通往能源安全与盈利的智慧之路：优化生产.docxVIP

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ENERGY

TheSmarterPathto

EnergySecurityand

Pro?tability?OptimizingProduction.

ARTICLEMARCH18,202512MINREAD

Thisisafollow-uparticleto“UpstreamEnergyCompaniesCutCosts.CanTheySustaintheResults?”publishedinJune2024.

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Optimizingproductionfromexistingoilandgaswellsmayrepresenttheindustry’sbest

opportunityintheneartomediumtermtocracktheenergytrilemma:meetingtheworld’senergyneedsatthemosta?ordablecostwithaminimumofcarbonemissions.Tappingintoreservoirsofunderproducedbarrelsaddssubstantialvolumeata?nancialandcarboncostthatcancompetewith,andevenbeat,newprojectsinfrontierareas.Consideringthatvariousestimatesputprovenglobalreservesataround1.7trillionbarrels,andthatthecurrentaverageultimaterecoveryrateis20%to40%foroiland60%to80%forgas,thepotentialopportunityisenormous.

Tobesure,therearetallbarrierstoincreasingproductione?ciency,asanypetroleumengineerknows.Butgiventhematurityofglobalenergyresourcesandthedi?culty,risk,andexpenseofnewexploratione?orts,productionoptimizationcanbeahugevaluedriverfortraditionalenergycompanies.Here’swhyitisworth“exploring.”

Cost,Carbon,andValue

Ourworkwithclients,includingintegratedoilandgascompanies,independents,andnationalenergycompanies,hasspotlightedthreedistinctaspectsoftheproductionoptimization

opportunity.

BiggestBangfortheBuck.Productionoptimizationisthecheapestwayofaddingbarrels.ItcandeliveramuchbiggerboosttoEBITDAthancostimprovementmeasuresalone.Ouranalysis

showsthatadollarinvestedinproductionenhancementwilldeliverthreetofourtimesmore

paybackthancostmeasures.(SeeExhibit1.)It’salsomuchcheaperthannewexploration.The

NorthSeaTransitionAuthorityrecentlyreportedthattheaveragecostofwellintervention