Are Oil & Gas Operators Unknowingly Signing Away Their Data Rights?

In today’s digital age, the oil and gas industry heavily relies on various software solutions to manage data, streamline operations, and ensure compliance. However, many operators might not realize that by using these software solutions, they could be signing away rights to their valuable data.

The Fine Print in Software Agreements

It is common for software companies to include clauses in their terms of service or end-user license agreements that allow them to access, use, and even own the data generated through their platforms. One such example can be seen in the copyright notice from one of our competitors., which states:

“Unauthorized copying, scraping, downloading, retransmission, redistribution, reproduction, republishing, or other duplication or modification of copyright-protected content is a violation of Canadian and US federal copyright laws and may be subject to legal action. Other than PDF copies for use in an unmodified format by authorized users, no one has permission to copy, scrape, download, retransmit, redistribute, reproduce, republish, duplicate, modify, or make public for commercial use this or any other copyrighted content, in any form, without the express written permission of Software Company, Inc.”

While this notice primarily addresses copyright protection, it also implies a level of control over the data processed within their systems.

The Hidden Cost of Convenience

Oil & Gas Operators might not fully understand the implications of these agreements. By granting extensive rights to their data, operators could potentially lose control over how their data is used, shared, and monetized. This loss of control can have several repercussions:

1. Data Privacy and Security: Operators’ sensitive information could be exposed to third parties without their explicit consent.
2. Commercial Exploitation: Software companies might use the data to develop new products, services, or insights, which they can then sell or use to gain a competitive advantage.
3. Intellectual Property: Data generated through operations often contain proprietary insights and innovations. Losing control over this data can mean losing out on intellectual property rights.

Best Practices for Data Protection

To safeguard their interests, operators should adopt the following best practices:

1. Thoroughly Review Agreements: Operators should carefully read and understand the terms of service and end-user license agreements of the software they use.
2. Negotiate Terms: Where possible, operators should negotiate terms that limit the software company’s control over their data.
3. Data Governance Policies: Establish robust data governance policies that define how data is handled, stored, and shared.