Main Takeaways | Growth in investment and development of early-stage technology companies in the energy, oil and gas sectors | McDermott Will & Emery
How is technology affecting the energy industry? In the latest webinar of the Energy Transition series, McDermott Will & Emery Partner Parker A. Lee hosted Shawn Helms, Co-Head of McDermott’s Technology and Outsourcing Practice Group, Nadine Herrwerth, Managing Director of TWTG, and BJ Walker, Managing Director of Tudor, Pickering, Holt & Co for a 30-minute discussion during which they gave their opinion on the current and future impact technology is playing on conventional and renewable energy businesses.
Below are the main takeaways from the webinar:
1. Industrial Internet of Things (I-IOT). I-IOT products and services can be used to improve the security and efficiency of the site. I-IOT products have the ability to monitor equipment, such as valves and temperature sensors on machines, and log data to external dashboards for analysis and alerting. Through the use of data analytics, data collected by I-IOT products can identify trends, create patterns, and detect future equipment failures. As a result, I-IOT products and services can increase equipment efficiency, reliability and safety.
Although the application of I-IOT devices is relatively new in the industry, these products can be adapted to established and already operational sites.
2. Technology and energy companies. Although technology companies are energy-intensive, they can also provide important information and insights into energy usage and production. Synergies between the technology and energy industries are constantly evolving and improving energy investments, efficiency and reliability. For example, drones are able to leverage artificial intelligence to increase the efficiency and consistency of equipment monitoring and inspections, especially equipment located in remote areas (such as offshore).
3. Investor Focus on the Energy Space. An important theme in the oil and gas industry is the recent focus on transforming the industry into a cash flow generator. To attract new investors to the energy sector, particularly as new technologies are introduced, investors should be aware that there is generally a longer waiting period to receive a return on investment than there is at what a general investor would typically expect. In addition to general investors, technology companies invest in renewable energy sources for environmental responsibility purposes and to power their own business. This trend is expected to continue to grow in energy-intensive areas, such as the cryptocurrency space.
4. Technology in Traditional Oil and Gas. Although not widely appreciated, the oil and gas industry has always been highly dependent on technology and a field where breakthrough technologies are developed, and that is certainly the case today. Because oil and gas professionals understand and master the application of new technologies, count on these professionals to be industry leaders in the energy transition as new businesses and products are developed. .