Call for More Technology Gains Dominates Unconventionals Conference

Abstract

In the oil and gas industry, downturns are first met with extreme and widespread pain. But then the industry tends to turn to new technologies, the adoption of which eventually becomes so significant that it changes the makeup of the entire business. This metamorphic change was on display at the 2018 Unconventional Resources Technology Conference (URTeC) in Houston, where digital technologies and their role in improving economics dominated the discussion. On the exhibition floor and in technical sessions, it was clear that analytics and machine learning tools are enjoying greater uptake and delivering early wins—yet, there remain a number of kinks to work out. Here are some highlights that capture the shale sector’s views on how its digital transformation is shaping up. Pioneer’s Analytics Project Reveals the Good and Bad of Machine Learning Trent Jacobs, JPT Digital Editor Machine learning is supposed to help the oil and gas industry discover the important insights that human engineers keep missing. However, a recent project by Pioneer Natural Resources shows that engineers do indeed know their stuff and, while the machines are powerful and full of potential, they still need to get smarter. Big Leaps Still To Come in Unconventional Technology Matt Zborowski, Technology Writer Today’s advancements in unconventional technology are worth marveling over, but there is still plenty of room for growth, a panel of industry leaders agreed at the Unconventional Resources Technology Conference (URTeC). “There are certain times in the history of the industry when technology proceeds at such a fast pace, you would describe it as revolutionary. We are living in one of those times,” said Greg Leveille, ConocoPhillips chief technology officer. In the Shale Business, It’s Time for Another Revolution Stephen Rassenfoss, JPT Emerging Technology Senior Editor The report card for unconventional oil and gas producers from a leading industry analyst is A+ for growth and F- for paying back investors. But Bob Brackett, senior analyst for Sanford C. Bernstein & Co., who created the report card, said he is seeing signs of change. On the production side, the industry is struggling to keep up with the Permian Basin because output is exceeding available pipeline capacity. On the supply side, the industry may be moving away from pushing production so hard it drives down prices to levels where no one can make money.