Invest in Innovation to Boost Profitability: Opportunity for Oil and Gas Success in a Down Market
Today’s oil and gas landscape has changed dramatically. Although geological technology has improved to the point that drilling has gone from a hit-or-miss proposition to mainly hits, other economic factors—including far greater global competition and increased drilling costs—have resulted in a glut of oil and gas on a global scale, driving prices down substantially. Price pressure on hydrocarbons has proven to be a real game changer for the industry because of the greater costs associated with accessing oil and gas in harder-to-reach, deeper locations.
When the oil and gas industry drilled relatively shallow, conventional wells, upfront drilling costs were comparatively low. Now, the industry has to drill more than a mile underground—and then fracture sub-surface shale formations to release oil or gas through a process known as hydraulic fracturing or “fracking”—or pass through up to a mile of ocean before even starting to drill a well. In short, when you combine the far greater costs associated with reaching deeper oil and gas deposits with low hydrocarbon prices, profit margins tighten and put the squeeze on everyone who produces equipment to support the industry.
With competition exploding worldwide and oversupply suppressing fuel prices, operations at all companies in the oil and gas market—not just the exploration and production giants but those doing business at every stage of the process—have become extremely cost-sensitive. This economic environment places a premium on productivity and rewards companies that are able to shorten design cycles, cut development costs, and consistently manufacture superior quality products, for which an integrated 3D design and engineering platform is necessary.
Although the current conditions in the oil and gas market may seem daunting, you can overcome these challenges and improve your organization’s profitability by leveraging the SOLIDWORKS integrated suite of 3D design and engineering solutions to streamline your development processes and create breakthrough designs.
In addition to sharing five SOLIDWORKS user success stories, the white paper, “Boosting Profitability of Oil and Gas Drilling and Production” explains how you can use an integrated approach to 3D design and engineering to:
- Design equipment faster and more accurately by combing 3D CAD with product data management and model-based definition (MBD).
- Cut development costs by identifying and resolving potential problems through in-CAD virtual testing.
- Improve quality, avoid field failures by controlling design revisions, eliminating performance issues before they happen and catch and correct problems and defects with SOLIDWORKS Inspection.
- Communicate effectively with suppliers, partners, and customers by eliminating need for data translations and files conversions.
READ THE WHITE PAPER today and learn how you can leverage an integrated design approach to boost your business results even in a down market.
Mike Fearon
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