The next generation
A Baker Hughes executive feels passionate about mentoring young engineers in the industry.
Rustom Mody, vice president for technical excellence at the Houston energy services company Baker Hughes, attended his first Offshore Technology Conference in 1978 and recalls the experience as “amazing.”
Mody, who joined Baker Hughes in 1987, has won numerous awards for engineering innovation and feels passionate about mentoring young engineers. Mody recently spoke with the Houston Chronicle about his experiences at OTC and the state of the oil and gas industry.
Q: What was your first impression of the OTC?
A: I attended my first conference within six months of starting in the industry, and I was completely awed by the exhibits and the scope of the technical sessions. The OTC is like a one-stop approach to everything. There’s such a wide spectrum of technologies.
I was also impressed by the friendliness of people in the industry. As large as this industry is, it’s pretty tight in terms of people knowing each other.
Q: How has the OTC evolved?
A: The OTC was really growing in terms of participation and number of exhibits from the late ’70s to early ’80s. When a downturn hit in the mid-’80s, attendance fell and stayed lower for years. Participation started picking up again in 2006. The OTC has branched out into multiple regional OTCs, like OTC Asia and OTC Brasil, reflecting growing international participation and excitement in the industry.
Q: What are your favorite and least favorite parts of the OTC?
A: My favorite part is the technical presentations. My least favorite part is that I cannot attend all of them.
My other favorite part is walking down the aisles and admiring the richness of the technologies and the size and scope of the conference. Even after 40 years, it still blows me away. I am blessed to be working in this industry which has done so much in terms of providing energy to the world.
Q: Do any particular events at the OTC, like parties or exhibits, stand out?
A: Companies do a great job of entertaining. It’s hard to decide which parties to go to. To me, the critical piece of OTC is networking, and you can do that at parties. You can also network just by walking around and talking to people.
Q: Can you explain a little about digitalization?
A: Digitalization is synonymous with increasing productivity. This industry is always been very rich in data, in information, but we need to figure out what to do with it. Effectively, I’d say we are a little late, but we are moving aggressively on the digitalization journey.
Today, we’re using the power of digital capabilities to create radical efficiencies and achieve a step-change in our performance. Only 3 percent of oil and gas equipment is “connected” — meaning the data generated is captured and made available for review. We’re reimagining the industry’s infrastructure by connecting software, apps and analytics to industrial businesses, enabling them to operate faster, smarter and more efficiently.
Q: What is the outlook for the industry right now?
A: As long as the price of oil stays between $55 and $65 per barrel, the industry can continue to be innovative and profitable. Price stability is important. U.S. production continues to be a disrupter in the global supply/demand landscape. Recent price stability has resulted in a customer spend forecast that shows solid year-over year growth for short cycle businesses, particularly in North America, which keeps me optimistic.
Q: Any other thoughts?
A: Today, so many young people don’t really know what the energy industry is. They think it is just oil and gas. When I go to campuses and talk with students and tell them about the technology piece, their eyes open up. I have a personal mission to educate young people about the technology side of the industry.