82% of crude and oil condensates in the United States have a break-even price of $60 or lower1. Companies can maximize their delta – the gap between break-even and sales price – by either increasing the sales price per barrel or lowering their break-even price. Focusing on the latter, technology is one of the easiest and most abundant tools that can help companies realize lower break-even points.
Forward-looking technology perspectives can help sustain companies through price fluctuations. The creation of such tools can be both fun and exciting for IT and Operations groups, which is why I like doing what I do.
Making value-based decisions to eliminate the purchase of poor quality vendors or equipment by analyzing failure/track records can help you drive operating costs down. Peloton’s WellView and TIBCO’s Spotfire are tools that can help you gain insight into your business’ metrics. Compounding value-based improvements over time will continually lower your company’s break-even price. Failure tracking is just one example that can save avoidable costs and promote longer uptimes.
There is no project too large, small, simple or complex. It is never too late to start delivering value. A Chinese proverb is apt: “The best time to plant a tree was 20 years ago. The second best time is today.”
1 Per Maria van der Hoeven, executive director of the International Energy Agency
About the author: Brent Koren holds a B.Sc. in Petroleum Engineering from the Colorado School of Mines and is a Principal Consultant with Stonebridge’s Advisory Practice in Houston, Texas.