Oil and gas AI from the ITECS Dallas team
AI Solutions for Oil and Gas Companies
ITECS builds governed AI for independent operators, non-operated working-interest owners, mineral and royalty companies, oilfield service firms, and midstream gatherers of 50 to 300 people. A joint-interest cost assurance agent checks field tickets and invoices against MSAs, AFEs, and the JOA before the JIB goes out, on the business network and outside OT.
Energy back offices do not need AI near the control room. They need AI that reads the tickets, contracts, and decks the accounting team already works from, cites the rule behind each flag, and leaves posting, paying, and partner communication with the people who own them.
Oil & gas signal map
Costs + partners + boundary
Costs
Field tickets, invoices, and AFEs
Partners
JIBs, decimals, and audit windows
Boundary
Business network only, outside OT
Energy IT discipline behind oil and gas AI
Oil and gas AI from a team that already supports Dallas energy teams, with a clear line around OT.
ITECS supports Dallas-based and distributed energy teams with office IT, secure remote access, vendor access control, backup resilience, and cybersecurity. ITECS AI keeps the boundary its managed-services practice already draws: it works on the business technology layer and does not operate SCADA, control, or safety systems. Read about ITECS IT services for oil and gas.
42.2%
Texas share of U.S. crude oil production in 2025, calculated from EIA state data (5.76 of 13.66 million barrels a day).
EIA crude oil production by state61%
Share of Texas's 156,120 producing oil wells making under 10 barrels a day on May 31, 2026, which makes back-office cost per well matter.
Texas Railroad Commission well dataDec. 3, 2025
CISA and partner agencies placed LLMs in the business layers and said they almost certainly should not make OT safety decisions.
CISA guidance on AI in OT
Operating pressure
Oil and Gas AI Starts With Cost, Partners, and the OT Line
The first step is not picking a model. It is finding where field spend goes unchecked before the JIB, where partner and owner obligations run on clocks, and where AI must stay out of operational systems.
Cost pressure
Rising lease operating and drilling costs make each unchecked field ticket and invoice a margin question.
- Tickets billed above MSA rates or for standby after release
- Duplicate tickets across invoices and summary bills
- Charges coded to the wrong well or a closed AFE
- AFE overruns found after the job is finished
Partner pressure
Joint-interest billing, division orders, and lease obligations all run on clocks that partners, owners, and lessors enforce.
- COPAS 24-month adjustment and audit windows
- Texas royalty payment timelines under Natural Resources Code section 91.402
- Shut-in royalty, continuous development, and Pugh clause dates
- Non-operator JIBs paid without a timely review
Boundary pressure
AI is only usable when it stays on the business network and keeps partner and owner data confidential.
- Production data that must be pushed out of OT, never pulled in
- Working-interest partner data that cannot mix across properties
- Owner tax IDs and bank details in division orders
- Regulatory filings that go live the moment they are submitted
Example cost-assurance signal board
The Metrics an Oil and Gas AI System Should Make Visible
A joint-interest cost assurance program should show the controller what was reviewed, what was held, what reviewers confirmed, and which AFEs are trending over. These figures are illustrative for a fictional 110-person Permian operator in one month; discovery replaces them with the company's own data.
Adjustment bridge
Confirmed adjustments by cause
Tickets and invoices reviewed
3,800
Invoice network, AP mailbox, and scanned paper tickets
Exceptions routed to reviewers
342
Each with evidence, the rule cited, and a suggested action
Adjustments confirmed
$187K
Of $612K held for review, reviewers confirmed $187.4K
AFEs projected over 10%
4 of 37
Supplemental AFE drafts awaiting operations approval
What leadership sees
- Ties each exception to the ticket, MSA clause, AFE, or COPAS section behind it
- Keeps rate math, decimals, and allocations in deterministic code
- Agent-initiated postings, payments, or partner emails: zero, by design
Oil and gas AI use cases
Where AI Creates Measurable Value for Energy Companies
Start where documents already arrive and an accountant, landman, or engineer already owns the decision: field costs, AFEs, revenue, and leases.
JIB & Field-Ticket Reconciliation
Match tickets and invoices to wells and AFEs, check MSA rates and duplicates, and stage coding and JIB allocations for accountant approval.
Exceptions reach an accountant before the JIB goes out
AFE Variance Monitoring
Compare daily field costs, accruals, and invoices with approved and supplemental AFEs and project the overrun trend while the job is running.
Overruns seen while they can still be managed
Non-Op JIB Review & Audit Prep
Review incoming operator JIBs against your JOA, COPAS exhibit, elections, and decimals, and build written-exception candidates inside the 24-month window.
A running exception list ready for your auditor
Vendor MSA Compliance
Abstract rate schedules, standby rules, fuel surcharges, and insurance terms from MSAs, and track contract and certificate expirations.
A cited rate reference for each vendor
Lease Abstraction & Obligation Calendar
Abstract primary terms, shut-in royalty, continuous development, Pugh, and depth clauses with citations for landman approval.
Obligations calendared from the lease text
Division Order & Title Curative Tracking
Turn title-opinion requirements into curative checklists tied to suspense balances and Texas payment timelines.
Each suspended owner has a reason and a next step
Revenue Distribution Exceptions
Flag decimal mismatches between division orders, revenue decks, and check detail, and surface possible late payments for review.
Revenue accountants work a ranked queue
RRC Production Report Pre-Validation
Check Form PR data for lease IDs, operator of record, and volume reasonableness before the deadline, while a person files in RRC Online.
A reviewer-ready exception list each month
Well-File & Engineering Knowledge Base
Answer questions over completion reports, workover history, daily reports, and filings, with citations to the source.
Prior decisions found without re-searching folders
Flagship enterprise agent
Joint-Interest Cost Assurance Agent: Charges Checked Before the JIB Goes Out
An illustrative solution design, not a reported client result. It runs in two mirrored modes: operators check vendor charges before billing partners, and non-operators check the JIBs they receive.
Read tickets, invoices, and contracts
The agent extracts line items from invoice-network exports, the AP mailbox, and photographed paper tickets, and maps each well and lease name to its cost center and AFE.
Check rates, duplicates, and the field record
It compares billed rates with the MSA schedule in force on the service date, catches duplicates across invoices, and checks billed days and standby against daily drilling and completion reports.
Apply AFE and JOA rules
It tracks cumulative cost against each AFE, flags closed or overrun AFEs, and applies the JOA and COPAS chargeability rules, while deterministic code computes coding and partner allocations.
The accountant and operations approve
Each exception arrives with evidence, the rule cited, and a suggested action. The JIB accountant decides, the controller handles large items, and operations approves supplemental AFEs.
Human approval point
Release and keep the evidence
Approved coding goes to the ERP as a staged batch that an authorized user posts. Vendor and partner messages stay drafts for a person to send, and the evidence binder covers the 24-month audit window.
Human approval point
What it reads
- Field tickets and invoices from the invoice network and AP mailbox
- MSAs and price schedules from the document store
- AFEs, expense decks, and working-interest decimals from the ERP
- Daily drilling and completion reports, exported out of operational systems
What it never does on its own
- Posts entries, releases payments, or changes the vendor master
- Sends a vendor dispute or partner notice without a person
- Connects to SCADA, historians inside OT zones, or field controllers
- Files with the Texas Railroad Commission
Two kinds of energy agents
Company-Wide Agents and Desktop Agents
ITECS builds two kinds of agents for oil and gas companies. Each has its own owner, controls, and rollout path.
Engineered by ITECS
Enterprise hosted agents
Engineered by ITECS, connected to the ERP, invoice network, document store, and land system through supported APIs and exports, and run on the business network in a governed hosted environment with a review portal and audit trail. The CFO, controller, or VP of land owns them.
- Joint-interest cost assurance for operators and non-operators
- Revenue and division-order exception handling
- Lease abstraction with landman and counsel review
Built with your team
Personal desktop agents
Built with landmen, revenue accountants, engineers, and controllers in Claude, ChatGPT, or Microsoft Copilot on their own machines, then rolled out through training. Owner, partner, and unreleased well data stay out of unapproved tools.
- Lease summaries and runsheet helpers for landmen
- Variance explanations for revenue accountants
- Daily-report summaries for engineers
Systems energy agents read
- Quorum
- Enertia
- IFS BOLO
- Excalibur
- W Energy Software
- PakEnergy
- OpenInvoice
- ARIES
- GreaseBook
- Microsoft 365
Technologies ITECS evaluates and integrates through each system's available API, export, or import under your licenses; listing a product does not imply a formal partnership or a certified integration. Discovery confirms the systems each company runs.
Start here
Oil & Gas AI Readiness Assessment
ITECS starts by mapping the business case, document flows, the OT boundary, and governance before recommending an agent build.
Map back-office priorities
Identify where field spend, JIBs, revenue, and lease obligations leak cash or run close to their clocks.
Draw the data boundary
Document which systems hold the authoritative records, which data must be exported out of OT, and how partner and owner data stay separated.
Rank use cases by economics
Prioritize by adjustments confirmed, overruns caught early, hours returned, and feasibility, starting where documents already arrive.
Write the governed path
Document approval gates, write-back limits, retention through audit windows, and vendor terms before any production build.
Governance
Built on the Business Side of the OT Line
ITECS designs oil and gas AI for the business network, with deterministic arithmetic and named approval for postings, payments, and messages.
Outside operational technology
CISA's December 2025 guidance places LLMs in the business layers and favors push-based data flows out of OT, which matches the boundary ITECS already holds.
- Production and daily-report data pushed out of OT, with persistent inbound access excluded
- LLMs kept away from safety decisions and field control
- Designated pipeline operators keep their TSA segmentation requirements intact
- Rate math, decimals, and allocations computed in deterministic code
Partner and owner confidentiality
Agents inherit property- and partner-scoped access, so one partner's data stays out of another's view.
- Non-operator mode sees only the client's own interests and statements
- Owner tax IDs and bank details masked where tasks do not need them
- Evidence binders that leave source records unaltered
- SOC 2 Type II applies only if Promus managed cloud hosting is selected
Security
Security for Oil and Gas AI Workflows
Oil and gas AI touches vendor contracts, partner billing, and owner records. ITECS designs these systems on the business network with scoped access, audit logs, and named approval before anything posts, pays, or leaves the company.
FAQ
Oil & Gas AI FAQ
Will the agent post entries or pay vendors on its own?
No. It stages proposed coding, JIB allocations, and dispute drafts in a review portal; an accountant approves each exception, and approved batches go to your ERP through its normal approval controls.
Does it connect to SCADA or field control systems?
No. The agent runs on the business network and uses data exported out of operational systems, following CISA's December 2025 guidance that places LLMs in the business layers and keeps them out of OT safety decisions.
How does it handle our JOA, COPAS exhibit, and partner audit rights?
The overhead method, chargeability rules, and material pricing are abstracted from your executed JOA and accounting procedure and reviewed by your team. Each flag cites its rule and source page, building an evidence record you can use inside the 24-month adjustment and audit window.
Which accounting systems does it work with?
It is designed around systems mid-market operators already run, such as Quorum, Enertia, IFS BOLO or Excalibur, W Energy Software, and PakEnergy, plus invoice networks such as OpenInvoice. Integration uses each system's available API, export, or import, confirmed during discovery.
We are a non-operator or a mineral and royalty company. Does this apply to us?
Yes, in mirrored form. Non-operators review incoming JIBs against their JOA, elections, and decimals, and mineral and royalty owners compare check detail with division-order decimals and Texas payment timelines, with any interest question left to your team and counsel.
