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

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.

------

Portions of this interview have been edited.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Texas-based 'DoorDash for laundry' startup tumbles into Houston market

No Scrubs

Laundry may seem like an endless task that piles up, but a new service offers a solution to overwhelmed Houston families.

NoScrubs, an Austin-based home laundry pickup service has just expanded to Houston. Described by the company as "DoorDash — but for laundry," they wash customer's clothes at local laundromats and return them the same day, folded and ready to be put away.

The service took off like gangbusters in Austin, making an expansion to the state's largest city an obvious choice. It's not universal coverage just yet.

For now, only the following ZIP codes have NoScrubs service available: 77002, 77004, 77005, 77006, 77007, 77008, 77009, 77010, 77018, 77019, 77024, 77025, 77027, 77046, 77056, 77057, 77081, 77098, 77401, 77030, 77003.

A single pickup starts at $40 for 20 pounds of laundry, while the basic monthly subscription is $60 for two pickups. All services use hypoallergenic detergents.

The average American family spends about 240 hours a year on laundry, making it a very time-consuming chore. For people with disabilities, difficult work schedules, and other circumstances, it can be a real help, says co-founder Matt O'Connor.

"Some of our favorite customer stories simply revolve around saving people time when they have something challenging going on," he writes in an email. "For example, one customer reviewed NoScrubs saying 'So happy I could cry! (Partially because I'm pregnant and my emotions are heightened!)...1000% recommend if you have time restrictions or physical restrictions! ' So, whether it’s saving time, the affordability, or the pleasantly surprising turnaround time, NoScrubs has a variety of benefits for any customer."

NoScrubs is also a new opportunity for Houston's gig workers. Because there are no passengers, it can be a safer alternative to driving ride share for women and other people apprehensive about having strangers in their cars. As NoScrubs partners with local laundromats, drivers are also going to centralized locations rather than all over the map, leading to less wear and tear on their cars. The laundromats benefit as well, since NoScrubs loads are ones that would otherwise be done at home.

"Our model makes driving a tiny fraction of the time, so folks who don’t want to wear down their vehicles and spend a ton on gas love working at NoScrubs," added O'Connor.

Here's what's next for Houston’s Tempest Droneworx after SXSW Speed Pitch win

winner, winner

It’s not easy to be a standout at South by Southwest, especially during SXSW Interactive, which is the subsection of the festival that focuses on new media, technology and entrepreneurship.

But it’s even more difficult to win at SXSW Pitch, the competition for startups and entrepreneurs that showcases innovative new technology to a panel of industry experts, high-profile media professionals, venture capital investor, and angel investors.

Tempest Droneworx, a Houston-based company that provides real-time intelligence collected through drones, robots and sensors, did just that last month, taking home the Best Speed Pitch award. It was also named a finalist and alternate in the full SXSW Pitch competition. The company is known for it flagship product, Harbinger, a software solution that agnostically gathers data at virtually any scale and presents that data in easy-to-understand visualizations using a video game engine.

Tempest CEO and founder Ty Audronis says his company won based on its merits and the impact it’s making and will make on the world. Audronis founded the company after his hometown of Paradise, California, was destroyed by a wildfire in 2018.

“(SXSW) was a huge moment for our team,” says Audronis, whose background is in science visualization, data visualization and visual effects for the movie industry. “This is about what everyone at Tempest Droneworx has created, and our mission to make sure that issues—like the one that befell Paradise, California, my hometown, and the inspiration for our Harbinger software—don’t become the full-blown (disasters)."

Audronis shares that the company is working to release an agriculture beta this summer and is raising a Tactical Funding Increase (TACFI) round through the AFWERX, the Department of the Air Force’s innovation arm.

Tempest’s Harbinger is impressing investors and clients alike, but what is it exactly and what does it do?

The best way to explain the solution is in how it’s redefining the agriculture space. Tempest has deployed the product at Grand Farm in North Dakota, an agtech operation that seeks to promote sustainable, climate-resilient farming using applied technology.

“We decided to go down the road of agriculture,” Audronis says. “We're currently installed at the Grand Farm in North Dakota, which is a farm that is very closely tied to Microsoft. They do third-party verification of new soils and fertilizers, and we are helping them with visualizing the data that they're getting from their sensors.”

Additionally, Audronis and his co-founder and wife, Dana Abramovitz, spearhead a pilot program at Doubting Thomas Farms, an organic farm in Minnesota, where the company has installed 22 in-ground sensors that can measure volatile organic emissions.

To further optimize their solutions approach, Tempest Droneworx will also train artificial intelligence to look for overspray from neighboring non-organic farms. This will help maintain organic certification and reduce insurance claims for lost crops.

“This will save Doubting Thomas Farms and other organic farms a boatload of cash,” Audronis says.

During an exclusive tour with InnovationMap, Audronis pulled up a live feed of sensors buried around the Minnesota farm up on the conference room display. The feed did, in fact, look like a video game, with the sensors giving real-time data about the farm’s temperature, moisture level, humidity, CO2 and nitrogen.

Harbinger will collect, extract and extrapolate all of the data and later provide a digital almanac for farmers to track the history of their crops.

As the office tour continued, Audronis pointed out the company’s expanding partnership with the U.S. Military.

As a retired U.S. Navy veteran with over two decades of experience designing, building and piloting drones, Audronis understands that Harbinger has multiple military applications that will ultimately save lives—a core tenet of his company’s mission.

The company has launched a robotic dog known as UBU, developed by Tempest partner Ghost Robotics, that enables faster, more accurate ground surveys for explosive devices. This task previously required multiple airmen and hours to complete, Audronis says.

With agriculture and military initiatives in progress and making an impact, Audronis hopes to one day bring his original vision for Tempest Droneworx and Harbinger full circle by getting the call to combat California’s next catastrophic wildfire.

“We're proving our technology in military and in agriculture right now,” Audronis says. “Eventually, I would like to still save some lives with wildfire. That's really the purpose of the company … Whether it's agriculture, smart cities, the bottom line is saving lives through real-time situational awareness."

New energy innovation and coworking spaces open at the Ion

moving in

Houston-based Occidental officially opened its new Oxy Innovation Center with a ribbon cutting at the Ion last week.

The opening reflects Oxy and the Ion's "shared commitment to advancing technology and accelerating a lower-carbon future," according to an announcement from the Ion.

Oxy, which was named a corporate partner of the Ion in 2023, now has nearly 6,500 square feet on the fourth floor of the Ion. Rice University and the Rice Real Estate Company announced the lease of the additional space last year, along with agreements with Fathom Fund and Activate.

At the time, the leases brought the Ion's occupancy up to 90 percent.

Additionally, New York-based Industrious plans to launch its coworking space at the Ion on May 8. The company was tapped as the new operator of the Ion’s 86,000-square-foot coworking space in Midtown in January.

Dallas-based Common Desk previously operated the space, which was expanded by 50 percent in 2023 to 86,000 square feet.

CBRE agreed to acquire Industrious in a deal valued at $400 million earlier this year. Industrious also operates another local coworking space is at 1301 McKinney St.

Industrious will host a launch party celebrating the new location Thursday, May 8. Find more information here.


Oxy Innovation Center. Photo via LinkedIn.