Unnoticed Losses

The hidden cost behind apparent best practices

The cost of well integrity failures cannot be measured by catastrophic incidents and major losses alone. Less obvious, but still very significant, production losses are suffered every day by oil and gas companies as a result of unnecessary well shut-ins.

Consultancy work carried out and published with Maersk Oil Qatar (SPE 175473) illustrates how a proactive approach in well integrity management can lead to significant benefits and financial gains. This is in addition to knowing that well risks are managed using criteria that improve on accepted industry practices.

This approach can support major reductions in lost production, for example:

  • Avoiding having wells unnecessarily shut in while risk assessments are conducted. These losses can be eliminated using a well failure model approach by completing pre-emptive risk assessments rather than reactive risk assessments while wells are shut in.
  • Extending well failure model grace periods using advanced quantitative risk assessment techniques. At the same time robust risk analysis objectively demonstrates well risks are limited to accepted levels.

Other financial gains are made with

  • Reduced office based risk assessment man days
  • More efficient well service operations with better use of operations manpower, equipment and spare parts
  • Reduced insurance premiums

These financial gains are in addition to well risk management and safety performance improvements that prevent catastrophic failures.

Value of lost production avoided by safely extending well failure model grace periods Value of lost production avoided with pre-emptive risk assessment $20m/year $90m/year

Example of annual financial benefits

 

Empirica

Evidence based well risk management

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You can meet this challenge with Empirica

Benefits similar to those illustrated above are available to Empirica users.

You can achieve huge value using Empirica: a unique application centred on evidence based measurements, pre-emptive risk assessment and advanced risk modelling capability tailored specifically for well integrity management.

Industry Challenges

Project Delays<br/>& Cost Overruns

Project Delays
& Cost Overruns

If you do not change direction you may end up where you are heading

Business Cycles

Business Cycles

Issues related to staffing will be the most critical challenge we have ahead of us

Global Lost Production

Global Lost Production

Over $30 billion lost every year for well integrity reasons

Well Risk Insurance

Well Risk Insurance

Mind the gap

Performance<br/>Advantage

Performance
Advantage

Tipping the balance in your favour

Unnoticed<br/>Losses

Unnoticed
Losses

The hidden cost behind apparent best practices

Oversight & Regulation

Oversight & Regulation

Meeting your obligations

Unseen Risks

Unseen Risks

Mastering Well Integrity is impossible if you cannot see the real risks

Well Abandonment

Well Abandonment

Avoid a sting in the tail

Catastrophic<br/>Failure

Catastrophic
Failure

We can’t afford to lose reputation – even a shred of reputation