Oil and Gas Technology Solutions: Build vs. Buy for Midstream Companies
Building software in-house once felt like the safest bet for midstream companies. Every asset, operation, and stakeholder had unique needs, and commercial software seemed too generic to handle the complexity. But what made sense a decade ago may now be holding companies back. Business models have evolved—so have scale, speed, and stakes in midstream operations.
Managing thousands of transactions daily across pipelines, barges, and trucks now demands more than legacy software stitched together with updates. Midstream companies need systems that flex, scale, and adapt without compromising speed or compliance. The choice between building custom tools or investing in a proven oil and gas technology solution is no longer just an IT decision—it’s a competitive imperative.
The Legacy of Homegrown Midstream Software
For many years, midstream companies leaned heavily on their internal IT teams to develop custom liquids transportation solutions. These systems were tailored to match highly specific operational needs, giving companies the sense that their software reflected the unique complexity of their business. Building instead of buying seemed like the right call—especially when few commercial options existed that were tailored for midstream oil and gas workflows.
At the time, the pace of change across US basins allowed IT departments to iterate slowly. Liquids management systems only needed incremental updates to keep up with expanding infrastructure. The core focus was efficiency—automating repetitive tasks, managing transactional data, and supporting producer contracts. For a while, homegrown systems delivered.
However, the environment in which those systems were built no longer exists.
Why the Midstream Market Has Outgrown DIY Solutions
The past decade has brought dramatic acceleration in oil and gas production, driven by the Shale Revolution and new infrastructure development. With this acceleration came exponential growth in pipeline volume, contract complexity, and regulatory scrutiny. Homegrown systems—once perfectly sufficient—are now straining under the pressure.
Internally developed software often relies on aging architecture and is maintained by IT departments juggling multiple high-priority projects. Enhancing these tools to meet new business needs is rarely at the top of the list. As a result, updates come slowly, and new opportunities are missed. Some companies have found themselves in a constant cycle of patching and workarounds, just to keep systems operational.
The reality is, building software is only part of the challenge. Maintaining, upgrading, and securing it over time is a long-term commitment that becomes more difficult—and more expensive—with each passing year. The cost isn’t just monetary; it’s strategic. Companies lose agility and risk falling behind in an increasingly competitive market.
Why More Midstream Companies Are Choosing to Buy
The decision to stop building and start buying is no longer seen as a compromise. It’s a signal of strategic maturity. Forward-thinking midstream operators are investing in oil and gas technology solutions that are purpose-built to handle today’s business models—and tomorrow’s unknowns.
Modern midstream oil and gas software offers several distinct advantages over internal tools. First, it’s built by experts who understand the industry’s nuances, ensuring out-of-the-box functionality aligns with operational needs. Second, it’s continuously updated to reflect evolving market requirements, regulatory changes, and customer expectations. Finally, it frees internal teams to focus on core business functions rather than becoming full-time software developers.
More importantly, companies that buy software from trusted technology partners gain a competitive edge. They gain faster time to value, improved scalability, and access to analytics that drive better decisions. For midstream businesses, the right software drives growth and reduces risk.
Finding the Right Oil and Gas Technology Solutions Partner
Switching from internal systems to commercial solutions isn’t a simple swap. It requires choosing a partner who understands midstream operations and can deliver more than just software. The best oil and gas technology providers support transformation.
Midstream companies should look for a provider with deep industry knowledge, configurable products, and a history of successful implementations. A strong partner should be able to meet specific transportation, accounting, and regulatory needs—without requiring costly customization or compromising on performance.
Scalability is also essential. As operations expand or diversify, the technology must grow alongside the business. Whether it’s supporting new gathering systems, additional modal options like trucking and barges, or more complex contract scenarios, the right platform should be future-ready.
Finally, a technology partner should offer clarity and confidence. That includes transparent product roadmaps, continuous innovation, and reliable support. When done right, the shift from building to buying becomes a catalyst for operational excellence.
Explore W Energy’s Midstream Oil and Gas Software
At W Energy, we understand midstream because we’re built for it. Our midstream solutions eliminate legacy system frustrations and deliver real-time insights for hydrocarbon measurement and operational accounting. Combined with HighWire™ measurement, our midstream Plant Accounting, Pipeline Accounting, Land ROW, and Field Operations are fully integrated, providing you with robust business intelligence. With expanding infrastructure and increasing contract complexity, midstream companies are shifting toward technology partners they can rely on.
Request a demo from W Energy to see how our midstream oil and gas software can power your operations.
Author: Michael Ferrante, VP of Transportation
Michael earned a B.S. in business administration from Oklahoma State University. Since joining our team, he has helped build various modules within our software, ranging from marketing to gas balancing to land administration. Michael has lead implementation projects in many business areas of the industry and is currently focused on expanding the Transportation practice area with new pipeline and terminal clients.