“Operators had to change the way they did things,
because it was inefficient, prone to error, and
people were getting burnt out. We built a solution
based on our first-hand experiences working on
asset management teams. It is not lost on us that
although there has been a dramatic increase in the
rig count, operators haven’t been on a hiring binge.
E&Ps today have had to find ways to do more with
fewer resources than they have been accustomed
to.” – Adam Krier, Wellcast
from unconventional resources and a repeal of the ban on
US crude oil exports.
That’s right, America is now an oil exporter. For people of
my generation who lived through the gas rationing of the
early 1970s, increased energy security and lower gasoline
prices are a welcome respite from the economy being tied
to the political volatility of the Middle East.
The second round of productivity and efficiency improvements will come not from more staffing cuts, tough negotiations, or reducing drilling days in half. That low-hanging
fruit has been picked. For example, Pioneer Natural Resources, one of the most active operators in the Permian Basin,
reported in its June 2017 investor presentation that drilling
and completion costs in the fourth quarter of 2016 were
more than 30% lower than two years ago. Companies like
Pioneer and others are communicating that the next round
of cost and productivity improvements will come from leveraging technology – in the field and the office – to work
Cloud-based software tools are just beginning to make
their impact known in our industry. For example, operators
developing resource plays have to manage their drilling rigs
even more closely and efficiently than before. Years of down-sizing and rightsizing have taken a toll on human capital.
Bottom line, there is just not enough good talent, and companies are trying to do more with the same staffing levels.
Adam Krier, co-founder of Tulsa-based Wellcast, a provider
of resource play management solutions, said: “It is ironic,
but the downturn was actually a growth catalyst for us.
Operators had to change the way they did things, because
it was inefficient, prone to error, and people were getting
burnt out. We built a solution based on our first-hand expe-
riences working on asset management teams. It is not lost
on us that although there has been a dramatic increase in
the rig count, operators haven’t been on a hiring binge. E&Ps
today have had to find ways to do more with fewer resources
than they have been accustomed to.”
Wellcast offers a cloud-based resource play management
solution that enables operators to efficiently manage a de-
velopment drilling program, workover program, and well
inventory on one platform. Whether they are operating one
rig or 10, Wellcast says it can help even a small team manage
more productively than before.
Krier added, “Our tagline says it all – ‘Meet Less, Drill
More.’ Asset management teams today don’t have time to
spend hours in a meeting discussing every drilling location
and harmonizing data between disparate spreadsheets. Their
time is valuable, and they need to make decisions fast and
accurately to create a clear path for each rig.”
Co-founder Katy Davis added, “One of the things that makes
Wellcast different is our deep industry knowledge of multiple
regulatory regimes and requirements. We come to the table
fully prepared with the knowledge of permitting and drilling
requirements in almost all drilling regions in the US.”