Chevron Drilling VP: Oil, Gas Needs to be Innovative, but Make Money

Technological innovation is a hot topic for oil and gas operators and service companies. During a Tuesday panel at the Offshore Technology Conference, some of the industry’s leaders shared how to embrace innovation while maintaining profit margins.

When industry panelists were asked if profit margins did, in fact, stifle innovation, responses were mixed.

“That’s precisely why I think this is the best opportunity to be in this industry. There is a challenge and a problem here,” said Jose Gutierrez, director of technology innovation for Transocean Inc.

Gutierrez said he actively encourages leaders from other industries to come share their ideas and best practices for bolstering innovation.

“You have to penetrate little by little,” he said. “You need to be strategic; this is not about a technology attack. We’re trying to change, but we need to connect.”

Addressing the young professionals in the audience, Gutierrez said, “the future is yours, not mine and not theirs (panelists).”

David Payne, Chevron Corporation’s vice president for drilling and completions, said it’s a bit unfair to label the oil and gas industry as closed to innovation.

“We’re one of the highest risk-taking industries … unlike Tesla, we have to make money,” said Payne. “This industry takes an enormous amount of risks every day. We spend huge amounts of money going out and doing exploration work. We deal with ranges of uncertainty. Somewhere in that range, we have to make a little bit of money. The industry needs to be innovative, but it also needs to make money.”

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