Let’s face it, the fingers are starting to fly. Interdisciplinary teams handing off capital projects at different stages of planning and completion intervals involves well-rooted trust in one another, particularly from the management team. The trade-off of engineering decisions relative to acceptable risk as they relate to growth and investment return appears to be tipping a three-dimensional scale in the wake of added pressure from capital markets.
As we all look back and reflect on the rollercoaster of the industry through the last few years, it’s easy to look back and only see the flaws. At this point, the only thing that can be done to prevent animosity in the future is to continue to make environmental and profit-tied decisions within each specific program.
We would like to quickly hit on some points that have been hot topics in the last month1
Completion Engineers and Managers have been under the microscope for decisions made in the last few years of field development by the investor community. On one hand, it is easy to see the argument that investors are making “growth mode” eventually convert to dishing out real returns. On the other, engineering teams are struggling to continue making sizable gains between cost-cutting, maximizing depletion, and transitioning the cohesive plan from growth to cruising altitude at this point in the optimize-or-die game.
The continual cost-cutting environment of completions programs appears to be at an inflection point of diminishing returns if programs start ditching foundational services (and adjoining service quality).
Understandably, some of the services on a per well or per pad basis (whatever operator x chooses for a unit economics model) are difficult to justify on a risk-adjusted basis to put in the starting rotation if they no longer definitively improve production. This new, “new normal” shift, in our opinion, will put greater focus on wireline services not only being the most cost-effective value-add service, but also one that will be hit with a second pack of watchdogs. High levels of accuracy, transparency, and service quality are poised to be the renewed delicacy in completion services as we move forward. And although we may all start out as relatively similar, we certainly do not finish that way. The choice among wireline companies is one wrought with weathered competition, but few stand out as organizations where all service personnel conduct daily operations as owners. We get it – building a machine churns systemic value back to your company and borrowed investor dollars couldn’t be more mission-critical right now, and we can alleviate the stressful uncertainty of wireline services consistency and quality.
The way to wright the ship is through trusted service partners. With core & non-core services to support ‘tidal’ programs, set your bearing and navigate the service of wireline on a straightened path. Entrepreneurial integrity is invaluable when so many variables can impact any given process on any given well, field, and/or basin. Traditional services don’t mean dated, they are simply elemental to execution.
Whatever round of revisions you’re circling around (again), we hope reading this can realign perspective in seeing a more direct path to lean operations without sacrificing value. Wireline is not created equal and high-caliber services might just be tomorrow’s secret sauce that’s right under your nose. When you’re ready, ☎️ us.
DISCLAIMER: Renegade Services remains a neutral-party to all of other companies referenced in any blog post listed on our website. The opinions in any blog post do not necessarily reflect the views, opinions, or position of Renegade Services at any point beyond our current time of publishing.
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