A New Generation of Start-Ups Is Offering Ways to Cut Drilling Costs and Non-Productive Time as Oil Operators Adapt to Low Oil Prices, Says Lux Research
BOSTON, MA--(Marketwired - Oct 6, 2015) - Low oil prices are driving operators toward innovations from robotic drilling to advanced seismic imaging, as they restructure and streamline operations in order to cut down non-productive time (NPT) and shave costs, according to Lux Research.
"The new low oil price environment will drive innovation for reducing NPT during drilling operations," said Colleen Kennedy, Lux Research Analyst and lead author of the report titled, "Identifying Ways to Reduce Drilling Budgets in the Low Oil Price Environment."
"Contingency costs arising from NPT typically account for about 10% to 15% of total drilling costs, and can rise as high as 30%, so start-ups with technologies that reduce NPT can make for attractive opportunities," she added.
Lux Research assessed technologies available to reduce drilling costs and rated 21 companies on the Lux Innovation Grid, based on their Technical Value and Business Execution. Among their findings:
The report, titled "Identifying Ways to Reduce Drilling Budgets in the Low Oil Price Environment," is part of the Lux Research Exploration and Production Intelligence service.
About Lux Research
Lux Research provides strategic advice and ongoing intelligence for emerging technologies. Leaders in business, finance and government rely on us to help them make informed strategic decisions. Through our unique research approach focused on primary research and our extensive global network, we deliver insight, connections and competitive advantage to our clients. Visit www.luxresearchinc.com for more information.
Contact Information:
Contact:
Carole Jacques
Lux Research, Inc.
617-502-5314
carole.jacques@luxresearchinc.com