New technological revolution to optimize the productivity of the oil industry based on low oil prices

in hive-175254 •  2 months ago 

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Introduction

On this occasion, I would like to explain the reasons why it is very important for the industry to be able to adapt and innovate on new technologies that will help the oil industry to continue to carry out exploration and production activities without affecting current and future low oil prices.

Imagine that the current times in which the economic crisis manifests itself in different ways, result in a favorable environment for the oil industry to develop new concepts within the field of science and technology and thus favor the processes that optimize the production and exploration of hydrocarbons in a sustainable manner, where not only the economy takes new directions but also the current conditions of our planet is focused on new sustainable and sustained over time to exploit hydrocarbons and other natural resources.

Before entering into any type of analysis it is important that I can explain to you which part of the oil industry requires greater investment, so it is convenient to focus on a significant change in the conception towards which we direct our efforts to work on new technologies:

Why is it important that we diagnose the part of the oil industry that requires the greatest investment?

The part of the oil industry that requires a large investment is the part of exploration and production. The important thing to identify the operational processes that require a large investment in these two branches of the hydrocarbons business as are the exploration of hydrocarbons production is that you can work and research on new technologies and innovate existing ones perhaps in this way are the first indications that the purchase of oil sales in the world will be feasible.

With low oil prices it is convenient to identify which part of this business requires the most investment and that at the same time creates greater uncertainty. Under this context comes the part of production and exploration in which high levels of uncertainty is handled is the part of exploration, which under current technologies is still a probability that holds uncertainty, where there is very little certainty of obtaining oil, for example: what scientific and seismology studies of obtaining oil in drilling of exploration wells still holds values of uncertainty that do not make the oil business profitable.

In order to achieve the contentious areas of hydrocarbon I want to make explicit in this publication that the new technological revolution should focus on new technologies for the area of exploration in the operational activities of seismic to help find areas that are prospective to find the hydrocarbon but with high levels of probability of success, that with low oil prices you cannot make the mistake of investing in drilling a well that dry without volumes of oil and natural gas.

At a time when oil was at peak prices peaking at a peak of around $100, the damage that could be done to the economy of this business was not so obvious that the prediction of finding the hydrocarbon could fail.

Today, I think this scenario needs to change, because with an oil price between $15 and $10 per barrel it is not convenient to drill an exploratory well so that it can provide data on a possible oil field that has no oil or natural gas.

It is in this scenario that the constant technological innovation applied to carry out the activities of exploration and production of hydrocarbons, especially in remote areas where the highest investment costs are incurred, plays a very important role. If technology, through the application and use of new equipment combined with the best science-focused techniques, manages to maximize and optimize processes to reduce the uncertainty of finding oil, then we could be talking about the oil industry being able to remain profitable in the times to come.

One of the parts where the new challenges in the application of new technologies that open up a range of possibilities for the new era and the oil revolution are in the extraction of oil in deep water.

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When I give this series of reflections it is because if you take into account this re-direction of technology under the new era of the technological revolution you can get to overcome the current critical moments where low oil prices can momentarily stop exploration and production activities, however with a barrel of oil between 10 – 15 dollars only the oil business is viable by innovating looking for new technologies that lower production costs especially in particular these two areas: production and exploration.

Let us hope that the challenges that are already on the stage within the oil industry will not be maximized in the face of the great technological openness that is coming and with which it has already been worked, the following objectives must be met from my point of view:

This can be cost-effectively tracked in oil exploration and production operations under the new low-price scenario.

That new built-in technologies have environmental preservation characteristics and can be sustainable over time.

That there is a technological transfer capability in which all markets and industries can benefit in this process of profit optimization despite the low prices of the barrel of oil.

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Hi @carlos84

Because it is a complex issue, I think it is a huge challenge for the companies that develop this technology and for those who acquire it.

I am convinced that in the long run they will find a low-cost technological solution and I think this will be when the production costs of the materials are reduced, I think that perhaps using large-scale 3D printers could achieve something, as long as it is achieved cheaper materials.

That's why my friend as you say, production costs must be lowered. Among the production costs is that technology must create the scenario for the new technological revolution so that one of the new factors to improve this is to reduce the levels of uncertainty in the processes of exploration and search for oil, since for each exploratory well that is drilled and comes out dry, great losses are generated that were only rewarded with a price of the barrel of oil at 80 or 100 dollars per barrel, however under the new context with a barrel of oil at 15 dollars the oil industry cannot afford to drill an oil well with exploratory characteristics that comes out without containing oil in the formations that are considered prospective

Nice piece there buddy. In my own opinion though, I would say it's better for oil-producing countries to focus more on diversification instead of just improving the efficiency of the hydrocarbon. The economy of my country for example, depends so much on oil that if something goes wrong in oil, we'd be in serious trouble. Moreover, technological revolution is delivering alternatives to stereotypes. This is also the reason attention has been focused more on green energy.

Thanks for sharing this piece buddy

Thanks friend for the correct analysis that you share with us in this commentary, I have really said in previous publications that if the viability in terms of production costs does not adjust to the new changes of the new oil technological era, then it is better to improve towards new forms in the generation of energy different from those derived from fossil fuels.

@tipu curate

Upvoted 👌 (Mana: 6/18 - need recharge?)

Improving the efficiency of hydrocarbon is not worth it currently as a lot of people are going into renewable energy. Soon, scientist need to get better direct solar energy which is enough to power large machines as well as other renewable energy for power.

A lot of countries are becoming oil producers almost every day and the price is dropping daily. Having an expensive technology might not be of help.

Thanks for the post

Only time will tell if the exploitation of hydrocarbons is really not profitable because other forms of energy are originated that really cover the world demand, meanwhile the optimization through the new era of the oil revolution must work on this to make this business viable