Sponsored by Quorum, IDC Energy Insights has conducted significant research on the oil and gas market and its struggles to become more operationally efficient.
The high‐pressure and fluctuating temperatures intrinsic of the deepwater environment provide an ideal incubator for the generation of inorganic scale, long recognized as one of the oil and gas industry's costliest, and most formidable, flow assurance issues.
Current market volatility is proof positive that optimization is a must in the oil and gas value chain. Companies that leverage data to improve business processes will not only survive, but thrive during market downturns and dominate the industry on the next upswing.
For the Oil & Gas professional interested in digital innovation and IoT, this eBook walks through the five stages of IoT progression and describes the value each can bring to this industry.
A sustainable future for the industry in deepwater is further investment in proven sweet spots and a search for similar plays. The two prime characteristics of these sweet spots are exceptional reservoirs at unexceptional depths. Expensive deepwater wells must add as many barrels as possible. The industry is making progress developing deepwater finds. Projects sanctioned since 2012, and green fields now approaching FID, will together recover over 30 billion barrels of oil. These fields need just US$42/barrel on average to achieve a 10% return. Better reservoirs break even at lower prices.
Lower oil prices drive the need to optimize the sand supply chain since sand is a major cost input to each completion. A shift from pneumatic trucks to containerized last mile solutions is under way due to sizable cost savings.