Oil and gas producers need to monitor and optimize well performances in order to maximize profits from their wells. To achieve this you need to be able to track daily production, minimize downtime, and find the most economical solutions for oilfield expenditures. The most cost-efficient way to do this is by using oil and gas data management software. Let us talk about why these are important for your oilfield and how they affect your bottomline.
Operators usually see their daily production once a week, some even once a month. Since most operators do not usually see their daily production, they fail to ensure their wells are producing efficiently every day. They are not able to determine why production increases one day and decreases the next. Catching inconsistencies help reveal production-related issues. Production management software can identify them early on, so operators can avoid expensive repairs and minimize unplanned downtimes.
In a research done by Kimberlite, 3.65 days of unplanned downtime a year can cost an oil company approximately $5 million. An average offshore company experiences about 27 days of unplanned downtime a year which can amount to $38 million in losses and in some cases, it can go to as much as $88 million. Losing one day’s worth of production can already cost millions, what is the cost of downtime or low production due to negligence? These losses will most likely affect the value of your asset, especially during an evaluation when it is ready for sale.
Calculating lifting costs and estimating payouts provide a visualization of the cost on oilfield solutions your asset will eventually need. Payout calculations estimate how long it will take for an expenditure to be financially recovered on an asset. Lifting cost determines how much each barrel costs to produce. Both calculations are used to see how assets are doing financially and assist you in finding and economical solutions.
For the reasons above, production management software is a necessity in the oil and gas industry in terms of maintaining an efficient day to day production and handling downtime. As an oil and gas production management software designed specifically to help optimize operations and maximize profit, Petrofly is uniquely positioned to help operators optimize spending, reduce expenditure, and improve operational efficiency. Petrofly’s customizable solutions provide affordable cloud-based software for all operators to compete like big oil corporations.