Revealed: How Simularity Predictive Analytics Can Reduce Oil Production Costs
We announced over a month ago that even though Oil prices were low, it was time to “celebrate” the opportunity to reconsider use of upcoming Internet of Things technologies such as Predictive Analytics.
Since then we’re still seeing prices around $35/barrel and as a result, drilling/exploration for new wells has slowed down dramatically and thousands of workers have been laid off in order for producers to cut costs.
When oil prices are high, even high cost producers can justify their operations. However now that it is clear that the oil and gas markets are becoming even more competitive, the high cost producers need to do more than shed jobs in order to keep the pumps running.
And it’s a lot of pumps: In the USA alone there were over 542,000 artificial lift pumps in operation in 2015.
One cost factor that can be controlled is the cost of equipment maintenance, and the resulting cost of equipment failure.
Imagine if you knew beforehand that a well’s equipment was about to fail? The cost savings are substantial:
- reduced downtime of the well due to better logistics planning for the workover (if any),
- reduced cost of damage to the well itself,
- reduced cost of equipment needing to be replaced,
- increased production due to increased equipment MTBF
A recent analysis of actual live downhole sensor data for a failed well, using Simularity’s Predictive Analytics AI Engine, revealed some fascinating findings.
“When we saw the anomaly scores appear several days BEFORE the incident, we knew we were on to something big. The Oil industry needs this now.” – Liz Derr, CEO, Simularity
If you represent an O&G producer and are concerned about your costs and competitive advantage, you need to see our study.
For a private consultation to explore your needs for cost reduction using our software, please contact us today to arrange a presentation.
PS Simularity has been invited to present at the following upcoming industry events. If you will be at either event and would like to meet, please let us know in advance:
- The Energy Conference Network’s “Machine Learning, Deep Learning, and AI in Oil and Gas”, April 19-20, Houston, Texas
- Oil & Gas Innovation Center’s “2016 Innovation Showcase”, April 20, 2016, The Woodlands, Texas