www.insightssuccess.com May-June 2017
The way of business solutions THE
10 MOST VALUABLE
OIL & GAS SOLUTION PROVIDERS
Greendraft Green Energy VS Conventional Energy: Who Will Be in the Front Row?
Editor’s Desk The Recovering Oil and Gas Market
Carl McCauley CEO
360factors: Revolutionizing Face of Oil & Gas Industry
GRIP
That Truly Works.
+91-11-23311112-7 www.jktyre.com
Since 1984
www.fossil.com
Editorial
I
n an interview in 2000, former Saudi Arabian oil minister, Sheikh Ahmed Zaki Yamani said, “The Stone Age did not end for lack of stone, and the Oil Age will end long before the world runs out of oil.” Sixteen years later, Yamani’s words have precisely summed up the disturbed state of the Oil and Gas (O&G) industry. Even though, the downfall of oil is still some time away, it’s clear as crystal that the industry is going through one of the most transformational periods in the history, which will eventually reevaluate the energy business as we know it.
The Need of Exploiting Technology in Troubling Oil Prices
To navigate change of this scale will require O&G leaders to take smart and strategic decisions. They will need to tackle cost and investment worries in the short term while preparing themselves to respond to the impending impact of expected external environmental pressures. The dramatic drop in oil prices — below USD 40 per barrel for last two years, down more than 60% from their high in the 2014 summer — reveals uncontrolled supply and weak global demand among concerns over slackening economic growth around the globe. This disparity is only going to worsen this year. Consequently, the oil prices are expected to remain little for the near future, although it wouldn't surprise the world if instability returns. However, the right place can be undertaken by O&G companies with following three steps. Foremost is to review the business strategy and refocus the organization on what they do best and where they can best outpace competitors. It follows by avoiding arbitrary cost cutting no matter how difficult things get, which might leave the organization unprepared for an uncertain future, but in the long run, it will work. The final one is that the O&G companies need to take advantage of new technology to invent, reduce costs, and help contribute to attaining a lower-emissions environment. In short, every organization in the O&G sector will be tested in a different way. But they will have to rise to the occasion, for the world to survive.
Abhijeet Parade
Editor-in-Chief Pooja M. Bansal Senior Editor Ariana Lawrence Managing Editor Abhijeet Parade Co-Editors Kaustav Roy Archana Ghule Sagar Bhattacharjee Stephanie Andrews Visualiser David King Art & Design Director Amol Kamble Co-designer Alex Noel Picture Editor Rahul Kavanekar Art Editor Karan Gaikwad Business Development Manager David Martin Marketing Manager Philip Walker Business Development Executive Andy Mitter Research Analyst Jennifer Circulation Manager Robert Database Management Steve Technology Consultant Vishal More sales@insightssuccess.com
May-June, 2017 Corporate Ofď€ ces: Insights Success Media Tech LLC 555 Metro Place North, Suite 100, Dublin, OH 43017, United States Phone - (614)-602-1754 Email: info@insightssuccess.com For Subscription: Visit www.insightssuccess.com 7
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COVER STORY
360factors: Revolutionizing Face of Oil & Gas Industry
08 CXO S TA N D P O I N T
A RT I C L E
20
Green Energy VS Conventional Energy: Who Will Be in the Front Row?
26
Some Engaging Trends Illuminate Future Of Logistics
30
The Recovering Oil and Gas Market
22 Information Technology Revolution
32
The Most Cost Effective Way To Build An “it” Brand
CONTENTS MOTIVE Drilling Technologies: Delivering Decision Making Applications to O&G Companies
18 16
3GiG:
Delivering Decision Making Applications to O&G Companies
Saltworks Technologies: Innovative Solutions for the World’s Most Challenging Waters
26
The
10
Most Valuable
Solution
Providers
America on the Verge of Becoming ‘Crude’ Again
S
ince 2010, the oil and gas industry in the US is booming. Though the prices have declined over the last two years, the US is one of largest petroleum producers. There are 900,000+ active oil and gas wells in the US, and more than 130,000 have been bored since 2010, as per Drillinginfo’s report, a company which provides data and analysis to the drilling industry. Everyone is familiar with the oil-rich regions of Texas, but the new pipeline infrastructure and technological advances have brought the capability to take out these resources to new parts of the country, while instilling billions of dollars into local economies and spurring a modern-day gold rush. There have been many companies in this sector which have achieved a lot over the past few years. With the same enthusiasm, we have shortlisted “The 10 Most Valuable Oil & Gas Solution Providers,” which have been aiming for bigger, promising for better and delivering the best. Our cover story features 360factors, a leading cloud-based Enterprise Risk and Compliance Management technology and services company that helps companies improve business performance by reducing risk and ensuring compliance. Carl McCauley, the CEO of 360factors is a highly successful executive with a technology background and a unique combination of sales, marketing, product management, development, operations and business experience with proven success in high-growth enterprise software companies. Apart from cover story, we have Motive Drilling Technologies for their singular focus: providing unique technologies and services that lower the cost and improve the accuracy and performance of drilling horizontal wells, OES Asset Integrity Management, for helping businesses to work with better efficiency and security, Saltworks Technologies for their innovative solutions for the world's most challenging waters and 3GiG for delivering decision making applications to O&G companies. We have also shortlisted AVEVA ProCon, Statoil, Strategic Oil & Gas Ltd., C&J Energy Services, and KPMG for their impeccable services. While flipping through the pages of our magazine do not forget to read “The Recovering Oil and Gas Market” from Editor’s Desk and “Greendraft: Green Energy VS Conventional Energy: Who Will Be in the Front Row?” from our talented writers. So, let's just get started then!
COVER STORY
Carl McCauley CEO
Revolutionizing Face of Oil & Gas Industry We go above and beyond to meet your expectations
COVER STORY
F
aced with unprecedented regulatory burdens, oil and gas companies have the challenge of managing their OSHA, BSEE, USCG, DOT, EPA, Conflict Minerals, NI-52109, COBIT, ISO and many other requirements effectively. They also have to face the weight of compliance mandates such as Extractive Industries Transparency Initiative (EITI), Amendments to EU Directives, Dodd-Frank Act Section 1504, SEC Rule 13(q), SOX, FCPA and other compliance programs based on federal and state regulations. Oil and gas companies are going through several structural and cultural issues internally, and many companies do not have the talent, organizational framework, systems, processes, or attitudes to be sufficiently flexible and innovative in an evolving and uncertain marketplace. What these companies require to stay ahead of competitors, to not run afoul of government regulations and to be profitable in long run, is an integrated approach to regulatory compliance, safety and sustainability. And when it comes to helping oil and gas companies manage their assets safely, reliably, sustainably and cost effectively, one leader that makes its value proposition strong and clear is 360factors. 360factors, Inc. is a leading cloud-based Enterprise Risk and Compliance Management technology and services company that helps clients to improve business performance by reducing risk and ensuring compliance. Helping Companies Navigate their Way 360factors helps oil and gas companies navigate their way through a changing regulatory environment, managing risk and improving performance to increase operational excellence, sustainability and margins. Their regulatory risk and compliance management solution breaks down silos and reduces costs incurred by multiple installations while minimizing the complexity for functional departments and compliance initiatives. With 30 years of rich experience of providing environmental consulting services in the areas of soil and groundwater investigation and remediation, industrial and hazardous waste management, hazardous waste facility permitting and closures, soil and groundwater investigations and remediation, petroleum storage tank investigations, and environmental site assessments, 360factors is revolutionizing the face of oil and gas industry for good. An Answer to Governance, Risk and Compliance Challenges Their flagship software product, Predict360 is an answer to the governance, risk and compliance challenges faced by organizations. As an enterprise regulatory risk and
compliance software, Predict360 integrates regulations and requirements, policies and procedures, risks and controls, audit and inspections, employee qualifications, certifications, and training in a single cloud-based platform powered by Artificial Intelligence. Adapting to the needs of functional managers, the software can be configured to provide industry specific workflows and tools while allowing them to manage their day-to-day risk and compliance tasks to increase efficiency, agility, quality, productivity and develop a culture of excellence. Licensed as a software-as-service (SaaS), Predict360 can be purchased and deployed as either standalone module(s) or as part of an integrated risk or compliance management suite to provide industry or company-specific solutions including: Governance, Risk and Compliance (GRC), Compliance Management (CM), Enterprise & Operational Risk Management (ERM/ORM), Environmental, Health & Safety Management (EH&S), Human Compliance Management (HCM), Third-Party Risk Management (TPM/VRM) and Cyber Security Management (CSM). A Humble Beginning The company faced high employee turnover in the initial years as they had to spend a lot of time and money on hiring and training employees, and then after a few months they were leaving the company. Thus, to overcome this, 360factors changed their strategy and tactics with which they started looking for individuals that were not only talented but also comfortable in the ambiguity of the entrepreneurial environment. They even revised their compensation program and started rewarding employees with quarterly bonuses for achieving a certain percentage of their goals. Also, they made employee satisfaction and retention the company’s top priority. To overcome the challenge of employee turnover, they built an ideal culture. Although strategies and tactics changed due to initial struggles, their vision and mission served as a driving force behind what they wanted to accomplish. A Highly Successful Executive Leading the Voyage Carl McCauley, the CEO of 360factors is a highly successful executive with a technology background and a unique combination of sales, marketing, product management, development, operations and business experience with proven success in high-growth enterprise software companies. Carl has some great achievements to his credit. He was working as VP of Sales at MetricStream for seven years where he took them from the startup phase to become an industry leader, growing sales at an average rate of 50%
annually and becoming recognized as a Leader in Gartner’s GRC Magic Quadrant. And as SVP of Sales at Zycus, Carl helped Zycus become recognized as an industry leader in procurement source-to-pay solutions and a leader in Gartner’s Strategic Sourcing Magic Quadrant. Carl enjoys providing solutions that help companies manage and optimize their business processes. Whether meeting their regulatory compliance requirements, managing the risks associated with their business, or interacting with their suppliers and customers, the best performing companies continuously focus on optimizing and improving the efficiency of their processes and procedures. Carl likes to use his background in software technology along with his business experiences to work with their customers in understanding their business and then figuring out ways to improve these processes, make their employees more efficient and lower their operating costs while still ensuring that they meet their business and regulatory compliance requirements.
INTUITIVE: Predict360 is intuitive and easy to use. Organizations do not need to send staff through huge amounts of training and certification programs because Predict360 delivers intuitive, engaging, and easy to use solutions. This allows organizations to spend less time on low value activities and provide services to their clients that are of high value and achieves results. VALUE: Predict360 is designed for mid-size corporations and provides a very cost-effective and affordable solution for compliance, unlike many of the other legacy solutions in the market today. With a much lower initial upfront cost, a quicker timeframe to get the solution up and running measured in weeks instead of months along with monthly or annual payment options, Predict360 is much more affordable for companies looking for an integrated solution to manage their compliance, risk and safety management needs.
Being agile is
more than being fast - it
is being nimble, exible, and adaptable
Within the oil and gas industry, there is a tremendous variability in how companies approach their regulatory and safety compliance requirements that creates new challenges that Carl and the 360factors team helps their customers to overcome every day and which in-return provides a tremendous amount of day-to-day satisfaction for him and his team.
to a changing environment
The Full Picture of 360factors’ Unique Keynotes Below are some of the reasons why clients choose 360factors: AGILE: 360factors is agile. The market is inundated with GRC and EHS projects that are frustrating and fail because they are complex, time consuming, and take months to over a year to implement. However, 360factors allow organizations to be agile by delivering Predict360 on time and on budget.
ARTIFICIAL INTELLIGENCE: Predict360 incorporates artificial intelligence (AI) and natural language processing (NLP) technology into their solution to greatly help reduce the amount of time employees spend in managing constantly changing regulatory compliance requirements.
Testimonials that Complement Their Services 360factors’ clients have always appreciated the company’s services. Below are some of the testimonials from the client’s: “The best part of the service was the excellent project management carried out by the project manager. Setting clear goals and objectives during a proof of concept helped move the project forward to meet Gravity’s requirements. Also, I’m very pleased with 360factors management and development of the product.” - Antonio “Tony” Martinez, Compliance Manager at Gravity Midstream. “Using Predict360™, we help our clients proactively identify applicable EH&S regulatory requirements; set up compliance and training programs; produce calendars and
COVER STORY notifications, and manage the EHS regulatory risks. These efforts translate to iterative improvements and cost savings in our clients’ EHS programs, as measured by fewer audit findings, agency violations, non-compliance incidents, safety violations, fines and lost business.” - James Westbrook, President and CEO of BlueScape Environmental. “360factors has demonstrated innovation in GRC with its product for Regulatory Change Management.” - Michael Rasmussen, Chief GRC Pundit for GRC 20/20. Quintessential Factors Behind their Success A vision, real passion, and hardworking and committed employees and a great product have been the key factors behind the company’s success. They have a rewarding culture which ensures that all employees at 360factors take complete ownership of their work and deliver all their goals with hard work and commitment. Furthermore, they communicate a lot and keep their employees continually informed. This creates a sense of ownership among employees and leads to outstanding results for the company. Carl’s Advice to Entrepreneurs “To build a successful company, you must have a vision and real passion around what you’re doing. You need to strongly believe that what you are planning is doable, the market needs it and you can help make it happen. In an entrepreneurial environment where risk is a big factor the absence of information results in people generally assuming the worst. Thus, it is important to ensure that you keep your workforce informed and motivated. The key for that is communicate, communicate and communicate! Build a strong, talented, hardworking and committed team that is comfortable in the ambiguity of the entrepreneurial environment to bolster your success.” Future Days Carl is very optimistic about the future of 360factors. Their products and services are being liked by all the customers and they are keeping the level of satisfaction pretty high. “Our customer base continues to grow rapidly and we are constantly developing and innovating our products and services based on customer and market needs to stay ahead of the competition and to ensure high customer satisfaction in future as well. I believe that 360factors has a very bright and prosperous future. Also, considering the pace with which it is growing and developing, I see 360factors as the market leader in a few years,” concludes Carl on the future of 360factors.
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CORPORATE OFFICE Insights Success Media Tech LLC 555 Metro Place North, Suite 100, Dublin, OH 43017, United States Phone - (614)-602-1754,(302)-319-9947 Email: info@insightssuccess.com For Subscription : Visit www.insightssuccess.com
Most Valuable
The
10 Company Name 360factors 360factors.com
Management Carl McCauley CEO
Solution
Providers
Brief 360factors, Inc. is a cloud based Enterprise Risk and Compliance Management automation technology and services company.
3GiG 3-gig.com
Kandy Lukats CEO
3GiG is an integrated technology and services company for the O&G industry, delivering a Smart Process Application platform designed to help improve the effectiveness of their unstructured, un-automated, human-based collaborative business activities and processes.
AVEVA ProCon aveva.com
James Kidd CEO & President
AVEVA is a leading global provider of engineering, design and information management software solutions.
C&J Energy Services cjenergy.com
Don Gawick President & CEO
C&J Energy Services is a leading provider of on-shore well construction, well completion, well support, and other complementary oilfield services to oil and gas exploration and production companies.
Bill Thomas Chairman
KPMG is a global network of professional firms providing Audit, Tax and Advisory services.
MOTIVE Drilling Technologies, Inc motivedrilling.com
Todd Benson CEO
MOTIVE Drilling Technologies, Inc. designs and develops directional drilling bit guidance solutions.
OES Group oesgroup.com
Richard Upshall Founder & CEO
OES supplies services to offshore and onshore oil and gas industry globally.
Saltworks Technologies saltworkstech.com
Ben Sparrow Founder & CEO
Saltworks manufactures and delivers advanced desalination and brine management systems.
Statoil statoil.com
Eldar Saetre CEO
Statoil deliver oil, gas and renewable energy in a safe and sustainable way - accommodating the world’s growing need for energy and reduced climate emissions.
Strategic Oil & Gas Ltd. sogoil.com
Gurpreet Sawhney Director President &CEO
Strategic Oil & Gas Ltd. is an emerging junior oil and gas company based in Calgary, Alberta, Canada.
KPMG kpmg.com
The
10
Most Valuable
Solution
Providers
3GiG:
Delivering Decision Making Applications to O&G Companies
T
he tradition of investing time and money to create custom programs and supporting it over its lifecycle is obsolete now. To match the rapid development process and fast paced industry scenario, 3GiG has come up with a best-in-class software to serve the O&G industry and help you deliver excellence while maximizing your profitability and efficiency. 3GiG specializes in providing Decision Making Apps using their proprietary software that builds business-driven applications. 3GiG’s solutions’ prime focus is to support bottom line business decisions and automatically create a corporate memory store of ideas, thoughts, projects and status. Helping clients is 3GiG’s forte; they help clients identify the best ways to capture typically unstructured human knowledge into structured data that can be measured, tracked, and charted. This data is making a critical connection to the business processes and decisions, where value is created and delivered to the bottom line. Envisioning the Need of Decision Making Applications Kandy Lukats, is the CEO of 3GiG. With a background in geology, Kandy carries a rich experience of working with multinationals for variety of operations, consulting and serving at BP and in senior management roles at Landmark/Halliburton, including VP of Exploration and Development Systems for Landmark. With over 25 years’ experience in O&G, and as the CEO of 3GiG, Kandy focuses on extending the leadership position of 3GiG by expanding customer relationships and partner initiatives through the development of 3GiG’s Prospect Director software, Energy Services Division and Smart Partner Program. Kandy and Eric Williams, the CTO of 3GiG, wanted to create a software that could allow businesses to build apps according to their needs and objectives without the use of developers or coding. Their software is now being used to design and deploy enterprise scale apps in days to weeks
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without the need for a software developer and can fit into a company’s current IT infrastructure in a matter of hours. 3GiG’s Innovative Approaches to be in the Forefront With these three Innovative Approaches 3GiG is revolutionizing the O&G industry; COST To minimize cost and maximize efficiency, 3GiG is providing cost benefit analysis and making their clients understand; how adopting/implementing 3GiG’s technology can be more cost effective, let it be for one year or for longer term. Prior to the O&G industry crash, many skilled employees lost their jobs and there was a huge loss of 250k to 500k USD. Then 3GiG’s analysis showed that companies were typically spending ~$1m to implement technology in their area, because their cost ranges from more than 100k to 300k USD and more importantly, it made their clients faster, smarter and more flexible. 3GiG’s most of the opportunities are from companies looking to replace aging, in-flexible applications with their software to leverage speed and pricing. KNOWLEDGE The main motto of 3GiG’s solutions is to support bottom line business decisions by offering a way for companies to automatically create a corporate memory store of ideas, thoughts, projects and status. Applications are envisioned by business leaders to reflect the way they want their teams to work. The combination of leading the way as well as tracking the way teams actually work in the same context means that implementation of an application, using 3GiG’s software can be leveraged and lead change for their clients and address the challenges arising from the changing workforce demographics by closing the knowledge gaps their clients are now seeing. NOW OR NEVER “Now it’s the time to be proactive with planning, processes and technology. The thought leaders in our client base are taking this time to look at efficiency and optimization, and
put tools in place to manage this. The idea being that they will then be ready to “get going” when the market recovers and have reduced cost in the process. Our speed of design to deployment means companies can set up enterprise wide applications very fast to leverage these kinds of windows in the market rhythm – no more waiting 6 months to get an application out there from the first idea”– asserts Kandy. Motive behind Developing the 3GiG Software 3GiG’s agenda behind developing their platform was to allow non-developers to design and deploy enterprise or targeted applications easily. It readily comes with tools and methods that allow real time tweaks for the application to be made and allow the application to evolve as needed. As the processes it supports are typically unstructured for the humans to start with, they are made to evolve naturally and continuously. Companies do not want to waste time and effort to get their application designed, conceptualized or even deployed. So, the software is designed keeping in view speed and agility as the main point of concern.
Kandy Lukats CEO
‘‘
We deliver Decision Making Applications that help O&G companies manage critical business processes, workflow and collaboration to improve decision-making
Design Aspects of 3GiG’s Software The innovative software allows 3GiG to develop off the shelf applications for key common processes – but retain the ability to tweak and customize the needs of each client. It enables its partners to build their own off the shelf applications for re-sale. While keeping in mind the client’s flexibility and agility needs, it allows clients to license the software and configure the applications from scratch. “What differentiates us from a typical management consulting company is that we are able to leave behind with a product solution with our clients that will continue to bring value to them long after we are finished working with them. They will have in their hands an evergreen application that will be able to grow, change and adapt over time to respond rapidly to the real-life changes that occur in their business,” concludes Kandy.
MAY-JUNE 2017|
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‘‘
The
10
Most Valuable
Solution
Providers
MOTIVE Drilling Technologies: Leading Directional Drilling Decision-Automation Firm
D
irectional drilling technology has been lagging behind other technical advances which led to the tremendous growth of horizontal drilling in North American shale plays. The most significant directional drilling problem in the unconventional plays has been the inability to consistently follow a prescribed well path, and to hit and stay within the targets identified collectively by an oil company’s geologists, geophysicists, and engineers. MOTIVE Drilling Technologies is a company defined by a singular focus: providing unique technologies and services that lower the cost and improve the accuracy and performance of drilling horizontal wells. The firm offers a guidance system that uses Decision Automation to provide turn-by-turn instructions for optimized directional drilling of horizontal wells. The decisions are driven by algorithms that leverage data analytics, real time dynamics and economic modeling. Over the course of development, the system has been issued 14 US patents with 12 more pending for different components, and has drilled more than 2 million feet in over 200 directional wells throughout the major North American unconventional plays. Automating the Decision-making Process Associated with Steering the Bit The MOTIVE™ Directional Drilling Bit Guidance System automates the decision-making process associated with steering the bit while drilling horizontal wells. Performing the standard directional drilling calculations that were previously done by the directional driller, the system provides these calculations continuously and much faster than is humanly possible. Moreover, the system provides a tremendous amount of additional analysis, and automatically presents the driller with detailed intuitive step-by-step steering guidance based on the dynamic analysis of data together with parameters set by the operator. Adjustments to the steering guidance are made in real-time in reaction to the driller's actions; and the system provides
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real-time feedback to help improve the driller’s performance. The system operates with a high level of automation which is possible only by using advanced algorithms & high end computing, resulting in much improved performance. Also, through its distributed 2D and 3D visualization interfaces, dynamic reporting, and automated email and text notifications, the system keeps the entire decision-making team (on the rig and remotely) continuously informed about past, current, and dynamically-planned future directional drilling activities. By providing complete directional drilling transparency to the entire team, regardless of location, the system returns operational control back to the operator. A High Tech Leader Leading from the Front Motive’s CEO, Todd Benson, spent the majority of his early career within the high technology space, servicing many industries and working for a number of leading edge technology companies including Motorola and Texas Instruments. He has a BS in Engineering from Colorado school of Mines. When considering industries to focus his career, Todd recognized that the oil and gas sector, and more specifically the drilling of horizontal wells, had lagged many other industries in the application of software optimization and automated workflows. This presented a unique opportunity to develop some high value, industry disruptive technologies. Todd currently holds 27 US patents related to automation in the oilfield and other industries. Consistently Improving the Driller’s Ability The automation provided by MOTIVE has been consistently improving the driller’s ability to reduce drilling time and the risks associated with excess tortuosity, while increasing the hydrocarbon production potential of the completed well through better accuracy. With the kind of service MOTIVE provides, the clients now understand that the guidance system removes the variable human-element
which leads to the large variation in performance in directional drilling seen today, and instead provides consistency of high performance somewhat independent of the experience level of the directional driller. This added consistency also allows reduction of headcount, redefining roles, and improved safety in operations. MOTIVE is the only supplier of technology that considers both the costs associated with directional drilling decisions and the consequences of those decisions related to future hydrocarbon production. Constant Access to Domain Experts MOTIVE has had constant access to domain experts and has received continuous feedback during the development of the product from within an oil and gas operator. The individual members of the Motive management team have had unique and diverse backgrounds associated with high technology development, directional drilling, and business development within oilfield technology startups. MOTIVE’s clients also like the fact that rules and guidelines in the system are defined by the customer. The result is a single set of guidance instructions that deliver the best financial results to each operator.
Todd Benson CEO
‘‘
Our scalable, proprietary software platform overcomes the challenges, obstacles, and risks associated with drilling today’s high-cost and complex unconventional wells
Emerged through the Initial Struggles Some initial struggles for MOTIVE were related to getting personnel in the field to accept that a machine could perform analysis and make decisions faster and better than a human. However, after seeing the technology in use over a number of wells, most clients saw both an improvement in performance along with more consistent results from well to well. ‘Lower for longer’ “We believe that ‘lower for longer’ may apply to the future price of oil and gas. If this is true, there will continue to be more focus on “factory drilling” and automation of processes, decision-making, and mechanization. Motive will continue to focus on the automation of the decisionmaking processes to capitalize on this trend,” shares Bill Chmela (VP Business Development) on the industry scenario. Clearly, MOTIVE is the leader in automated decisionmaking associated with directional drilling. Competitors are starting to develop technologies to compete with Motive, but the years of development head start and continuous improvement will always allow them to continue to lead the pack.
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‘‘
Greendraft
Green Energy VS
Conventional Energy: Who Will Be in the Front Row?
W
e humans are entirely dependent on fossil fuel as of now. Fossil fuel helps us to run our cars, factories, light up our homes and streets, it even provides power to all the electrical gadgets we use. Fossil fuels such as petroleum, coal and natural gas are essentially formed from trees and animals which lived in the planet earth millions of years ago who buried deep beneath the planet’s surface due to some natural calamity or any unknown reason. For now, the earth is overtly dependant on fossil fuels and nearly 80 percent of the needed global energy comes from the fossil fuel. However, the usage of fossil fuel needs to be minimized as they release greenhouse gases like Carbondioxide that eventually leads to global warming. Additionally, Sulphur-dioxide gets released too, which leads to breathing troubles and acid rain. According to scientists, the impact of global warming is too widespread. In the region of Artic and Antarctica, warmer waters are melting the ice, which leads to rise in the water level. Rising water levels has great impact on agriculture and human settlements. Air pollution is also on the rise due to fossil fuel, which results to smog and it also has direct impact on human health. Other than pollutions, there are more negative environment impacts associated with fossil fuels, specially oil spill threat that has a devastating effect on the marine eco-system. So, to counter all these threats, humans are now turning towards renewable energy resources, that include solar, hydro, tidal, wave and wind power. However, the transitision from fossil fuel to green energy will take some considerable amount of time and cost.
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Most of the scientists agree that the easiest way to change from fossil fuel to renewable green energy is to replace coal with wind and solar power, but in that case, building a windmill or a solar power mill will cost far more, and power generated through these sources will be much slower and local as opposed to a coal powerd electric grid. On the other hand, once built the solar and wind powermill doesn’t attract much of the maintainance cost on yearly basis. These only attract minimum maintainance expenses to keep them running. The argument from various countries, oil, gas and coal companies is that, until the green energy resources become more viable, there’s no point to switch from fossil fuel to green energy right now. Currently the world is debating on, if changing from fossil fuel to green energy is really viable enough and would it really help us to reduce the pollution level and greenhouse effect? So, here we are listing out some of the arguments from different parties. Can renewable energy provide the needed power supply? Those who are supporting green energy resources are saying that there’s no shortage of renewable energy. We can get the needed energy from sun, tidal power, wind and even from biomass. As per scientists, a day’s sunlight contains twice the energy we consume in a year, one just has to harness these resources to generate electricity and other needs related to power. More and more research has now made renewable energy affordable than ever, be it wind power, solar power or ethanol fuel, cost has dropped noticeably. Countries like Germany, Spain, Phillipines, China, Denmark, Brazil are already trying to generate more energy through green resources.
Those who are sceptical about using green energy as the main power resource have also some points. According to them, solar and wind energy is not consistent and due to the intermittency of sources it's difficult to get reliable power from them. So,wind and solar energy will always need a backup of fossil fuel. According to them, getting energy from Biomass is also not so easy, as to produce very large scale biomass, each person needs 2.6 hecters of land which will help to produce enough power. So, for the 9 billion people living on the planet, we need at least 24 billion hectares of biomass plantations, where as the world’s total land area is only 13 billion hectares and forests, croplands etc. adds to another 8 billion hectares of land. So the question is how each and every human being living in the planet would be benefitted from biomass? Renewable energy uses too much land and it also effects the ecosystem Pro renewable energy thoughts say that land used for green energy projects like wind farms can still be used for the purpose of farming and cattle grazing. As per international experience, livestocks remains unaffected by the presence of windmills. Complaints regarding generated noise from windmill is also baseless and it was found that when local communities started getting money from the projects, the complaints dropped off quickly. As per some arguments, windmills often kill birds. However, according to pro renewable energy activists, if environmental impact assessments are conducted and the bird population patterns are assessed before construction, then these deaths could be avoided. However, some people think that renewable energy like solar and wind energy need too much land and in the end it will produce as much energy as a small coal power plant can produce. Very large scale production of renewable energy via solar thermal located at the favourable region
will attract long distance transmission. A long distance transmission will also attract power losses and and local distribution, which will be around 15 percent. Renewable energy lacks hidden cost A wind mill or a solar power grid can run with very less maintenance cost. To run a solar or wind mill, one just needs to maintain them if any of the parts break down. Other than normal maintenance costs, there are no such cost associated with them. Where as in case of a coal powered power mill, the cost is much higher as one have to buy the needed resources in order to run the mill. However, the pro fossil fuel activists also have arguments, and they say that calculating the cost from renewable energy is quite difficult, as it depends on various factors such as used fuels, cost and time of building one plant, how much of time a plant operates and can it generate all the needed power in times of peak demand. According to them, fossil fuel plants such as coal or nuclear powered mills are needed to be on standby as wind mill plants and solar mill plants suffer due to intermittency problem. So, here are some arguments that we presented in front of you, both the parties are somehow right with their own perspective. However, its on us in how we are going to find a way which will help us to get rid of pollutions and greenhouse effects. In conclusion one can say that, renewable energy can be a backup for conventional power and it will grow slowly, but for now it cannot entirely replace conventional power.
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CXO Standpoint
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Tr
en
FU LO TU GI RE ST O IC F S
So E ds nga me To gin Ill g um ina te
Future of Logistics
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he winds of change are always driving, but now, more than ever, logistics and supply chain professionals are experiencing it more than most. To retain pace with variation, it’s vital to keep an eye on the supply chain and logistics trends that are happening right now. In fact, they are likely to be signs of what’s to derive soon. More than 1000 cities were likely to comprehend the global GDP growth since last year. By then, the growing cities are predicted to be adding into the world economy. A parade of innovative options, widgets, and new performers amazed consumers and continue to initiate a sea of change in their preferences and expectations. Online brick & mortar retailers found themselves scrambling to stay pertinent and economical. We’ll see more of the same in upcoming years, with shifting consumer attitudes and needs, forcing retailers to rethink, and in some cases to revitalize their channel, strategies, service and product mix.
plenty of delivering opportunities as well as challenges. Let’s have a closer look at some expansions in logistics that are directly or indirectly caused by changes in trade patterns, by GDP growth or in customer behavior.
Large scale economic shifts and changes in trade outlines have their impression on global supply chains. There are
Expansion designs: Progress in the logistics industry is no longer determined by exports from Asia to America and
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from Asia to Europe. It will come from elsewhere, and will be more crumbled, more impulsive and more unstable. Economic and population growth will be increasingly centred in the cities. Infrastructure is a majorly element for growth. Suppleness: Meeting consumer’s necessities at multiple localities with multiple transport types at different times, needs a flexible supply chain that can adapt easily to unexpected circumstances and changes. Globalization: Emerging International markets has become a fragment of the complete business growth strategy for many companies. Successful ‘International Business’ has become the standard and logistic solution providers essential to enable that trend. Multi-channel solution: Endconsumers progressively source via multiple channels, ranging from brick & mortar shops to e-commerce. The logistics industry needs sustenance of multi-channel strategies for their customers. Rise in multichannel has had an enormous influence on the logistics supply chain. In response, the use of technology such as automation in logistics has predictably increased in a bid to surge productivity and competence. The right type of automation is the key of improving efficiency. It is best to concentrate on automating
specific areas within the supply chain for strengthening the retail base. Information technology: The growing complexity and dynamism of supply chains requires gradually enhanced Information Technology solutions. Stability: To be able to safe, swift to the market and to diminish the risk of delays, alternative transport routes and modes are obligatory to provide provision to lasting trend of outsourcing of logistics services. Sustainability: Customers increasingly prefer products that are ready and traced in ‘the right way’; minimizing business’ social, environmental and economic impact on society and enhancing positive effects. Compliance: Anti-bribery and corruption regulation is having a swelling impression on supply chains, since multinational companies claim that no facilitation payments are completed through the export of their goods, yet still seek to source from low cost countries, which are often also at the end of transparency international’s global corruption index. End-to-end reflectivity: Whole visibility of the complete supply chain desires to realize true demand-driven planning, consenting efficient response to deviations in capacity sourcing, supply and demand. Convolution: Supply chains are flattering progressively compound and vibrant with sourcing places transforming increasingly quick and purchase orders apting slighter and more common. While guesses for retail sustainability trends in 2017 are just that, retailers will appreciate how important it is to devote in this area of the business. Time will tell how our method to sustain will acclimate to the changing retail landscape. It will be exhilarating to see all of the innovative new processes play out. The concept of future retail is continually evolving. But what isn’t evolving as rapidly is the acceptable and widespread experimentation to transmit the future to life today. These advancements will have their outcome on dayto-day logistics, and companies will essentially formulate for ‘the new normal’ in supply chain management. With all these vicissitudes, staying up-to-date on the modern trends in logistics is more substantial than ever. MAY-JUNE 2017|
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The
10
Most Valuable
Solution
Providers
Saltworks Technologies: Innovative Solutions for the World’s Most Challenging Waters
S
altworks Technologies Inc. is changing the way the world thinks about industrial wastewater. Saltworks develops, builds and operates cost saving, low energy solutions for desalination, brine management, and chemical recovery. Their innovative solutions provide both environmental and economic benefits by reducing volume and extracting valuable byproducts from industry’s most challenging wastewaters. Saltworks’ systems have successfully treated some of the most impaired wastewaters – including steam assisted gravity drainage (SAGD) blowdown, enhanced oil recovery produced water, and shale gas produced water – while delivering a step change in cost and reliability. For example, Saltworks’ ElectroChem membrane technology treats enhanced oil recovery produced water on-site providing up to 90% cost savings over conventional methods, while recycling polymer for reinjection. Saltworks serves a range of target markets increasingly concerned with water reuse and wastewater management: oil & gas, shale, mining, landfills, power generation, chemical production, food and beverage, and others. They’ve even sold a system to NASA for the international space station. Major industry verticals look to Saltworks to treat waters too challenging for conventional treatment methods or to complement existing treatment plants by maximizing fresh water recovery from their concentrated brine streams. Founded in 2008 and headquartered in Vancouver, BC, Canada, Saltworks is one of the few companies in the world which manufactures both membrane- and thermal-based water treatment technologies (the other company being Suez Environmental who recently acquired GEs water treatment portfolio). Saltworks’ membrane systems provide a lower cost means to reduce volume and extract specific contaminants. Saltworks’ thermal evaporative systems can eliminate disposal volumes entirely for zero liquid discharge (ZLD) applications. The company’s broad technical capability, including extensive knowledge of water treatment chemistry, combined with their operations experience, allows Saltworks to deliver superior end-to-end treatment solutions meeting customers’ economic and regulatory needs.
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Putting the customer first Saltworks prides itself on excellent technical knowledge, customer service, and responsiveness. They work to first understand each customer's unique water challenge and objectives, with every project first starting with an engineering analysis to determine the optimal solution. The company's innovation and process engineering, along with excellence in project delivery, has led to repeat orders from major industrial customers, such as Waste Management. It has also led to investment from key players in the oil & gas and mining sectors after the completion of successful projects: Saltworks’ shareholders include BP, Cenovus Energy, ConocoPhillips, and Teck Resources. Solutions developed for industry & with industry support Saltworks is driven by an unwavering dedication to innovation and reliability. Products are designed from the ground-up for reliable operation and ease-of-use, incorporating intelligent automation and self-cleaning capabilities. Customer plants are backed by Saltworks’ ROAM platform, a secure, always-on remote operations and asset management system. Saltworks holds approximately 60 patents and boasts a strong safety culture with experience completing cooperative work on oil, gas, and mine sites. Saltworks worked for six years with major oil & gas companies to design what they and many others consider the world’s most reliable crystallizer. Their SaltMaker, a low temperature evaporator-crystallizer, reliably treats even the toughest brines to produce freshwater while eliminating wastewater disposal completely. The SaltMaker achieves this by concentrating all contaminants to solids for true ZLD. It requires only 20-25% of the thermal energy used by conventional evaporation systems, and can use low-grade waste heat for further energy savings. The SaltMaker is ideal for treating waters on-site to reduce trucking and offsite disposal costs. Saltworks also developed ElectroChem, the world’s most advanced membrane-based water treatment process. It performs specialized separations and achieves extreme freshwater recoveries on previously scale-limited waters
while significantly reducing costly chemical treatment. ElectroChem also concentrates brines to levels typically reserved for expensive, energy intensive thermal evaporation technologies – previously unheard of for membrane based processes. ElectroChem’s applications include treating enhanced oil recovery produced water, coal stack scrubber wastewater, and mining effluent. Ben Sparrow: the man behind the success of Saltworks Ben Sparrow, Co-founder and CEO of Saltworks, is a Registered Professional Engineer (BC, Canada) in mechanical engineering with expertise in thermodynamics and process integration. With a background in hydroelectric power generation, Ben developed a keen understanding of the relationship between water and energy. He was drawn to investigating ways of desalinating saltwater using less energy than conventional methods. Ben’s first invention was a prototype low energy, solar desalination process. After starting Saltworks, he focused on a major global need: reliable treatment of challenging industrial wastewaters.
Ben Sparrow Founder & CEO
‘‘
We treat the world’s toughest waters to recover fresh water, reduce disposal costs, and generate value
In addressing this shift to focus on industrial wastewaters, Ben stated, “We listen carefully to our customers and are laser focused on solving their most significant water problems. What is important is being able to quickly adapt to changing customer and market needs – and building the right team to innovate and deliver.” The company has since grown to offer multiple product lines with follow-on international orders across industry sectors. Future outlook for Saltworks Industry is increasingly aware of the environmental and economic benefits of treating wastewaters on-site and reusing water in processing. Oil & gas is no different, seeking solutions for optimizing production and recycling water. Saltworks continues to expand not only its product line but also its service offerings to help the energy sector and other industries reduce freshwater consumption and minimize disposal costs. Ben added, “Our operations and plant monitoring services allow operators to focus on their core business, while our experienced team runs the water treatment systems.” While talking about the future growth of the company, Ben noted significant potential in selectively recovering value from wastewaters, explaining “We’re targeting extracting specific valuable constituents from wastewaters by using our advanced membrane to split up the periodic table – we are effectively mining from wastewater.” This has the potential to change the wastewater treatment landscape by turning the industry into a value generating process. As industries make responsible water management a priority, Saltworks will continue delivering cutting-edge solutions, leading reliability, and best-in-class support – while developing the next generation of technology for the world’s current and future water treatment challenges. MAY-JUNE 2017|
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‘‘
Editor’s Desk
A
ccording to a recent study, earth’s crust may hold massive 6,000 billion barrels of oil as its reserves, which also include around 3,000 billion barrels of unrecovered oil resources. Most of the oil and gas industry has survived very tough years with declining price and demand over the past few years. The industry has found it very difficult to plan for the future and to make strategic decisions. However, the industry is now recovering from its bad days and it seems like the good days are near. The oil price started collapsing, back in June 2014, which eventually led to some cost cutting measures, that included job cuts of around 400,000 workers, deferring and cancellation of projects that were unable to meet profitability criteria. Growing number of projects could have broken the oil prices in the high $20s which was nearly unthinkable few years ago. However, it seems like prices are recovering, as the price of Crude oil is now up by around 90% in 2017, to around $48.73 per barrel, but still it is much lower than the $115 per barrel. Still making projection about the Oil and Gas market is not quite easy as the market can change any point of time. Still here we are predicting some of the trends that might come true for the Oil and Gas industry. OPEC Oil Output Cuts OPEC’s first oil output cut took effect from the first week of 2017 since 2008. However, most of the analysts thought that some of the OPEC members will eventually cheat by sticking to their quota. OPEC decided to cut production of crude oil by 1.2 million barrels per day in order to reduce the huge stockpile, which will eventually lead to price increase. In the meanwhile countries like Iraq and Algeria joined Saudi Arabia in supporting an extension to OPEC supply cuts and the U.S inventories fell more than expected. As per the American Petroleum Institute, U.S. crude inventories fell by 5.8 million barrels, which has helped to raise oil prices to some extent. But question still remains regarding the OPEC-led production cuts as OPEC member Libya is saying that their production has now exceeded 800,000 barrels per day for the first time ever since 2014 and the production may rise to 1.2 million barrels per day later this year. Nigeria is also expecting to see a rise in output as Shell tests Trans Forcados oil export pipeline before it starts. Relations with Russia could Impact the Market Over the years, U.S and Russia, both the countries are ideological opponents, be it in social justice or in case of economy. However, things have started to change between these two countries, as newly elected U.S President, Donald Trump has expressed his desire to seek a healthy relationship with his Russian counterpart, Vladimir Putin. The normalization of relation between these countries will eventually help lessen the economic sanctions imposed by Obama administration on Russia, that could help Russia to incentivize more oil. On the other hand, better relations with Russia means that, U.S will no longer have to depend on Kingdom Of Saudi Arabia for oil and gas. For years, U.S is purchasing oil from Saudi Arabia, that ranges up to 1.5 million barrels per day. However
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America had to pay steep prices for the Arabic and OPEC oil at times. Even back in 1970’s, Kingdom Saudi Arabia imposed an oil embargo on America. That’s why as per many industry insiders, this is the right time for America to ditch Saudi Arabia for an all new Russian partnership. Critics are also saying that rise in U.S oil production is the evidence that the U.S and Saudi partnership has outlived its purpose. Domestic Producers will Drill More Than Ever One might expect U.S based oil producers to start more than 200 drilling rigs by second quarter of 2017. This trend can already be seen since last year, from when OPEC has reached its agreement. By December 2016, more than 70 oil drilling rigs started to produce oil, with more than 200 added oil rigs, the U.S oil production is all set to rise by half a million barrel per day during the first half of the year, which will eventually lead to high price volatility. New Forms of Technology Deployment Some factors like the economic slowdown along with low demand and low oil prices are eventually pressurizing oil companies to examining chances of using digital technology, that will help to improve performance. Digitizations must be done in such a way that it improves productivity and efficiency in the real world. For example, robots can be used for complex tasks such as connecting pipes or repairing machines, which on the other hand wil reduce requirements of human labor. GE has already announced a number of agreements with some large and small companies to implement machinaries that will help to predict breakdown before they happen. So, these are the trends that might come true for the year of 2017, however the trends of Oil and Gas market can not be predicted before as they can be changed anytime as partially it depends on world politics too.
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CXO Standpoint
THE MOST COST EFFECTIVE WAY TO BUILD AN “IT” BRAND
I
n today’s data-driven tech world, it appears the priority is all about the speed of innovation and how we move data safely, effectively, efficiently and securely. But if no one knows about your solution, how will they purchase and use it?
For those of you who wish to grow in this broad-based IT market, and can strategically plan, there is simply no more cost-effective investment than PR to help establish an organization and its innovations in the very noisy marketplace in which we all compete. In such a world of amazing tech innovation, if we don’t control the story of what we do and what we make, the story will control us. Think about the FAKE NEWS ripping through our social media every day.
Bob Gold Founder, President & CEO Bob Gold & Associates
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Today we communicate in a virtual three-dimensional level of game-like complexity -- we do more and more on mobile, while managing larger and larger databases of friends and associates on multiple platforms, while multitasking in simultaneous discussions. In other words, it’s noisy out there! Worse still, we usually can’t remember the source of information we share. How noisy is it, you may ask? Ÿ By some counts, the number of marketing technology solutions has doubled since 2015 and will soon surpass 4,000. Ÿ Today’s executives are overwhelmed by the amount of technology choices and confused by vendor claims that their platform can do it all. Before investing in more technology, they want to optimize what they already own. This brings us back to the role of PR in technology. Technology can’t speak for itself. If we want folks to adapt and use our innovations, they must be educated about the benefits they bring. The process of storytelling requires a specialized PR discipline to break beyond the noise buzzing with clichés: “We have an endto-end solution” (isn’t that what you get when you mix salt with water and stir?); “We are Best-of-Class” (which rarely comes with a degree or grade point average); or one of my favorites--the promise to be able to monetize technology investments. Just consider: Ÿ Security – Everybody is hacking everyone else – if it can be made, it can be broken. How can you tell the market, with specificity, that your security system addresses this issue? Ÿ Lack of Policies - Exploding quantities of data zapped into hidden clouds, without access and use policies means we have
a big problem. Big Data and real-time analytics are super sexy in 2017, (thanks Alexa!) and for an on-demand world where all content is supposed to be available anytime, this will be big! How will you take advantage of this building trend? Ÿ Content Protection – This takes us to a world where everything is on-demand and connected. How will “autonomous
everything” work? In a world facing more confusion than certainty, there is an “opportunity ahead” street sign in your path to address this overwhelming and often confusing situation. So following are some key dos, don’ts and cautions. Caveat emptor – reader beware! There is no one-size-fits-all for every situation, but there are some general rules of thumb that when followed will generate success: 1) START WITH A CLEAR MESSAGE: PR is all about your core message, positioned as a story with a beginning, middle and end – that's just good construction. Good storytelling starts with a clear message. 2) DO SAY WHAT ELSE MAKES YOUR COMPANY DIFFERENT Can you answer these questions about your company and about your product? Ÿ
What are the three core messages about your company? 1. You might think about your founders and executive leadership 2. Are you the most complete (Gulp! I’m gonna say it) solution? Serving which market areas? 3. What problems do you solve for today? Are you visionary and future proof?
3) DO VALIDATE YOUR STORY WITH NUMBERS: What are the most profound messages about your product/service?
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Can you describe your product more succinctly than, “it’s non-disruptive to install?” State your big customer benefit -- for example is it 50% better than anything else on the market? – Does it consume 50% less bandwidth? Or … think about describing your product validated by numbers and in measurable scope. This brings us back to PR. All connections start with sharing good stories. Breaking through isn’t as simple as sending an email to a reporter, calling a friend or telling one colleague who has 2,000 followers on Twitter. It takes diligence and the ability to find new ways to tell your story over and over again. The case for storytelling has never been more powerful. Your space has never been more competitive and the noise about other companies’ tech options is deafening. PR is the secret sauce that re-interprets the science in human and business benefits that can drive change. Sure, one-on-one word of mouth is powerful, but for businesses, nothing beats engaging, resonant, pervasive, quotable stories, as presented by your experienced PR professional. And PR will beat any other investment as the most cost effective tool in your sales and marketing arsenal.
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