Cathy Conner, Universal Well Site Solutions, Fort Collins, Colo.
Although wireless wellhead management solutions have generally been only a smart option until now, a perfect storm of reasons are combining to make adoption of the technology nearly mandatory for all owners of natural gas assets. Like the forces in the movie of the same name, failure to embrace remote operations technology could put some operators at risk of not staying afloat in the turbulent times ahead.
The number one reason more small gas producers are considering remote field technology has been obvious and on everyone’s minds for more than five years now – the labor shortage in the energy industry. Ongoing retirement of hundreds of thousands of long-time, seasoned employees and arrival of new, fresh-out-of-school engineers creates two severe problems, knowledge going out and inexperience coming in.
I am hearing from many of my colleagues in the gas industry that this labor crunch has caused them to aggressively embrace remote, wireless wellhead management solutions, which have been around – and improving – for more than a decade. After all, they say, we don’t have the bodies to go out into the field to monitor, manage, and maintain the critical and fairly complicated wellhead infrastructure – and the younger bodies coming into the industry lack the technical expertise and professional experience needed to ensure on-site systems are producing optimally.
With state of the art, software-driven wireless systems in place in a gas well field, one technician, at a remote site anywhere in the world, can monitor the equipment status, production flow, reasons for shut-downs, fluid levels, power consumption, and numerous other operational and engineering elements on 100 or more wells at once from one computer touch screen dashboard. Added bonus: Young employees new to the gas industry will have a virtually flat learning curve because they have grown up with computers. Remote, online access, driven by modern software is totally their gig.
Era of the super pumper
I really believe we are headed into the era of what I call the ‘super pumper.’ One seasoned specialist will be able to handle 250 or more wells and only be required to physically visit those few that are not operating optimally. The industry is also adding video technology allowing us to view the site to monitor exterior physical conditions, as well as safety of trespassers, weather damage, and vandalism (theft of copper). Fewer visits mean less interruption to sensitive wildlife areas. We have the software to do this today. However, the communication side is not quite perfected.
With old non-wireless systems, one technician in a truck takes care of 20 to 40 wells, depending on their geographic locations. But he is required to drive out through the sage grouse habitat to the well sites to physically go through a checklist of essential operational items so owners – and don’t forget regulators – can be certain the equipment is operating within all specifications and delivering product efficiently. Unfortunately, this is still the norm for most small producers.
Environmental concerns demand change
As the Bureau of Land Management and US Forest Service open more and more public lands in the west to traditional and non-traditional natural gas exploration, the public is demanding a significantly increased level of environmentally responsible corporate behavior. Among other things, that means fewer roads cutting through pristine areas, less truck traffic, and reduced human presence – all factors that are diminished significantly (or, in some cases, eliminated entirely) by wireless gas field solutions.
We are also seeing development of new technologies that reduce the footprint of the well site from half an acre to only a few hundred square feet, with all essential electric power, pumping, water management and wireless monitoring equipment brought in on skids – which have really not caught on in the US in general. Geographic locations with newer fields, such as Australia and Wyoming, have been going smart and small in drilling and production from the beginning.
Financial incentives will rule
The question has been raised as to whether wireless well field solutions will be required by regulatory and permitting authorities as criterion for the award of leases, but I don’t think so. I believe financial incentives – the bottom line – will be the driving factors in widespread adoption of these technologies in the coming years. All of the above reasons save the producer money, as do the reduction of onsite mistakes and accidents due to human error.
Finally, another major return on investment with wireless technology is the significant reduction in the rate of replacement of critical down hole components – tubing, rods, and pumps.
With hour-by-hour monitoring and reporting of production levels, optimum output can be achieved and the equipment can be allowed to rest periodically. The equipment simply does not have to run full bore 24/7.
The cost avoidance of replacing pumping components every 40 months instead of every 10 months can add up to millions of dollars in savings annually for a large operator – and can be even more meaningful for a small firm saving tens of thousands of dollars a year while still producing at peak levels.
About the author
Cathy Conner is chairman and CEO of Universal Well Site Solutions. She oversees the firm’s strategic business planning and implementation, financial operations, and investor relations. Her background and contacts in the oil and gas industry date back to 1971. The company is headquartered in Fort Collins, Colo. The coalbed methane and coal mine methane industries make up the core of the company’s business.
