Oil & Gas hardware Technology: Investors

Part
01
of three
Part
01

Top Oil and Gas Hardware Technology Investors (1)

The top five investors in the oil and gas hardware technology market are Saudi Aramco Energy Ventures, Shell Ventures, BP Ventures, Chevron Technology Ventures, and Blackstone Energy Partners. Blackstone Energy Partners is a private equity firm, while Saudi Aramco Energy Ventures, Shell Ventures, BP Ventures, and Chevron Technology Ventures all operate in the oil and gas industry. Information on the investment policies for the five firms is in the brief below.

Saudi Aramco Energy Ventures

  • Saudi Aramco Energy Ventures is the fully owned venture capital subsidiary of Saudi Aramco. The company invests in petrochemicals, renewables, energy efficiency and water sectors, and in upstream and downstream oil and gas.
  • Established in 2012 with an initial fund of $500 million, Saudi Aramco Energy Ventures is a fully owned venture capital subsidiary of Saudi Aramco. Saudi Aramco generated $111 billion in revenue in 2018, among the largest in the global oil and gas sector.
  • The company has 11 investments in the upstream oil and gas sector including investments in Veretek, ConnSeal, Comitt Well Solutions, and Geomec. In the downstream sector, there are eight investments including investments in Airborne, Zahroof, 908 Devices, Conxtech, and Rive Technology. There are also investments in six renewable energy companies and seven investments in Industry 4.0 companies.
  • In December 2017, the company invested in Gryphon Oilfield Solutions, an upstream oil and gas specialist in well completion tools, casing equipment, and oilfield services. Headquartered in Houston, Texas, the company has locations in the United States, Canada, Latin America and Europe.
  • In 2018, Saudi Aramco Energy Ventures invested in Clarke Valve and Form Energy Inc. Clarke Value is a manufacturer of valves for oil and gas operations in Rhode Island. Form Energy Inc. is a manufacturer of low-cost grid energy storage systems.
  • Saudi Aramco Energy Ventures invested in Data Gumbo Corporation in May 2019. Data Gumbo Corporation is a blockchain as a service company focused on the contracting market. The company has offices in Houston, Texas, and Stavanger, Norway. It received the Technology Innovation Award for smart contracts in oil and gas from Frost and Sullivan in 2019.
  • The CEO of Saudi Aramco Energy Ventures is Majid Mufti, and his email is majid.mufti@saev.com.

Shell Ventures

  • Shell Ventures is one of the earliest corporate capital venture funds in the oil and gas industry. Established in 1996, the company invests in oil and gas, renewable energy and clean technology, and specializes in deployment and scaling. It has established a dedicated team for implementation and deployment.
  • The investment strategy of the company is to be a significant minority investor with typical investments amounting to $2 to $5 million, and up to between $15 to $20 million over the investment life cycle. Shell Ventures is a subsidiary of the Royal Dutch Shell company, ranked by Forbes magazine as the 9th largest public company in the world, with revenues of over $20 billion in 2018.
  • Shell Ventures made 20 investments in 2019. The three most recent investments in hardware and software used in the oil and gas industry are in Corvus Energy, LO3 Energy, and Osprey Informatics.
  • Shell Ventures is a strategic investor in Corvus Energy, a provider of energy storage solutions for maritime, offshore, subsea and port applications. This deal helps to contribute to Shell's goal to reduce the carbon footprint of the products it sells to 20% by 2035 and 50% by 2050.
  • Together with Sumitomo Corporation, Shell Ventures invested in LO3 Energy. LO3 Energy enables peer-to-peer energy sharing via an energy platform that addresses the challenge of integrating dispersed energy resources into the supply chain. The funding from Shell will assist in the commercialization of blockchain based energy networks.
  • In late 2018, Shell Ventures, together with Evok Innovations and InterGen Capital, invested in Osprey Informatics. The investment totaled $3.75 million and will bring to market AI enabled solutions for methane detection. Osprey Informatics changed its name to Osperity in December 2019.
  • There are eight investments in oil and gas in the portfolio, 13 in the fuels and mobility portfolio, seven in the multi-industry portfolio, and 17 in the renewable power and thermal energy portfolio.
  • Shell Ventures does not have a CEO, but a managing director, Mr. Geert van de Wouw. His phone number is +31 70 377 9111 and his email is geert@shell.com.

BP Ventures

  • Founded in 2004 to guide BP's transition to a low carbon company, BP ventures invests in new energy businesses in upstream, downstream, and alternative energy. The company has also expanded its focus to include advanced mobility, carbon management, digital transformation, power and storage, and bio and low carbon products.
  • BP ranks at number 24 on the Forbes Global 2000 list of the largest public companies in the world. BP's market value is $149.5 billion and has assets worth $282.2 billion, generating sales of $299.1 billion and profits of $9.3 billion.
  • The last three investments made by BP Ventures are in AI energy management specialists R&B in January 2020, mobility start-up MaaS Global in November 2019, and carbon offset leader Finite Resources in October 2019.
  • BP Ventures websites lists seven investments in upstream companies including investments in Advanced BioCatalytics, Belmont Technologies, BiSN, and Modumetal. There are 14 investments in downstream companies including investments in FreeWire, SGI, Fulcrum, and Zubie.
  • BP Ventures does not list a CEO on its website, but has managing directors for the Americas, Asia and Europe. The managing director for the Americas and the chief investment officer for BP Ventures is Mr. David Hayes. To contact Mr. Hayes, specify in the subject line that it is an email for him at the email address bpventures@bp.com.

Chevron Technology Ventures

  • Created in 1999, Chevron Technology Ventures focuses on investments in business solutions and external technologies that have the potential to improve Chevron's base business operations. The technology streams for investments are subsurface and base business, power systems, information technology, emerging materials, production enhancement, and water management.
  • Chevron Technology Ventures investment areas of interest are oil and gas, emerging/alternative energy, advanced materials, communications, and networking and information technologies.
  • Listed as the 19th largest public company in the world and the third largest public oil and gas provider in the Forbes Global 2000 ranking, Chevron, the parent company of Chevron Technology Ventures, has a market value of $228.3 billion, assets worth $253.9 billion, with sales of $158.7 billion and a revenue of $14.8 billion.
  • In 2018, the company launched the Future Energy Fund. The Future Energy Fund has an initial commitment of $100 million focused on investments in disruptive technologies across the energy sector.
  • Chevron Technology Ventures has made 16 investments in the oil and gas sector including investments in Foro Energy, Arisdyne, Halfwave, Hicor, MezurX, and Seikowave. There are also four investments in the advanced materials sector, three investments in the emerging/alternative energy sector, and five investments in information technology.
  • Chevron Technology Ventures does not list a CEO on its website. Mr. Kemal Anbarci is the vice president and managing executive. His email address is kanbarci@chevron.com.

Blackstone Energy Partners

  • Blackstone Energy Partners is a subsidiary of the Blackstone Group, ranked at number 2 on a list of the top 10 private equity firms globally. Established in 1985, the company headquarters is in New York with offices in London, Hong Kong, Beijing, and Dubai.
  • Blackstone has invested over $16 billion in equity in a broad range of sectors in energy. The last three investments by the company are in Ulterra Drilling Technologies, Tallgrass Energy, and Waterfield Midstream.
  • In October 2018. Blackstone Energy Partners acquired Ulterra Drilling Technologies from American Securities. Ulterra is a supplier of polycrystalline diamond compact drill bits for the oil and gas industry.
  • Blackstone Energy Partners invested in Tallgrass Energy in March 2019. Valued at $3.2 billion, the investment was with GIC and Enagas. Tallgrass Energy is an energy infrastructure company operating in transportation, storage, terminal and water assets.
  • Blackstone Energy created Waterfield Midstream, a full cycle water management services company in February 2019. The company began operations with a $500 million equity commitment and will operate in greenfield development and acquisitions of water-related infrastructure.
  • Blackstone Energy Group does not have a CEO listed. Instead, Mr. David Foley, who is a managing director of the parent company, is the global head of Blackstone Energy Partners. He can be emailed at david.foley@blackstone.com.

Research Strategy

To determine the top 5 investors in the oil and gas hardware technology market, the team began by searching for the largest oil and gas companies in terms of revenue. This search yielded the list of the world's largest public companies, including the companies from this list from the oil and gas industry. The team then sought to determine which of the largest public companies had venture capital companies. This approach is because of the high value nature of investments in the sector. The search yielded information on Saudi Aramco Energy Ventures, Shell Ventures, BP Ventures and Chevron Technology Ventures. Finally, the team searched for the largest private equity firms with investment in the oil and gas sector. This searched led to the information presented on Blackstone Energy Partners.


Part
02
of three
Part
02

Top Oil and Gas Hardware Technology Investors (2)

Top oil and gas companies that were part of the S&P Global Platss 250 Global Energy Company Ranking and are actively financing startups include Engie New Venture, Equinor Energy Ventures, Eni Next, Constellation Technology Ventures, and Total Ventures.

Overview

  • According to CB Insights, 80% of financing in the industry came from big oil and gas companies. Their main interest is increasing operational efficiency and lowering the cost.
  • Even though Shell Ventures, BP ventures and Chevron are investing the most, the following companies are actively financing startups in recent years: Engie New Venture, Equinor Energy Ventures, Eni Next, Constellation Technology Ventures, and Total Ventures.

Total Ventures

  • Among the five most active investors, the French integrated oil company Total was in third place with 43 deals in 2018.
  • In addition to that, S&P placed Total SA at 8th place in its Top 250 Global Energy Company ranking, with $11,446 million dollars in profit.
  • Total Ventures has invested in 31 startup companies, including two oil and gas start-ups, Openfield and Wireless Seismic.
  • We were not able to locate any contact information for the company's CEO.

Equinor Energy Ventures

  • Equinor is owned by the Norwegian multinational energy company Equinor ASA, formerly Statoil.
  • S&P Global Platss placed Equinor ASA in 5th place in its Top 250 Energy Company ranking, featuring a profit of $7,353 million.
  • Equinor Energy has $200 million in AUM and invests $1 to 20 million per company.
  • We were not able to locate any contact information for the company's CEO.

Eni Next

  • The Italian oil and gas company, which is among the 20 biggest companies of the S&P Platts Global Energy Company Ranking, established a venture capital called Eni Next in Boston.
  • Eni had a $4,638 million profit in 2019.
  • In 2019, Eni Next made two significant investment. They invested $40 million in Form Energy and $115 million in Commonwealth Fusion Systems.
  • We were not able to locate any contact information for the company's CEO.

Constellation Technology Ventures

  • Constellation Technology Ventures was founded by American Fortune 100 energy company Exelon Corporations features a revenue of $2,010 million.
  • The company has invested in 17 startup companies so far.
  • Their managing director is Scott Dupcak and he can be contacted at scott.dupcak@constellation.com.

Engie New Venture

  • Engie is the venture capital arm of the French multinational electric utility company Engie SA.
  • The company experienced a decline of profit of $176 million dollars.
  • The company has invested over EUR 110 million in 23 deals. They invest 2 to 4 million euros per company.
  • We were not able to locate any contact information for the company's CEO.
Part
03
of three
Part
03

US Oil and Gas Hardware Technology Investors

Five additional companies investing in the oil and gas technology space are Lime Rock Partners, Quantum Energy Partners, Altira Group, Braemar Energy Ventures, and Energy Innovation Capital.

Lime Rock Partners

  • Lime Rock Partners was founded in 1998 and is focused on the upstream oil and gas sector, specifically on technology companies. The company is very selective about their investments and invests in limited new companies each year, allowing them to provide a high level of focus on each company.
  • The most recent deal on the company website was an investment in Basin Properties in October 2018. There were no publicly available details on the amount of the investment.
  • Additionally, the company invested $225 million in Shelf Drilling in 2017, and made an undisclosed investment in Reveal Energy Services.
  • Lime Rock has exited over 70 investments since their inception.
  • Lime Rock does not list any CEO on their website, but there are several managing directors at the company including Jonathan Farber, John Reynolds, Trevor Burgess, and Will Franklin. Franklin's email address is wf@lrpartners.com.

Quantum Energy Partners

  • Quantum Energy Partners, founded in 1998 and based in Houston, Texas, focuses on investments in "the North American upstream, midstream, oilfield services, energy technology and renewables sectors."
  • Quantum has invested in over 95 companies since its inception. Recent investments from 2019 include two investments in RigUp, one for $300 million and one for $60 million; a $400 million investment in Ryno Energy Partners; and a $10.5 million investment in Seismos.
  • Based on information on the company website, it appears that Quantum is actively looking for investments. They state, "Contact us to learn how we go beyond providing capital to being a trusted partner that is focused on your specific goals."
  • Will VanLoh is the founder and CEO of Quantum. His email address is wvanloh@quantumep.com.

Altira Group

  • Altira Group, based in Denver, Colorado, has over two decades of experience investing in the oil and gas sector. The company prefers to be the lead investor, typically invests "in venture/growth-equity-stage companies that are generating revenue and have a clear sight to profitability," and investments range from $5-25 million.
  • In 2018, the company invested in ResFrac, a company that developed a fracture/reservoir simulator. Other recent investments include Seeq ($23 million), in 2017, a company that offers advanced data analytics software, and ThoughtTrace, also in 2017. ThoughtTrace offers technology that allows for the analysis of unstructured data found deep in contractual documents.
  • Altira has raised a total of six funds and invested over $1 billion since they were established in 1996.
  • The company does not list a CEO on their website, but the managing partner is Dirk McDermott. His email address is dmcdermott@altiragroup.com.

Braemar Energy Ventures

  • Braemar Energy Ventures, based in New York City, was founded in 2003 and focuses on investing in transformative energy-tech companies. According to Crunchbase, the company has made 94 investments and been the lead investor on 26 of those. The company has a global reach as products funded by Braemar "have been used in all 50 states and in 47 countries around the world."
  • Three recent investments made by Braemar include a $65 million investment in General Fusion, a $76.3 million investment in Enerkem, both in 2019. In November 2018, the company invested $240 million in ChargePoint. Braemar also invested in Voxel8 in 2019, but the amount of the investment was not publicly available.
  • The most recent data that was publicly available on Braemar raising capital, was reporting on a $300 million fund that closed in June 2012. It is not clear if this was the last round of capital raised or if there is just no public reporting on more recent rounds.
  • The website for Braemar Energy does not list a CEO for the company, but does provide the name of the CFO, Erik A. Schultz. Contact information for Schultz was not available.
  • Neil Suslak is a managing partner at Braemar and his email address is nsuslak@braemarenergy.com.

Energy Innovation Capital

  • Energy innovation Capital (EIC), based in Houston, San Francisco, and Seattle, provides "growth capital for oil, gas and energy technology companies." The company typically invests in venture and growth-stage companies, and works collaboratively with the companies they invest in.
  • In 2019, EIC invested in Titans Advanced Energy Solutions ($10 million), Fluence Analytics (not publicly available), Molear ($5 million), Phoenix ET (not publicly available), Pellucere Technologies (not publicly available), and Xpansiv ($10.4 million).
  • According to Crunchbase, EIC has made 12 investments, and been the lead investor on nine of those. The company was founded in 2016.
  • EIC does not list a CEO on their website, but Paul Dickerson is the COO and a managing director. His personal email is paulhdickerson@gmail.com and his phone number is 713-654-0912.
Sources
Sources

From Part 01
From Part 02
Quotes
  • "Integrated oil companies accounted for 80% of industry participants in financings since 2008. "
  • "However, integrated companies have an active interest in bringing technologies that lower operating costs to market, creating incentives for VC investment."
Quotes
  • "USD 200 million in total investment capital"
  • "Investing USD 1-20 million per company"
  • "USD 135 million invested (since 2000)"
Quotes
  • "The mission of Constellation Technology Ventures is to drive innovation through Exelon by investing in venture stage energy technology companies that can provide new solutions to Exelon and its customers."
Quotes
  • "ENV has deployed over EUR110M of capital across 23 investments worldwide"
From Part 03