The must-have solutions to cut costs and do more with less
The oil industry is in trouble, hit with the double whammy of a depressed economy due to the Coronavirus pandemic and an oil price war between Saudi and Russia. Layoffs are piling up. Salaries are being cut. Oil prices, in inflation adjusted terms, are the lowest they’ve been since the 70s and there’s no end in sight. We are all in full–on survival mode where every dollar counts. Everyone is asking a key question—what can be done to minimize operating costs while still generating maximum revenues through oil production?
Due to drilling and completions activity slowing down in the current pricing environment, to survive this downturn oil and gas operators need to extract more oil from existing wells as efficiently and inexpensively as possible. This need is for both marginal conventional wells and shale wells that have begun to decline. There’s a novel technology that can help.
Biosurfactants. You’ve probably heard the word or seen them deemed a top new oilfield technology for flow assurance, production enhancement and completions. To quickly summarize, biosurfactants are a special class of surfactants (the backbone of many of the drilling and production chemical programs currently in use). They outperform synthetic chemicals in performance, but at much lower costs. They are also green and 100% sustainable. We know these solutions can improve ESG compliance, but how can they make an impact on an oil and gas operator’s profit in these dire times?
Let’s look at the top four ways to cut expenses using biosurfactants:
1.) Reduce treatment volume, cost and application frequency.
Biosurfactants need a fraction of the dosage rate and have unique absorption and desorption qualities that extend their performance over time when used in new completions, recompletions and enhanced oil recovery treatments of existing wells. By using biosurfactants as a replacement or even an additive to your current chemistries, you can significantly cut down on dosage rates and frequency—ultimately reducing expenditures and increasing performance.
2.) Eliminate unnecessary operating expenses.
Shut ins, well failures. Every minute a well is down you’re losing money, and these LOE challenges can put a big dent in producer revenues. The good news? Biosurfactant–based formulations require little to no shut-in time, have been shown to successfully reduce paraffin accumulation downhole and in flow lines, and actually outperform xylene and other commercial paraffin dispersants. Watch AssurEOR FLOW biosurfactant treatments outperform 100% Xylene in dispersing Wolfcamp paraffin here.
3.) Maximize oil recovery and significantly extend the lifespan of your wells.
As oil and gas operators slash drilling and completion expenditures, they must do more with less. Biosurfactants offer a multitude of remediation and production benefits to get the most out of your current wells, including preventing ongoing paraffin buildup, increasing permeability, mobilizing otherwise immobile oil and providing sustained production increases. Oil demand may be down, but if you want to cut costs you need to take full advantage of oil production from your wells and keep them operating at maximum performance.
4.) Capitalize on tax breaks for the next 10 years.
In an unstable economy it’s important to save every penny possible—especially when it comes to taxes. The AssurEOR biosurfactant–based enhanced oil recovery treatment program has approved eligibility by Texas RRC, for a 50% severance tax reduction for 10 years on ALL oil (not just incremental oil) produced on the lease, if a sustained production response is realized. That means you not only reap the financial benefits of increased oil production, but you also save big on taxes. A win-win.
Time is of the essence and operators can’t wait around for results. You need solutions that will work right now AND give you the best outcome. That’s why Locus Bio-Energy’s biosurfactant treatments are customized to your specific well characteristics—formation minerology and fluids, paraffin type, salinity, you name it—to maximize efficacy. They outperform other one-size-fits all treatments in less time, with impressive production and remediation results typically seen after just one treatment. Every dollar counts right now, and biosurfactants will help you maintain financial stability and function within operational cashflows.