While most corporations should be optimizing their company cultures, energy companies specifically need to move the needle on driving forward innovative culture for its employees. Getty Images

The prevailing economic environment has made innovation essential to gaining a competitive edge in the oil and gas industry.

Global economic shifts and the unstable oil market have been considerable factors inhibiting the advancement of innovation in the oil and gas sector. Oil prices have not significantly increased in the past four to five years, while investors and Wall Street hold corporate executives accountable for capital discipline.

In light of these trends, corporate culture and innovation are key factors that hold the potential to drive novelty in the next upcycle. To bring value to shareholders, the oil and gas industry needs to nurture an environment that fosters a radically innovative culture to create new product lines and markets, unique ecosystems, product content, and processes.

Culture from the top down

Organizational culture is one of the essential dynamics that drive innovation. Employee behavior helps influence and promote the acceptance of innovation as a fundamental corporate value. Organizations are therefore admonished to concentrate on fostering an innovative culture that allows the growth of new ideas.

This culture needs to be created by deliberate action on the part of leaders of industry or by indirect measures such as composition and institutional policy directions. A model of innovative culture which translates into cultural transformation emerges as a result of this deliberate action and institutional policy directions.

Various studies over the years have examined innovative culture models focused on cultural characteristics or factors. A comprehensive, innovative culture model that incorporates cultural traits and their determinants is reviewed in this contemplative piece.

Execution  culture vs. innovative culture

In her book, "The Culture Map: Breaking Through the Invisible Boundaries of Global Business," Erin Meyer explains that "ambidextrous culture" is the concurrent search of flexibility and alignment at a business unit/sector which is linked to several organizational outcomes including improved performance and innovation.

This ambidextrous culture can be divided into two broad categories: Execution culture and innovative culture. Execution culture is a working environment that is more process- and task-driven to get things done. The oil and gas industry has typically favored the execution culture, where there is a central decision-maker at the head of the table. Research and recommendations on pertinent matters are typically presented to decision-makers who sit through a PowerPoint presentation. Subsequently, a decision is made based on the facts presented via PowerPoint presentation.

One critical demerit of this setup is that it usually leans towards low-risk conservative judgment. The executive lifestyle has worked in the past in the oil and gas industry due to the high fixed cost, and the "failure is unacceptable" approach in the industry.

With new technologies such as 3D printing, predictive analytics, machine learning, and deep learning, one can test some ideas or thoughts through rapid prototyping in a lab setting to test their hypothesis. Therefore, this type of culture as a sole approach to decision-making in the industry may need to be reconsidered.

Meanwhile, innovative culture is a work environment where leaders encourage and nurture unorthodox thinking in approaching problem solutions and applications. If the energy industry leaned more toward this style of culture, it would help foster innovation and accelerate the innovation landscape in the industry.

Innovative culture is a more design-oriented approach that generates a large pool of options and also incorporates a visual thinking framework. It enhances a creative mode for the audience, and everybody in the company ends up being a decision-maker. This type of culture fosters open innovation, eliminates the fear of expression, and pushes for more collaboration and creativity in the ecosystem.

According to a recent survey done by Accenture Strategy, 76 percent of leaders say they regularly empower employees to be innovative, while only 42 percent of employees agree. This shows an apparent disparity in more than the perceptions of employers versus employees and the belief that innovative culture is not promoted by middle management. This barrier can be broken down by instituting and enforcing an innovative culture.

Staying agile in a transforming world

The world has changed, and it will continue to transform. Various factors are disrupting traditional methods of business management across the globe, and organizational behavior is being impacted significantly. For an organization to be competitive globally, it requires innovation and creativity.

The rate at which businesses are facing competition requires agility. Employees are pressured to give their best and to come up with new ideas at a level even beyond some of history's greatest minds. For many, uncertainty and insecurity abounds. The fear of being made redundant and a resulting lack of trust prevents creativity among employees.

Trust, productive gameplay, and fun — critical components of an innovative culture — can spark creativity and increase global competitiveness. Due to the recent downturn, most teams are burdened with the same amount of work, which was meant for double or tripled their workforce and are still expected to perform at their peak capability. They need the right conducive environment to function.

Implementing action

While the energy industry should avoid trying to copy innovative practices from technology companies, oil and gas companies should review possible case studies that can be incorporated in fostering an acceptable culture for millennials to be attracted to the industry.

Presentation is important

Take a look at your marketing materials, for instance. Skip the stereotypical image of the macho oil guy on a rig operating the brake handle and showcase how the industry is adapting open innovation across sectors such as using predictive analytics and rapid prototyping to help design a safe working environment. Showcasing the conducive culture we experience in oil and gas, which challenges us to think outside the box and solve the world's energy problems will be an excellent way to create opportunities internally in companies and also attract and retain talent from different backgrounds and industries to help solve the world's energy problems.

Consider flexible work initiatives

To help establish and foster an innovative culture in oil and gas, the industry needs to embrace virtual and remote working environments, retraining and refresher courses to keep employees' skills relevant to solving problems, leaders setting a positive example on work-life balance and cutting down or avoiding long-distance travel via virtual meetings. Others essential pointers to consider are, giving employees the freedom to be themselves at work, leadership or management having a positive attitude towards failure, allowing remote work on days on which employees have personal commitments, networking events with company leaders scheduled during office hours, having an open channel for the report of sexual discrimination/harassment incident(s) to the company, among others.


I'd like to close with a quote from another influential book, "The Innovator's Dilemma," by Harvard Professor Clay Christensen. He writes, "When an organization's capabilities reside primarily in its people, changing to address new problems is relatively simple. However, when the capabilities have come to live in processes and values and especially when they have become embedded in culture, change has become extraordinarily complicated."

Establishing a uniquely innovative culture within the energy industry will be a great foundation going forward, for spurring progress in the oil and gas sector.

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Nii A. Nunoo is senior associate and management consultant within Strategy and Energy Core Operations at KPMG.

ConocoPhillips is one of America's best employers. Photo courtesy of ConocoPhillips

Houston energy leader earns spot among America's 50 best workplaces

Best of the Best

A major Houston energy player is raking in the awards. Austin-based Indeed recently revealed its list of the top 50 workplaces in the U.S., and Houston-based ConocoPhillips is joined by two other Texas companies.

To identify these top-rated workplaces, Indeed's data team mined the 100 million employee reviews on its own website and analyzed those from companies also featured on this year's Fortune 500 list.

ConocoPhillips has been exploring and producing oil and natural gas since 1875 and maintains its secret to success lies in the mantra "it's not just what we do — it's how we do it." It lands at No. 35, with employees praising the work-life balance and noting how they feel valued and respected.

Coming in at No. 3, Southwest earned raves for its supportive and fun environment, competitive pay, flexible work schedule, and enviable benefits (including free travel). Founded in 1967, the world's largest low-cost carrier also ranked No. 11 on Fortune's list of world's most admired companies for 2019.

Once based in Aliso Viejo, California, construction and engineering giant Fluor Corp. moved its headquarters to Irving in 2006. It takes the No. 17 spot on Indeed's list, and also resides on the Fortune 500 list with a 2018 revenue of $19.2 billion and more than 53,000 employees worldwide.

California clinches the rest of the top five, with Adobe (San Jose), Facebook (Menlo Park), Live Nation (Beverly Hills), and Intuit (Mountain View) demonstrating how tech and entertainment continue to remain popular industries for eager employees.

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This story originally appeared on CultureMap.com.

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Houston researchers create AI model to tap into how brain activity relates to illness

brainiac

Houston researchers are part of a team that has created an AI model intended to understand how brain activity relates to behavior and illness.

Scientists from Baylor College of Medicine worked with peers from Yale University, University of Southern California and Idaho State University to make Brain Language Model, or BrainLM. Their research was published as a conference paper at ICLR 2024, a meeting of some of deep learning’s greatest minds.

“For a long time we’ve known that brain activity is related to a person’s behavior and to a lot of illnesses like seizures or Parkinson’s,” Dr. Chadi Abdallah, associate professor in the Menninger Department of Psychiatry and Behavioral Sciences at Baylor and co-corresponding author of the paper, says in a press release. “Functional brain imaging or functional MRIs allow us to look at brain activity throughout the brain, but we previously couldn’t fully capture the dynamic of these activities in time and space using traditional data analytical tools.

"More recently, people started using machine learning to capture the brain complexity and how it relates it to specific illnesses, but that turned out to require enrolling and fully examining thousands of patients with a particular behavior or illness, a very expensive process,” Abdallah continues.

Using 80,000 brain scans, the team was able to train their model to figure out how brain activities related to one another. Over time, this created the BrainLM brain activity foundational model. BrainLM is now well-trained enough to use to fine-tune a specific task and to ask questions in other studies.

Abdallah said that using BrainLM will cut costs significantly for scientists developing treatments for brain disorders. In clinical trials, it can cost “hundreds of millions of dollars,” he said, to enroll numerous patients and treat them over a significant time period. By using BrainLM, researchers can enroll half the subjects because the AI can select the individuals most likely to benefit.

The team found that BrainLM performed successfully in many different samples. That included predicting depression, anxiety and PTSD severity better than other machine learning tools that do not use generative AI.

“We found that BrainLM is performing very well. It is predicting brain activity in a new sample that was hidden from it during the training as well as doing well with data from new scanners and new population,” Abdallah says. “These impressive results were achieved with scans from 40,000 subjects. We are now working on considerably increasing the training dataset. The stronger the model we can build, the more we can do to assist with patient care, such as developing new treatment for mental illnesses or guiding neurosurgery for seizures or DBS.”

For those suffering from neurological and mental health disorders, BrainLM could be a key to unlocking treatments that will make a life-changing difference.

Houston-based cleantech unicorn named among annual top disruptors

on the rise

Houston-based biotech startup Solugen is making waves among innovative companies.

Solugen appears at No. 36 on CNBC’s annual Disruptor 50 list, which highlights private companies that are “upending the classic definition of disruption.” Privately owned startups founded after January 1, 2009, were eligible for the Disruptor 50 list.

Founded in 2016, Solugen replaces petroleum-based products with plant-derived substitutes through its Bioforge manufacturing platform. For example, it uses engineered enzymes and metal catalysts to convert feedstocks like sugar into chemicals that have traditionally been made from fossil fuels, such as petroleum and natural gas.

Solugen has raised $643 million in funding and now boasts a valuation of $2.2 billion.

“Sparked by a chance medical school poker game conversation in 2016, Solugen evolved from prototype to physical asset in five years, and production hit commercial scale shortly thereafter,” says CNBC.

Solugen co-founders Gaurab Chakrabarti and Sean Hunt received the Entrepreneur of The Year 2023 National Award, presented by professional services giant EY.

“Solugen is a textbook startup launched by two partners with $10,000 in seed money that is revolutionizing the chemical refining industry. The innovation-driven company is tackling impactful, life-changing issues important to the planet,” Entrepreneur of The Year judges wrote.

In April 2024, Solugen broke ground on a Bioforge biomanufacturing plant in Marshall, Minnesota. The 500,000-square-foot, 34-acre facility arose through a Solugen partnership with ADM. Chicago-based ADM produces agricultural products, commodities, and ingredients. The plant is expected to open in the fall of 2025.

“Solugen’s … technology is a transformative force in sustainable chemical manufacturing,” says Hunt. “The new facility will significantly increase our existing capabilities, enabling us to expand the market share of low-carbon chemistries.”

Houston cleantech company tests ​all-electric CO2-to-fuel production technology

RESULTS ARE IN

Houston-based clean energy company Syzygy Plasmonics has successfully tested all-electric CO2-to-fuel production technology at RTI International’s facility at North Carolina’s Research Triangle Park.

Syzygy says the technology can significantly decarbonize transportation by converting two potent greenhouse gases, carbon dioxide and methane, into low-carbon jet fuel, diesel, and gasoline.

Equinor Ventures and Sumitomo Corp. of Americas sponsored the pilot project.

“This project showcases our ability to fight climate change by converting harmful greenhouse gases into fuel,” Trevor Best, CEO of Syzygy, says in a news release.

“At scale,” he adds, “we’re talking about significantly reducing and potentially eliminating the carbon intensity of shipping, trucking, and aviation. This is a major step toward quickly and cost effectively cutting emissions from the heavy-duty transport sector.”

At commercial scale, a typical Syzygy plant will consume nearly 200,000 tons of CO2 per year, the equivalent of taking 45,000 cars off the road.

“The results of this demonstration are encouraging and represent an important milestone in our collaboration with Syzygy,” says Sameer Parvathikar, director of renewable energy and energy storage at RTI.

In addition to the CO2-to-fuel demonstration, Syzygy's Ammonia e-Cracking™ technology has completed over 2,000 hours of performance and optimization testing at its plant in Houston. Syzygy is finalizing a site and partners for a commercial CO2-to-fuel plant.

Syzygy is working to decarbonize the chemical industry, responsible for almost 20 percent of industrial CO2 emissions, by using light instead of combustion to drive chemical reactions.

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This article originally ran on EnergyCapital.