Facebook (FB) and Snapchat (SNAP) aren’t the most valuable apps on EOG worker’s iPhones. Instead, the company has developed 20 mobile apps of its own in the last two years that allow workers to stay connected day and night.
“It’s a major game-changer,” Sandeep Bhakhri, chief information and technology officer, said on EOG’s conference call Tuesday. “We call it having a control a room in your pocket.”
EOG has also collected data from 5,000 horizontal wells in almost every major unconventional play in the U.S., with the help of new “black boxes” deployed on rigs to help get more insight into data collected, he added.
The company has been collecting its own data for nearly 30 years, but in the last two to three years EOG has had access to real-time data that allow it to steer drill bits in the most productive part of the rock.
“Data is king and one of our most valuable resources,” Bhakhri said.
Faster access to data means quicker and more precise drilling, cutting time and waste and lowering costs.
Late Monday, EOG reported Q1 earnings that met views and revenue that beat. Service and equipment prices rose “in certain areas” but were offset by “continued advances in drilling and completion tools and techniques, benefits from extended lateral lengths and new contracts at lower prices,” according to a statement.
Management also noted its new wells in the Permian Basin “shattered industry records” for initial production. “Our advanced technology and proprietary techniques are leading to breakthrough well performance across our diverse portfolio of premium plays,” EOG said.
EOG shares closed down just 5 cents to 91.64 on the stock market today, as U.S. crude futures retreated 1.2% to $45.88 a barrel. But prices pared losses late after the American Petroleum Institute reported a weekly inventory decline of 5.8 million barrels.
EOG isn’t the only company that is making the U.S. oil patch look more like Silicon Valley, as producers turn to high-tech solutions to survive the lower-price environment.
Last week, PioneerNatural Resources (PXD) said that using artificial intelligence could help ensure it always drills for oil in the best places. While it’s not using AI yet, it’s been using predictive analytics.
Pioneer is also working with the Oak Ridge National Laboratory to develop advanced materials and coatings, smart parts and sensors, advanced material design, and additive manufacturing.