A trip on Highway 285 between Fort Stockton, Texas, and Carlsbad, New Mexico, is both fascinating and horrifying for the average commuter in the US desert Southwest. The 140-mile stretch of two-lane road can take hours to traverse on a given day as trucks hauling crude oil, sand, water, chemicals, and petroleum equipment overload the battered, sun-fried pavement. The mostly flat, dusty landscape is populated by drilling rigs, workover rigs, and gas flares as far as the eye can see. Even on the highway’s best day, most traffic laws are ignored as oilfield workers in pickup trucks race from site to site. The industrial chaos along the corridor serves as a snapshot of the now multiyear industry boom in the Delaware Basin and greater, 75,000-sq-mile Permian Basin. Keeping track of it all has become a massive challenge for operators, service firms, and midstream companies that make the basin move. They work in an environment that is changing daily, and they can’t afford to be caught by surprise when hydraulically fracturing a well, building infrastructure, delivering equipment to a remote area, or prospecting for new business. An emerging solution: an intelligent, continually updated view from above—or satellite imagery analytics. Companies such as Sourcewater, Planet, and West-wood Global Energy Group are stepping up to monitor the world’s busiest oil play by leveraging relatively inexpensive satellite technology and machine learning. Application of satellite imagery in the oil and gas industry is nothing new. It has been used by companies to monitor remote facilities. Market observers have used the technology to assess global oil supplies by tracking tanker traffic and storage levels. The World Bank has used it to estimate emissions from the flaring of natural gas and oil output by the Islamic State. The real breakthrough is in merging this capability with artificial intelligence and advanced analytics to aid planning for development, production, and logistics while providing competitor intelligence and market research. Development is still in the early stages as companies refine their models to produce the most reliable information possible, and products are just now being rolled out to clients. Finding Water in the Desert An early entrant in the satellite imagery analytics space, Sourcewater’s primary objective is to serve as an online data analytics platform and marketplace for oilfield water sourcing, recycling, and disposal. Founded in 2014 as part of MIT’s Energy Ventures program, Sourcewater “is really about providing oilfield water market intelligence” to its clients, which often are operators planning their completions and production work and logistics or midstream water companies determining where to add new capacity, explained Josh Adler, Sourcewater chief executive officer. Relatively new to the industry himself, Adler’s career path includes founding one of the Internet’s first match-making sites and serving as chief speechwriter to former US Treasury Secretary Paul O’Neill.
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