What do you do if you want to foster innovation by collaborating with startups in the oil and gas industry?

There are innumerable opportunities in upstream as well as downstream O&G for innovation. However, identifying the startups engaged in these domains is difficult. It may be in innovative chemistry in targetted dinirification or desulphurisation of fuels with surgical strike on select molecules or energy optimisation or safery instrumentation or in emissions control or zero-flaring in stranded O&G fields. There is no dearth of problems to innovate.

Fostering innovation through collaboration with startups in the oil and gas sector, particularly in areas like CCUS and hydrogen energy transition, presents a unique opportunity to drive the industry towards a more sustainable and environmentally responsible future. recognizing the pressing needs of the oil and gas industry: reducing greenhouse gas emissions, optimizing energy production, and transitioning to cleaner energy sources. The sector faces significant challenges, including aging infrastructure, fluctuating oil prices, regulatory pressures, and an urgent need to decarbonize. These pain points highlight where innovation can have a profound impact, especially in carbon capture and storage (CCS) and the transition to hydrogen energy.

1st we have to acknowledge where we need improvements. This is not trivial. You have to be proned to grow independendly of what your vulnerability is. 2nd you have to be attached to your values and walk the talk. 3rd you have to monitor the reults of yor choices... and be ready to recognize errors... no one is perfect and we learn more from mistakes than success.

Initially, it's crucial for your organization to precisely define what 'innovation' entails in your context. This understanding varies widely; some organizations might view innovation as making incremental adjustments to their current operations, while others might envision it as a comprehensive digital overhaul. Once you have established a clear definition of innovation for your organization, the next step involves assessing your operational requirements. This assessment will enable you to judiciously choose potential startups that align with your strategic objectives and innovation goals.

In my experience there are things that are not considered essential to improve the specific need and quality of an innovation. People see the little things that are beneficial for innovation and go for the big things. First of all if I want to make a change in a startup I will want to start by checking out the necessary things that should be improved on and not necessarily trying to beat the market, but rather trying to be different from others. Start small but differently and spicing up the market with a different approach to make sure we stand out from everyone and not compete.

Partnering with academia to establish entrepreneurship associations dedicated to fostering the innovative entrepreneurial spirit, support of technology commercialization, and the launch of technology companies is crucial to provide members with the resources and support to achieve their goals. The alliance may host both large-scale and more intimate events to bring together angle investors, corporations, startups, and technology ventures for deal-flow, networking and discussions. These programs typically incorporate company pitches, private investor gatherings and personalized one-on-one investor/startup office hours, with the ultimate goal of serving as catalyst to quickly accelerate the growth and adoption of promising tech ventures.

Instead of scouting for startups, it makes sense to directly partner with private R&D institutes or universities or engineering institutes for targetted research to building the knowledge base required for innovative start up. IT, digital and semi conductor domains see maximum venture funds flowing in to start ups while the core engineering areas remain unattended. The incumbent O&G entities only can afford to spend time and resources in this direction.

Finding startups that align with these needs involves scouting for innovators who are not just developing cutting-edge technologies but also possess a deep understanding of the oil and gas industry's complexities. Startups working on advanced CCS techniques, efficient hydrogen storage methods, or novel ways to repurpose existing infrastructure for clean energy storage are particularly valuable. Engaging with tech incubators, attending industry conferences, and participating in clean energy forums are excellent ways to discover these emerging players.

Then comes strategic partnership with startups whose core values and solutions represent that which is your are of challenge. I will also add that O&G players develop their own well equipped and funded R&D subsidiaries, a collaboration with university research students and professionals.

Once potential startup partners are identified, establishing contact is crucial. This involves reaching out through formal channels like industry/conference events or directly via LinkedIn or email. The initial communication should convey your genuine interest in their technology, how it aligns with the industry's needs/pain points, and the potential for collaboration, as currently exploring my visionary ways into start-ups and innovations in the current oil and gas sector/cleaner energy transition era.

Successful partnerships are built on shared visions. Discussing long-term goals, sustainability objectives, and how each party's strengths can be leveraged to address the industry's challenges is essential. This step ensures that both the startup and the established industry player are working towards a common goal of innovation and sustainability.

When aligning vision , think of it like planning a road trip with a buddy. You both want to reach the beach, but one prefers the scenic route, the other the fastest. Here's where you map things out – the destination (project goals), the timeframe (milestones), who brings the snacks (resource allocation), and how you'll measure success (KPIs). The key is creating a space where both of you can shine. You bring the industry expertise, the startup injects fresh ideas. It's a two-way street, built on open communication and the flexibility to adapt as you go. This kind of collaborative environment is the fuel that ignites true innovation in our industry.

When aligning vision , think of it like planning a road trip with a buddy. You both want to reach the beach, but one prefers the scenic route, the other the fastest. Here's where you map things out – the destination (project goals), the timeframe (milestones), who brings the snacks (resource allocation), and how you'll measure success (KPIs). The key is creating a space where both of you can shine. You bring the industry expertise, the startup injects fresh ideas. It's a two-way street, built on open communication and the flexibility to adapt as you go. This kind of collaborative environment is the fuel that ignites true innovation in our industry.

Partnerships are critical to innovation. My personal experience working on SLB-Cognite partnership has been one such example. Together, we are able to provide our clients holistic solutions that encompass SLB's domain expertise with Cognite's industrial SaaS.

Embrace a flexible mindset: Startups thrive on agility and adaptability. Create an environment within the organization that encourages flexibility and a willingness to experiment. Embrace the startup culture of embracing failure as a learning opportunity and encourage risk-taking.

Early in the process establish a framework to commercialize the innovative solution which results from the collaboration. This avoids friction later in the partnership.

When considering collaborations between startups and the oil and gas industry, towards H2energy and CCUS: - Navigating Regulations: comply with current and forthcoming regulations, ensuring that advancements contribute positively to the industry's regulatory landscape. - Scalability and Compatibility: Innovations must be scalable and compatible with existing infrastructures, allowing for seamless integration and facilitating a smoother transition towards sustainable practices. - Community Engagement: Communicate benefits clearly to stakeholders. These will form the backbone of creating meaningful and sustainable partnerships aimed at driving the oil and gas industry towards a more environmentally responsible future.