Hydraulic fracking is propelling the USA to being the leading producer of oil and gas in the world. The technology simply put is just so very efficient. Please click the link below to see a video from EIA that shines more light on this phenomena. The video is a bit dated but still relevant.
David Babin, Facilities Engineer and Project Manager, Occidental Petroleum, sat down for an interview recently with American Business Conferences. Here is what David has to say about drilling efficiency.
This seems to be a cyclical dilemma in the Oil Industry. In a high oil price environment, the majority of resources at any operator are focused on one thing: drilling more wells. The silver lining to a low oil price environment, where drilling new wells can be less attractive, is that engineering time is freed up to focus on increasing efficiency and reducing operating expenses (OpEx). Much of my time over the past three years has been focused on in-depth review of various programs or systems to determine if we are doing it the best way possible. Are we optimizing our chemical usage? Do we have any surface constraints that could limit our ability to produce new wells in the future?
With the reduction in drilling throughout the industry over the past several years, operators, suppliers, and service companies have all worked hard to minimize the cost of doing business. With oil prices rising into the $60-80 per barrel range, I think we will see the hard efforts by operators to reduce costs pay off with higher margins compared to the lead-up to the down-turn when comparing similar price ranges. I’d say the outlook is bright for the exploration and production sector as a whole.
David is speaking at the 5th Annual Sustainable and Scalable Cost-Effective Well Site Facilities Onshore 2018 Conference, Houston Texas, September 18 -20. Click on the link below to find out more.