Patent Landscape Report on Oil and Gas

Patent Landscape Report on Oil and Gas April 2015 Pramitha K. Prakash, Analytics Group Manager, USA Samuel Davis, Director or Business Development 1

Executive Summary The adoption of new technologies by the Oil and Gas (O&G) industry is not often talked about, but in reality O&G companies allocate a lot of funding to innovative technologies that help them work smarter. The O&G industry has been inventing new technologies since the 19 th century, and it will continue to innovate to adapt to changing circumstances and to produce technologies to fight against challenges that are caused by external factors. The three main challenges that are being faced by O&G companies are: 1. Lack of skilled labor 2. Mitigating risks when operating in remote and hostile environments 3. Reducing the operating cost and time to remain profitable The solution to these challenges being faced by O&G companies is to identify disruptive solutions, maybe including borrowed technologies from other sectors such as big data and analytics, Internet of Things (IoT,) use of micro-organisms to stay environment-friendly. In 2015 and beyond, there will be a lot of collaborative effort among O&G companies. O&G companies might collaborate with each other more than they have in the past; some companies may also fund start-ups to innovate in disruptive solutions tailored for O&G industry. There might also be collaboration between companies and some specialty universities. Technology companies will also play a major role in shaping the industry by making the oilfield more digitized, by connecting different components of the value chain in a smarter way, and by enabling O&G companies to fight security challenges. 2

Introduction The oil and gas industry has been employing traditional and well-tested technologies in its processes. However, there have recently been some changes in this trend, with the major oil and gas companies collaborating with other industries and acquiring technology-based companies to introduce parallel technologies in their processes. This report analyzes these changes, using patenting trends to relate to technological advancements in the industry. 3

Companies in this Study Nalco LyondellBasell Enhanced Drilling Sandbox Logistics Exxon Mobil Chevron Corporation Phillips 66 Petronas FMC Technologies Statoil Schlumberger Shell Transocean British Petroleum National Oilwell Varco Westlake Kinder Morgan AGR Baker Hughes Conoco Phillips Halliburton Koch Industries Managed Pressure Operations (MHWirth) Team Oil Tools KBR Marathon Oil Total Stena Drilling Apache Corporation Univation Technologies Anadarko Celanese General Electric Air Liquide Aker Solutions M-I Swaco (Schlumberger) Weatherford Safekick Blade Energy Partners Cameron International 4

Number of Patent Families Overall Filing Trend Filing Trend - Priority Year 4000 3500 Hydraulic fracturing started to be widely utilized in US after 2003. Shale Oil Extraction increased significantly in US during this period. Hydraulic fracturing was used. 3000 2500 2000 1500 1000 500 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Energy Policy Act passed in 2005, which authorized loan guarantees for new environment friendly technology development. 5

Overall Filing Trend Top 10 countries (priority filings) vs Priority Year 1162 1200 1356 1343 1337 1517 1354 1469 1520 1414 1460 1659 1977 2086 2141 2192 2042 2143 1545 4 118 95 98 119 132 170 171 191 185 200 212 305 366 329 310 250 276 247 163 175 172 202 255 271 265 207 177 159 130 144 128 161 190 184 198 215 207 99 170 151 178 284 195 202 140 162 162 144 88 93 87 75 60 81 73 58 60 16 21 26 31 19 37 37 20 22 23 26 60 78 92 129 114 252 479 418 94 63 67 60 55 38 45 29 34 35 41 68 80 67 54 54 73 58 29 63 65 98 110 76 100 101 95 73 39 22 30 29 21 11 22 25 24 19 41 41 20 31 35 39 41 62 54 49 69 61 69 63 69 57 51 61 33 13 33 23 8 7 1 4 8 5 5 3 6 6 16 20 59 72 130 207 11 15 20 25 18 10 17 10 9 6 14 14 17 12 5 8 4 3 1 US EP FR GB WO JP DE NO CN AU Filings from BP, Schlumberger declined around 2008. Filings from AirLiquide, Total increased till around 2010, then declined. Filings from BP, Schlumberger declined around 2000. Filings from AirLiquide, Total increased around 2005. BP, Weatherford reduced their first filings in GB drastically in late 1990s. Schlumberger followed after 2004. Shell, BP, Exxon increased their filings significantly 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 6

Domain Distribution - Overall The Patent documents were then organized in three main domains using the International Patent Classification (IPC) codes: Oil and Gas: to identify patents that disclosed traditional technologies used in Oil and Gas industry General: to identify patents that disclosed technologies that are used in many other industries, including the Oil and Gas industry Disruptive Technologies: to identify patents that disclosed new technologies that were not used in the Oil and Gas industries before, but may have been used in other industries If a patent document had classes categorized in two or more of the three domains, the following priority order was followed to identify the domain of the patent: Disruptive Technologies > Oil and Gas > General 7

Number of Patent Families Domain Distribution - Overall 2500 Schlumberger, Halliburton, Baker Hughes, Shell are actively innovating in traditional O&G technologies, whereas Exxon and Weatherford have recently reduced the number of filings. 2000 1500 1000 Shell, Air Liquide, BP, Celanese are top filers in technologies that are used in both O&G and other sectors. However, both Shell and Air Liquide are reducing the total number of filings in the recent years starting 2007. 500 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Oil & Gas General Technologies Disruptive Technologies Filings by Oil and Gas companies in Disruptive Technologies have been increasing steadily since 2005. Shell and Schlumberger have been quite active in contributing to this trend. 8

Number of Patent Families Domain Distribution - Overall 2500 2000 1500 1000 Schlumberger, Halliburton, Baker Hughes, Shell are actively innovating in traditional O&G technologies. Whereas Exxon and Weatherford have recently reduced the number of filings. There is definitely a need in the current situation to save cost and time. Reducing the total number of filings by strategically selecting technology areas that absolutely need patent coverage -- in other words creating a strategy for keep v. abandon decision making -- is crucial. Shell, Air Liquide, BP, Celanese are top filers in technologies that are used in both O&G and other sectors. However, both Shell and Air Liquide are reducing the total number of filings in the recent years starting 2007. 500 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Oil & Gas General Technologies Disruptive Technologies To identify top technologies that are trending, we did some deep-dive analysis and the results will be discussed in next slides. Filings by Oil and Gas companies in Disruptive Technologies have been increasing steadily since 2005. Shell and Schlumberger have been quite active in contributing to this trend. 9

Domain Distribution Oil and Gas There have been many improvements in Oil and Gas technologies. From drilling to refining processes, pipelines and geophysical analysis, the Oil and Gas companies have been active in many technologies. The following Oil and Gas technologies were identified as the main technologies in this space: Drilling Geophysics Processing or refining Separating/Mixing Fuels Lubricating Compounds Liquification of Gases Vessels Valves/Pipes Soil Moving Machines 2500 2000 1500 1000 500 0 Oil & Gas General Technologies Disruptive Technologies 10

Domain Distribution Oil and Gas Separating/Mixi ng, 2127 Processing or refining, 2370 Geophysics, 3047 Lubricating Compounds, 758 Fuels, 777 Liquification of Gases, 698 Vessels, 480 Valves/Pipes, 119 Soil Moving Machines, 4 Drilling, 15999 Description of main categories: Drilling includes directional drilling, hydraulic drilling, compositions used while drilling Geophysics includes seismology, magnetic, gravitational and electric field measurement Processing or Refining includes breaking and processing of hydrocarbons by destructive hydrogenation, oligomerisation, polymerization Separating/Mixing includes separating and mixing methods for solids or liquids from/with each other Fuels includes production and treatment of solid, liquid and gaseous fuels 11

Domain Distribution Oil and Gas Main technologies: survey of bore wells, equipment used in bore wells, directional drilling, hydraulic drilling 354 421 477 603 583 727 606 699 743 709 752 920 1118 1128 1204 1111 1219 1429 1186 10 51 64 72 90 106 112 117 134 124 106 126 159 248 289 244 259 240 291 215 87 108 146 156 135 147 147 155 193 127 93 107 90 107 147 140 105 109 71 97 105 107 101 116 100 122 126 103 84 104 99 119 117 138 152 145 127 62 3 31 20 31 27 26 17 21 37 35 20 31 33 46 73 80 78 65 69 34 3 70 55 58 56 34 19 21 29 24 19 33 42 68 59 48 41 32 27 22 1 12 19 25 50 39 28 28 34 42 40 23 44 60 53 41 56 55 40 9 10 12 35 25 25 21 16 13 33 25 25 37 31 29 31 28 26 39 19 4 5 4 5 9 2 6 6 3 7 5 5 7 11 5 10 10 7 8 Drilling Geophysics Processing or refining Separating/Mixing Fuels Lubricating Compounds Liquification of Gases Vessels Valves/Pipes Schlumberger has more patents in Geophysics than other top 10 companies combined Shell and Exxon are closely competing as top filers. Based on the number of patent filings, Exxon was very active during late 1990s Air Liquide has been consistently filing in this category. Shell has increased its filing almost every year since 1998, and patent filings of General Electric have been sharply increasing during 2002-2009 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Soil Moving Machines 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Note: Patents taking priority from 2013 and 2014 may have not been published yet. Thus, the count for these two years may not be complete 12

Domain Distribution Oil and Gas With advancements in communication and Main technologies: survey of bore wells, computing technologies, several of these equipment used in bore wells, directional drilling, traditional processes can be replaced using hydraulic drilling robotics and IoT. There is a two-fold benefit in investigating this avenue because: 354 421 477 603 583 727 606 699 743 1. This 709 will 752 reduce 920 1118 the 1128 amount 1204 1111 of skilled 1219 1429 1186 10 human labor required; 2. This will reduce the cost by mitigating risk 51 64 72 90 106 112 117 134 124 106 126 159 248 289 244 259 240 291 215 when operating in harsh environments. 87 108 146 156 135 147 147 155 193 127 93 107 90 107 147 140 105 109 71 97 105 107 101 116 100 122 126 103 84 104 99 119 117 138 152 145 127 62 3 31 20 31 27 26 17 21 37 35 20 31 33 46 73 80 78 65 69 34 3 70 55 58 56 34 19 21 29 24 19 33 42 68 59 48 41 32 27 22 1 12 19 25 50 39 28 28 34 42 40 23 44 60 53 41 56 55 40 9 10 12 35 25 25 21 16 13 33 25 25 37 31 29 31 28 26 39 19 4 5 4 5 9 2 6 6 3 7 5 5 7 11 5 10 10 7 8 Drilling Geophysics Processing or refining Separating/Mixing Fuels Lubricating Compounds Liquification of Gases Vessels Valves/Pipes Schlumberger has more patents in Geophysics than other top 10 companies combined Shell and Exxon are closely competing as top filers. Based on the number of patent filings, Exxon was very active during late 1990s Air Liquide has been consistently filing in this category. Shell has increased its filing almost every year since 1998, and patent filings of General Electric have been sharply increasing during 2002-2009 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Soil Moving Machines 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Note: Patents taking priority from 2013 and 2014 may have not been published yet. Thus, the count for these two years may not be complete 13

Domain Distribution General Technologies The filings in General Technologies have not been very consistent. The filings were decreasing during the early 2000s, but improved slightly during 2005-2007. This rising-filing trend repeated during 2008-2009 and 2010-2011. The following technologies were identified as the main technologies in this space: Chemical Processes Organic Compounds Inorganic Compounds Storage and Transportation Chemical Catalysts Materials Medical Measurements 2500 2000 1500 1000 500 0 Oil & Gas General Technologies Disruptive Technologies 14

Domain Distribution General Waterborne Vessels, 1063 Pumps, 1186 Measurements, 1762 Chemical Compounds, 1843 Storage and Transportation, 2421 Fuel Combustion, 602 Control Systems, 674 Separating/Mixi ng, 1088 Semiconductor Devices, 1643 Inorganic Compounds, 2790 Valves/Pipes, 2830 Others, 2278 Chemical Processes, 23666 Materials, 4377 Chemical Catalysts, 12542 Organic Compounds, 18667 Description of main categories: Chemical Processes Processes to obtain certain compositions (mostly hydrocarbons, or tar, pitch) Organic Compounds Organic compounds that may be cyclic, acyclic or other types Chemical Catalysts that may be used in oil and gas industry Materials Analysis of materials by sampling, measuring properties like strength, viscosity, weight, resistance to corrosion 15

Domain Distribution General 311 276 242 280 242 210 137 152 157 127 113 89 113 87 104 92 130 96 71 9 161 149 152 146 118 126 156 109 144 110 107 155 114 145 131 179 178 150 86 132 113 160 121 140 92 56 96 56 77 54 65 64 68 59 70 51 55 52 1 49 40 56 43 32 52 51 47 39 36 41 55 81 67 51 61 69 95 47 21 28 24 16 31 42 36 34 26 33 29 35 35 27 41 42 56 64 37 2 42 41 38 42 22 27 24 25 19 33 30 34 23 21 32 37 32 39 30 10 35 31 33 41 40 44 35 19 18 11 24 27 36 32 29 34 29 28 28 4 21 19 13 12 23 12 18 19 24 21 29 43 31 40 42 30 29 35 22 28 39 30 33 29 39 33 28 20 19 14 13 17 16 12 20 16 19 11 1 9 13 19 34 25 18 16 16 19 10 10 19 33 20 18 17 34 39 22 12 11 17 16 16 20 16 22 12 10 19 22 35 39 26 25 20 32 23 8 20 23 10 15 15 15 20 11 20 18 14 22 25 26 20 20 27 18 10 1 2 5 8 6 11 13 16 12 15 9 18 18 22 33 32 28 25 28 37 8 3 9 10 8 29 12 15 9 16 13 20 13 28 22 18 32 19 5 10 13 17 11 10 15 18 17 7 4 12 9 13 7 13 13 5 8 9 141 123 142 143 108 149 109 126 105 112 133 120 179 153 129 120 144 162 91 Chemical Processes Organic Compounds Chemical Catalysts Materials Valves/Pipes Food, Medical Measuring physical qualities Inorganic Compounds Storage and Transportation Medical Semiconductor Devices Chemical Compounds Pumps Welding/Soldering Water-borne Vessels Others 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Note: Patents taking priority from 2013 and 2014 may have not been published yet. Thus, the count for these two years may not be complete 16

Domain Distribution - Disruptive The Oil and Gas industry has shown an increased interest in disruptive technologies. The new technologies have made many processes efficient and profitable for these companies. For example, technologies like tele-video are being incorporated more with time. The following technologies were identified as the main technologies in this space: Data Processing Internet of Things (IOT) Communication Water Treatment Enzyme or Macro-organisms Nanoparticle Additives Video/Phone 2500 2000 1500 1000 500 0 Oil & Gas General Technologies Disruptive Technologies 17

Domain Distribution - Disruptive Enzyme or Macroorganisms, 144 Water Treatment, 234 Communication, 276 Nanoparticle Additives, 116 Internet of Things, 566 Video/Phone, 76 Data Processing, 1407 Description of main categories: Data Processing includes analysis of data received from fields, computing methods used Internet of Things includes device-to-device communication, robotics, remote actuators Communication includes networking aspects Water Treatment includes treatment of waste water after it has been used in oil extraction process 18

Domain Distribution - Disruptive As the digitization of oil fields is increasing, this category is increasing since 2005. Schlumberger has most patents, with almost four times the filings than any of the other top competitors. 33 30 46 48 50 49 67 60 61 51 43 64 65 103 115 114 116 150 133 9 12 12 22 24 38 51 47 45 37 48 19 29 33 38 25 19 20 23 18 6 4 11 17 19 23 47 21 18 9 14 10 6 6 7 9 6 12 12 22 3 Data Processing IOT Communication Schlumberger leads this category as well, with more than two times the filing of closest competitor - Halliburton 14 8 6 5 8 13 14 7 12 14 14 18 21 14 12 17 17 12 8 10 6 2 2 3 4 3 4 3 4 4 8 7 7 9 21 17 22 8 3 1 1 2 2 3 2 3 14 9 11 4 6 23 20 6 6 13 4 6 5 8 7 7 1 3 1 4 2 7 2 7 4 2 3 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Water Treatment Enzyme or Macroorganisms Nanoparticle Additives Video/Phone Shell, BP and Koch are leading this category Shell has been leading this category. It has filed 60% of its patents from 2010 onwards Note: Patents taking priority from 2013 and 2014 may have not been published yet. Thus, the count for these two years may not be complete 19

Domain Distribution - Disruptive As the digitization of oil fields is increasing, this category is increasing since 2005. Schlumberger has most patents, with almost four times the filings than any of the other top competitors. 33 30 46 48 50 49 67 60 61 51 43 64 65 103 115 114 116 150 133 9 12 12 22 24 38 51 47 45 37 48 19 29 33 38 25 19 20 23 18 6 4 11 17 19 23 47 21 18 9 14 10 6 6 7 9 6 12 12 22 3 14 8 6 5 8 13 14 7 12 14 14 18 21 14 12 17 17 12 8 10 6 2 2 3 4 3 4 3 4 4 8 7 7 9 21 17 22 8 3 1 1 2 2 3 2 3 14 9 11 4 6 23 20 6 6 13 4 6 5 8 7 7 1 3 1 4 2 7 2 7 4 2 3 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Data Processing Why are companies like Schlumberger, BP, Shell etc., investing in these technologies? We did some market research and analysis to know more, and here is what we found. IOT Communication Water Treatment Enzyme or Macroorganisms Nanoparticle Additives Video/Phone Schlumberger leads this category as well, with more than two times the filing of closest competitor - Halliburton Shell, BP and Koch are leading this category Shell has been leading this category. It has filed 60% of its patents from 2010 onwards Note: Patents taking priority from 2013 and 2014 may have not been published yet. Thus, the count for these two years may not be complete 20

We did some market investigation, and here is what we found: Our analysis on patent filing trend supports this: 21

Internet of Things - Introduction 22

Number of Patent Families IoT - Filing Trend 600 500 Smart grid is an example of a recent technology that gained popularity pretty quickly. The peak in 2012 in the filing trend of IoT in O&G is an indicator that this technology could be the next big thing just like smart grid. 400 300 200 100 0 Source: http://www.slideshare.net/dossayev/smart-grid-solutions-june-2012 200 150 100 50 0 Filing Trend Top 12 Companies - Technology v. Oil and Gas General global trend in IoT patent filing Source: www.gov.uk/ Oil and Gas Technology Note: Patents taking priority from 2013 and 2014 may have not been published yet. Thus, the count for these two years may not be complete 23

IoT Top Companies identified Oil and Gas Company Technology Company AnSys DT Mobile PTC Telit Baker Hughes Halliburton CNPC Weatherford Schlumberger Oil and Gas Companies Rockwell Automation IBM Technology Companies SAP Microsoft Cisco General Electric Accenture Legend: A B A is Customer of B A B A and B are Collaborating A B A and B have a Joint Venture Shell Conoco Phillips Energy Technology Ventures NRG 24

IoT Major contributors Technology v. Oil and Gas Companies Top 12 Technology Companies This chart shows the patent filing distribution between the top 12 Oil and Gas companies and the top 12 technology companies. Clearly, the Oil and Gas companies have a lot of patents in the IoT field, and the technology companies have good share of their patents with applications in the oil and gas industry. Technology, 574 Oil and Gas, 1358 Top 12 Oil and Gas Companies The filings for the technology companies reflect only the patent documents that specifically mention use of the technology in Oil and Gas industry. Such documents may be even classified in Oil and Gas patent classes. However, the actual number of IoTrelated patents for these companies may be much bigger. There might be patents that may be applicable in Oil and Gas industry but do not mention specific applications Top 12 Technology companies Cisco, Honeywell have specific IoT hardware and software solutions for the Oil and Gas industry Microsoft, IBM have software-based IOT solutions for the Oil and Gas industry Microsoft, 111 Cisco, 95 IBM, 197 GE, 36 Accenture, 33 SAP, 25 Renault, 18 Siemens, 14 Airbus, 12 Xact Inc, 12 Honeywell, 10 General Electric, 11 Top 12 Oil and Gas companies Schlumberger, Halliburton and Baker Hughes have been focusing on IoT implementation, and thus have a lot of patents Halliburton, 297 Schlumberger, 510 Chinese companies like CNPC, Sinopec have recently entered the IoT patent space and are gaining in patent strength. Baker Hughes, 174 CNPC, 104 Weatherford, 55 Rockwell, 46 Shell, 44 Cameron, 27 Chevron, 26 Evolution Engineering, 25 Sinopec, 22 BP, 28 25

IoT Major contributors Top 12 Technology companies Top 12 Technology Companies This chart shows the patent filing distribution between the top 12 Oil and Gas companies and the top 12 technology companies. Clearly, the Oil and Gas companies have a lot of patents in the IoT field, and the technology companies have good share of their patents with applications in the oil and gas industry. Baker and more digitized. Top 12 Oil and Gas companies Hughes, 174 Cisco, 2. If there are any off the shelf products GE, 36 that these technology companies offer such as an analytics module Honeywell have CNPC, 104 Cisco, 95 Schlumberger, specific IoT etc., O&G companies save a lot of upfront Accenture, investment 33 in terms of both cost and time which is critical in Halliburton and Weatherford, hardware and today s scenario. Baker Hughes 55 software 3. These technology companies are early have been solutions for SAP, implementers 25 of this technology compared to O&G companies focusing on IoT Rockwell, and 46 the Oil and the Gas innovation cycle in IoT is shorter for Renault, these technology 18 implementation, comapnies. Microsoft, 111 Halliburton, industry and thus have a Shell, 44 297 Siemens, 14 BP, 28 lot of patents Airbus, 12 Cameron, 27 Microsoft, IBM have software-based IOT solutions for the Oil and Gas industry IBM, 197 Technology v. Oil and Gas Companies Technology, 574 Xact Inc, 12 Honeywell, 10 General Electric, 11 Oil and Gas, 1358 Top 12 Oil and Gas Companies Schlumberger, 510 Chinese companies like CNPC, Sinopec have recently entered the IoT patent space and are gaining in patent strength. The filings for the technology companies reflect only the patent documents that specifically mention use of the technology in Oil and Gas industry. Such documents may be even classified in Oil and Gas patent classes. However, the actual number of IoTrelated patents for these companies may be much bigger. There might be patents that may be applicable in Oil and Gas industry but do not mention specific applications O&G companies should consider off the shelf products before investing in these technologies mainly for the following three reasons: 1. Most of the top technology companies identified are well established players and they have several tried and tested security algorithms, which is one of the many challenges that O&G industry will face as it gets more Chevron, 26 Evolution Engineering, 25 Sinopec, 22 26

IoT Top technologies User Interface solutions providers: Microsoft Cisco IBM Emerson Sensors solutions providers: Rockwell Automation Siemens ABB Security, 196 User Interface, 745 Security solutions providers: Microsoft Cisco IBM Sensors, 2152 Robotics, 135 Controllers, 2783 Robotics solutions providers: Alstom Liquid Robotics National Oilwell Varco Azo Robotics Controllers solutions providers: Rockwell Automation ABB Siemens Emerson 27

IoT Technologies in which top assignees are filing This graph shows the filing trends of the Oil and Gas companies versus the technology companies in the 5 technology areas. The filling interests of these two types of companies in the technology categories over the years can be deduced and compared from this graphic. 1 1 2 1 8 6 9 9 10 11 20 10 11 8 12 31 17 15 18 14 19 16 14 12 18 14 21 11 20 37 18 7 19 15 21 17 18 21 28 14 24 11 19 33 22 12 11 3 5 7 11 10 8 2 3 1 8 13 10 2 Robotics Sensors Controllers User Interface Security IBM, Cisco lead in Sensors and Controllers category Technology Companies IBM, Microsoft and Cisco lead UI and Security 3 1 1 2 1 1 Robotics 27 22 31 26 22 24 43 20 32 22 34 70 38 27 12 5 8 11 12 10 16 11 17 4 8 20 13 5 3 1 4 2 3 6 2 1 2 6 6 2 2 3 3 2 2 2 2 1 2 1 Sensors Controllers User Interface Security Oil and Gas Companies Halliburton filed for 15% of its patents in 2012 alone 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 The Oil and Gas companies are focusing primarily on sensors and controllers, whereas certain technology companies are focusing equally on software solutions. Integration is possible only when collaboration takes place. 28

IoT Technologies in which top assignees are filing 8 402 135 36 20 2 231 81 17 121 68 14 4 3 24 80 1 32 30 4 2 1 12 37 25 7 1 59 82 98 39 Schlumberger Halliburton Baker Hughes CNPC Weatherford Rockwell IBM In Robotics, Oil and Gas companies tend to partner with other companies like Liquid Robotics to develop technologies 2 30 37 74 26 1 33 38 48 15 1 7 24 3 11 14 23 9 7 1 20 1 Robotics Sensors Controllers User Interface Security The technology companies seem to have better User Interface and collaboration techniques that the Oil and Gas companies can benefit from Microsoft Cisco GE Accenture SAP The Oil and Gas companies should collaborate with the technology companies to acquire the security technologies in IOT 29

IoT Entry-Exit Analysis Technology entry and exit analysis Internet of Things Row Labels 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Grand Total Schlumberger 510 Halliburton 297 Baker Hughes 174 CNPC 104 Weatherford 55 Rockwell 46 Shell 44 BP 28 Cameron 27 Chevron 26 Evolution Engineering 25 Sinopec 22 Precision Energy Services 20 FINANSOVAJA KOMPANIJA TS KOSMO 19 Exxon 18 CNOOC 16 BOMCO 15 National Oilwell 15 FMC 14 Complete Production Services 13 Daqing Petroleum Administrative Bureau 13 IBM 197 Microsoft 111 Cisco 95 GE 36 Accenture 33 SAP 25 Renault 18 Siemens 14 The Chinese companies CNPC, Sinopec, CNOOC and Daqing have entered late in the market, but are recently quite active This chart shows the presence of various companies in the Internet of Things for Oil and Gas technology area. The colored bars represent the time at which a particular company entered into the area and when it slowed down their activity. 30

Methodology Company Identification Companies active in Oil and Gas technologies were identified Other companies that aid the Oil and Gas companies were identified Patent Extraction Patents assigned to the companies identified in Company Identification step were collected from commercial patent databases Search strings specific to oil and gas technologies were used to capture patents of companies that are also active in other domains Categorization The International Patent Classification of the extracted patent set was analyzed, and categories were assigned to these patent classes The categories were then assigned to three domains: Oil and Gas, General, and Disruptive Technologies 31

Methodology Statistical Analysis The patenting trends of the collected and categorized patent documents were analyzed Visuals were created showing the trends, and insights were generated Disruptive Technologies The focus of the study then shifted to analysis of Disruptive Technologies The filing trends in Disruptive Technologies were studied to identify which type of disruptive technologies show interesting trends Analysis - IoT One of the Disruptive Technologies -- Internet of Things (IoT) -- was chosen for further analysis Patenting trends of Oil and Gas companies and other technology companies were identified and studied further 32

Citations 1. http://www.ogj.com/content/dam/ogj/ibmevent/presentations-docs/2%20allmendinger%20%20- %20%20Capabilities%20Offered%20by%20the%20Internet%20of%20Things.pdf 2. http://venturebeat.com/2012/03/28/5-trends-in-oil-gas-technology-and-why-you-should-care/ 3. http://www.lukoil.com/materials/doc/documents/global_trends_to_2025.pdf 4. http://www.economist.com/news/leaders/21606829-hooking-up-gadgets-web-promises-huge-benefitssecurity-must-not-be 5. http://www.api.org/policy-and-issues/policy-items/safety/homeland-security-policy-paper 6. http://www.lawfareblog.com/2015/01/on-cybersecurity-for-the-internet-of-things/ 7. http://www.energyglobal.com/upstream/exploration/07072014/oil_and_gas_cybersecurity_866/ 8. http://www.rigzone.com/news/oil_gas/a/136449/oil_gas_technology_trends_to_look_for_in_2015/?all=hg 2 9. http://www.researchandmarkets.com/reports/1589944/oil_and_gas_industry_prices_and_value_chain 10. http://www.cisco.com/web/solutions/trends/iot/oil_gas.html 11. http://www.lukoil.com/materials/doc/documents/global_trends_to_2025.pdf 12. http://blogs.sap.com/innovation/industries/top-challenges-facing-oil-gas-industry-conquer-02050223 33