IoT Technology Aims to Optimize Production Chemical Optimization
Low oil prices also are forcing companies to be more efficient, cherrypicking sites for E&P activity. These cost-cutting measures are putting pressure on vendors, from chemical and seismic providers to companies that provide sand and water. Vendors also are putting pressure on themselves to stay competitive for the remaining business opportunities available, said Saucer.
More efficient, lower-cost operations will be important moving forward, as the companies that own and operate oil and gas will be backed by private equity companies who want consistency and predictability in rate of returns – more like the return on bonds versus growth equity returns.
“It will be less about concern over an uptick in prices and more concern over making money at these levels,” said Saucer.
Companies will have to be smarter in terms of their lease and general and administrative expenses.
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Senior Editor | Rigzone