Analytics Checklist – Surviving Low Commodity Prices
When commodity prices fall and capital programs for drilling and completions get cut, its time to turn your attention to analyzing your data and making decisions that will minimize the negative consequences of these times. That’s why Verdazo has given all their clients unlimited licenses to help them dig into their data and find the opportunities that will help them the most. Today I’m going to offer a bit of a checklist and some suggestions about what you could/should be looking at. Essentially what you’ll be doing is a detailed asset review. A typical asset review would be looking at every well and assessing its performance from three perspectives: Production Performance, Financial Performance, and Performance to Plan. A typical asset review would be answering questions like these on a monthly or quarterly basis: Are we on plan? What’s the variance & trajectory? What wells are losing money? Why? Are there identifiable patterns? What are our top performing assets? What’s our strategy to keep them that way? What are our bottom performing assets? What are we doing about it? What cost/downtime reduction strategies are we exploring? (e.g. change in chemical treatments, new workover strategy, equipment changes) What’s our shut-in plan if...