Technology is Key to Establishing a Competitive Advantage

In the recent oil price crisis, independent oil and natural gas producers have struggled to keep their wells producing. Low crude oil prices forced many wells to be shut in or abandoned, unless ways were found to reduce costs and improve production efficiency. For many operators, technology can be applied to successfully achieve these desired results. In addition, technology can be key to obtaining critical exploration and development information ? now even through the Internet or by using new software tools and computer-related information. Today, it's essential for independents to gain ? and maintain ? a competitive advantage in the marketplace. There are two basic ways to establish a competitive advantage ? do things better than others or do things differently. At Belden & Blake, an independent based in the Northeast, technology is very important to the company's success. For example, in Michigan, the company recently was recognized by the Gas Research Institute (GRI) for its success in promoting market adoption of new natural gas technology. By applying advanced technologies and integrating research on improved reservoir characterization, Belden & Blake was able to remain active in its Antrim shale development ? even without a tax credit that expired in 1992. The incremental revenue to the company from applying this new technology has been substantial. Belden & Blake has successfully implemented many other new technologies, some which are directly related to the Department of Energy's research programs. In one instance, the company used carbon dioxide methods, which DOE helped develop, to restore a well's productivity from nearly zero to 500 thousand cubic feet of gas per day. It also has found success with other programs, such as those related to tight gas sands and coal bed methane. In fact, nearly 80 percent of Belden & Blake's drilling today would fall under the category of ?unconventional? that was used back in the 1970s when these resources were first identified as having the potential for future drilling and replacement of produced resources. Other sources of new technologies can be found through organizations such as the Petroleum Technology Transfer Council (PTTC). The non-profit national association acts as a ?technology connection? in helping transfer technological information to U.S. independent producers. PTTC?s low-cost technology programs can help producers reduce costs, improve operating efficiency, increase ultimate recovery, add new oil and gas reserves, and comply with environmental requirements. Ultimately, informed decisions can be developed and implemented for most E&P programs. Technology remains the key to determining the correct course of action, whether independents gain a competitive advantage by doing things better ? or doing things differently. Resources like those offered by DOE, PTTC, GRI, and others can help independents identify the best technology options for their particular needs. By using new tools and technologies, independents can expand their knowledge base and gain a competitive advantage. Most importantly, they can weather the storm and survive the next downturn during times of low oil and natural gas prices.

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