Digital Oilfield to solve Canada’s cost problem
The Digital Oilfield has been helping the oil and gas industry with increasing popularity for some time now. It has facilitated many processes and helped cut costs, proven by numerous case studies and testimonies.
Now it could be on track to save parts of the Canadian oil industry, which has hit a particularly rough patch of late.
As the Canadian Association of Petroleum Producers, CAPP, predicted, the Canadian capital spending plan for the next two years was going to face its biggest ever decline. From 2014’s record-breaking $81 billion to $31 billion in 2016, the fall is set to be over 60%. As a consequence, thousands of direct and indirect jobs across Canada will be lost too.
The decrease is a response to currently low oil prices. Canada’s naturally high costs in both capital and operations prevent it from lowering its market prices, thus making it uncompetitive. This is exactly where the digital oilfield comes in with the resources and capacity, it can minimise the costs and improve efficiency to boost Canada’s production levels to viably meet the current industry pricing standard.
The 2016 Digital Oilfield Outlook Report, which not only highlights the importance of the innovation but also includes surveys, finds the digital oilfield essential to Canada’s revival. According to it, “it is incumbent on the industry to seek ways to overcome the barriers to adoption and pave the way for a globally competitive oil and gas industry in Canada.”
With how positive the response to digital oilfield has been, and the big companies that have adopted it – including BP – Canada should most definitely give it a second look. It carries potential to get the industry back to the level of 2016, despite the current wavering prices.
The Digital Oilfield has been helping the oil and gas industry with increasing popularity for some time now. It has facilitated many processes and helped cut costs, proven by numerous case studies and testimonies. Now it could be on track to save parts of the Canadian oil industry, which has hit a particularly rough patch of late.
As the Canadian Association of Petroleum Producers, CAPP, predicted, the Canadian capital spending plan for the next two years was going to face its biggest ever decline. From 2014’s record-breaking $81 billion to $31 billion in 2016, the fall is set to be over 60%. As a consequence, thousands of direct and indirect jobs across Canada will be lost too.
The decrease is a response to currently low oil prices. Canada’s naturally high costs in both capital and operations prevent it from lowering its market prices, thus making it uncompetitive. This is exactly where the digital oilfield comes in with the resources and capacity, it can minimise the costs and improve efficiency to boost Canada’s production levels to viably meet the current industry pricing standard.
The 2016 Digital Oilfield Outlook Report, which not only highlights the importance of the innovation but also includes surveys, finds the digital oilfield essential to Canada’s revival. According to it, “it is incumbent on the industry to seek ways to overcome the barriers to adoption and pave the way for a globally competitive oil and gas industry in Canada.”
With how positive the response to digital oilfield has been, and the big companies that have adopted it – including BP – Canada should most definitely give it a second look. It carries potential to get the industry back to the level of 2016, despite the current wavering prices.