Managing Oil Fields in a Low Price Environment

Cycles of low oil prices have become an inherent feature of the petroleum industry value chain. A low oil price scenario, is a condition that arises whereby the breakeven value of an oil and gas field, is higher than the sales price of the crude oil or natural gas. Traditional response recipes so far have been a resizing of the activity, involving layoffs and cancelling or putting projects on hold, sometimes indefinitely. Reducing capital expenditure is a natural response to low oil prices, as demonstrated by the oil and gas industry deferring or cancelling billions of dollars’ worth of planned investments. At the same time however, the industry needs to continue to explore and develop oil and gas fields in order to meet long-term demand that continues to grow, even though more slowly than before. A closer look though shows that while the average production cost of the barrel may be uneconomical, still certain oil generating activities, field areas or wells can still yield profitable oil.

This training course presents viable alternatives that allow exploration & production (E&P) companies to refocus on cost-effective measures aimed at maintaining profitability, and process streamlining, whilst incorporating cost effective innovative solutions and best practices to reduce production costs. By maintaining a critical eye on productivity and capital expenditure whilst scanning the scope of work and detailed engineering, additional savings may result if standardized specs components are incorporated and redundant activities filtered out. Selected case examples with innovative solutions applicable to implementation programs for selected new field technologies are elaborated.

This training course will feature:

• Discussions on of low oil prices cycles and their causes
• Examination of the reasons why conditions arise when the breakeven value of an oil and gas field, is higher than the sales price
• Learn which activities can and which cannot be curtailed, in a low oil price environment
• Learn new technologies that can be utilised to reduce production costs and thus increase oil well profitability
• Explore which activities can utilise standardised specs for cost reduction

By the end of this training course, participants will be able to:

• Reduce the production cost per barrel to maintain profitability without affecting the production
• Reduce development costs that have been planned without affecting the objectives
• Introduce Technological Innovations and Operational Improvements in a systemic way to fast track field implementation
• Elaborate ideas leading to specific improvements in their workplaces
• Improve the existing programs to reduce OPEX and CAPEX by applying procedures, best practices and examples

This training course is suitable to a wide range of professionals but will greatly benefit:

• Petroleum engineers, & reservoir engineers, production engineers, facilities engineers, drilling and completion engineers
• Managers, supervisors and government officials
• As well as anyone involved or interested in Reducing OPEX and CAPEX and increasing the production in a cost effective manner

This training course is a highly interactive stimulating learning experience, where participation is encouraged in a supportive environment. This ensures the concepts introduced during the training course are understood and reinforced. This is achieved through a mix of learning methods, including lecture style PowerPoint presentations, open discussion and case studies.

The delegates will be engaged and encouraged to exchange ideas throughout the course by business case studies and facilitated discussions. Short videos will also be used to reinforce specific technical and operational points and to relate the material to real-world experience.