Facilities Optimization: Evaluating Well Site Potential

In the upstream oil and gas industry, Facilities Optimization is concerned primarily with the efficiency and performance of well sites, production pads, and production facilities (i.e., central tank batteries and other shared assets)

The goal of Facilities Optimization in the oil and gas sector is the same as it is in any other industry – doing more with less.

At Platinum Control, we look at Facilities Optimization from the standpoint of helping customers realize the full potential of their well site(s) for generating the most value possible over the life of the well, regardless of its age and where it sits on the decline curve. This begs the question – How do we assess full potential?

What is full potential?

Whether your well is a new drill or further down the decline curve, it has a full potential to live up to. When operating at “full potential” a well site is operating cost-efficiently, free of operational constraints and in compliance with applicable regulations.

In general, a well operating at full potential is one where production is being maximized, unit operating costs are low, and EHS risks are minimized. Achieving full potential, however, can be a challenge for even the largest operators.

“Full potential”, is different for every well since we are working with natural resources and the inherent variability in reservoir characteristics and natural processes. No matter how old a well site is, extracting the most value from it is an essential goal.

The role of Performance Audits

A comprehensive evaluation of your well site by experienced professionals who have seen thousands of well sites using a standard, proven framework of analysis provides an objective and transparent look at your operations.

Diagnosing inefficiencies and impediments to achieving full potential requires a systematic and comprehensive approach. To make an informed assessment of full potential, we cover these primary factors:

• Production volumes

• Production stream composition and flow

• Tank vapor volume quantification

• Piping, including sizing, angles, and type(s)

• Equipment sizing

• Equipment age and condition

• Oil and water storage systems

• Well site power gensets

• Site condition, including cleanliness, weed control, containment, and other factors

• Production staff training, knowledge, and experience

Over time, variables can change as the result of equipment repair and replacements, new regulations, aging equipment, variability in production rates and timing, increased water production, changing production stream composition and other dynamic factors that may create inefficiencies as a well ages.

Diagnosing inefficiencies and impediments to achieving full potential requires a systematic and comprehensive approach.

Evaluating all the above factors, including interdependencies and interfaces between equipment and processes, is essential to finding the root cause(s) of bottlenecks, inefficiencies, and other constraints.

Data Sources and Analysis

To make an effective and insightful Performance Audit of full potential, we rely on three primary information sources:

Data. Data plays a key role in evaluating full potential. We typically request historical production rates, water production, cost information, workover histories, flaring incidences, emissions, maintenance records, and other quantitative factors.

Site Inspection. Experienced team members make a site inspection to evaluate site configuration, piping sizes and angles, process flows, equipment condition, optical emissions analysis,

Personal Interviews. The human factor is an essential part of assessing full potential. Operations personnel and even service company employees can provide invaluable first-hand experience with a well site, its characteristics, company culture, and other variables that data alone cannot diagnose.

Full Potential – Setting the Goal

Once the primary factors holding back well performance have been identified, we can then make an estimate of how it would perform unconstrained by bottlenecks and inefficiencies. This provides us with a goal to work towards and measurables, by which we are able to fulfill our promise to help you Harness the Full Potential of Your Well Site.

The Performance Audit provides you an actionable roadmap for achieving lasting performance improvement.

Contact us today at sales@platinumcontrol.com to learn more about our solutions and how we can help you harness the full potential of your well site.