An article written by Halker Vice President of Operations, Travis Hutchinson and Vice President of Business Development, Peter Dickey, has been published in the April 2015 issue of Oil and Gas Facilities magazine, available in print and online now.
Entitled “Value-Added Engineering: A Solution to a Down Market,” the article deals with the challenges currently facing the U.S. energy market — including falling prices, tightening margins and delayed exploration efforts — and how engineering can help operators address those challenges.
“In the short term, oil and gas firms need to find ways to cut costs and optimize their existing production efforts and debottleneck their systems to maximize available revenues from what they are already producing to maintain profitability until the market returns, all with an eye on future needs,” write Hutchinson and Dickey. “Prices are falling now, but are expected to rise again in the future. Operators need to know that they can make adjustments to expenditures now without sacrifcing future opportunities down the road.”
Among the engineered solutions that the authors recommend are cost reductions through process optimization, new revenue generation through debottlenecking, strategic site planning and pre-engineering to prepare for the eventual upturn.
“Oil and gas firms cannot give up on existing assets as a result of market pressures because it will cost more to get back into production mode later if they do. Maintaining a readiness to return to the market at higher production levels is key. Now is the time to work more effectively to extract maximum productivity from existing facilities by building value, maintaining flexibility, and improving efficiency.”
Click here to read the full article.