• Overview

    Outperforming the competition is a primary goal for any oil and gas company. While adding revenue and increasing company earnings is essential to any business model, creating a defendable competitive advantage and an effective value proposition still remains the main challenge for most organizations in the industry.

    When an oilfield services company with a specially engineered proppant sought to amplify its business, the Head of Exploration used Drillinginfo to determine that the wells they were hired to complete in the Bakken were outperforming their peers and generating a 20 percent higher production volume compared to other nearby wells serviced by the competition.

    Accelerate Business Growth

    Armed with this information, derived from an impartial, reliable third party, the company was able to deliver a very strong, fact-based, ROI case to other E&P companies in the area, and carve a strong position as a preferred service provider in the play.

  • Determine a Competitive Advantage

    The operations manager suspected that the proppant his company offered was generating improved production results for their clients, but he wanted to prove the company's competitive advantage by quantifying the benefits of the increased output.

    competitive advantage

    With Drillinginfo

    Using the product search criteria, the manager created a digital map of all the Bakken wells that had been completed over a span of two years in Williams County by production quality of the underyling reservoir. He then sorted the cumulative production of the wells in the associated table view, and located the wells his company had been contracted to complete by their API number.

    By enabling the Production Engineering option in the Selectable Columns feature within the Production search tool, the operations manager was able to quickly compare several important production metrics between the wells that his company treated with all the other nearby wells in like quality reservoir.

    He realized that wells supplied with his company’s proppant had higher Prac IP, maximum monthly production levels and higher six month cumulative values across the board - not just instantaneous results, but long term benefits. He was also able to quickly quantify that the wells his company had serviced were yielding a 20 percent higher production volume compared to all its peers

    Without Drillinginfo

    Without an easy-to-use platform that contained advanced analysis models, the manager would have to obtain raw production data from the North Dakota regulatory agency, undertake a geological study of the reservoir, and rigorously sort through the information on a well-by-well basis to create a less precise production comparison.

  • Verify the Marketing Claims

    Instead of just relying on his team’s analytic results, derived from normalizing the data and creating an effective comparison, the operations manager sought to validate their results using another unbiased, credible measure.

    marketing claims

    With Drillinginfo

    With DI’s operator differential and graded acreage modules, the manager was able to quickly remove “geology bias” of the rock quality, and help normalize out other engineering practices in order to provide an analogous comparison of relative contribution of the proppant.

    By comparing the production levels of the wells his company did not service with the wells that were completed with his company’s proppant, he quickly confirmed that his clients wells were generating a nearly 20 percent higher production volume compared to other nearby wells located in a region consisting of a similarly graded acreage quality.

    Without Drillinginfo

    The company would likely have to employ a third party to perform a rigorous analysis  to help verify the accuracy of the findings. The process would require a vast amount of capital, lost time and potentially inaccurate and/or biased results.

  • Quantify the Market Potential

    After the operations manager had validated the improvements and was ready to stand behind the positioning statement, he decided to analyze the company’s service areas to understand the competitive landscape and determine the company’s current share of the market.

    market potential

    With Drillinginfo

    By drawing a map around their service area, the operations manager was able to view all of the horizontal well sites that had been completed within their target area.

    Using the Define Area tool, he was able to determine an accurate number of total frac’ed wells in their operational areas, select the wells that his company had completed by their API number and calculated their current estimated market share of 10 percent.

    He then created market share improvement as an easily measureable Key Performance Indicator (KPI) for his sales team on a monthly, quarterly, and annual basis, and established a 20 percent performance improvement goal for his operations team to maintain.

    Without Drillinginfo

    In order to get and keep up-to-date rough estimation of the company’s market share, the operations manager and his team calculated it would take an ongoing 1 to 1.5 full-time equivalent techs to request and compile rig totals from the state regulatory agency, analyze the obtained information to uncover horizontal wells, tally up the results and manually calculate a market share percentage that included territories beyond their reach and potentially based on limited data.

    This estimation would not include keeping up-to-date with changes to inherent productive rock quality based on emerging technologies.

    Rather than having 24/7 access to the information, they would have to build and maintain their own database shoulder the hidden maintenance costs of supporting it.  Their time-to-insight would have been measured in weeks or months instead of minutes.

  • Capitalize on Operator Activity

    To capitalize on the market’s untapped potential, outhustle the competition and uncover new sales and marketing opportunities, the operations manager decided to keep a close eye on their service areas using the most advanced information for operators entering plays within their geographic reach.

    capitalize on operator activity

    With Drillinginfo

    Using VirtualSCOUT, the manager was able to create an area of interest map for each of the company’s service areas and set-up email alerts for new lease information, issued permits and various well events. The up-to-date notification system allowed him the ability to keep a close eye on new prospects entering the company’s service area.

    When new activity occurred within his AOI, the manager was able to quickly export new leads into a spreadsheet, use the integrated comment tool to add additional context for the prospect and distribute the leads to sales.

    The assigned representatives then contacted the operators, engaged them with their defend-able and important value proposition and service capabilities, set-up a consultation and used the DI Rigs mobile application to get step-by-step driving directions to the rig location for on-site visitations.

    Without Drillinginfo

    The company would have to rely heavily on hearsay to become aware of new operators entering their service areas. They would have to regularly check with the state’s regulatory agency to determine any new permitting activity, and routinely send a landman to the county courthouse to maintain uncover new leasing activity.

    The process would waste precious resources, costly amounts of time and create painstaking out-of-date work that may never result in timely lead generation and business closings.

    Without an instant notification system, the company’s sales arm would have to spend more upfront time trying to uncover new opportunities, allowing the competition the ability to outpace the company’s efforts.

  • Accelerate Business Growth_Results

    Summary

    The operations manager and his entire company were thrilled with the results. The organization rapidly gained deep insight into their performance results and were able to quickly leverage the information into their client relationships.

    With an improved monitoring and notification system for leasing, permitting, operator changes and well activity, the company was able to uncover new opportunities weeks ahead of the competition, capitalize on new players entering their service areas, boost sales and increase monthly revenue by over 15 percent while others experienced a mild slow down.

    Other oilfield services subscribers are already benefitting from Drillinginfo’s world-class data, revolutionary platform and intuitive interface.

    To find out how our solutions can help you accelerate your business, speak with one of our dedicated, oil field services specialists today, and make the most out of each and every opportunity.