The oil and gas industry has been hit by a trifecta of challenges. This local expert has some of his observations. Getty Images

In the matter of a few weeks, COVID-19 disrupted life across the globe, but the oil and gas industry was hit especially hard with the triple impact.

First, there was the direct impact of COVID-19 on the workforce. Next, there was a dramatic drop in global demand as countries and cities around the world issues travel restrictions. Finally, there was a global increase in oil supply as OPEC cooperation disintegrated.

As energy companies raced to set up response teams to address all three concurrent issues, something that no one was quite prepared for was the speed at which all direct lines of communication for the industry were shutoff. Seemingly overnight, industry conferences and events ground to a halt, corporate offices were reduced to ghost towns, and handshakes were replaced with virtual high fives.

To fill this inability to interact, connect, and collaborate as we used to, my company, Darcy Partners, stood up a series of executive roundtables for the exploration and production community to come together and share ideas on how to approach this unprecedented series of events.

Each week, over 25 executives from various oil and gas operators (and growing) gather virtually to share best practices around COVID-19 response plans, discuss the broader impacts of the turmoil on the industry and learn about innovative technology and process solutions others are implementing to help mitigate the impact of the virus and associated commodity price volatility.

We've seen the priorities of these executives shift and evolve with each phase of COVID-19 and the market impact. In early discussions, the main focus was on taking care of their workforce and what plans were being instituted to help minimize the disruption to operations while also ensuring that no one was exposed to any unnecessary risks. Participants shared best practices and policies they had in place for communication both internally and externally as well as their transition to work-from-home.

At later roundtables, the discussion turned to commodity prices and market response. Although this industry is quite accustomed to the inevitable ups and downs, this time is notably different. The market dynamics during this cycle are far more pronounced than in past downturns – largely due to the concurrent supply and demand imbalances coupled with the broader economic uncertainty. Most operators are taking action by making cuts, and some have already decided to shut-in production. Additionally, the importance of technology and innovation came to the forefront, whether discussing tools to facilitate working from home or remote operations to ensure the continued safe operations in the field.

The future is largely unknown; all of the information and analytics and millions of outcomes being modeled do not create the full picture needed for leaders to make the difficult decisions that are necessary. But there are a few things we know for sure. First, there will be an oil and gas industry on the other side of the current turmoil. Secondly, technology will play an increasingly important role going forward. And, finally, the complex issues the industry is dealing with today can be more effectively understood and managed by coming together to share ideas and best practices.

Nearly 5 years ago, Darcy Partners was founded on the premise that there was a missing link in the oil and gas Industry for the adoption of new technologies. Today, there is a missing link for an entirely different reason. Darcy Partners has rapidly mobilized our vast network of operators, technology innovators, investors, and thought leaders to come together and create a shared level of certainty, in an entirely uncertain world. To help leaders make the decisions that must be made and prepare for a new future, one that might not have been expected, but one that the industry will evolve to succeed in.

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David Wishnow is the head of energy technology identification and relationship management at Houston-based Darcy Partners.

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Houston ecommerce scale-up company acquires Amazon advertising partner

all aboard

A Houston tech company has tapped an Amazon partner in a strategic acquisition and is bringing the company's full team on board.

Cart.com acquired Ohio-based Amify, a company that provides optimization and advertising solutions. The terms of the deal were not disclosed but Cart.com will on board Amify’s entire employee base, including its founder Ethan McAfee, CEO Chris Mehrabi, and COO Christine McCambridge.

As chief delivery officer, Mehrabi will take the helm of Cart.com’s professional services business and McCambridge will lead Cart.com’s marketplace services team as vice president of marketplace services operations.

“I’m happy to welcome the entire Amify team to Cart.com and have industry veterans Chris Mehrabi and Christine McCambridge join our leadership team,” Cart.com Founder and CEO Omair Tariq says in a news release. “Amify has been widely recognized for their expertise and technology and we’re excited to leverage their experience to help our customers maximize their potential across channels.”

Cart.com's membership will have access to Amify's proprietary technology platform, including advertising, creative content, supply chain strategy, and analytics. The company, which was founded in 2011, currently supports over 50 global brands and manages approximately $1 billion in gross merchandise value. According to LinkedIn, Amify has over 50 employees.

“We could not be more excited to join Cart.com and leverage the company’s resources and scale to deliver value to both our customers and employees,” Mehrabi says. “I’m honored to step into the role of Chief Delivery Officer and contribute to Cart.com’s incredible growth story and innovative reputation.”

Founded in Houston in 2020, Cart.com provides comprehensive physical and digital infrastructure for online merchants. The company raised a $60 million series C and grown its customer base to over 6,000 users. After making several acquisitions, the company also operates 14 fulfillment centers nationwide.

Earlier this year, Tariq sat down with the Houston Innovators Podcast to share a bit about how the company is currently in scale-up mode.

Houston health tech innovator collaborates on promising medical device funded by DOD

team work

The United States Department of Defense has awarded a grant that will allow the Texas Heart Institute and Rice University to continue to break ground on a novel left ventricular assist device (LVAD) that could be an alternative to current devices that prevent heart transplantation and are a long-term option in end-stage heart failure.

The grant is part of the DOD’s Congressionally Directed Medical Research Programs (CDMRP). It was awarded to Georgia Institute of Technology, one of four collaborators on the project that will be designed and evaluated by the co-investigator Yaxin Wang. Wang is part of O.H. “Bud” Frazier’s team at Texas Heart Institute, where she is director of Innovative Device & Engineering Applications Lab. The other institution working on the new LVAD is North Carolina State University.

The project is funded by a four-year, $7.8 million grant. THI will use about $2.94 million of that to fund its part of the research. As Wang explained to us last year, an LVAD is a minimally invasive device that mechanically pumps a person’s own heart. Frazier claims to have performed more than 900 LVAD implantations, but the devices are far from perfect.

The team working on this new research seeks to minimize near-eventualities like blood clot formation, blood damage, and driveline complications such as infection and limitations in mobility. The four institutions will try to innovate with a device featuring new engineering designs, antithrombotic slippery hydrophilic coatings (SLIC), wireless power transfer systems, and magnetically levitated driving systems.

Wang and her team believe that the non-contact-bearing technology will help to decrease the risk of blood clotting and damage when implanting an LVAD. The IDEA Lab will test the efficacy and safety of the SLIC LVAD developed by the multi-institutional team with a lab-bench-based blood flow loop, but also in preclinical models.

“The Texas Heart Institute continues to be a leading center for innovation in mechanical circulatory support systems,” said Joseph G. Rogers, MD, the president and CEO of THI, in a press release.

“This award will further the development and testing of the SLIC LVAD, a device intended to provide an option for a vulnerable patient population and another tool in the armamentarium of the heart failure teams worldwide.”

If it works as hypothesized, the SLIC LVAD will improve upon current LVAD technology, which will boost quality of life for countless heart patients. But the innovation won’t stop there. Technologies that IDEA Lab is testing include wireless power transfer for medical devices and coatings to reduce blood clotting could find applications in many other technologies that could help patients live longer, healthier lives.

Houston investor on SaaS investing and cracking product-market fit

Houston innovators podcast episode 230

Aziz Gilani's career in tech dates back to when he'd ride his bike from Clear Lake High School to a local tech organization that was digitizing manuals from mission control. After years working on every side of the equation of software technology, he's in the driver's seat at a local venture capital firm deploying funding into innovative software businesses.

As managing director at Mercury, the firm he's been at since 2008, Gilani looks for promising startups within the software-as-a-service space — everything from cloud computing and data science and beyond.

"Once a year at Mercury, we sit down with our partners and talk about the next investment cycle and the focuses we have for what makes companies stand out," Gilani says on the Houston Innovators Podcast. "The current software investment cycle is very focused on companies that have truly achieved product-market fit and are showing large customer adoption."



An example of this type of company is Houston-based RepeatMD, which raised a $50 million series A round last November. Mercury's Fund V, which closed at an oversubscribed $160 million, contributed to RepeatMD's round.

"While looking at that investment, it really made me re-calibrate a lot of my thoughts in terms what product-market fit meant," Gilani says. "At RepeatMD, we had customers that were so eager for the service that they were literally buying into products while we were still making them."

Gilani says he's focused on finding more of these high-growth companies to add to Mercury's portfolio amidst what, admittedly, has been a tough time for venture capital. But 2024 has been looking better for those fundraising.

"We've some potential for improvement," Gilani says. "But overall, the environment is constrained, interest rates haven't budged, and we've seen some potential for IPO activity."

Gilani shares more insight into his investment thesis, what areas of tech he's been focused on recently, and how Houston has developed as an ecosystem on the podcast.