E&P companies are facing common pressures across the oil and gas industry to reduce lease operating expenses.
The days of $100 oil are long over. Oil hovered between $50 to $60 / bbl for several years. Now with demand destruction due to the COVID-19 pandemic coupled with oversupply from OPEC+ countries Saudi Arabia and Russia and domestic storage constraints futures, prices are in the $30 to $35 range.
In addition to low commodity prices, “the great crew change” continues to take shape. Many workers 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 lease operators are responsible for 75 to 150 wells each, while production engineers can be responsible for upwards of 500, 1,000, even 2,000 wells at a time. It becomes increasingly difficult to find the time to identify, diagnose, and fix problematic wells.
Greater scrutiny from Wall Street exists, pushing companies to focus more on creating long-term value by protecting base production and maintaining positive cash flow.
But, not everything that is measured is worth managing. Teams must ensure that problems are actionable, with an associated ROI and that data is sufficient to solve the problems.
Some of these challenges are not new, but all are things that E&P companies and operators face in today’s market. We are here to help you navigate these challenges, with expertise and precision that our Production Intelligence solutions can provide. In our next post, we’ll look closer at aligning data with problems.
For more information on how Unified Monitoring and OspreyData can work for you, feel free to view our Unified Monitoring Solutions Page and request an online demo to view at your convenience. If you would like to launch your digital oilfield today, contact us now!