Wednesday, June 10, 2020

Breakthrough (Part 3): Book a Night at the VC Arms

The previous Desulfurization Breakthrough post (http://desulf.blogspot.com/2020/06/breakthrough-part-2-vc-arms-of-oil.html ) highlighted a well-researched Houston Chronicle article describing the efforts of the oil majors, through their venture capital subsidiaries, to diversify into nontraditional areas. Basically, they are hedging their bets.

While I invite them to do so, the oil majors probably will not want to take the time to follow this series. They have highly skilled teams working on the problem of identifying, selecting, and vetting potential candidates.

The rest of us can benefit from their efforts.

Not only do the venture capital (VC) arms of the oil majors identify promising startups. Their VC arms also suggest lines of technology that may benefit non-majors … but that the non-majors may not have thought of.

For example, the Chronicle article (“Reporter’s Notebook: Oil & gas venture capital investing autonomous vehicles, machine learning”) noted that …

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“The self-driving car startup Aurora Innovation (https://aurora.tech/ ) made headlines earlier this year when Amazon joined a $530 million funding round to advance its technology that aims in part to revitalize cities by reducing traffic. A less publicized investor in that round was the venture capital arm of the oil major Royal Dutch Shell - even though self-driving cars could mean less traffic and less gasoline consumption one day.
“Shell is one of several big oil companies using venture capital arms to invest in technologies - from electric vehicles to wind turbines and solar panels.- that could eventually undercut the underlying economics of the oil and gas industry. Yet even as oil companies hedge their bets on the future of fossil fuels, they are still pouring millions into making oil and gas operations more efficient and productive through new equipment and digital technologies.”
Read the full text at: https://www.houstonchronicle.com/business/energy/article/Reporter-s-Notebook-Oil-gas-venture-capital-13987223.php
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Your company may or may not be interested in investing in self-driving cars. But you may be interested in becoming a customer of one or more of the startups that VC arms of the oil majors have invested in.

The first thing to do is to visit the Web sites of the VC arms. Browse their portfolios. Cogitate. Investigate. If one of the VC candidates seems to fit your purpose, contact the company and see what they can do for you.

The point is … the oil majors have already done a lot of the work for you. Take advantage of that.

Here are the Web sites for the VC arms of some of the oil majors. CAVEAT: I am not qualified to offer investment advice. Due diligence, as always, should be the rule.

Saudi Aramco Energy Ventures (https://saev.com/)
Chevron Technology Ventures (https://www.chevron.com/technology/technology-ventures)
Shell Technology Ventures (https://www.shell.com/energy-and-innovation/new-energies/shell-ventures.html)
BP Ventures (https://www.bp.com/en/global/bp-ventures.html)
Total Ventures (https://www.ventures.total/en )

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Jean Steinhardt served as Librarian, Aramco Services, Engineering Division, for 13 years. He now heads Jean Steinhardt Consulting LLC, producing the same high quality research that he performed for Aramco.

Follow Jean’s blog at: http://desulf.blogspot.com/  for continuing tips on effective online research
Email Jean at research@jeansteinhardtconsulting.com  with questions on research, training, or anything else
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