space"?

GC: The role of NASA has changed over the years. It's changed from initially being a national pride to be the first on the moon and the astronauts were test pilots and the soldier type. When the space station came up and the shuttle program, astronauts became scientists and educators from all sorts of backgrounds. NASA has evolved considerably over the years, and now it is evolving again because of the changes in the industry. NASA will always be relevant, but now it does have to change in how it will play in this new economy. Commercial entities are going to be a large part of exploration, but NASA does have a role to play in setting the roadmap and logistics, as well as sharing the expertise it has from 60 years.

IM: Is Houston a good place for aerospace startups?

There's starting to be a strong startup ecosystem here, but the focus is still medical and oil and gas, much less so aerospace. I do hope that the community realizes that there's a lot of talent here for aerospace. If I were to suggest anything, it would be to have an accelerator program with a focus on space.

IM: Where is Cognitive Space at with its technology and business plan? What are some goals you have for the company?

GC: We're still very early. We're building up our product, and we have a functional prototype. We are in discussion with most major players in the industry and with various government entities.

By next year we will have major contracts, and growing our team to 15 to 20 people. We'll have a commercial product by then and servicing some commercial players. Five years from now, we'll probably be in many different verticals, spawning from what we have now to really expand and apply our systems to as many applications as possible.

IM: Who are Cognitive Space's clients?

GC: Our focus is on earth observation satellite companies — the companies that are developing small satellites with different sensors onboard to take imagery or different spectrum, say hyperspectral or optical. We're focused on that market. What we provide for them is this autonomous tasking solution for their earth observation systems.

We're starting with a niche market but it's growing very quickly. It's expected to grow to $8 billion industry in 5 years. But the technology we develop will be applicable to many different industries.

IM: What's next for Cognitive Space?

GC: We've been focused mostly on developing our prototype and validating the market, but we are looking for investment in a Seed round this year.

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Portions of this interview have been edited.
Jay Bhatty looked at how pipeline data reached traders and thought of a better way. Getty Images

Growing Houston company makes pipeline data more accessible for natural gas trading

Digital upgrade

In the energy capital of the world, Houston entrepreneur Jay Bhatty has established a rapidly growing technology hub for the natural gas industry.

Bhatty, a veteran of the natural-gas-trading business, founded Houston-based NatGasHub.com in October 2016 to streamline the traditionally complicated processes of moving natural gas from one point to another, and of unearthing data about natural gas pipelines. After only a little over two years in business, NatGasHub.com already is profitable — a rare feat in the startup world.

The NatGasHub.com platform, which runs on cloud-based software, launched in late 2017. The startup participated in the final accelerator class of the Houston Technology Center; the accelerator program shut down in early 2018.

Bhatty hatched the idea for NatGasHub.com while he was vice president of energy trading at JPMorgan Chase & Co.'s investment-banking arm, where for more than eight years he felt frustrated by the sluggish nature of natural-gas-trading activities.

First off, data about natural gas pipelines — such as whether a pipeline has capacity issues that could trigger a spike in prices — has, for years, been scattered across the web. Now, NatGasHub.com aggregates pipeline data from dozens upon dozens of websites.

Secondly, transferring natural gas from Point A to Point B has historically involved the tedious task of manually typing a "nomination" to enable the sale of natural gas. NatGasHub.com automates that job, freeing up workers' time so they can tackle meatier projects.

Bhatty compares the now-streamlined nomination process to buying an airline ticket on Expedia or booking a hotel room on Hotels.com. Like those travel websites, NatGasHub.com also serves as a one-stop shop, only in this case it offers a single dashboard for selling natural gas. Until NatGasHub.com came along, U.S. companies had relied on cadres of employees to enter natural gas nominations by hand into about 100 gas pipeline websites, and to track gas flow around the clock via spreadsheets and phone calls, Bhatty says.

In a nutshell, NatGasHub.com serves as both a data supplier and a logistics provider for the natural gas industry.

"Software automation has led to reduced costs for our clients," Bhatty says.

As of early December 2018, NatGasHub.com's customer roster featured 32 companies. Bhatty declines to identify the startup's clients, but he says they're well-known names in energy circles. Bhatty says energy producers, utilities, banks, and hedge funds are among the types of clients that benefit from NatGasHub.com.

"We're adding customers at a pretty fast rate," Bhatty says. "We're definitely in growth mode right now."

NatGasHub.com also is adding revenue at a pretty fast rate. From October 2017 to October 2018, revenue soared by 300 percent, while profit skyrocketed by 5,500 percent, according to Bhatty.

NatGasHub.com has accomplished all of that without taking one penny from outside investors, Bhatty says.

The energy industry has taken notice of NatGasHub.com's success. In August, Energy CIO Insights named it one of North America's 10 best energy technology startups for 2018.

Today, NatGasHub.com employs 18 people in Houston. Bhatty envisions the workforce growing to 30 to 35 employees by the end of 2019. Planned expansions into other segments of the energy industry, such as crude oil, and into the Canadian market could bump up that projection. Currently, NatGasHub.com operates only in the U.S.

Among the kinds of workers NatGasHub.com will be hiring over the next year are software programmers, database administrators, and sales representatives.

"It's hard to find any kind of qualified people in this economy with the unemployment rate so low," Bhatty says. "But the good part has been that there's a lot of qualified people who want to work in a startup environment — they want to leave the bigger companies and try something different."
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These elite Houston researchers were named among the most-cited in their fields

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Nearly 60 scientists and professors from Houston-area universities and institutions, working in fields from ecology to immunology, have been named among the most-cited researchers in the world.

The Clarivate Highly Cited Researchers 2022 list considers a global pool of public academic papers that rank in the top 1 percent of citations for field and publication year in the Web of Science. It then ranks researchers by the number of times their work has been cited, or referenced, by other researchers, which, according to the University of Houston, helps their findings "become more impactful and gain further credibility."

This year 6,938 researchers from 70 different countries were named to this list. About 38 percent of the researchers are based in the U.S.

“Research fuels the race for knowledge and it is important that nations and institutions celebrate the individuals who drive the wheel of innovation. The Highly Cited Researchers list identifies and celebrates exceptional individual researchers who are having a significant impact on the research community as evidenced by the rate at which their work is being cited by their peers," says David Pendlebury, head of research analysis at the Institute for Scientific Information at Clarivate, in a statement. "These individuals are helping to transform human ingenuity into our world’s greatest breakthroughs.”

Harvard University was home to the most researchers, with 233 researchers making the list, far outpacing Stanford University, which had the second highest total of 126 researchers.

Texas universities and institutions had a strong showing, too. The University of Texas at Austin had 31 researchers on the list, tying UT with the University of Minnesota and Peking University in China for the No. 35 spot. MD Anderson had 30 researchers on the list, the most among organizations in Houston, earning it a 38th place ranking, tied with the University of Maryland and University of Michigan.

Below is a list of the Houston-area highly cited researchers and their fields.

From UT MD Anderson Cancer Center

  • Jaffer Ajani (Cross-Field)
  • James P. Allison (Immunology)
  • Jan A. Burger (Clinical Medicine)
  • George Calin (Cross-Field)
  • Jorge Cortes (Clinical Medicine)
  • Courtney DiNardo (Clinical Medicine)
  • John V. Heymach (Clinical Medicine)
  • David Hong (Cross-Field)
  • Gabriel N. Hortobagyi (Cross-Field)
  • Robert R. Jenq (Cross-Field)
  • Hagop M.Kantarjian (Clinical Medicine)
  • Marina Y. Konopleva (Clinical Medicine)
  • Dimitrios P. Kontoyiannis (Cross-Field)
  • Scott E. Kopetz (Clinical Medicine)
  • Alexander J. Lazar (Cross-Field)
  • J. Jack Lee (Cross-Field)
  • Anirban Maitra (Clinical Medicine)
  • Robert Z. Orlowski (Clinical Medicine)
  • Padmanee Sharma (Clinical Medicine and Molecular Biology and Genetics)
  • Anil K. Good (Cross-Field)
  • Jennifer A. Wargo (Molecular Biology and Genetics)
  • William G. Wierda (Clinical Medicine)

From Baylor College of Medicine

  • Erez Lieberman Aiden (Cross-Field)
  • Nadim J. Ajami (Cross-Field)
  • Christie M. Ballantyne (Clinical Medicine)
  • Malcolm K. Brenner (Cross-Field)
  • Hashem B. El-Serag (Clinical Medicine)
  • Richard Gibbs (Cross-Field)
  • Heslop, Helen Cross-Field
  • Joseph Jankovic (Cross-Field)
  • Sheldon L. Kaplan (Immunology)
  • Joseph F. Petrosino (Cross-Field)
  • Cliona Rooney (Cross-Field)
  • James Versalovic (Cross-Field)
  • Bing Zhang (Cross-Field)

From Rice University

  • Plucker M. Ajayan (Materials Science)
  • Pedro J. J. Alvarez (Environment and Ecology)
  • Naomi Halas (Materials Science)
  • Jun Lou (Materials Science)
  • Antonios G. Nikos (Cross-Field)
  • Aditya D. Mohite (Cross-Field)
  • Peter Nordlander (Materials Science)
  • Ramamoorthy Ramesh (Physics)
  • James M. Tour (Materials Science)
  • Robert Vajtai (Materials Science)
  • Haotian Wang (Chemistry)
  • Zhen-Yu Wu (Cross-Field)
  • From University of Houston
  • Jiming Bao (Cross-Field)
  • Shuo Chen (Cross-Field)
  • Whiffing Ren (Cross-Field)
  • Zhu Han (Computer Science)

From UTMB Galveston

  • Vineet D.Menachery (Microbiology)
  • Nikos Vasilakis (Cross-Field
  • Scott C. Weaver (Cross-Field)
  • From UT Health Science Center-Houston
  • Eric Boerwinkle (Cross-Field)

Overheard: Houston experts call for more open innovation at industry-blending event

eavesdropping at the Ion

Open innovation, or the practice of sourcing new technologies and idea across institutions and industries, was top of mind at the annual Pumps & Pipes event earlier this week.

The event, which is put on by an organization of the same name every year, focuses on the intersection of the energy, health care, and aerospace industries. The keynote discussion, with panelists representing each industry, covered several topics, including the importance of open innovation.

If you missed the discussion, check out some key moments from the panel.

“If we want to survive as a city, we need to make sure we can work together.”

— Juliana Garaizar of Greentown Labs. "From being competitive, we’ve become collaborative, because the challenges at hand in the world right now is too big to compete," she continues.

“The pace of innovation has changed.”

— Steve Rader of NASA. He explains that 90 percent of all scientists who have ever lived are alive on earth today. “If you think you can do it all yourself — and just find all the latest technology yourself, you’re kidding yourself.”

“You can’t close the door. If you do, you’re closing the door to potential opportunities.”

— Michelle Stansbury, Houston Methodist. “If you think you can do it all yourself — and just find all the latest technology yourself, you’re kidding yourself.” She explains that there's an influx of technologies coming in, but what doesn't work now, might work later or for another collaborator. "I would say that health care as a whole hasn’t been very good at sharing all of the things we’ve been creating, but that’s not the case today," she explains.

“The thing that makes Houston great is the same thing that makes open innovation great: diversity.”

— Rader says, adding that this makes for a great opportunity for Houston.

“Some of our greatest innovations that we’ve had come from other industries — not from health tech companies.”

— Stansbury says. "I think that's the piece everyone needs to understand," she says. "Don't just look in your own industry to solve problems."

“Nobody knows what is the best technology — the one that is going to be the new oil."

— Garaizar says. “All of this is going to be a lot of trial and error," she continues. “We don’t have the luxury of time anymore.”

University of Houston powers up first robot food server in a U.S. restaurant

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The University of Houston is taking a bold step — or, in this case, roll — in foodservice delivery. UH's Conrad N. Hilton College of Global Hospitality Leadership is now deploying a robot server in Eric’s Restaurant at its Hilton College.

Booting up this new service is major bragging rights for the Coogs, as UH is now the only college in the country — and the only restaurant facility in Houston — to utilize a robotic food delivery.

These rolling delivery bots come from the state-of-the-art food service robot called Servi. The bots, created by Bear Robotics, are armed with LiDar sensors, cameras, and trays, and automatically return to their posts when internal weight sensors detect a delivery has been completed.

Not surprisingly, these futuristic food staffers are booting up plenty of buzz at UH.

“People are excited about it,” says Dennis Reynolds, who is dean of the Conrad N. Hilton College of Global Hospitality Leadership and oversees the only hospitality program in the world where students work and take classes in an internationally branded, full-service hotel. Launching robot waitstaff at UH as a test market makes sense, he notes, for practical use and larger implications.

The Servi robots deliver food from the kitchen to the table. Photo courtesy of the University of Houston

“Robotics and the general fear of technology we see today are really untested in the restaurant industry,” he says in an announcement. “At Hilton College, it’s not just about using tomorrow’s technology today. We always want to be the leader in learning how that technology impacts the industry.”

Bear Robotics, a tech company founded by restaurant experts and tech entrepreneurs, hosted a Servi showcase at the National Restaurant Show in Chicago earlier this year. After seeing the demo, Reynolds was hooked. UH's Servi robot arrived at Eric’s Restaurant in October.

Before sending the bot to diners' tables, the bot was prepped by Tanner Lucas, the executive chef and foodservice director at Eric’s. That meant weeks of mapping, programming, and — not surprisingly — “test driving” around the restaurant.

Tanner even created a digital map of the restaurant to teach the Servi its pathways and designated service points, such as table numbers. “Then, we sent it back and forth to all of those points from the kitchen with food to make sure it wouldn’t run into anything," he adds.

But does having a robot deliver food create friction between human and automated staff? Not at Eric's. “The robot helps my workflow,” Joel Tatum, a server at Eric’s says. “It lets me spend more time with my customers instead of just chasing and running food.”

Once loaded, the kitchen staff can tell the Servi robots where to take the dishes. Photo courtesy of the University of Houston

Reynolds believes robots will complement their human counterparts and actually enhance the customer experience, even in unlikely settings.

“Studies have been conducted in senior living facilities where you might think a robot wouldn’t be well received, but it’s been just the opposite,” Reynolds says. “Those residents saw the change in their lives and loved it.”

To that end, he plans to use Servi bots in other UH venues. “The ballroom would be a fantastic place to showcase Servi – not as a labor-saving device, but as an excitement generator,” Reynolds notes. “To have it rotating through a big event delivering appetizers would be really fun.”

Critics who denounce robot servers and suggest they will soon displace humans are missing the point, Reynolds adds. “This isn’t about cutting our labor costs. It’s about building our top-line revenues and expanding our brand as a global hospitality innovator,” Reynolds says. “People will come to expect more robotics, more artificial intelligence in all segments of hospitality, and our students will be right there at the forefront.”

Servi bots come at a time of dynamic growth for Hilton College. A recent rebrand to “Global Hospitality Leadership” comes as the college hotel is undergoing a $30 million expansion and renovation, which includes a new five-story, 70-room guest tower. The student-run Cougar Grounds coffeehouse reopened this semester in a larger space with plenty of updates. The neighboring Eric’s Club Center for Student Success helps with recruitment and enrollment, undergraduate academic services, and career development.

“To be the first university in the country to introduce robotics in the dining room is remarkable,” Reynolds adds. “There are a lot of unique things we’re doing at Hilton College.”

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This article originally ran on CultureMap.

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