(06) A CASE HISTORY: 131 FAILURES TO 30 - FAILURE CONTROL PRINCIPLES IN THE MIDLAND BASIN
Depressed oil prices drive producers to reduce operating expenses and maximize profit margins. Some of these expenses are necessary for day-to-day operations, and are dictated by vendor pricing. Others are a function of the operator’s activity, and can be controlled within certain limits. Workover costs are a prime example of these “controllable” expenses. That being said, well failure control programs are essential to maximizing profits and limiting expenses.
In 2014, Resolute Energy recognized the need for a more effective failure program in their Gardendale, TX asset. Through organizational, managerial, and engineering efforts, Resolute successfully decreased well failures by nearly 90 year-to-year, resulting in expense savings of nearly $4.5 million.
These savings, along with other expense control efforts, cut lifting cost in half throughout the 101 wells. This paper describes these control efforts in detail to reinforce their importance, particularly in current market conditions.