Improving Operator Returns

There is a school of thought that the dramatic collapse in prices and oversupply of oil that has affected our industry, and has added to the challenges facing deep­water and mature developments, is a relatively recent phenomenon. However, with extraction costs having nearly quadrupled over the past 10 years, it has been clear for some time that a rethink is required to make extraction financially worthwhile and to help operators improve their returns.

What has changed is the emergence of a greater sense of urgency. Energy producers were working hard to improve returns, reduce capital expenditure, and extend well life when oil was around USD 100/bbl. With prices now substantially lower, the clamor for new ideas and ways of working has become even more intense.

To secure a reasonable return on investment, it is important for operators to optimize production in mature fields. For long-term stability, the world needs new sources of oil, and the greatest potential lies in offshore deepwater reserves and in the world’s other most challenging locations, such as the Arctic.

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Improving Operator Returns

Tore Halvorsen, Senior Vice President of Subsea Technologies, FMC Technologies

01 July 2015

Volume: 67 | Issue: 7

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