WIRELINE Spring 2017

Efficiency | Well Costs

Oil & Gas UK’s Wells Forum – what does it do?

Q: What is the role of technology?

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A: The industry wouldn’t be where it is today without technological innovations. It plays a significant role in efficiency and cost reduction. However, with budgets tightly constrained, there is a heightened aversion to risk and lower tolerance to failure. This makes the technology hurdle even higher. We can help to improve confidence in trying something new by providing a platform for operators to share their experiences. Q: Why should companies A: There has to be a step change across the basin if we are to achieve lower well construction costs that are truly sustainable. There are many operators who have already, individually, made significant cost reductions, but there is a greater prize to be had in working together – operators, well services contractors and drilling contractors. Only then can we hope to establish a new, lower, sustainable benchmark for well construction. With broad industry uptake of the outputs from all these initiatives, we estimate that, overall, the combined savings could be the equivalent of the cost of constructing 40 wells by 2020. Q: What are the biggest challenges? A: One of the greatest challenges we face today is the enduring impact that the protracted downturn is having on many businesses. These are still tough times. Our job is to keep focused on the initiatives that will protect the basin’s competitiveness for the longer term. It is testament to the spirit and character of this industry that we have our members support and their understanding of the critical role they can play in applying the outputs and learnings. support the Well Cost Reduction Initiative?

The cross-industry Wells Forum is made up of senior managers from operator and contractor companies. The forum provides a platform for members to share best practice, review well life cycle issues and interact with other industry stakeholders.

Examples of the forum’s activities are:

• Identifying industry best practice and developing guidelines and standards applicable to UKCS well design, construction, management and intervention operations.

• Advancing the Well Cost Reduction Initiative.

• Identifying opportunities to unlock potential production improvement (and ultimate recovery) through increased well interventions. • Providing regulators and stakeholders with a vehicle to discuss cross-industry issues relevant to improving health, safety and environmental excellence.

Find out more, contact kheidenreich@oilandgasuk.co.uk.

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We can help to improve confidence in trying something new by providing a platform for operators to share their experiences.

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kheidenreich@oilandgasuk.co.uk

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| W I R E L I N E | SPRING 2017