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Study reveals USD7B profit potential for unconventional oil and gas operators that reach top quartile

May 15/2018

MOSCOW (MRC) -- By adopting advanced automation technologies and new processes, unconventional oil and gas operators can move from average to top-quartile performance, capturing up to USD7 billion in profits annually, according to a recent study conducted by Emerson and industry benchmarking firms of onshore producers in the lower 48, as per Hydrocarbonprocessing.

In a "lower-for-longer" oil price environment, many companies are turning to Industrial Internet of Things (IIoT) technologies and the promise of digital transformation to help embed expertise in work processes, improve production and begin the path to operational excellence. Emersons Operational Certainty program helps oil and gas operators confidently deploy a digital transformation strategy in a targeted, scalable and measurable manner. Emerson estimates an average operator that adopts a comprehensive improvement program could see profitability improve by as much as 10 percent.

The analysis shows higher production rates, lower lease operating expenses (LOE) and a reduction in safety risks have the greatest impact on overall operational improvements. Improvement in these areas matters most to liquids-weighted unconventional oil and gas operators and helps them achieve top quartile performance. Top Quartile is defined as achieving operations and capital performance in the top 25 percent of peer companies and requires changing historic work processes across multiple functions.

For unconventional oil and gas operators, Emerson identified key technologies to quickly improve operations in a scalable way:
Optimizing production with automated production surveillance, modeling and analytics and implementing produced fluids management techniques to reduce lost and unaccounted-for production
Improving equipment reliability by leveraging analytics and automation diagnostics to lower LOE, providing greater visibility of costs per well
Author:Anna Larionova
Tags:petroleum products, petrochemistry, Crude oil, gas processing.
Category:General News
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