America’s Oil Boom Makes a Comeback with Big DataA short time ago, oil companies were making record profits. Today, they are making record cost reductions. Some have decommissioned over half of their rigs, and over 200,000 oil workers have lost their jobs. Is this the end of America’s shale boom? We think it’s just the beginning. Big Data analytics have the ability to revolutionize the industry. Despite consistently low oil prices, shale companies can still survive and prosper. To do so, they must continue reducing costs. But decreasing production, by decommissioning rigs and laying off workers, is not the answer. Reducing expenditures while simultaneously increasing production is the right answer. And, it’s not impossible.
How is This Possible?Some companies are turning to R&D in attempts to find ways to optimize efficiency, and increase production. However, this option is costly, both in terms of money, and time. It requires hiring teams, finding capital and conducting repeated experiments and tests. Meanwhile, other companies that have engaged in data analysis will have decreased their cost of delivering a barrel of oil by about 40%. Because data analytics yield maximized efficiency, companies also produce more oil.
Interested in learning exactly how data analytics can do this? Well…we are going to keep you on your toes! Read tomorrow’s post to see how data can reduce expenditures, while still maximizing production. Here is a link to our blog. If you simply cannot wait, read this blog, “Data in Oil and Gas.” You can also read “Shale 2.0,” a report from The Manhattan Institute, where some of our statistics came from.