6. GREAT CREW CHANGE FACING OIL & GAS INDUSTRY
Lack of modern technology is unattractive to incoming workforce
Technology must close the experience gap of the young workforce
Many functional silos, massive inefficiencies, slow decisions
Traditional tools do not quantify ROI
90% of Oil & Gas
executives know talent
shortage is an issue
50% of the workforce
is retiring in the next 5
to 7 years
Huge demographic
gap in the workforce
2 retire as 1 new
employee enters the
workforce
1950’s techniques with
1980’s technology
7. LEGACY TECHNOLOGY PLAGUING THE INDUSTRY
Poor understanding of
100s or 1000s of
variables
Siloed information
between
experts/teams
30 year old software
platforms
Producibility of rock
vs. engineering
variables
Inconsistent,
incomplete data
Traditional, sub-optimal processes are inefficient
Workforce focused on qualitative solutions to discrete technical
problems
10. DIGITIZING THE EARTH
Collecting the most
granular data points
and building the
database from the
ground up
Connecting 1000’s data
points and digitizing
entire surface and
subsurface
3D dynamic
visualizations of the
subsurface accessible
online
Cloud-based or integrated
behind the firewall with
proprietary customer data
11. PROBLEMS WE SOLVE
Optimize decisions and quantify return with integrated models of an
area's ecosystem to:
12. HOW WE SOLVE THEM
Quantifying the Subsurface
Industry-leading non-linear
multivariate analytic engine
Predictive and prescriptive
production mapping of engineering
and subsurface variables
Prescribe and quantify investment
and potential revenue return
ROI of Differential Proppant Variables
13. Using DI Tools, a Canadian
midcap oil company entered
into a new play and identified
a much lower cost and effort
frac program that would
outperform more expensive
alternatives. Collapsing the
learning curve from 20 wells
to 3, saved $35M and
produced an extra 2M barrels
of oil Total: $105M.
SAVE $35M
VS. THE COMPETITION
A European-based National
Oil Company leveraged DI
Analytics to identify a U.S.
company over-performing
relative to its competitors in
a major US unconventional
oil play as the $4 billion
foothold acquisition in US
unconventionals.
DRIVE A $4B
ACQUISITION
U.S. midcap E&P
company used Drillinginfo
to optimize well production
based on proppant used.
Identified 40% of wells
could produce more with
added proppant. Amount
saved: $45 million. New
revenue realized in year 1:
$85 million. Total: $130
million.
$130M FRAC
OPTIMIZATION
WIN WITH DRILLINGINFO
ROI: 1000’s:1 ROI: 260:1 ROI: 210:1
14. CONTINUOUS IMPROVEMENT MODEL
Data Intelligence Analytics Insights
On-going R&D investment
Continuous product innovations
Increased capabilities and
value over time
100’s of new features released
regularly to solve more
complex problems
On-going data acquisition and
ingestion
Good Better Best
INCREASEDCAPABILITY
VALUE OVER TIME
Drillinginfo consistently invests a substantial amount of our revenue in research
and development. Our reinvestment allows us to develop and deliver
continuous improvements to customers every day. Legacy competitors do not
evolve and adapt to market needs in this way.
Breakthrough technologies to solving industry problems
Immediately implement actionable insights
Two MvStats models were created. One with 700 lbs/ft of proppant and another with 400 lbs/ft. This map shows the ROI if we assume (10k laterals, 20 cents/lb of proppant, and $40 overall net revenue per barrel of oil. In some areas, the ROI is positive – over $2MM return in the first year alone. In some areas there is a net loss. Shows the importance of running engineering optimization within a geological framework as differences in rock properties may respond differently to increased proppant.
Based on tier 2 Dunn & McKenzie non-linear regression Model
This shows the revenue difference between the 700 lbs/ft model and the 400 lbs/ft model
Assuming:
10,000 ft laterals
$0.20/lb of proppant
$40/bbl return for oil
