In the world of hydrocarbon production, supply is rarely balanced with demand. With the acceleration of fracking technology over the past several years, we haven’t heard much lately about “peak oil”.

What we have been hearing about are countries like Saudi Arabia, Venezuela, and Russia contemplating the impact of low commodity prices on their petro-based economies. OPEC recently chose to maintain their production quotas at 30MM bbl/d, exacerbating downward pressure on global commodity prices. Bank of Russia raised its key interest rate to 17% in the fourth quarter, ostensibly to prop up the ruble and the Russian economy. With the global Brent benchmark hovering near $60/bbl and American light, sweet crude hovering around $50/bbl, every producer is contemplating changes to their development and operating approaches.

The collapse of global demand coupled with U.S.-driven increases in global supply has led to what could be a severe and prolonged E&P down cycle marked by reduced capital investment and deep cost reductions. In the December 8thedition of O&GJ, an article appeared quoting Moody’s prediction that independent producers will cut capital investments by 20% in 2015 with production growth rates dropping by about 10%. Also, on average, most are forecasting a reduction of operating costs, also in the 10% range. More recent headlines pretty much confirm Moody’s predictions.

While hard times for commodity prices often necessitate CAPEX and OPEX reductions, it does not always mean that operators must cut back spending and reduce production. Certitude offers an integrated approach to E&P operations looking to maintain and optimize production while simultaneously improving their cost positions. We provide a proven framework to bring production online rapidly through cycle time compression from geoscience evaluation, permitting, and spud through first production.  The result of our approach is to reduce the total elapsed time and cost sunk into field development thereby increasing the return on capital investment.

Not drilling right now? Depending on business needs, revenue can still be maintained and even increased through ongoing optimization of production.  We can help you reduce operating cost while optimizing current production through waste elimination and prioritization of activities and spending.

In other words, you can maintain and often increase production while simultaneously reducing cost!

Check out our Field Development and Field Management offers in the “Services” section of the website for more information. As always, at your service…

If you’d like to see case studies and results go here:  http://www.certitudegroup.com/downloads

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