It’s true that no one in the oil and gas industry likes the idea of low prices, especially when they seem to last for months on end. However, rather than being like so many of the doom and gloom naysayers out there, the low prices do not have to be the end of a company. In fact, it can be an opportunity for many small and even large oil companies to change up their strategies, tactics, and even their procedures. Many companies are taking advantage of this time to invest and use new technologies and to rework their strategies. Some of them are starting to delve more into digital technology as well.
These changes, especially those in the digital realm, are helping companies to improve their upstream, midstream, and downstream areas. They have the time, as well as the need if we are being honest to look at the way they’ve been doing business and conducting operations. When things were going well, many companies were simply content to “let it ride” and continue along the same path. They never bothered examining their equipment and processes at the time to see if there was a way to increase efficiency.
Now, with the prices lower, that’s exactly what these companies are doing. They are finding ways to operate more efficiently and with fewer resources. They will be able to take these lessons with them into the future when the prices return to normal, and you can be sure that the resurgence in price will be coming sooner rather than later. However some companies might fall back on their old and easy methods of doing business, forgetting the lessons that they learned. This would be to their detriment.
The companies are starting to increase their efficiency in a number of different areas across the board. They are working hard at improving their efficiency and reducing the cost of operations, naturally. However, they are also working toward improving the safety for their employees, as well as the environment and the rest of the world. This increase in safety measures is vital for companies that want to keep operating. Safety problems, even though they are rare, can haunt a company for a long time. It’s best to put in the effort to improve safety now, when the operations are a bit slower than normal.
The changes that many companies are now starting to implement can affect the field in a positive way. They just need to keep up with the changes when the prices rise.
About Oil Works Inc.
Oil Works, Inc. is a complete drilling rig equipment manufacturer and service provider based in the Permian Basin for over 20 years. OWI’s product and service offerings include Derricks, Substructures, Drawworks Manufacturing, Mud Systems, Rig Walking Systems, Power Generation, Control Systems, Iron Roughneck Service, Quincy Air Compressors. We are a complete Drilling Equipment Manufacturer and build to API and ISO standards. OWI is also proud to offer 24/7 Service and Support.