The energy sector was the first to gain federal clearance for the commercial use of drones, and one Texas startup is combining pilotless aircraft, advanced sensors and big data to inspect wind turbines, oil field equipment and solar facilities. HUVRData collects countless images and other data more efficiently with no human risk, saving companies millions in operating expenses.

"We deploy a sophisticated truck with two pilots, and they fly the asset," said Bob Baughman, who started the company last year in Austin. "The drone is really a vacuum cleaner of data for me."

Early on, Baughman's biggest obstacle was not applying the technology. It was the federal ban on using drones for commercial purposes. The Federal Aviation Administration's regulations date to a time when only sophisticated hobbyists flew large model aircraft for fun in remote places.

Oil giant BP won the first federal approval to use a drone for commercial purposes last summer for industrial inspections. But BP's permit was a special exemption only for Alaska, and it barely cracked open the door to a nascent industry.

Baughman decided to take a diplomatic approach, hiring a Washington consultant to engage the FAA to develop temporary rules and allow more exemptions. HUVRData got an exemption in April, and then last month the FAA granted 1000 requests in a single day and has averaged 50 new authorisations a week.

Commercial drone services are about to become a big business.

'Vacuum cleaners of data'

HUVRData, though, may be ahead of most ventures by focusing on the lucrative energy sector. Houston investors with oil and gas experience are helping HUVRData develop specific services for their types of business.

"We're doing testing in oil and gas now," Baughman said. "We plan to have a bunch of different payloads for different applications."

A group of early stage investors, including the Houston Angel Network, gave the company $US2 million ($2.85 million) last month to expand.

"Investors saw the clear value HUVR can deliver in multiple segments of the energy industry," said Bill Hughes, who helped direct venture capital to Baughman's business.

HUVR buys high-quality drones equipped with the best available cameras, sensors and safety equipment to fly close to objects that are hard to reach. The company initially focused on inspecting the 100-foot-long blades on wind turbines so that workers wouldn't have to rappel down each one to photograph any cracks or damage.

Baughman says the drone is quicker, less dangerous and reduces downtime. High-resolution images and video of the entire blade are stored on HUVRData's servers for the owners to view.

The company is also working on flying oil and gas equipment, such as the flare stacks used to burn off dangerous gases. Soon HUVRData's drones will be able to sniff for methane leaks.

Near-misses with planes

The industrial applications alone are worth hundreds of millions of dollars. But as with any new industry, big dreams can inspire recklessness. Some entrepreneurs complain that needless governmental red tape is the only thing stopping them from making a fortune.

The FAA, though, has recorded hundreds of near-misses with manned aircraft this year. The agency has decided that commercial drone operators must possess sport pilot's licenses, which involve a written exam and flying 20 hours in a small aircraft.

Baughman shared the frustrations of other entrepreneurs until he hired a Washington consultant, worked with the FAA and underwent pilot's training, where he learned about different types of airspace.

"After I went through ground school, I realised this makes a ton of sense," he said. "We want to be the poster child for how to do it right."

Unfortunately, Baughman said, some of his competitors are not applying for exemptions or hiring licensed pilots. Companies that do have exemptions frequently don't bother to file required flight plans, he added.

"I don't appreciate that these illegal guys are out there. They don't know what they are doing, and they are in a market that is supposed to be regulated," he said. "In the whole area of compliance, the FAA has its hands tied. It's all about funding."

Lethal risks

Congress has chronically shorted the FAA's budget, so the struggle to properly manage the drone industry comes as no surprise. When the agency is forced to shut down 173 control towers and delay improvements to traffic control technology, transferring staff to monitor more than a 1000 commercial drone operators sounds like a misuse of funds.

That is, until an unlicensed company flies a drone into a jetliner carrying 400 people.

Executives hiring drone companies should make sure contractors follow the rules, and insurance companies need to step in. Because while this industry is young, vibrant and full of potential, a slip-up could have serious consequences, both in the air and on the ground.

The New York Times