OspreyData offers solutions that allow operators to tackle problems sooner and more efficiently. Solutions that minimize downtime, maximize recovery and increase the rate of return on your assets.
These solutions work for a well, a field, or across an entire play. Often the process to build a Digital Oilfield is called a digital transformation. Throughout the next few blog posts, we will be showing the various factors driving this transformation, including possible pitfalls, and OspreyData’s view on how to improve an organization’s successful transformation.
As much as this transformation is based on enabling technologies, we can’t lose sight of the implications for business processes and organizational cultures. But why the focus on digital transformation in production now?
A combination of factors have placed pressure on the industry and have accelerated this transformation. Oil prices have been in the $50 to $60 range for the last several years. Many workers who came into the industry in the 1970’s and 80’s are retiring, creating a void in the workplace. As a result, lease operators and engineers alike are tasked to do more, with less.
Recent observations and client visits indicate to us that lease operators are responsible for 75 to 150 wells (or more) each, while production engineers can be responsible for upwards of 500, a thousand, or even two thousand wells at a time. As we are tasked to cover more wells, it becomes increasingly difficult to find the time to identify, diagnose, and fix problematic well operations..
With these impacts in mind, there has been greater scrutiny from Wall Street to focus more on creating long-term value by protecting base production and maintaining positive cash flow. Flashy initial production (IP) rates no longer make the cut during investor presentations. Instead of growth at all costs, many producers now highlight their trend and progress toward lowering lease operating expenses and increasing efficiencies in their quarterly earnings calls.
Almost all aspects of operations are under the effects and pressure of these combined factors. As a result of all these factors, modern production operations have become more dynamic than ever. This is a positive, but innovations that have improved production operations, have also made them more complex to manage.
Timely transition to the digital oilfield appears critical for producers to continue to drive operational efficiency, and to manage the impact of new financial expectations. OspreyData offers solutions to navigate this transformation with your organization. Contact us today for more information, and follow the blog in the coming days to learn more about Unified Monitoring and evolving to a digital oilfield!