Oil & Gas Pitch Podcast: Episode 23

Catalyst Energy Services’ Chief Operating Officer, Seth Moore, joins Warren Spiwak on the Oil and Gas Pitch podcast to discuss Catalyst’s VortexPrime™ product and its impact on emissions, safety and waste stream reductions. They also cover the significant financial impact this technology has on fracing operations. 

Listen to their discussion here: 


https://oilandgaspitch.com/Catalyst-energy-services-on-oil-and-gas-pitch-ep-23/

Relevant links:

Seth Moore

https://www.linkedin.com/in/seth-r-moore-1b02908/

Warren Spiwak

https://www.linkedin.com/in/spiwak/

OGGN 

https://www.linkedin.com/company/oilandgasglobalnetwork/about/


Transcription:

Introduction:

In a time where the phone never stops ringing, and cold calls and spam emails seem to pour in endlessly and there is always someone that wants to buy you lunch for the chance to make you a client. This is where real salespeople pitch solutions to real problems. While we snap out the BS. Welcome to the Oil and Gas Pitch Podcast, video host Warren Spiwak.

Warren Spiwak: 

Welcome to the Oil and Gas Pitch Podcast. We’re here at Greentown Labs. Thank you, Greentown, for sharing this cool facility with us. This is the home of energy transition. If you’re ever in Houston, you wanna check it out. Uh, several entrepreneurs work out of these offices and, it’s just a really great, great environment. Excited today for today’s episode. OGGN and Catalyst have just kind of joined forces. There’s some really cool products that we’re gonna get into today. It’s my first time meeting Seth. And I wanna say, like this interview is gonna be very, very ESG focused with some ROI and supposedly we’re gonna get into some safety. So, uh, Seth, you have a lot to cover and I, I hope I do a good enough job to get this kind of condensed for us, but thank you for being here.

Seth Moore:

Well, thank you, Warren. Appreciate you having us. I look forward to the discussion around the topics that you mentioned, and I’ve enjoyed our relationship with OGGN and look forward to that, but you guys have been great.

Warren Spiwak:

Something I wanna talk about – you are the co-founder of Catalyst Energy Services, and you’re also Chief Operating Officer?

Seth Moore:

Correct. I have a partner CEO, Bobby Chapman, Bobby’s an industry veteran, done a lot of great things. He’s an inspiration for a lot of us. He’s the CEO. And then Mike Morgan, our CFO, he’s worked with Bobby for years. Bobby and I have a relationship for many years. So it’s kind of Bobby assembled a really, we like think a great team, and we have a great group working with us. It’s fun.

Warren Spiwak:

You know, Mark LaCour LaCour was telling me before this episode, he said, “Warren, what do you know about fracing?” And I said, “really nothing.” You know, like I pretend I, I pretend like I know. He said, “Well, this is gonna be a huge opportunity for you.” And, and I just want to kick off the episode really asking you as someone who’s never been in the field. I’ve never seen it really going on. Maybe draw a picture for me of what a typical fracing site is. Maybe some of what these operators are doing.

Seth Moore:

Sure.

Warren Spiwak:

And, and then we’ll get into this kind of unbundling, what you guys are bringing to the table.

Seth Moore:

That’s a great start. Warren, fracing is a very people and equipment intense endeavor. You know, we come in after the well has been drilled. So the operator gets a rig. They, they drill the well, drill it to their target and then to enhance the recovery of oil and gas from that well, fracing is deployed to the site and it’s kind of what the name suggests. We frac the rock or crack the rock or break the rock. And, and we’re basically creating channels for that oil and gas to flow more easily to the surface and speed up the recovery and, and enhance the total recovery. So it’s a process that’s used to do that. I’ve been at this a long time, as you can probably tell it used to be not quite so intense. And now it’s a lot of equipment, a lot of people, a lot of commodity items that get used and pumps such as sand and, and different types of profit. In a nutshell, that’s what fracing is about. 

Warren Spiwak:

As you say that, I just keep imagining line items that have been added as you get more regulations and things change.

Seth Moore:

Yes. Fracing has certainly come under a lot of scrutiny in the, in the last years. In the past, it’s, it’s made, you know, taken a few hits from, from kind of public opinion on what it is, but we all realize we need energy and it’s a method for us to get economical energy. It’s a process that allows that.

Warren Spiwak:

So, this is great because I think oil and gas operators need to be paying attention to this conversation we’re about to have. It’s also just ground floor level kind of information. I’d like to just know, what was your mission when you formed this company? What was the vision? And then that way we can all kind of be ready for what, what we’re about to get into.

Seth Moore:

Sure. So it’s a tug of war, right? So you look at the process of fracing today. There’s kind of the major cost buckets. There’s all that equipment that I talked about. That’s one of the big, the cost of that is from a capital perspective. Mm-hmm, <affirmative>, it’s very capital intense. There is the cost of just the operating expense, the fuel and all that supports the, the process itself. So when we started Catalyst co-founder and CEO, Bobby Chapman, and Mike Morgan, our CFO, we started it with the idea of how do we change that equation a little bit. How do we make a difference? That’s not a one or two or 3% difference, but a leapfrog in, in technologies and maybe something that is, it truly changes the, the equation. So that was the start of it is like, how do you balance that need for this capital intense – all this capital equipment – and also being able to make a return that justifies the effort.

Warren Spiwak:

Nice. So, yeah, with that, I feel like new technology, I know you’re gonna get into efficiency and just something I heard you say that I think really is exciting to get into is you’re not talking about like just single digit savings. We’re gonna get into carbon footprint. And with that, I say, everybody, hang on tight. Let’s kind of dive into this and I’m ready to see what Catalyst is doing. And then also see how you guys kind of becoming part of the equation really makes an impact for operators. 

Seth Moore:

Sure. Great. So, part of the part that we talked about earlier is equipment intense on a typical frac site, we may have 20 pumps. These are large, very large, 2,500 horsepower engines, 12 cylinder. 

Warren Spiwak:

It sounds like a gas guzzler,

Seth Moore:

<laugh> They love, they love fuel. Yeah. You know, to the tune of 35 plus thousand gallons a day of diesel consumption on a day, maybe more depending on where you are, depending on the type of work.

Warren Spiwak:

There’s no cost, there’s no Costco to save your money. No, there’s an expense – a serious expense.

Seth Moore:

It’s a lot of, a lot of fuel, very fuel intensive. And when we looked at that, it’s like, okay, how do we take something? And we can cut that, reduce that number a little bit. That’s a big, you know, big number back in 2017 when the concept came forward, you know, when we came up with the concept fuel prices, weren’t quite, they what they are today. We look at liquid fuels today, what diesels cost and, and, you know, there’s a little bit of break in the industry when we’re using fuel in the field. But I was on the interstate driving the other day. I saw diesel for $4.06 a gallon. That’s right. You know, it’s amazing where the price is gone. Mm-hmm, <affirmative> So, big expense. It’s a big bucket. Part of the operating expense is very large, you know, how do you reduce that? That was the driver.

Warren Spiwak:

Awesome. And so how do you?

Seth Moore:

So I’m glad you asked <laugh> thank you so much. VortexPrime™ is our direct-drive turbine, a hundred percent natural gas fueled frac technology. It’s a military grade era derivative turbine. So if you’re thinking reliability and like keeping planes in the air and protecting troops, you’d be spot on with that.

Warren Spiwak:

And is natural gas something that’s different than what’s already being used in the field.

Seth Moore:

So, so there are, there are some technologies that use percentages of natural gas. There is another technology that uses natural gas to generate electricity then they take that electricity and they power. electric motors. The direct drive advantage is that you don’t have those mechanical losses. We, we directly drive through a drive train, gearing train to get to the pump. 

Warren Spiwak:

Wow. So, so it’s more linear.

Seth Moore:

It’s more linear. It’s agile. It’s a very small footprint, several of the things that, that we really like about it. The big amazing thing for us is the savings on fuel.  Fuel as I said, is one of the bigger, probably close to a third of the cost of completing the well, and the fracturing part of that is fuel related so it’s, you’ve got a big target. Yeah. If you can shave off a bit of it, you’re talking a really big number

Warren Spiwak:

Back to the line items from an OPEX standpoint.

Seth Moore:

Yes. One of the advantages that we really see on the fuel side is that there’s the savings themselves, but the emissions.

Warren Spiwak:

mm-hmm <affirmative>.

Seth Moore:

When you stop burning 30,000 gallons a day of liquid fuel or, or some high percentage of that, there is a significant emission reduction.

Warren Spiwak:

Yeah. I read somewhere in my notes here. It just shows that it can be 30% plus in this case. I mean, that’s a tremendous number. That’s a third, if I’m, I mean, I have eighth grade math, but right. Close to a third.

Seth Moore:

Yes. Plus we’re excited about what that means for the communities we live in and, and looking at, how do we, you know, how do we be good stewards of our portion and, and our spot that we play in this overall equation. One of the things about this that’s really exciting is we have the ability to take gas that would go to the flare boom, and be flared to get rid of. We can take that gas and utilize it to fuel this. So it’s really taken a waste product that otherwise isn’t benefiting the industry or, or anybody in really in any way, and take that and, and use it to, to fuel this, this technology.

Warren Spiwak:

Incredible to think of that, that people are just burning off fuel, just because there’s no other way to utilize it. And you guys have a way to actually take it and make it do something.

Seth Moore:

Yes. We’re excited about what that can mean, you know, and the financials of that, right. You’re taking a waste product. It’s literally being burned and utilizing that- that’s the direction we’re heading. Currently, we’re using compressed natural gas. It’s the first step in this technology, you know, roadmap that we’re on, but we’re making those innovations now working with other partners to get that to the point where we can deploy that in the field. So I’m excited about what that means.

Warren Spiwak:

Incredible.

Seth Moore:

So Warren, one of the things that’s really exciting is the footprint reduction. We’ve been able to take all this horsepower and concentrate it down. We’ve built it on a smaller frame, smaller unit. So we have 55% reduction in footprint required. We work a lot in West Texas. That’s not always such a big issue, except operators have to build pads to, to take care of these large frac fleets. We have reduced the amount of pad size that switches the area that we operate. We’ve reduced the need for that to be so large. And there’s areas in the world where real estate’s at a premium, you may be fracing on the side of a mountain, or you may be close to someone’s neighborhood, close to someone’s backyard. So this smaller footprint has an advantage.

Warren Spiwak:

You know, it’s like, I look at this slide and I, I can’t help but think what a challenge it must be like in your first calls, someone that, when the numbers are too good, it, it works against you, right? Yes. Yes. It’s like people sit down and they want to think like, no, this can’t be real. But what I’m reading here is that a company could go from in a conventional space, 20 frac pumps to actually engaging with you and moving that down to eight turbines. Yes. And that just seems like being my sales background a lot of times when, when you are so competitive and you’re making such a, a big impact, it almost feels like we have to work twice as hard to get the message out.

Seth Moore:

Right, right. It it’s one of those things. You almost have to see it. We talk about it. Yeah. And then it’s kind of hard for people to visualize it. You’re right. And it’s, what’s our kind of our mindset, right? We’re used to seeing all this equipment and to be able to reduce that and do the same amount of work is incredible.

Warren Spiwak:

And I would also imagine, as I look at this and here it is a 55% reduced fleet footprint, I would also think that there’s many boots on the ground that are touching what’s going on here. Mm-hmm <affirmative>. And so, in a way it’s sometimes a collaborative decision for them to make a change. It could be difficult. Yeah. Cause you’re trying to get several personalities to see what they should be doing and not what they’ve been used to doing.

Seth Moore:

Yes. You have to have buy-in and I mean, Catalyst Energy Services, we’ve got a great group. That’s really bought into the vision. They see the benefits, really proud to, to be on this team and have the team that we do. You’re right. It comes down to boots on the ground, the support that you have at that level, we can, you know, you can have great technology, but if you don’t have a great organization to lay it on and, and have them use it, it doesn’t mean a lot. So that’s been a, you know, a big benefit. One of the things that they see immediately, and this is, you know, you get, I came up through the field. So I, I kind of remember those days and, you know, we have to rig up eight units as opposed to 20. Yeah. That’s a very intense, that’s a calorie, it’s a caloric workout, right. When you’re rigging up pumps, a lot of heavy pipes and hoses and equipment, and it’s spotting equipment. It’s a very, in very dynamic time. And so now we’ve reduced that. So these guys are like, Hey, I’ve got less, less pieces of equipment to hook in.

Warren Spiwak:

Probably makes your day a little brighter.

Seth Moore:

It, it, it does here in the field. It does. And you know, a typical move to, to rig down and rig up a traditional fleet of 20, maybe 24 hours, maybe 36, maybe more just depending on, you know, the, where you’re going. Mm-hmm <affirmative> and the setup on each pad is a little different. We think we can do a move in, in eight hours, eight to 12 hours. So there’s a big reduction in move time.

Warren Spiwak:

And here it is, I’m not a math, I’m really not. But when I’m listening to what you’re saying from a production standpoint, I’m thinking where some people need two, three days of runway to just get started. You’re saying that you can hit the red button right away in eight hours potentially. Yep. And you’re up and running. That’s right. That has to mean something. I don’t, I don’t know what, I don’t know which line item that affects, but it sure seems like from a revenue standpoint, it gets you making money quicker.

Seth Moore:

It does. And it benefits the operator. The one thing that none of us can buy is time. Right. So if we can do more work in the same amount of time, that’s beneficial to not only us, but our customers as well. And you know, there’s a lot of support companies that, that support this frac as well. So they, they benefit from that as well. The other thing that that’s real neat about this is from a safety perspective is, you know, one of the most dangerous things we do is drive and, and that rig up that I talked about – that rig up and that rig down. So we’re driving less, man. That’s from a risk perspective and you, your insurance background, you, I’m sure you can relate to that.

Warren Spiwak:

Yeah. The Permian basin is just known for constant accidents and, and it drives the cost across the board. And then on top of that, from a labor perspective. Yeah. Every injury costs you not just production, but it costs you money. Yeah.

Seth Moore:

It keeps us up at night. And the reduction of that risk just due to less frequency, less intensity, there’s a value not only to us, but our industry as whole. I think, you know, if we can lead the charge in that, that’s something we don’t take lightly.

Warren Spiwak:

Yeah. It’s a, it is, it’s a big, it’s like the difference between somebody riding a motorcycle every day and just for fun on the weekends, it’s a big difference.

Seth Moore:

It is a big difference. Also, and I didn’t think about it. I’ve got some, some young teammates. I keep Bobby, Mike and I grounded on what matters and what matters to them. And, and it was one of the ladies that’s on our team. And she says, you guys are gonna be rolling through towns and school zones less, and you’re gonna be tearing up less highways. And, you know, we didn’t think about it at first and I’m going back a few years, but now we do, we realize that we’re gonna have less of an impact on the communities within which we operate, which I think is a great benefit.

Warren Spiwak:

You know? Yes. I think anytime anyone in the oil and gas industry proves to be good for the community, it goes a long way. And of course, what we’re talking about is really safety. You know, like I, you know, haphazardly, I’m saying, yeah, it’s gonna save you money. It’s gonna like allow you to be more productive because your team is safer. But really it is about the people. It is about the community. It’s, I mean, the most important asset to any business are the teams and the people that they serve, you know? I love this. And it, it says a lot. I feel like we, we just kicked this thing off and we’ve got a couple items here that are hugely impactful for the companies that you guys serve, but more importantly, a message that is good for how business will go for 2022, right. For the people that choose to look into this.

Seth Moore:

Sure. You mentioned earlier, emissions. We talk about emissions. One of the things that I like to talk about that goes along with emissions is waste stream. As I mentioned earlier, it’s a very equipment intense business, burning diesel. You have periodic preventative maintenance that occurs to be able to keep that equipment operating at its most reliable, you know, output. And when we look at a fleet that’s 20, you know, envision that picture we had of 20 on a location and, and every 250 hours, you have to do something every 500 hours. You have to do something every thousand hours. There’s some level of maintenance, fluids, and filters and things that are going on. These turbines are much more simpler. There’s less of them. So that’s good. It’s hard to think of a turbine as being simple, but, but it is. Yeah. And you know, up to 25,000 gallons reduced waste, wow. Oils and fluids, that’s big, that’s a big impact. Over 16,000 pounds of waste reduced. That’s not going into landfills in the forms of filters and the packaging that they’re in. So we didn’t necessarily start with that in mind, but as we got into it and we started seeing the other benefits, the secondary and tertiary benefits of it like, wow, this is, this is a big, it’s got a big impact.

Warren Spiwak:

It is. I mean, looking at this slide again, it’s like going back to community, this goes beyond just, you know, whoever that 25 mile radius of the project is, this is for mother earth. Like that’s right. You, you’re making a difference in a big way that affects all of us regardless of our zip code.

Seth Moore:

Right. Of course, you know, we love the fact that every pound we reduce and every gallon we reduce has a financial benefit for us cause there’s, it takes people to, to make that happen. You know, it’s very, I guess it’s an intense, I use that word a lot. Yeah. Because it is, it’s a, it takes a lot to keep traditional fleet up and running and doing the, the work that it does and keep it operating at its prime. So we like the fact that there’s a big, you know, a waste stream reduction that’s significant and impactful.

Warren Spiwak:

Immeasurable, measurable. That’s the best part is that when it comes to, you know, people sometimes forget that all of us who support the oil and gas industry, we have kids and we want our kids, kids to have a wonderful life.

Seth Moore:

I’ve got grandkids now.

Warren Spiwak:

Oh, dang. See, you got grandkids. Yeah. The point is, is that, you know, we want to sustain mother earth. And when I look at this and I, from an operations standpoint, yes. Money and, and what the stockholders think and all that matters. Right. But we’re also at a point where, you know, this is kind of, I’m haphazardly, joking, but it’s like, it used to be where someone could be smoking cigarettes, but not invest in Philip Morris or they invest in Philip Morris, but they are completely against smoking. The way we all are now is very conscientious. And I think that from a leadership standpoint, seeing something like this, how would you not explore it? Why would you not want to do a discovery to make an impact for your oil and gas operation?

Seth Moore:

Exactly. Right. We realize we’re probably, you know, going forward, we’re all being measured with a different yard stick. Yes. And this is something we take pride in the fact that we’re able to, to add a benefit. We understand that the missions is big. We can’t downplay that. We understand that taking the something that’s being in some cases being just flared off and, and utilizing that that’s a great benefit as well.

Warren Spiwak:

On this slide. I just wanna get into this real quick, which is I see the, you have the image of the water and it shows a reduction of 170,000. Like what is that?

Seth Moore:

The 170,000 water bottle note here is to show what that reduction in waste stream equates to. We had some great people that put that together and, you know, kind of in terms that a lot of us can understand. Right. I mean, try to make it relatable. It’s a visual. Yeah, yeah. A visual that, what does this mean? And so, yeah, it’s a significant, significant reduction. So Warren. It’s great. You know, we we’ve discussed a lot of the emission savings and, and the efficiencies of Vortex.

Warren Spiwak:

And I feel like we talked about the environment. I mean, I mean, we’re covering something that to all of us, no matter what industry you’re in, it matters.

Seth Moore:

Yeah. Who doesn’t want that to benefit, have something or use something that benefits the environment. We’re proud of all of those things. We’re pleased with what we see and with VortexPrime™, but one of the other things is safety. And I look at our safety performance. You know, when you, when you set up a company, you get, it’s kinda like a blank sheet of canvas, right? You get to look at how you want to do things. And from a technology perspective, we looked out and we saw what was available and looked at what we wanted to do and what kind of, what compared and the same from safety. We brought human performance in kind of as a foundation for our safety from day one, great team that leads that and put that together. And, you know, everybody wants to touch wood when they talk about safety, but we’re, we’re 30 months with, with no, we’re accident free again, did I mention that this is equipment and, and labor intense endeavor. So we’re, there’s

Warren Spiwak:

A lot of [inaudible]

Seth Moore:

A lot of light going on. So we’re so proud of our team for their being conscious of what we do. And, you know, looking at that, this VortexPrime™, it supports that, uh, just from some of the safety features that we have on that allow us to, you know, have less rig up and less trips. It’s simple. It’s, self-contained, I’m not sure I talked about that. It’s a

Warren Spiwak:

Real, self-contained,

Seth Moore:

It’s fundamental difference really? Between what some other technologies are. We back in, we hook fuel to it. We hook it up to the wellhead. We take some fluid coming into it and that’s it. There’s no, you know, we don’t really need anything that totally supports itself. Each unit is self supportive. So are you, so there’s some simplicity there which drives safety, right? Yeah. They, there they go hand in hand.

Warren Spiwak:

Well, you already have this huge reduction in like commuting and you have less of the really dangerous stuff happening. Right. But going back to this self-contained part, are you saying that the companies that aren’t accessing a technology like this, or don’t have a VortexPrime™, they’re doing it a different way. That’s not, self-contained, they’re having to like use external source.

Seth Moore:

Some of those require external power from some source, either a external gen set, uh, to power to give electricity. We carry all of that on board with us. So it’s, it’s, it’s 100% self-contained, which is exciting. And we, we built it when we, when we crafted the idea for the product, that was one of the things we wanted. We wanted to be able to go anywhere with it and it be self-contained.

Warren Spiwak:

Mm.

Seth Moore:

Obviously we, you know, we’ve gotta have fluid coming in and we’ve gotta account for fluid going out and we’ve gotta have fuel. But aside from those three components, we can, we can go operate anywhere. So it’s pretty, yeah. It’s pretty amazing. It kind of takes the backseat a lot of times to emissions and all, some of the other, you know, benefits of the technology. But I’m excited about that point.

Warren Spiwak:

Yeah. It’s like this whole interview is like us talking on one hand ROI, right? So everybody, you know, if you’re in business to make money, you think ROI, but then we have this focus on ESG, which is take care of your people, take care of the earth, right, be, be environmental. And we’ve spoken to that. And it’s like this option of what Catalyst is. And an operator basically opening this chapter into how they operate is choosing both. Again, I’m not an operator, but I would think this would be something I’d wanna explore right away.

Seth Moore:

We’re ready. Yeah.

Warren Spiwak:

Yeah. <laugh>

Seth Moore:

We’re ready. You’re right. We realized early on that we had to be very CapEx competitive there’s options out there where, you know, maybe the economics aren’t quite as good as they need to be for investment and sustainability. We also realized that from an OpEx perspective, we had to be very competitive and we know we’ve hit on a, a formula here that, that satisfies both of those, the economics from a systems perspective to the operator, the economics for Catalyst and the OpEx that is beneficial to both parties as well. We’re excited on that.

Warren Spiwak:

Yeah. The, uh, you know, the safety element too, I just think from a culture standpoint of, you know, when you imagine an employee waking up that morning and putting on their boots, it makes a difference to know that there is these ancillary things that are quite important. Right. Right. I mean, they’re, they’re vital for your livelihood. And it feels like the people that incorporate this into how they frac would actually be really doing something quite loving for their people. Sure.

Seth Moore:

Yeah. Art field operators probably don’t put their boots on in the morning and think a lot about the CapEx and the OPEX. Yeah. They do think about the operation and the safety and what what’s on my plate today. And that’s right. This technology really gives them a lot to be, to be excited about one thing, Warren, that yeah. That comes up sometimes is we’ve heard well, great. You guys have this great new technology. You’re a new company. You know, let us know when you got some experience under your belt. Well, we’ve been around for going on four years now. We’re just a few months shy of four years. We’ve got a team that’s put together a, a great track record. We’ve got a slide here and is showing some stats on it. And these stats are a little bit dated, but we’re over 9,000 stages that we’ve completed. Wow. So that’s a lot of work that’s, we’ve put behind us.

Warren Spiwak:

Well, and what I love too about your company is it’s not like you just make some moves and y’all quit. You guys are constantly innovating. And so these clients are being able to benefit from all this research and the development of these solutions. Going back to the idea that there’s more products hitting the market that you guys have designed.

Seth Moore:

Yes, exactly. We’re constantly evolving. We’re looking at, at innovation at every step we’re guys that like to look at, how do we get better? How do we continually get better? What are the problems that are out there? And we, you know, at times you hit a bottleneck and say, how do I fix that component? And how do I fix the next component? And that’s part of innovation. That’s part of the challenge, but it’s also part of the reward for a company like Catalyst Energy Services. How do you, you gotta have a team that appreciates that because it’s not always easy. Right? Doing the same thing over and over is easy. But truly looking ahead and saying, okay, how do we take something and make it better?

Warren Spiwak:

Sure.

Seth Moore:

That’s the challenge. And we’re really blessed to have a team that, that appreciates that.

Warren Spiwak:

So now I kind of wanna bounce off of this slide and really dive into some just different questions that I have that you are experiencing in the marketplace. Cause a lot of times in my interviews towards about the three quarter mark, I ask about misconceptions, right? Because a lot of times companies are challenged with the bias of the buyer. Like basically a buyer assumes that something’s gonna cost more than what it’s gonna save or they assume there’s a long onboarding runway required. So my question for you is let’s talk about the average operator that right now does not know you, you pull up into their parking lot. You walk into this office and you have somebody who’s willing to listen to you attentively. What are some of the biases or misconceptions that they have that you find in your team finds when just wanting to share this message and for these people to really open the door to something that has several components to it, that would make it great for a company.

Seth Moore:

Great question, Warren and you’re right. It’s very, there are biases out there we’ve heard before. Well, you guys are new, you know, so come back when you’ve got more experience, we heard that very early on when we, we were in the development stages and my team likes to say, we were selling a dream back then we didn’t have a viable, you know, we didn’t have a product. We were, it was in development. We’ve gotten beyond that. The, the stats show that we’re, you know, a lot of experience for a, for a young company. The other thing is, is I think a bias is that, well, I can’t afford it. You’re offering me the, the sun and the moon. But, but I can’t, I can’t afford it. When in reality we’re talking about being able to save them significant money, maybe, maybe $2 million a month savings. Wow. We will enjoy some of that savings with ’em the benefit of that. But the overall system cost will go down.

Warren Spiwak:

That’s incredible. 2 million a month.

Seth Moore:

Yes. It may be more well, we talked about the, the flare gas, that’s kind of the holy grail. If we get to the point where we’re, we’re literally taking something right before it’s being burned for no reason, I’ll say sure. And I know that’s a, it’s not super accurate, you know, they have to, they have to get rid of it some sort of way. Sure. But, but if we can take them reuse it, reuse it

Warren Spiwak:

Or avoid it from being just thrown out.

Seth Moore:

That’s right. Avoid it from being destroyed. Yeah. There is a, a significant even increase above that. So we’re talking about changing the, the equation. Yeah. I mean, this is game changer for sure. And I know that term gets yes. Gets overused maybe, but when you can take that cost and reduce it by a couple of million dollars a month, that’s, that’s significant,

Warren Spiwak:

You know, I, I met you today and I’m thinking, okay, I’m gonna, I know this was regarding fracing. I knew there was kind of a money element to it, an environmental element to it. And then you throw in safety. And I would imagine that yes, if you’re a community that you find out that the local operator is gonna go this route, wow. How great to have instead of 20 turbines going, is that what they were.

Seth Moore:

20 units, right. 20

Warren Spiwak:

Units rolling. You can actually do eight,

Seth Moore:

Eight turbines.

Warren Spiwak:

That’s right. Yes. And you’re still having the same production. It’s a real powerful thing. Okay. But from an ESG standpoint, what, I’ve not, you know, I’ve been around the oil and gas industry more so like with leadership. And I hear a kind of word on the street and it’s interesting where a lot of executives that are supposedly like in control of what ESG model is for their company, they always tell me anyway, that they would love to meet other ESG people to kind of hear what they’re doing and kind of, it’s a very new thing. And there’s always kind of different ideas and things that people are learning constantly. And you almost just wanna know the word on the street, what are your counterparts doing? So my question to you is from an ESG standpoint, how does a operator kind of share this message? Like if they do leverage your company and make this part of their operation, where does the ESG component come in? How do they report it? How do they share it with the world?

Seth Moore:

We work with operators very small, to very large. And I think probably the way they share it and maybe the intensity that they want to share, it is probably different among that group. I think it’s very easy for them to work with us and see, they’ll see the saving it’s real data. You know, it’s real data that [inaudible] is generated and they can show that to whatever audience they want, whether it’s through their board or through their media. Sometimes just the local talk, you know, with some of the, the guys of, hey, we, we used this VortexPrime™ technology and we save fuel or, or we had reduced, you know, traffic or whatever it’s, uh, ESG takes on a different meaning to different people. Right? Yeah. Based on your, kind of your perspective.

Warren Spiwak:

So, no, I love that. And so we kind of close out the interview. I do want to give everyone an opportunity to know how to reach out to you or your company and really what, what is the best pathway for them to learn more and possibly set a meeting with you?

Seth Moore:

See, yeah. The, the best way for an operator to get in touch with us is through our website. Of course, you know, we, we have links there that can, we will get the right person, will get in touch with them. And we would love the opportunity to have a more in-depth discussion about some of the other benefits that we didn’t talk about today. I’ve got a team and that’s what they do. They’re in the starting block, so to speak. They love it – that’s what fires them up every day – to go talk about this. Yeah. Probably been beneficial to have had one of those guys here, but it was..

Warren Spiwak:

No.

Seth Moore:

It would’ve turned into a tech talk only.

Warren Spiwak:

I didn’t want to do that. I really think the fact that this here it is, it’s a company you mentioned, you know, four years running. You guys really had an incredible mission, which is to make an impact on several different silos that challenge these operators. I think that was the message that was important to me to get out. You did a great job. Thank you. Thank you. And so before we kick off and I say bye to everybody, any last thing you wanna share before we go.

Seth Moore:

Stay tuned. This is just the start.  We look forward to coming back and talking about other advancements in technology and innovation.

Warren Spiwak:

Appreciate it. And I hope that the folks listening – that you consider this, it’s a very empowering thing to open up, not just something that’s good for the environment and good for ROI, but safety. I mean, for your teams, your culture, and with that, I will, uh, encourage you to reach out. I’ll have all of the, uh, contact information for Seth and Catalyst in our show notes.

 And thank you for tuning in. Thank you so much, Seth. I appreciate you coming.

Seth Moore:

Thank you, Warren. Thanks. Thank you so much.

Outro: 

Check us out next week for another witty and sometimes spicy episode of the Oil and Gas Pitch podcast, a production of the oil and gas global network. Learn more @ oggn.com.


About Catalyst Energy Services

Catalyst Energy Services started with the idea that technology is the key to the future. We take the stewardship of preserving our world’s resources seriously and are dedicated to constantly innovating our sector of the energy industry to achieve cleaner, safer, and optimized production. Built by an accomplished executive team with over 100 years of hands-on experience in the field, engineering, and business management, we are an emerging stimulation service company specializing in hydraulic fracturing treatment.

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