Silicon Valley is a long way from Houston.

Hackathon denizens seem to exist in a

different universe than rough-and-ready oilfield crews. But tech startups are
invading the oil business. Not only that, they�re succeeding despite the price
rout.

Oil prices plunged in 2014 because of a supply glut spurred by the American
fracking renaissance and OPEC�s decision not to reduce exports. As a result,
exploration and production companies have cut budgets, laid off thousands of
employees, and are fighting to rescue their balance sheets. Large oilfield services
firms are in similar, or worse, positions. But a new generation of high-technology
companies are stepping in to fill the gap, and investors are lining up to finance
them.

Tachyus is developing a data analytics platform, which is already in use on 6,000

domestic wells. They recently closed a $13 million Series A, led by Founders Fund.
The venture firm, famous for its investments in Facebook, Palantir, and Airbnb,
also invested in RigUp, another oil services startup.

GroundMetrics (disclosure: I�m an investor) surveys oilfields using its proprietary

sensor systems that act almost like an MRI for geology, allowing operators to drill
10% fewer wells without reducing production. In a recent joint project with the US
Department of Energy and Encana, the company revealed it can directly map frack
fluid floods in addition to production optimization applications. GroundMetrics
quadrupled in size over the past year, recruited some big name industry experts,
and has client base of blue chip customers.

Neos specializes in remote geoscience monitoring and data interpretation, trying to

tease signal from multiple sources filled with geophysical noise. Last month,
Jonathan Faiman, the British online grocery pioneer, invested $150 million to
become chairman of the board. Other investors include Goldman Sachs and Bill Gates.

All three companies leverage technology to provide operators with the data to
improve decision-making. New sensors improve measurement capabilities. New
analytical models distill raw data into actionable advice. Ayala, FracKnowledge,
and Blade Energy Partners provide even more examples of the same trend.

That�s why these startups are doing well despite stormy macro conditions. When oil
is cheap, operators have to figure out how to produce it more efficiently. New
technologies like these help them do just that. Silicon Valley brains and Houston
brawn make for a powerful combination.

Eliot Peper is a writer and consultant based in Oakland, Calif. When he�s not
writing, he works with entrepreneurs and investors to build new technology
businesses as a drop-in operator and adviser. He has been a founder and early
employee at multiple startups and an entrepreneur-in-residence at a venture capital
firm..