The pressure is on for operators, whether it is from lower oil prices hammering the bottom line, pressure pumping crews onshore providing the best hydraulic fracturing for the lowest cost or dealing with HP/HT in ultradeepwater wells in the Gulf of Mexico (GoM). How operators react to the pressure will determine how well they survive the downturn.

Some operators have taken the route of waiting for higher oil prices to return. In an April 23 article, Bloomberg Intelligence pegged the inventory of wells waiting to be completed at 4,731 wells. Even with the cost of tools and services being reduced by 30% to 40%, some plays still are not attractive.

The companies that continue to drill and complete wells are counting on technology to make those wells cost-effective and highly efficient by saving time and reducing risks. Service companies are hearing operator after operator emphasize greater efficiencies across the board.

Lowering costs is only part of the equation.

There is a current debate in the industry about the value of refracking. Some companies are convinced that refracks are of little or no importance, while other operators that have been pursuing shale plays for quite some time see a benefit to refracking wells considered understimulated.

Regardless of which side of the argument a company is on, the focus is on technology to provide the final solution for effective completions. For example, Statoil is hoping some technology being used in Canada will have an impact in the U.S. The company will be using CO2 as a fracturing fluid in a Bakken well later in 2015. If it delivers the success that Statoil is expecting, the company could switch how it stimulates wells with a goal of using less water.

The quest for lowering costs offshore would have even greater impact given how much companies have to spend on offshore projects.

Offshore, the industry knows that new technology will be needed for ultradeepwater completions. The Lower Tertiary in the GoM has the industry buzzing, but operators are delaying projects in the face of $55 oil. The play is estimated to contain as much as 40 Bbbl of oil. But the challenges drive the costs up.

HP/HT, 3,050-m (10,000-ft) water depths, 10,670-m (35,000-ft) wells, low recovery factors and the need for artificial lift are just some of the challenges that technology will need to address.

Systems that mitigate risks―whether onshore or offshore―and technologies that meet the challenges will produce the winners in this game.

In the following pages, E&P delves into some of the technologies that the industry is using in these areas.

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Even With Low Oil Prices, Technology Still Drives Efficiency, Cost Savings

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