An Effective Way to Reduce Lifting Cost during the downturn in 2020

Cause and Effect of the Downturn

Two monumental events have plunged the demand and price of oil, leaving those directly involved in exploration and production in an uncomfortable position. The oil price war within the Organization of the Petroleum Exporting Countries (OPEC+), along with the pandemic coronavirus disease 2019 (COVID-19), has created a historic downturn for the oil industry. With the quarantine in effect, purchasing oil is not an immediate necessity at the moment. Even with Saudi Arabia and Russia agreeing on production cuts, the increasing supply cannot match the lowering demand right now. Oil producers asked to cut down on more production might go out of business because it might not be economical to continue output. On the other hand, oilfield service providers are facing a similar situation where lower demands and cutting production means less work availability.

An Effective Way to Reduce Lifting Cost

Petrofly offers a solution to help operators who are struggling to maintain production at minimal costs, and service providers that are earnestly looking for work. Operators can request specific services through Petrofly, and if the service is not urgent, they can receive a text message when a discounted rate for that service is available. This is possible because service providers will notify Petrofly with discounted rates on the days that they do not have work lined up. Instead of waiting around with no work while still needing to pay their employees, servicer providers are willing to fill the non-working days with work at a discounted rate, especially during this downturn. This notification is sent to operators who have made a prior request to this specific type of service. Producers benefit from even lower operational costs, and service providers can have more job opportunities.

A quick rundown of how Petrofly helps both operators and servicers amicably:

This unique feature is possible through Petrofly because a dedicated area specialist is in communications with service providers all over the country. Introducing operators to new service providers gives the operator more choices for lower costs when they are looking to get work done on the field.

Switch over from excel spreadsheets to a cloud-based platform and access complete control of your operation in the palm of your hand.

Data integration will increase efficiency and prevent data errors which lets you make confident and reliable decisions.

Optimize expenditure with industry proven methods and take advantage of the service market average.

Gain transparency with service providers to prevent fraudulent billings and overpriced services.

Production management software is necessary in the oil and gas industry because of its effectiveness in optimizing operational processes and maximizing profits.

Using a web and mobile software solution encourages social distancing between in-house staff and outsourced workers, which ensures everyone’s safety is the priority.