Artificial intelligence firm gets second funding round for shale

By Luke Geiver | April 23, 2019

Artificial Intelligence (AI) is gaining favor across the oil patch. OAG Analytics, an AI-specialist focused on oil and gas, announced this week it has received a second round of strategic funding from Rice Investment Group. Rice is a $200 million strategy fund based in Pennsylvania that targets oil and gas.

OAG said funding will be used to help customers add AI to the their asset portfolios. Subsurface engineers and scientists use AI to organize data and run billions of simulations before deploying capital, OAG said. OAG’s system provides a cloud-based platform that has interactive visualizations. The technology has already been used in the Permian, Eagle Ford, Bakken, Anadarko and Haynesville shale plays. According to the company, U.S. operators have optimized more than $10 billion in capital expenditures using OAG’s tech.

"Our industry is entering the next phase of the shale revolution by moving to full-field development. As such, we need the next generation of analytical capabilities to maximize capital efficiency," said Derek Rice, partner at Rice Investment Group and Director at OAG. "Large-scale development optimization requires an in-depth understanding of hundreds of uncorrelated data points, which OAG provides through data management and advanced analytics to support profitable decision making. We are thrilled to partner with OAG's team, and believe our insights and experience as an operator will continue to add value to the platform," Rice said.

OAG was founded by Luther Birdzell, an entrepreneur, data scientist and engineer focused on energy efficiency, AI and self-service machine learning.