US stock market values have risen $4 trillion since the election in November and who knows how far they will go. In order to keep up with that kind of growth in the equity world, corporations need to innovate and innovate often. Survival means corporations need to advance their technologies almost on an annual basis and at Crudefunders (www.crudefunders.com) we think we found a company that will help do just that for the oil and gas service industry. That company is AmpliSine Labs, LLC. With its proprietary service SitePro®.
AmpliSine, LLC with SitePro® Automation Software Solutions, brings new technology into the fluid management process. AmpliSine Labs has created a real-time cloud based platform for Exploration and Production (E&P) Companies, Service Companies and Water and Environmental Companies to new heights and saving millions along the way by cutting their production costs. By bringing new technology into the fluid management process, the SitePro® system allows its clients; to remotely control well sites and equipment, monitor tank levels and site conditions, automate billing and invoicing, as well as record and backup production data, all from your desktop or mobile device.
In addition, SitePro® offers easy-assign field ticketing and dispatching to make managing fluid and haul logistics hassle-free. This exquisite new “Cloud-Based” technology integrates within the clients own supply network, organizes the process, eliminates redundancies’ and simplifies the process for all vendors involved. “Cutting redundancies’ means saving customers money” said David Bateman, Chief Financial Officer of AmpliSine and SitePro®. “In today’s oil price environment, these kinds of innovations are desperately needed.”
Where It All Began
Since its launch in 2012, SitePro® has become one of the fastest growing automation software companies in the oil and gas industry and it’s no surprise, since the co-founders began talking about building this company years ago while sitting in an engineering class back in college.
Aaron Phillips, Chief Executive Officer and David Bateman, Chief Financial Officer are the co-founders of Amplisine Labs and SitePro®. They were sitting in an Industrial Engineering class at Texas Tech University, after a lecture that was designed to make students think of ways to innovate, in the newly developing “I-technology” world, and they developed the concept that would one day form the foundation for their work together. They knew there was more individual work to be done, so Aaron went on to complete his Masters in Industrial Engineering and David went on to complete his MBA and then headed out to the business world to gain the necessary experience they knew they would need.
David’s experience as Sales Engineer, took him into international sales with a company that sold fluid management technologies. This experience would prove invaluable to the company along with Aaron’s graduate research in industrial engineering and his passion for software development. These formed the basis for their new company and it couldn’t have come at a better time.
What This Means For E&P Companies
This new innovation works to shift multiple cost centers, many of them redundant, to a cloud-based system that consolidates and creates synergies that help to reduce the costs of producing a barrel of oil for a producer. Way too often, during the last downturn that started in June of 2014, we heard analysts say the price of WTI will not drop below its break-even of $85 per barrel. We also heard them say WTI won’t drop below $50, or $40 or $30 per barrel, because it just costs too much to produce. Companies like AmpliSine with SitePro®, helped change that metric by helping their customers reduce costs at a time when cost reductions meant survival of their customer; not to mention the industry. Here’s a chart showing the decline in WTI Crude Oil prices from June of 2014 to the bottom of the market in February of 2016.
You can see just how important innovation and cost cutting measures were during this time. After 19 months of falling prices, WTI Crude oil was trading at 25% of its original value. Today, we’re not but a short year away from the bottom of the market and stuck in a trading channel between $51 and $55 per barrel. With prices stuck in the low $50’s today, the innovations that were made just a few months ago are paying dividends for E&P producers all over the country.
The folks in the Permian Basin are especially lucky to have this group of innovators so close to the heartbeat of America’s largest oil producing region. “To help keep our customers productive, it’s nice to be near the source, so we can see what the needs are, and our team can go to work where it matters” said Phillips.
AmpliSine Labs and SitePro®are headquartered in Lubbock Texas on the northern end of the Permian Basin Formation, an excellent place to base their operations, near a major research university with Texas Tech and in the most oil-rich region in the US, possibly the world.
This article was a pleasure to write and I hope it shows that while some students break windows, burn cars and complain about not having enough safe zones, these two men took what they were being taught, in an environment that dared them to dream and turned it into a profitable endeavor that will help change the way E&P Companies do business. Texas Tech University is known for mentoring students and I am sure there are many, in the oil and gas world, who are thankful for it.
If you want more information on the energy markets and what is making prices move every day, go to our website www.crudefunders.com and scroll down to where it says “Subscribe”. There you will find our link to the daily commentary “Energy Wise”, a comprehensive piece that includes both fundamental and technical analysis of the day’s energy markets and provides you with the detail that you need. For more on Energy Economist Tim Snyder and his company, go to www.matadoreconomics.com .
Tim Snyder
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