Hart Energy IndustryVoice Interview: Pete Waldroop on Riding a Wave of Innovation

W Energy Software’s CEO, Pete Waldroop, discusses the shift from legacy oil & gas software to modern cloud-based solutions. The industry has long been dominated by a few large legacy software vendors who often acquire smaller innovators to boost margins. However, this approach can negatively impact clients, as these vendors may increase software fees and reduce budgets for product development and customer support, leading to declining service quality. Customers are left with a mix of outdated and new software for essential functions such as accounting, financials, production operations, land management, and measurement in upstream, as well as pipeline management, terminal management, and plant accounting in midstream. High prices, poor integration between systems, and inadequate user support result in high costs for running back-office operations with on-premise software that requires significant data infrastructure and G&A to manage.

This situation is driving many companies to adopt W Energy Software’s Oil & Gas SaaS ERP platform, which is built natively on the cloud and designed to serve the entire energy value chain. The company emphasizes its commitment to client success with the motto “always do right by the client.” This approach is timely, as energy companies are increasingly seeking alternatives to traditional business practices. Upstream and midstream companies are moving toward better software and technology partnerships, embracing a true software-as-a-service (SaaS) experience.

W Energy Software, based in Tulsa and founded in 2009, has rapidly gained recognition for its modern SaaS ERP solutions, user-friendly interfaces, and comprehensive oil & gas cloud platform. The company has experienced double-digit growth in the past year, driven by the industry's migration from legacy systems to the cloud. With origins in midstream accounting and transaction management, W Energy Software now settles more than 40% of the approximately 500 natural gas processing plants in the US. The company has also expanded into upstream solutions, developed in close partnership with clients, including next-generation land management software that integrates with accounting processes to provide a unified upstream ERP solution.

In the interview, Pete Waldroop suggests that the energy sector should shift its technology innovation focus from the field to the back office to improve efficiencies and reduce costs. He notes that some clients aim to cut G&A expenses by half, with one targeting a $500 million reduction over the next year. Waldroop advises companies to assess their on-premise ERP systems, IT infrastructure, and G&A with the goal of consolidating their software portfolio on the cloud.

Addressing the competitive landscape, Waldroop highlights W Energy Software’s commitment to innovation, contrasting it with competitors who rely on acquiring rather than developing software. This acquisition-driven approach leads to a "product soup" of offerings and brand confusion, whereas W Energy Software focuses on delivering integrated, client-centered solutions.