Featured in E&P Magazine: The Last Word
02 Sep 2020
Boosting productivity in an era of E&P belt-tightening
E&P companies must resist the urge to retreat from innovative technologies
Today’s economic climate is punishing those who are operationally or capital inefficient. The 226 bankruptcies from January 2015 to May 2020 lays this truth to bare. The focus for those seeking to avoid a similar fate and survive an extended period of tight capital markets and low, volatile oil prices is on improving cash flow. At the heart of most E&P efforts is strengthening margins through production optimization and other cost reduction opportunities—in many cases through headcount reductions.
Prior to today’s economic climate, there were already too many wells and too few people to manage them. Operations groups are now stretched even thinner as they focus on ensuring production goals are met. A day filled with data analysis and fighting fires, unfortunately, does not allow much time for other important activities, such as production optimization. The challenge for E&P companies then becomes how to get more out of their existing workforce.