Extracting maximum value is a tenet of the oil and gas industry. Whether it is a field located deep in the ocean or a rock formation located in the middle of a plain, companies are constantly searching for ways to get as much out of the resources available to them as possible with the tools they have. With the price of oil at a low mark, these companies are looking for the most efficient and economical strategies to solve these challenges as they push into uncharted territories.
The 19th Annual Gulf of Mexico Deepwater Technical Symposium, held in New Orleans in August, featured several presentations on the challenges that operators face with deepwater projects in the current economic and technical environment.
Speakers focused on a variety of issues, including construction costs, contractor involvement, flow assurance, and the integration of new technologies created to improve the production from their fields. Marcia Houghton, general manager of US Gulf of Mexico GOM asset development at Chevron, emphasized the value that the company has derived from its partnerships in the region.
In addition, companies can reduce their exploration risk by focusing on their own strengths and recognizing their limitations. Fowler also said that as a private company, LLOG often focuses on developing projects with lower production thresholds, and it will seek developments near host facilities willing to accept third-party production.
Discretionary spending is also an increased priority in the current deepwater environment. Houghton said companies must spend more wisely and carefully than they have in the past, especially given the time frames that accompany investment decisions. With limited financial resources, private companies must keep an even closer eye on discretionary spending in deepwater projects.
