Cautiosystems, A Disruptive Environmental & Energy Saving Technology
Last month, the US Environmental Protection Agency (EPA) announced the US government’s “1st-ever” set of standards to reduce methane emissions. The new regulations were criticized by environmentalist critics as not far-reaching enough.
The Obama Administration proposed new regulations in January 2016 to cut the amount of Methane, a powerful Greenhouse gas about 25X more potent than CO2
The US Interior Department’s new methane rules aim to reduce leaks gradually over the next 3 years by requiring Oil & Gas operators to update faulty equipment and reduce the flaring and venting of excess Nat Gas.
It is part of the Administration’s agenda to fight climate change, which aims to cut Methane emissions from the Oil & Gas industry by up to 45% by Y 2025.
Leaking and flaring of Methane has been shown to have dangerous health impacts on communities near operation, such as headaches and respiratory illness. The practice is also a massive waste of energy.
Several years ago a friend and colleague, John Cannizzo, PhD, a NASA grade scientist with “roots” in the Oil Patch recognized this hazardous waste of energy, and set about to help correct it and much, much more.
So, in Y 2013 John formed Cautiosystems (CS) to provide proprietary monitoring security systems consisting of physical security controls and Information Management Systems to the Petroleum Industry.
John and his development Team created the 1st comprehensive complete hardware and software platform to monitor the Methane hazard in the Oil & Gas, Technology, Security and Protection industries.
The CS Monitoring System is an Integrated System, featuring PRIM (Petroleum Resources Information Management) to the Petroleum Industry, that the Company believes can effectively and economically provide a physical security and control solution at the well site for monitoring, response and operations management.
At the core level CS is a data gathering and processing solution via the Internet (wired, wireless, cellular, or satellite link) to specific receivers and central stations.
This is the 1st true Internet of Things solution for the Oil & Gas industry.
The CS integrated system provide a physical security control solutions and 24/7 monitoring the flow of each individual well in a Crude Oil and/or Nat Gas field effectively and economically.
The Company plans to build the 1st CS Monitoring System in California, and intends it to become the model system to initiate marketing to Distributors as well as directly to Operators and Drillers.
The firm is also focused on the needs of investors of its customers to provide coded Internet monitoring of Well production.
If a customer chooses to do so, each day pricing of Crude Oil and Nat Gas can be listed on their website along with well or field production, thereby allowing their investors to monitor potential returns.
The company is establishing a leasing company to offer lease plans for the physical equipment and scaled billing for its data and response software.
Additional revenues will be developed from the data gathered by its information Management System and Distribution licensing fees.
The leasing of the Systems is intended to enable the company to control the proprietary aspects of its monitoring platform hardware and software. All technology upgrades are provided at no cost to the each systems lessee.
At the core level the CS platform is a data gathering and processing solution.
Many inputs are provided for data collection to process locally to effect a local response or stream that data through a Satellite Link to specific receivers or Central Stations.
The CS surveillance cameras have internally developed and proprietary, and intended to provide High Definition (HD) video with embedded analytics. The video can be streamed for live monitoring or directed to offsite storage for historical retrieval.
CS provides a much needed and unique solution.
The CS platform provides Oil and Nat Gas well operators to have alerts of an overheated motor, excessive strain on pumping rods, true flow monitoring and tank levels, visual monitoring, tampering and theft monitoring.
The CS technology is an upgrade to current industry offerings of a PAC (Programmable Automation Controller) to achieve the PRIM Solution.
In association with the PRIM Controller, a communications bus (duplex or 2 way communications) will be integrated that will allow for addressable sensors controlled over the Internet.
Sensors and control units in the system are purpose-built and proprietary, offering a significant cost savings over 3rd-party solutions which have higher cost.
This technology should lower power requirements and “noise” that plague systems now in use.
Outputting the data stream is based on Internet standards.
John tells me that not only is the controller able to process data and act upon from its programming, it can also process High Definition (HD) video streaming, and that there is no other solution close to these capabilities. Data conditioning, blending and processing are integral and outputting is encrypted and compressed.
This results: power savings and data packet reduction with no loss of integrity.
The Company believes that HD video and in-camera analytics capability raises the technology’s surveillance solution to a level never before achievable in the field over current video/data offerings.
The chip firmware, aka embedded codes, allows for redundancy and flexibility. The programming software allows total control over data conditioning, local response, remote response, alarm and faulting conditions. Existing systems are essentially just data collectors that output data to an external site that responds as directed.
The CS’ PRIM is expected to output data that can be directed to central station monitors for alarm conditions, or output data that an operator can monitor or react to on a Web-based solution. Video streaming can be live monitored or archived for later review, which is now reality.
The video analytics are embedded in the CS camera. This is a unique offering to the world of industrial automation.
John and his Team believe that its responsiveness and accuracy far surpass any other solution, making the PRIM effective and cost effective.
The security industries in the United States are highly competitive.
Numerous companies and individuals are engaged in the segment production and selling of products.
There are no direct competitors that the company has been able to identify.
CS provides for Crude Oil and Nat Gas field security, monitoring, preventing equipment failures, and Web / data services for real-time monitoring and long-term analysis.
The CS Monitoring System is composed of proprietary controllers, operating software, and Internet Protocol (IP) cameras, and top of the line sensor products.
CS senses potential problems before they become downtime issues.
For example, an overheated bearing in a motor is sensed by the operations department. Rather than the motor seizing, causing catastrophic pump failure, the motor is repaired or replaced before the catastrophic failure occurs. This can save weeks of downtime and keeps Crude Oil (money) flowing for operators.
According to the US EIA in Y 2010 there were 530,396 producing Crude Oil wells within 5 States: Texas, Oklahoma, Kansas, California and Ohio with the largest number of wells. Additional states with large numbers include New Mexico, Louisiana and Pennsylvania.
Nat Gas wells in the United States numbered 487,627 in Y 2010, with the largest number in Pennsylvania, Oklahoma, Texas, West Virginia and New Mexico.
World Oil Report stated there are 195,237 Canadian Crude Oil wells and approximately 140,825 Nat Gas wells.
The Company will test to FCC and UL standards and utilize NEMA member manufacturers. Installation distributors will be required to meet all OSHA Standards.
The CS Mission
The Key focus is to establish CS’ monitoring business as a successful enterprise with the potential of becoming a publicly traded company when practical.
Gathering, Reporting & Response
The adage, “Knowledge is Power” is the motivating message of the company.
Web-based data viewing, video feeds, and cost analysis are not only available to the Company monitoring center, but to the owner / operator clients of the Company. This allows the Company to offer clients an “any data, any video, anywhere, anytime” service along with the Company’s other services.
Peace of mind is believed to be a strong selling point.
Just as the data collection, analysis, and CS monitoring services are automated, so is the client billing. Integrated into the system technology are automatic accounts receivable transaction records, allowing ease of office operations. Minimizing manual accounting means office staff can focus on providing superior customer service when needed.
Research & Development
The Company will continue to develop its innovative data analysis systems in cooperation with well owners and operators. Upgrading of the components of systems will be covered under the lease agreement with no additional cost to the lessee.
Each CS system is composed individually designed hardware and software.
I have plans to meet with John very soon and for a 1 on 1 interview about the Key elements of his disruptive environmental and energy saving technology.
About John Cannizzo, PhD
John is Chairman, President and Chief Technology Officer of Cautiosystems, Dr. Cannizzo is a senior executive/technologist/engineer and was Director of Advanced Technologies at Konica Minolta for 15 years where he reported directly to the Company’s Board of Directors.
Dr. Cannizzo is directly responsible for most of the basic technologies that are used by the company today, e.g. print controllers, proprietary controller architectures, proprietary print imaging firmware, proprietary network and I/O protocol stacks, and parallel processing and chip architectures.
Among the accomplishments were Minolta’s 1st internally developed printer which led to nearly all of their current products; their network protocol stacks that were the fastest in the industry and included embedded Active Directory, embedded security certificates, SSL printing, scan to email, and other advanced features; created a parallel print controller that averaged over 400 pages per minute; and taught other groups across several divisions advanced chip and controller architectures.
With his father’s life-long participation in the Crude Oil, Nat Gas, and petrochemical industries, Dr. Cannizzo participated as a consultant to several projects. Oil exploration, exploration techniques, geothermal power, valve design, instrumentation design, refinery operations, bio-fuel research, organic photovoltaic panel design, and urea procurement/shipping were just some of the Oil-related areas he John participated in.
With his science and technology background, Dr. Cannizzo brings a unique perspective to the Crude Oil and Nat Gas business.
John is a former President of the Ferrari Club of North America, and a Club Director for the past 20 years.
Paul Ebeling, Analyst