Using APIs, organizations can more easily combine their own internal data. Getty Images

Houston, home to one of Cognite's U.S. headquarters, is the energy capital of the world. But while many oil and gas industry players and partners come together here, much of the data they use — or want to employ — remains siloed.

There's no lack of data. Connected devices are a wellspring of enterprise resource planning data, depth-based trajectories, piping and instrumentation diagrams, and sensor values. But incompatible operational data systems, poor data infrastructure, and restricted data access prevent organizations from easily combining data to solve problems and create solutions.

We understand these challenges because we work alongside some of the biggest operators, OEMs and engineering companies in the oil and gas business. Lundin Petroleum, Aker Energy OMV, and Aker BP are among our customers, for example.

Flexible, open application programming interfaces can address the challenges noted above. APIs enable users to search, filter and do computations on data without downloading full data sets. And they abstract the complexity of underlying storage formats.

As a result, data scientists and process engineers can access data in an efficient manner, spending more time on their use cases and less effort contending with technical details. Using APIs, organizations can more easily combine their own internal data. APIs also simplify the process of using data from industry partners and other sources.

Most companies have slightly different work processes. But common API standards can help a company combine software services and platforms from others in a way that matches its own business logic and internal processes. That can allow the company to differentiate itself from competitors by employing services from the best suppliers to create innovative solutions.

Standardizing APIs across the oil and gas industry would open the door to a community of developers, which could create custom applications and connect existing market solutions. Then more new and exciting applications and services would reach the market faster.

To ensure adoption and success of such a standardization effort, the APIs would need to be well crafted and intuitive to use. These APIs would have to include the business logic required to perform the operations to empower users. In addition, APIs would need to define and allow for the sharing of desired information objects in a consistent way.

Best practices in defining common APIs for sharing data within the industry include:

  • Introducing APIs iteratively, driven by concrete use cases with business value
  • Ensuring all services using the API provide relevant output and insights in a structured machine-readable format, enabling ingestion into the API to ensure continuous enrichment of the data set
  • Making all data searchable
  • Preventing underlying technology from being exposed through the APIs to ensure continuous optimization and allow companies to implement their technology of choice
  • Supporting all external data sharing through an open, well-documented and well-versioned API, using the OpenAPI standard

If oil and gas industry operators define APIs, suppliers will embrace them. That will "grease" the value chain, allowing it to move with less friction and waste.

Operations and maintenance are a natural place for API harmonization to start. Standardized APIs also can enable operators to aggregate and use environmental, equipment and systems, health and safety, and other data. That will accelerate digital transformation in oil and gas and enable companies to leverage innovative solutions coming from the ecosystem, reduce waste, and improve operations, making production more sustainable.

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Francois Laborie is the general manager of Cognite North Americas.

Luther Birdzell, founder and CEO of Houston-based OAG Analytics is on a mission to democratize data for his upstream oil and gas clients. Courtesy of OAG Analytics

Houston entrepreneur is using his analytics company to change the oil and gas industry

Featured Innovator

Luther Birdzell has been on a mission to democratize data for the upstream oil and gas industry since he started his company, OAG Analytics, in 2013.

For him, there's just not enough data scientists for hire to do the same thing internally for different companies. He thought of a way where he can give clients an easy-to-use platform to have access to data that could save oil and gas companies millions of dollars. So, that's exactly what he did.

"Over the past five and a half years, we've built that platform," Birdzell says. "We are currently helping to optimize over $1 billion in capital deployment around drilling and completions."

The company has grown to 25 employees and tripled its revenue last year. The team is forecasting another year of high grow for 2019.

Birdzell spoke with InnovationMap to talk about his start in software, the company's growth, and why nonprofit work has been important to him as a business leader.

InnovationMap: Did you always know you wanted to be an entrepreneur?

Luther Birdzell: When I was about two years old, my grandfather ran a meat business in New York City — in the meatpacking district, back when that area actually had meat packers. It just was in my bones from a really young age that I wanted to start a business.

IM: How did you get into software development?

LB: I studied electrical engineering in college. For my first seven years, I worked within consulting, implementing systems that made data more valuable to subject matter experts. I was primarily supporting management teams and mostly tech teams.

Then, I met the founders of iTKO, who were doing software testing for clients, and I helped them figure out a way that was complementary to what they were doing. We took a capability that can enable software developers that can help companies reduce their data center costs by a lot. It was a capability that was really restricted to specialized programing. Together we figured out how to make that a capability that anyone in an IT company used. That resulted in companies being able to higher fewer people to maintain servers, as well as reduce other costs. Companies were saving of millions of dollars per year per project.

IM: When did the idea for OAG come to you?

LB: Computer Associates bought iTKO from us in 2011. When I resigned from CA in 2013, it was very clear to me that artificial intelligence, big data, machine learning, and the cloud, were all tech ingredients for adding more value to data. Then the oil and gas business came into focus.

When I founded OAG Analytics, our mission then — and still is today — was to build a platform for the upstream oil and gas industry that enables them to manage their data, introduces world-class machine learning in minutes without having to write a single line of code, and allow them to run simulations on the resulting analysis.

IM: What makes OAG successful?

LB: My vision was to create a platform that could be trusted to support billions of dollars of capital optimization through transparency and control. A black box doesn't work for the kind of problems we're helping our customers optimize. They need something that's easy to use, simple, powerful, and also gives them complete control.

IM: What's the barrier of success for your clients?

LB: We have customers who have increased their capital efficiency on drilling programs that are about $500 million by over 25 percent, while still getting the same amount of oil out of the ground.

IM: What was the early reception like?

LB: We found a lot of interest in talking about how it works. In 2013, 2014, 2015, well over half the industry knew enough about this technology from other industries to have high confidence that it would affect the oil and gas industry one day. They were willing to spend an hour or two on what it is and how it works. But the number of companies who were really willing to invest in a meaningful way was really small.

There were companies, like EOG Resources, for example started spending millions of dollars developing this technology in house. Other companies seeing EOG and Anadarko success, raised the bar on the level of proof.

There's an increasing number of companies in the industry who realize that AI isn't a futuristic thing anymore. There are companies using it today, and the companies using it right are making more money. But, they're learning it's hard to do right. It could take years and millions of dollars to develop this yourself, but we're helping companies get up to speed in a matter of months, and our total cost for the first year is well under a million bucks to do this. They want us to train them how to use it, then act as support, rather than run it all for them.

IM: Do you plan to stay in just upstream oil and gas?

LB: We're 100 percent focused on upstream oil and gas, and always have been, but as we continue to grow, we're going to follow the market and what customers want. Repurposing our platform for other applications in oil and gas, energy, and even beyond that. We're evaluating. The vision has always been to democratize AI, and oil and gas is where we started.

IM: Do you have an exit strategy?

LB: As far as exits, I get asked this a lot. I don't believe in exit strategies. I believe in building a great company. I've seen a lot of founders make a lot of mistakes trying to cut corners to get to early exits. Our goal is to be a great company, and that starts with the right vision and then getting the right people and hires.

IM: How has Houston been as a place to have a startup in energy?

LB: Houston is unparalleled in the oil patch or the ability to support day trips. There's two airports and tons of direct flights to other cities in the oil patch. It's the only city you can cover all the other cities from with day trips. The efficiency of being able to be on site with customers is such an advantage.

There are a lot of industry experts in and around Houston, but a startup software company works very differently from an oil company. I think we have a long road ahead of us before we have an ecosystem in place to support startups and give them the best chance of success. Some of that comes from advisers, some from the ecosystem, and some part of it just takes time. But once those pieces come into play, talent follows. I think Houston is a very natural hub for energy tech.

IM: Volunteering is an important part of your business. Why is that something you've focused on?

LB: Something in the DNA of our business is giving back. We do that through direct community action. We've volunteered as a company, and we're always on the lookout for ways we can engage with and make the most contribution to the community. We do this primarily for personal reasons, but the universe has been very generous over my career with reciprocating a professional upside.

You volunteer in high school to get into college, then maybe some in college. And you might think, "oh that's for philanthropists or retired people and I'll get back to that later." But the reality of that is it feels better doing some of that now, so we do.

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Portions of this interview have been edited.

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Photos: Here's a sneak peek at The Ion Houston's construction progress

eye on the ion

The Ion Houston is expected to open its doors this year, and the building's exterior is close to completion. Now, the construction team is focusing on interiors and then tenant build outs.

The 270,000-square-foot coworking and innovation hub owned and managed by Rice Management Co. is slated to be a convening building for startups, corporations, academic partners, investors, and more. The building is organized as follows:

  • The underground Lower Level will act as academic flex space with a few classrooms and open-concept desks for The Ion's accelerators, including: The Ion Smart and Resilient Cities Accelerator, DivInc, the Rice Alliance's Clean Energy Accelerator, and the Aerospace Innovation Hub and Accelerator. There will also be an event space and The Ion's own programming.
  • On the first, street-level floor, The Ion's restaurant tenants will reside with access from both the greenspace as well as into the building. The Ion's first three restaurant tenants include: Late August, Common Bond, and STUFF'd Wings.
  • Additionally, the first floor will be home to a venture studio and the prototyping lab. There is additional space available for other tenants.
  • On the second floor, there will be 58,000 square feet of coworking space managed by Common Desk. Note: For floors 2 and up of the Ion, tenants will have access cards that allow them entrance. The first and lower floors will not require access cards.
  • The third floor of the building will house eight to 10 tenants each with 5,000 to 10,000 square feet of space. Chevron was announced as the first tenant and will reside on this floor.
  • On the fourth and fifth floors, The Ion will house one to two larger tenants on each level. These levels of the building were added on to the existing structure. The fourth floor features two balconies that tenants will have access to. Microsoft is signed on to have its space on half of the fifth floor.
The Ion is still planning on an open date in late spring or summer. For leasing information, click here. Scroll through the slideshow of construction images and renderings to see the progress of the building.

Exterior nears completion

Photo by Natalie Harms

The building's exterior is almost complete and kept much of the original building's facade. The new materials brought in match the existing color scheme.

Texas winery taps Houston tech company for innovative AR experience

cheers

The Lone Star State is home to a vibrant and innovative wine scene, but, just like most hospitality businesses, winemakers missed the opportunity to engage with their patrons amid the pandemic. With a new idea of how to engage its customers, Messina Hof, an award-winning Texas winery, rolled out a new tech-optimized, at-home experience.

The winery partnered with VISION, a Houston-based production group, to create an augmented reality app. Combining the efforts of Messina Hof's in-house label design team and the animation capabilities of VISION, the app took four months to design.

"It was a labor of love for both parties to be able to experiment with this; it was uncharted territory," says Karen Bonarrigo, owner and chief administrative officer of Messina Hof.

The three wines released — Emblaze (Sweet Red), Vitality (Dry White), and Abounding (Dry Red) — each tells a story through the AR experience.

"We wanted to try not only and push the technology as far as we can push it, but also try to really incorporate some heavy storytelling," says Dan Pratt, VISION Creative Director.

The idea to incorporate technology felt like a natural one to Bonariggo.

"The earth, water, and sunshine all go into developing what the profile is for each wine," explains Bonarrigo.

Each of the three wines have scannable labels that bring up a VR experience for app users. Photo courtesy of Messina Hof

VISION, who worked alongside Messina Hof to develop the project, blended the winery's rich family ties with the Old World history of winemaking.

When customers download the app and hold their camera over the label, a trailing vine emerges onto the screen and wraps around the bottle. As vines grow around each bottle, the three each visually signify a different natural element of winemaking — earth, water and the sun. As a rustic sign emerges, it prompts users to then click for recipe pairing recommendations.

Rather than a single-use experience, Messina Hof and VISION wanted to create an app that users could both engage with and learn from. The AR app allows users to view recipes and browse wines in one place.

"We knew we wanted the app to be functional for people to be able to interact with both when they're doing the AR experience, but then also to be able to continue to come back to it later," shares Bonarrigo. While AR wine labels have emerged in some California vineyards, she says, "it's definitely uncharted territory for the Texas industry."

Overseeing the food and wine pairing at Messina Hof is one of Bonarrigo's passions, so it was a natural choice to include recipes in the app. Messina Hof offers a concept called Vineyard Cuisine, coined from the Bonarrigo family cookbook, and incorporates wine in every meal at the vineyard.

"The idea of tying [the wine] to a recipe gave us the opportunity to be able to share new ways [our customers] could use wines in their everyday cooking," she explains.

She hopes the app's recipe feature will help families connect together.

"So often we get used to sitting down at the table, eating really quickly, and then moving on to the next thing, but there's so much connection that can happen with each other when we can slow down a little bit and have a conversation," she continues.

To Pratt, AR was the perfect way to emphasize and expand on the shared experience of wine.

"We wanted this to be an extension of that experience for people. You know, based on the love of wine and laughter with friends," he says.

For those who can't currently gather in a room together, Bonarrigo has hopes that Messina Hof can bring people together from afar.

"I think now more than ever the ability for our regular customers, even within Texas, to then share those wines with family members or friends that are outside the state seems more intuitive," she explains.

"We are so used to being creatures of habit in sharing our wine face-to-face with people that when we had the unexpected opportunity to not do that, we realized that we still have ways to be able to connect with customers through technology," says Bonarrigo.

She finds the "ease of access of being able to connect with them through the online web store" has kept Messina Hof in touch with customers throughout the pandemic, as well as digital happy hours and tasting events.

Messina Hof Harvest Green Winery & Kitchen, the newest location, opened in February, becoming the Greater Houston-area's largest winery. The space features an expansive tasting room and 83-foot wine bar, full-service restaurant, covered patio, two private tasting rooms, a wine production, barrel room, and wine warehouse.

"We knew that when we launched that location that we wanted to be able to have a series of wines at that location that was special, but also out of the box," says Bonarrigo.

Bonarrigo and her husband Paul have ushered in the expansion of Messina Hof over the last nine years. The family business began in 1977 when Paul's parents, Paul Vincent and Merrill, started an experimental vineyard. Messina Hof has locations in Bryan, Grapevine, Fredericksburg, and Richmond.

"This is our largest winery expansion endeavor that we've done," she says. "We wanted the wines to be extra special."

Similar to Messina Hof, companies across industries are seeking to explore interactive technologies to reach their customer base. "A number of our clients, and also new clients that we may not have been able to reach before, have certainly reached out to us to figure out new ways to reach an audience," shares Pratt.

Winemaking may be an Old World skill, but Messina Hof is excited to bring Texas wine into the future.

"So much of winemaking is science, and so much of it is art. There's always this push and pull as to which is more of a majority in the end product," explains Bonarrigo, who notes that Messina Hof has been using technology to innovate and optimize the growing process. The new AR app is a push toward bringing the experience her family loves into the homes of customers.

"This definitely gives a new talking point to wine," she says.