Google vs. ExxonMobil: Who Will Win?

Kirk Coburn

Founder & Managing Director SURGE

June 10, 2014 Energy Digital Summit

TODAY’S DEBATE

Is the Energy Industry going through a period of “disruptive

innovation”?

6/10/14 2

MISTAKES It Could Be That The Purpose Of Your Life Is Only To Serve As A Warning To Others...

6/10/14 3

CLAYTON CHRISTENSEN

“Good firms are usually aware of the innovations, but their business environment does not allow them to pursue them when they first arise, because they are

not profitable enough at first and because their

development can take scarce resources away

from that of sustaining innovations (which are needed to compete against current competition). A

firm's existing value networks place insufficient value on the disruptive innovation to allow its pursuit by that firm. Meanwhile, start-up firms inhabit different

value networks, at least until the day that their disruptive innovation is able to invade the older value

network.”

6/10/14 4

MASSIVE INNOVATION IN ENERGY: SHALE REVOLUTION

6/10/14 5

Source: http://marcelluscoalition.org/2012/07/shale-gas-boosting-u-s-economy-leading-to-american-energy-sufficiency/

MASSIVE INNOVATION IN ENERGY: SOFTWARE & DATA

•  Capital Efficient •  Addresses Resource Constraints with

– Mobile – Social Networks – Web Tools – Big Data Analytics – Cloud Computing

•  Aggregation & Analysis of Big Data: Information is the Most Valuable and Differentiated Asset

6/10/14 6

6/10/14 7

SURGE Is At Center of Ecosystem

Universities

Customers

Capital

Community

Service Providers 6/10/14 8

Deep Domain Expertise

Scientists, Engineers, Policy Experts, Executives, Entrepreneurs, Investors

6/10/14 9

Scientists, Engineers, Policy Experts, Executives, Entrepreneurs, Investors

6/10/14 10

SURGE RUSH + SURGE DAY 6/10/14 11

6% 150

Profit Mentor

500

Global Months Cash

The ONLY accelerator in the world focused on ENERGY Technology

12 3 $80k

Class

ACCELERATOR & FUND

6/10/14 12

RESULTS

•  32 out of 34 Investments Are Still Operating

•  Raised Over $30M Since May 2012

•  Created Over 175 jobs

•  Developed Deep Energy Relationships

•  Top 10 Accelerator in US

•  Known Globally by Entrepreneurs & Media

6/10/14 13

WHY NOW?

6/10/14 14

FRAGMENTATION & SPECIALIZATION

6/10/14 15

ONLY TECHNOLOGY CAN TAME RISING COSTS

Price ceiling driven by competition from natural gas, solar etc.

6/10/14 16

Price floor driven by OPEC countries fiscal requirements.

GENERATIONAL CREW CHANGE

6/10/14 17

WORLD ENERGY DEMAND

6/10/14 18

HEALTH & SAFETY EXPENSE

6/10/14 19

Source: http://www.thetimes.co.uk/tto/business/industries/naturalresources/article2772360.ece

GROWING VC INVESTMENT: OILFIELD SERVICES TECHNOLOGIES

6/10/14 20

http://www.offshore-technology.com/contractors/transport/swire-oilfield/swire-oilfield2.html

EXAMPLES

6/10/14 21

LANDMARK GRAPHICS Making Seismic Data Relevant

6/10/14 22

RUNTITLE.COM The Mineral Title Marketplace

6/10/14 23

drillMap Analytics and Visualization for Oil & Gas

6/10/14 24

+

=

...For Oil & Gas

Properties!

6/10/14 25

DEEP IMAGING TECHNOLOGIES Analytics and Visualization for Oil & Gas

6/10/14 26

MOLECULE SOFTWARE Energy Software that Rocks

6/10/14 27

GREASEBOOK Oilfield Management Mobile App Eliminating Gauge Sheets

6/10/14 28

PETRABYTES Big Data Management & Predictive Analytics for the Oilfield

6/10/14 29

AUTONOMOUS MARINE SYSTEMS Low-cost, self-powered ocean surface drones deployed in fleets that form an intelligent sensor network to collect and transmit marine data

6/10/14 30

PROJECT INSIDERS Provides sales intelligence on large capital investment projects

6/10/14 31

SEE FORGE “FatFinger” app that streamlines workflows to provide real-time operational analytics

6/10/14 32

Q & A

6/10/14 33