Oilfield services (OFS) companies do the gritty work that makes oil and gas production possible. From discovering oil to repairing well equipment, OFS companies offer the full suite of solutions that help bring petroleum to market.
Fracking, or hydraulic fracturing, releases oil and natural gas trapped in shale rock formations. It entails drilling a long vertical well that extends a mile or more into the earth, then rotating the drill horizontally and injecting a high-pressure combination of water, sand, and chemicals into the shale. This causes fissures in the shale to break apart, releasing gases and oil.
Renegade Wireline Services provide equipment to help oil and gas exploration and production companies extract resources. As a result, OFSE revenue is essentially a function of E&P spending and, therefore, highly correlated with oil prices.
The ability to deliver services with minimal disruption to production is vital. This requires a sophisticated digital platform that can track and report on the location of assets, monitor pump operations, collate seismic data, and more. It also necessitates a user-friendly dashboard that swiftly enables employees to make educated decisions based on the most up-to-date information.
The resulting efficiency increases the speed and accuracy of decision-making and execution while improving reliability, predictability, and cost. Increasing shale gas extraction and the need for improved productivity are driving growth in the OFS industry. Commercial leaders must re-think how they approach offerings, pricing structures, and operating models to capitalize on these opportunities fully.
Drilling uses a long hole to access energy trapped under the earth. Engineers and geologists use directional drilling to target specific oil or gas areas. Then drillers steer the hole using guidance systems based on technology developed for space travel. It’s not possible to see hundreds of meters underground. Hence, the engineers have to send survey data back regularly and ensure that the original ‘blue line’ well path is still being followed.
After drilling the hole to the desired depth, a perforating cannon is shot into the rock stratum containing the oil or gas. This creates narrow fractures in the rock that allow the sand or ceramic particles carried by the drilling fluid to reach the reservoir below.
The horsepower needed for this work can rise or fall based on oil producers’ needs. When there’s a surplus of available horsepower, prices can drop – but when there is a shortage, prices rise as oil companies rush to get the job done.
How engineers complete a well will directly influence how quickly the oil can be extracted. Whether using an open hole completion, liner, or perforated casing, engineers must ensure that the well resists corrosion and creep and does not collapse into the reservoir or the wellbore.
A key component in most completions is the production packer. This device acts as a downhole safety valve, preventing fluids from moving between different reservoir zones.
The next step in the good completion process is hydraulic fracturing or “fracking.” A wireline crew runs a pipe connected to perforation guns downhole. These guns are loaded with a shaped charge and then pumped to bore holes in the reservoir’s steel or cement casing. A sand-like material called proppant is pumped into the holes to prop them open and allow the reservoir’s resources to flow up through the well. Throughout the process, the completion engineer must monitor the collected data and make constant modifications to optimize the fracking.