Today, lower oil prices are the new normal—how has this affected the approach to well completion operations in unconventional plays?
Lower oil price per barrel has challenged both operators and service companies to become even more efficient. From the service company point of view, this implies re-assessing every angle of the business, but it also provides an opportunity to improve in many fronts to remain competitive. Some of these examples include the extensive use of data analytics to optimize anything from asset utilization to equipment performance to maintenance cycles. But it has also been a great opportunity for vertical integration on some specific aspects of the supply value chain.
Besides efficiency, what are some other considerations that operators may not have thought about?
Operators have been challenged with very difficult circumstances in terms of oil price over the past few years. Cost efficiency has been one of the main deciding factors in choosing a service company. As oil prices improve, the conversation will migrate from pure cost efficiency to overall effectiveness of the service provided. This opens the door for a more comprehensive discussion, where the operator has the opportunity to evaluate cost versus benefit of the services provided through specific variables like NPT, deferred production, and actual production. This context, I believe Schlumberger can be very successful in a market that is measured by effectiveness rather than pure cost efficiency.
Can you describe some methods that ensure better stimulation effectiveness?
In the most simplistic definition, stimulation effectiveness is measured by the oil output relative to the cost of the service. So, in other words, it is a way of measuring return on investment.
As OneStim, we have an opportunity to influence the effectiveness of the treatment using various methods:
- Our optimized process loop, which is centrally controlled and coordinated, ensures timely delivery of all materials and resources required to provide the services.
- OneStim has a very disciplined and systematic approach to training, which leads to very competent people providing the best service delivery to our customers. Having well-trained and competent personnel results in less NPT and hence more effective treatments for our customers.
- Through its extensive chemistry, hardware, and equipment technology portfolio, OneStim can significantly impact the overall effectiveness of treatments by improving well performance and overall efficiency.
- Through a broad supply network that includes important elements of vertical integration, OneStim can ensure supply of essential materials for the provision of our services while remaining cost-efficient.
What influenced Schlumberger’s decision to form OneStim?
The business dynamics of unconventional plays in North America land are unique. The scale of this market is enormous, and the frequency and intensity of the operations is very fast-paced. In this context, service companies must execute more-efficient operations for customers. OneStim is Schlumberger’s response to such challenge. Through greater scale and vertical integration of products and services, OneStim will streamline the completion-to-production cycle in the North America land unconventional market.