Wednesday, September 28, 2016

How Actual Nuts and Bolts Are Bringing Down Oil Prices - Bloomberg

How Actual Nuts and Bolts Are Bringing Down Oil Prices - Bloomberg



Even as oil producers have planned $1 trillion worth of spending reductions between 2015-to-2020—cutting staff, delaying projects, and squeezing contractors—they’ve continued to green-light new wells from the Norwegian Sea to Brazil, and from Uganda to the Gulf of Mexico. Those initiatives mean oil production will continue to grow, adding to the supply glut and putting downward pressure on prices. ...



oil majors' urgent mission to slash costs includes standardizing the components used in drilling for oil...



Nergaard Berg estimates that standardization of sub-sea forgings alone—important building blocks for subsea system components—has resulted in a 30 percent reduction in project lead times. Christie, of GE Oil & Gas, also reckons that standardization can lower drilling expenses by an average of 30 percent.....




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