Since OTC 2016 we have seen the land rig count grow by 60% - impressive but still below the peaks of the last few years. In speaking with my contacts across the industry, they remain optimistic but cautious – complacency has no part to play in this new era.
As recent estimates forecast US production at 9.9million bbls/day by 2020 – higher than the last cycle – there is still considerable pressure on cost. I recently heard a presentation by a Permian based operator which is confident of the market improving, however they are still experiencing pressure on service cost and crew efficiency. As pad drilling turns to assembly line type operations and well spacing gets tighter, there are an will be new and exciting opportunities.
In this downturn, the need for data has stood out to me. Even as costs fall, our partners are looking to maximize every dollar invested. We are working hard to deliver data on well performance and conditions, utilizing our well intervention suite of tools and services to identify the best solution for our customers. This includes working closely with one client to improve frac performance, which is key to optimizing their frac design going forward.
We have also seen growth in demand for our pipeline services, as they continues to present clear value even in a down market. In a recent deployment in South Texas, Expro delivered flaring support for pipeline that was previously scheduled as a separate three-phase, single flare burn lasting several days. Working with our client, we offered a tailored 24 hour schedule that significantly reduced the time and personnel needed to deliver this project.
Ultimately our client relationships are key to delivering the product and service solutions needed to drive forward this new area. And with almost 1000 employees spread across our North and Latin America region, from Buenos Aires to the North Slope of Alaska and East to St Johns Newfoundland, Expro is poised to support the market upturn.
I look forward to welcoming this new era and seeing more familiar faces return to this year’s conference, in what is my hometown of Houston.
To find out more Expro’s operations in North and Latin America, you join Jeff’s presentation on “Broussard to Bolivia; 40years of pioneering well flow management”. Full details can be found our presentation flyer located on the website or simply drop by booth 3126.
About Jeff: Jeff Messer has nearly 25 years’ experience working in the oil and gas industry, including 10 years at Expro. He is the Area Manager for North America Land, as well as General Manager of Expro’s PowerChokes Product Line.