Role of production engineers in increasing Well Profitability

Role of production engineers in increasing Well Profitability
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The oil and gas industry is a very challenging and complex one to be in. The industry is typically divided into 2 main sectors- i.e. Upstream and Downstream. There is a various process of locating a suitable geographic location, to drilling a well and then extracting oils and much more. Various departments and people are involved, who co-ordinate and carry out their designated roles.

The role of a production engineer is important in the whole process. They are responsible for taking up the selection of various equipment that is used as well as its application during the drilling process. They undertake multiple tasks and are a driving force in the oil and gas company that brings together all the departments and people in order to ensure well profitability.

The following are some of their key undertakings-

  • Evaluation of inflow and outflow performance between the reservoir and wellbore.
  • They are responsible for designing completion systems which include tubing section, sand control, perforating, and hydraulic fracturing.
  • Production engineers are in charge of selecting artificial lift equipment like sucker-rod lift, gas lift, electrical submersible pumps, etc.
  • Selecting the equipment for surface facilities that separates and measures the fluids produced, preparation of oil and gas for transportation so on and so forth.

The role of production engineers is very crucial and hence, by adopting the latest tools and techniques, analytic, and workflow tools they can access data in a successful manner and catalyze valuable conversations.

With ever-increasing technological innovations and competition in the global market, the role of a production engineer is becoming more and more crucial. By applying effective skills and knowledge along with technology, engineers can take efficient decisions which will help them to run profitable wells. The following are some of the ways in which engineers can increase well profitability.

  • Viewing well performance- It is often said that the oil & gas industry is lacking innovation and are far behind in terms of technology. In order to improve well profitability, engineers need to use the information available from a more analytical perspective. All the information available anywhere anytime must be put to productive analysis. Spending more time in making intelligent decisions rather than searching for good productivity is the mantra for increasing well profitability.
  • Review cost regularly– It is extremely important to keep a constant check on the cost associated with wells. It is a highly recommended thing to keep acute vision on the cost allocation and rectify the misallocations at the earliest. With the help of analytics solution, it is easier to get hold of overcharges and many such issues which otherwise go unnoticed. In order to cut down costs, one should minimize factors that add up to the cost like design errors.
  • Review well downtime more often– In order to increase the good profitability it is essential; to keep reviewing the good downtime at regular intervals. In today‚Äôs technological world there are numerous advanced tools available (like analytics solutions) with the help of which engineers can get to the root cause of good downtime and accordingly work towards reducing the downtime effectively. Once, the reasons for downtime are known, solutions can be developed to reduce them and make production more efficient. So, if the well review is carried out once per quarter, it can be increased to once per week/month to keep the efficiency level optimum.
  • Effective communication– The key to success is communication. Ineffective/miscommunication is one of the biggest reasons for the lengthy production time, unnecessary costs and errors. Making use of analytics solutions and tools to access data regarding production cost and profitability can be of great use. It keeps all the people in the office and field on the same platform and they are exposed to correct and on time information. When everyone is on the same line of thinking and information making decisions is more effective. Engineers ought to keep more and more people involved in major decisions like what to do if the oil prices rise/fall, or how to alleviate underperforming wells.
  • Data Integrity– Gone is the days when field data visibility would take long days. With the help of latest data solutions, there is near real-time visibility. Keeping the data clean and simple with basic graphics and organized facilitates reviewing of the same and helping in pointing out discrepancies.

 

Thus, production engineers are the main driving force who is like the captain of the ship. They can make use of the latest analytics tools and take wise decisions to increase the overall performance and thus make a well profitable.

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