Upstream oil and gas operators continue their conflict with low oil prices. In today’s economy, oil companies need to leverage operational expenditure on their performing wells to generate revenue.
This does not mean you need to sell assets or lay off staff because doing so may also lead to lower revenue due to decreased production. Through working with our clients and researching industry trends, Petrofly has identified that the most efficient way to adapt to low oil prices is by reducing operating expenses.
Since many companies rarely have communication between their departments, the staff members’ ability to access data and visualize the operation as a whole is limited without a data management platform. Pumpers should have immediate access to lifting cost and payout calculations to determine the cost-benefit of the expense on a well.
For example, your pumper will know how much chemical is being used in a well but not the cost of chemical per barrel produced. This lack of data availability on the field causes workflow interruptions and hurts your bottom line. Low oil prices make it necessary to have this expenditure data available in the field to ensure these costs are justified.
Operators are missing out on valuable insight when they do not track expenditure and production together on a single platform. For example, seeing how a workover affects production is beneficial to the office and field because it measures that workover’s effectiveness. Streamlining both together will grant visualization on how that asset is performing and becomes an accurate and easy way to keep track of your bottomline.
However, in this downturn, just measuring workover effectiveness is not enough to ensure profits. In order to lower operational expenditure to create profit for oil companies, finding cost-effective oilfield services and comparing the market average is the best way to get the most return on investment. Petrofly’s service finder tool and market analysis creates a list of service providers with their rates that are available in your area. Choosing affordable service providers based on the market average will ensure you are not overpaying for services.
In order to keep up with lower oil prices, operators need to provide more than just lifting cost and estimated payout calculators on the field to lower operational expenditure. Petrofly’s platform is the only production management software combining production and expenditure on one platform. Petrofly also helps operators adapt to lower oil prices with their service finder and market analysis by finding operators the most economical servicers. Oil producers need to take advantage of the oilfield service market average if they want to lower operational expenditure in this downturn.