Liaison Consultants
Liaison Consultants
Out of Hole Solutions
Out of Hole Solutions

Today's reality

Up and into 2014, the steady rise in oil price allowed the industry to exploit hydrocarbon reserves that were only marginally profitable – the unconventional plays.  But these small margins were enough to attract more investment and the drilling boom began.

 

The oil-price collapse that began in mid-2014 was initially due to unconventional oil from North America hitting the markets, but it was followed by the push-back from more efficient producers aiming to retain their market share.

 

With unconventional production costing up to three times that of high-quality conventional reservoirs, producers needed to reduce costs and improve well performance to remain financially competitive.  Unfortunately this has yet to happen.

 

The consequence is that today, one-third of North American unconventional producers are in default, the offshore industry is in retreat, and globally over 350,000 people have lost their jobs.

 

Keeping the reserve tanks full with cheaper oil and gas

  • If new discoveries are down
  • We must maximize production
  • By better utilizing reserves
  • And not wasting the resources
  • Middle East costs are still the lowest in the world
  • Russia is a close competitor
  • So ... how low can the USA go on costs?
  • Can 'Out of Hole' thinking help?

 

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