Atlas Energy Solutions and Kodiak Robotics have struck a deal to introduce autonomous vehicles to the US oil and gas industry. The companies claim this development will be a first not only for the upstream sector but also for the US commercial trucking industry.
According to a joint announcement, Kodiak will install its autonomous driving systems in Atlas’ semi-trucks that are used to transport sand to tight oil and gas well locations in the prolific Permian Basin.
The deal involves the conversion of two autonomous trucks that Atlas plans to start using by early next year for clients on private lease roads. Kodiak has developed a sensor package that includes cameras, LiDAR, and radar, along with custom route maps, to enable the automation of a variety of heavy vehicles.
The companies noted that the Permian’s hot climate and dust storms make it a challenging region for trucking.
The region also has a high rate of vehicular accidents, many involving the heavy trucks used in oil and gas operations.
A recent report by the nonprofit Permian Road Safety Coalition revealed that the 20 counties in Texas and New Mexico comprising the Permian recorded 14.7 fatal accidents per 1,000 crashes between 2018 and 2022. This rate is almost double the statewide average in Texas.
Chris Scholla, chief supply chain officer for Atlas, described private road access in the Permian as “expansive” and the “ideal environment” to deploy the emerging autonomous technology.
“With average traffic speeds of under 20 mph on these large swaths of private roads, we can safely deliver a more reliable last-mile solution to our customers in the Permian Basin. This truly represents a step-change in oilfield logistics,” he said in the release.
Founded in 2017, Atlas operates 120 trucks and 12 proppant facilities in New Mexico and Texas, with a combined annual capacity of 28 million tons. The Austin, Texas-based company is also set to complete a first-of-its-kind 42-mile sand conveyor system in the Permian by the end of the year.
The companies are using a software-as-a-service model in which Atlas will license the technology from Kodiak. Kodiak will also provide support services which include remote monitoring from an operations center in Texas.
Don Burnette, founder and CEO of Kodiak, said in a statement that the deal “will make us the first autonomous semi-truck company to establish commercial driverless operations, and the first company to make autonomous trucking a real business.”
Founded in 2018 in Mountain View, California, Kodiak highlights on its website that there are more than 400,000 truck-related accidents on US highways annually. In addition to promoting the safety benefits of autonomous trucking, the company reports that self-driving technology can reduce fuel consumption and emissions by up to 25% compared to human drivers, thanks to reduced idling and more efficient driving behavior.
