By Rip Stringer
Vice President, Sales & Marketing
I Can’t Drive 55. Those of us who were working in the industry during the 80’s will remember the huge boom and bust cycle created by a similar sequence of events to today. A surge in oil production outside of the Middle East, much of which came from the US, caused prices to decline 67% from November of ‘85 to March of ’86. In the decade leading up to the price crash the US passed the Highway Energy Conservation Act creating a maximum speed limit of 55 MPH on US roads. Some of us may remember exceeding this speed limit to Sammy Hagar’s ’84 rock anthem - Can’t Drive 55.
Today North American E&P operators are stepping up their game. The crash in oil prices has required the development of unconventional resources to become more efficient than ever. Operators have slashed activity, abandoning unprofitable development plans that rely heavily on a statistical approach. Their focus is now turning to a stage by stage-specific stimulation treatment, with the ability to make accurate real-time decisions and assure every dollar invested leads to a profitable return. They intend to “Thrive at $ 55” in reference to the recent oil price range.
Successful companies are adapting to today’s new economics quickly. They are not waiting for commodity prices to return to previous highs; rather operators are assuring they remain competitive in this new reality. These operators are using the reduced activity to not only cut their service costs, but also focus on using new technologies to develop completion techniques to improve the production and the ultimate recovery of their wells. Using real data, operators are making engineering decisions on the spot to improve their wells performance and reduce costs.
A key technology component operators are incorporating into completions operations is real-time hydraulic fracture monitoring. MicroSeismic has taken hydraulic fracture monitoring beyond a service that describes what happened during a stimulation treatment. Our Completions Evaluation Services provide proven prescriptive recommendations to improve completion performance. With these recommendations come predictions of production rates and estimated recoverable reserves without waiting for months of production data for an accurate prediction of results.
Our customers are using real-time fracture monitoring of their stimulation treatments to assure new rock is being stimulated, staying within the treatment zone, and avoiding costly geohazards and faults. Watch our upcoming webcast to learn more about improving production in real- time.
Using microseismic monitoring results coupled with our Completions Evaluation Services, allows customers to determine how much of their stimulated reservoir volume will be productive.
MicroSeismic is dedicated to helping oil and gas operators maximize return on investment through completions optimization and reducing costs. We will help you Thrive At $ 55.