International oil and gas industry solutions provider, Welltec®, has reported a marked increase in demand for its services in the North Sea as operators scale down drilling operations. The company, which is headquartered in Denmark and has bases globally, says a reduction in investment in new wells in the the North Sea has resulted in resources being redirected towards enhancing oil recovery from existing wells.
Welltec® explains the low price of oil has resulted in a rise in requests for the company’s groundbreaking intervention services.
In real terms, this has equated to a 47% rise in intervention work over the 4 year period from 2012 to 2015 with firms making use of the vast range of technology in the Welltec® portfolio.
In particular, the oil price plunge in 2015, down 50% compared to 2012, has driven the increased demand for intervention services. This is a development that corresponds with operators’ trend of cutting capital expenditures such as drilling activities, and shifting focus towards intervention – a trend recently documented by a leading oil and gas consultancy agency.
Welltec’ s innovative solutions are designed to increase oil recovery and activate deferred production while at the same time reducing lifting costs, allowing operators to get the best results in the current climate.
Christian Krüger, vice president of intervention at Welltec® said: “This new development is a necessary reaction from the industry and shows that the current downturn has prompted operators to search for new strategies to maintain or increase production.
“In the light of the current low oil price, we are seeing operators focus on protecting and optimising their existing assets and our solutions are designed to increase recovery while at the same time reduce lifting costs, allowing our customers to maintain positive cash flow.
“Just as other industry downturns historically have prompted innovation, the current downturn in the oil and gas industry opens up new possibilities and a chance for the industry to change its mindset, which presents a golden opportunity for companies which can offer an effective, lower cost alternative.”
Welltec® has a range of intervention solutions available to clients, aimed at maximising oil recovery from existing wells – extending the lifespan of fields and at a much lower cost than fresh drilling.
The solution portfolio include include mechanical, milling, clean-out and conveyance services, which provide clients in the North Sea and globally with efficient methods of intervention to keep production up and costs down.