By Sarah Groen
VP Strategic Marketing
Seems like we haven’t found an answer to the question we posed back in October – how low will oil prices go? Since then prices have continued to fall precipitously as evidenced by the skier zooming straight down the WTI curve in the below graph. Apparently the analysts are feeling quite humorous these days!
For the rest of us, a quick adjustment to this new reality is top priority. 2015 is likely to be a year of continued low commodity prices until inventory and oversupply realities work through the market.
As such, we are at the beginning of a steep drop in rig count and have also seen a corresponding drop in horizontal well permits in the US from October to November. At $50 – $60 WTI the average capex cut required to balance most oil and gas operators’ budgets is between 35% and 45%.
With these clearly leaner times, both operators and service companies are looking to operate more efficiently. At MicroSeismic we are focused on finding ways to help our customers save money through this market contraction. Our new FracRxTM service along with our Productive-SRV® analysis helps operators to make the most out of the wells that they do complete this year – helping to avoid unnecessary stages, excess pumping, and ill placed wellbores. In addition, we are now offering a focused solution for refrac’ing for those operators choosing to focus on re-stimulating already existing wells.
Check out this month’s webcast on January 22nd to hear Peter Duncan speak more on how microseismic technology can help operators save money. Click here to register.
The good news for us all is that challenging times inevitably bring opportunities! Let’s make the most of this market together.