+ All Categories
Home > Documents > The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

Date post: 01-Mar-2018
Category:
Upload: vladalucard
View: 218 times
Download: 0 times
Share this document with a friend

of 37

Transcript
  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    1/37

    1

    CHARACTERISTICS OF THE SAMPLECOMPANY TYPE

    PERCENT OF TOTAL SAMPLE Welling & Company

    TOTAL NUMBEROF RESPONDENTS:

    315NORTH AMERICA = 52%

    INTERNATIONAL = 48%

    2

    CHARACTERISTICS OF THE SAMPLEGEOGRAPHIC AREAS OF INVOLVEMENT OVER NEXT FEW YEARS - LAND

    1%

    4%

    7%

    9%

    12%

    15%

    1%

    1%

    2%

    2%

    3%

    3%

    5%

    7%

    8%

    13%

    13%

    0% 5% 10% 15% 20%

    MID-CONTINENT

    ROCKIES

    PERMIAN BASIN

    WILLISTON/ B AKKEN

    GULF COAST

    HAYNESVILLE

    S. TEXAS/ EAGLE FORD

    CALIFORNIA

    MARCELLUS/ UTICA

    ALASKA

    OTHER US BASINS

    LATIN AMERICA

    N. AFRICA/ MIDDLE EAST

    CANADA

    ASIA PACIFIC

    CONTINENTAL EUROPE

    WEST AFRICA

    PERCENT OF LAND SAMPLE (MULTIPLE RESPONSES ALLOWED) Welling & Company

    232 RESPONDENTS RESPONSIBLE FOR 245 GEOGRAPHIC REGIONS

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    2/37

    3

    CHARACTERISTICS OF THE SAMPLEGEOGRAPHIC AREAS OF INVOLVEMENT OVER NEXT FEW YEARS - OFFSHORE

    PERCENT OF OFFSHORE SAMPLE (MULTIPLE RESPONSES ALLOWED) Welling & Company

    83 RESPONDENTS RESPONSIBLE FOR 85 GEOGRAPHIC REGIONS

    4

    CHARACTERISTICS OF THE SAMPLETITLE OF RESPONDENT

    PERCENT OF TOTAL SAMPLE Welling & Company

    AVERAGETENUREINROLERELATEDTOARTIFICIALLIFT=15.8YEARS

    FINALDECISIONMAKER=15%;PARTOFEVALUATIONTEAM=85%

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    3/37

    5

    LOCATION OR GROUP MAKING BUYING DECISIONFOR ARTIFICIAL LIFT EQUIPMENT

    PERCENT OF TOTAL SAMPLE Welling & Company

    6

    CHARACTERISTICS OF THE SAMPLENUMBER OF PRODUCING WELLS IN OPERATION OR MANAGED

    AVERAGE PER RESPONDENT Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    4/37

    7

    TREND IN CRUDE WELLS USING ARTIFICIAL LIFT

    AVERAGE SHARE OF OIL WELLS PER OPERATOR Welling & Company

    8

    TREND IN GAS WELLS USING ARTIFICIAL LIFT

    AVERAGE SHARE OF GAS WELLS PER OPERATOR Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    5/37

    9

    SHARE OF RESPONDENTS WITH PRODUCING WELLS IN

    UNCONVENTIONAL PLAYS

    PERCENT OF TOTAL SAMPLE Welling & Company

    10

    ARTIFICIAL LIFT SYSTEMS USED ON UNCONVENTIONAL WELLS

    SAMPLE WITH UNCONVENTIONAL WELLS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    6/37

    11

    TREND IN UNCONVENTIONAL WELLS TO USE ARTIFICIAL LIFT

    AVERAGE SHARE OF UNCONVENTIONAL WELLS TO USE ARTIFICIAL LIFT Welling & Company

    12

    CHARACTERISTICS OF ARTIFICIALLY LIFTED WELLSAVERAGE TYPICAL AND MAXIMUM DEPTH BY SYSTEM TYPE

    8022

    11823

    3525

    4603

    6675

    9406

    5807

    7869

    0 5000 10000 15000

    ROD SYSTEMS

    ESP

    PCP

    GAS LIFT

    AVERAGE TYPICAL DEPTH AVERAGE MAX DEPTH

    AVERAGE PER COMPANY (IN FEET) 2010 SURVEY IN RED Welling & Company

    MEDIAN

    TOTAL FLUID

    PRODUCED (BPD)

    325BPD

    2588BPD

    571BPD

    1167BPD

    (8083)

    (4501)

    (4030)

    (5816)

    (2910)

    (9608)

    (6759)

    (6585)

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    7/37

    13

    SHARE OF COMPANIES WHO CURRENTLY OPERATE EACH SYSTEM TYPE

    PERCENT OF TOTAL SAMPLEWelling & Company

    14

    SHARE OF INSTALLED BASE BY ARTIFICIAL LIFT TYPE

    -TOTAL SAMPLE-

    SHARE OF CURRENTLY OPERATING SYSTEMS (2010 SURVEY IN RED) (2008 IN BLUE) (2004 IN GREEN) Welling & Company

    (6%)

    (12%)

    (12%)

    (17%)

    (

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    8/37

    15

    SHARE OF INSTALLED BASE BY ARTIFICIAL LIFT TYPE-NORTH AMERICA-

    SHARE OF CURRENTLY OPERATING SYSTEMS Welling & Company

    16

    SHARE OF INSTALLED BASE BY ARTIFICIAL LIFT TYPE

    -INTERNATIONAL-

    SHARE OF CURRENTLY OPERATING SYSTEMS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    9/37

    17

    NUMBER OF ARTIFICIAL LIFT SYSTEMS OPERATEDBY TYPE

    AVERAGE NUMBER OF SYSTEMS PER CO. Welling & Company

    18

    PERCENT OF COMPANIES PLANNING INSTALLSOF SELECTED SYSTEMS IN 2012

    PERCENT OF TOTAL SAMPLE PLANNING ANY INSTALLS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    10/37

    19

    SHARE OF PLANNED ARTIFICIAL LIFT INSTALLATIONSBY TYPE 2012

    ESTIMATED SHARE OF PLANNED INSTALLATIONS (2010 SURVEY IN RED) Welling & Company

    (45%)

    (2%)

    (22%)

    (18%)

    (9%)(4%)

    20

    SHARE OF PLANNED ARTIFICIAL LIFT INSTALLATIONS

    BY TYPE 2013

    ESTIMATED SHARE OF PLANNED INSTALLATIONS (2012 SURVEY DATA FROM PREVIOUS SLIDE IN RED) Welling & Company

    (41%)

    (2%)

    (13%)

    (16%)

    (18%)(10%)

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    11/37

    21

    DOWNHOLE ISSUES AFFECTING PERFORMANCEOR RESTRICTING PRODUCTION ON ARTIFICIALLY LIFTED WELLS

    PERCENT OF TOTAL SAMPLE Welling & Company

    2010

    RANK

    1

    2

    3

    4

    6

    NA

    5

    7

    8

    NA

    NA

    NA

    9

    10NA

    22

    MEAN TIME BETWEEN FAILURES FOR SELECTED SYSTEMS

    AVERAGE MTBF EXPERIENCED FOR EACH SYSTEM IN MONTHS (IMPROVEMENT /DECLINE FROM 2010 IN RED) Welling & Company

    MONTHS

    8.6% 6.5% 4.6% 11.0% 6.8% 71.7% NA

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    12/37

    23

    FOCUS OF DESIRED IMPROVEMENTS FROM ARTIFICIAL LIFT SUPPLIERS

    PERCENT OF TOTAL SAMPLEWelling & Company

    TUBING ISSUES

    TOTAL

    NUMBER

    OF

    RESPONDENTS:

    236

    24

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    13/37

    25

    LIFE EXPECTANCY PRODUCTION TUBING STRINGS

    PERCENT OF TOTAL SAMPLE Welling & Company

    AVERAGE LIFEEXPECTANCY=88.8Months

    MEDIAN LIFEEXPECTANCY=60.0Months

    26

    NUMBER OF PRODUCTION TUBING STRINGS REPAIRED/ REPLACED

    DUE TO CORROSION RELATED PROBLEMS

    AVERAGE NUMBER OF STRINGS PER COMPANY

    (SHARE OF OVERALL PRODUCTION STRINGS REPLACED DUE TO CORROSION ANNUALLY IN RED) Welling & Company

    (2.7%) (1.5%)

    (1.8%) (3.7%)

    (5.1%)

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    14/37

    27

    FAMILIARITY WITH GLASS REINFORCED EPOXY PIPE (GRE)FOR USE IN PRODUCTION TUBING STRINGS

    PERCENT OF TOTAL SAMPLE Welling & Company

    AUTOMATION SECTION

    TOTAL

    NUMBER

    OF

    RESPONDENTS:

    293

    28

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    15/37

    29

    SHARE OF ARTIFICIALLY LIFTED WELLS EQUIPPED WITHDOWNHOLE SENSORS

    PERCENT OF WELLS Welling & Company

    2010SURVEY 31% 44% 30% 19% 43% 43% 28% 13% 44%

    2008SURVEY 25% 43% 29% 13% 34% 37% 20% 11% 28%

    30

    TYPES OF DOWNHOLE SENSORS USED WITH ARTIFICIAL LIFT EQUIPMENT

    99%100%

    96%99%

    88%

    83%

    75%

    88%

    30%

    21%

    16%17%

    2%3%

    1%

    0%

    25%

    50%

    75%

    100%

    PRESSURE SENSORS TEMPERATURE

    SENSORS

    VIBRATION SENSORS OTHER SENSORS

    ESP USERS PCP USERS ROD PUM P USERS GAS L IFT USERS

    PERCENT OF THOSE USING DOWNHOLE SENSORS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    16/37

    31

    SHARE OF ARTIFICIALLY LIFTED WELLS USING SCADATO MONITOR WELL OR EQUIPMENT PERFORMANCE

    PERCENT OF WELLS Welling & Company

    32

    IMPORTANCE OF VARIOUS FUNCTIONS REQUIRED FROM AUTOMATION SOFTWARE

    AND HOW WELL NEEDS ARE MET IN EACH AREA BY CURRENT OFFERINGS

    AVERAGE RATING, SCALE 1-10 (10 = HIGHEST IMPORTANCE / NEEDS TOTALLY MET) Welling & Company

    IMPORTANCE NEEDSMET

    9.10 7.91

    8.32 7.46

    8.42 7.73

    8.56 7.51

    NA NA

    NA NA

    2010

    SURVEY

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    17/37

    ELECTRIC SUBMERSIBLE PUMP SECTION

    TOTAL

    NUMBER

    OF

    RESPONDENTS:

    154

    33

    34

    FOCUS OF DESIRED IMPROVEMENTS FROM ESP SUPPLIERS

    PERCENT OF ESP USERS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    18/37

    35

    WHAT CAN BE DONE TO EXTEND RUN LIFE IN ESP SYSTEMS

    PERCENT OF ESP USERS FEELING IMPROVEMENTS IN RELIABILITY SHOULD BE SUPPLIERS FOCUS Welling & Company

    36

    DESIRED IMPROVEMENTS IN CUSTOMER SERVICE

    FROM ESP SUPPLIERS

    PERCENT OF ESP USERS FEELING IMPROVEMENTS IN CUSTOMER SERVICE SHOULD BE SUPPLIERS F OCUS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    19/37

    37

    CHARACTERISTICS OF WELLS USING ESPTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELL USING ESP LIFTED WELLS Welling & Company

    TOTAL SAMPLE

    MEDIAN TOTAL FLUID PRODUCED :

    2588 BPD

    AVERAGE WATER CUT:

    69%

    38

    CHARACTERISTICS OF WELLS USING ESPTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELL USING ESP LIFTED WELLS Welling & Company

    NORTH AMERICA

    MEDIAN TOTAL FLUID PRODUCED :

    1321 BPD

    AVERAGE WATER CUT:

    73%

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    20/37

    39

    CHARACTERISTICS OF WELLS USING ESPTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELL USING ESP LIFTED WELLS Welling & Company

    INTERNATIONAL

    SAMPLE

    MEDIAN TOTAL FLUID PRODUCED :

    8526 BPD

    AVERAGE WATER CUT:

    66%

    RANKING OF SELECTION CRITERIA FOR ESPS

    BY SELECTED SUB-SAMPLES

    40

    Welling&Company

    TOTAL

    SAMPLE

    NORTH

    AMERICA

    INTL

    SAMPLE

    BETTER

    SERVICE

    BETTER

    RELIABILITY

    BETTER

    PRICE

    15

    INSTALLS

    615

    INSTALLS

    >15

    INSTALLS

    COMMITMENTTOHSEINITIATIVES 1 2 1 1 1 1 1 1 1

    ACCEPTABLEDELIVERYSCHEDULE 2 5 2 3 4 2 T4 2 3

    TECHNICALSUPPORT 3 6 3 2 5 3 T4 T3 4

    HIGHLYCAPABLEFIELDPERSONNEL 4 3 4 4 3 T5 3 5 6

    QUICKRESPONSETOSERVICECALLS 5 4 5 5 6 T5 6 6 5

    DOCUMENTEDLONGEVITY/LOW

    FAILURERATE 6 1 8 7 2 7 2 7 8

    KNOWLEDGEABLE &RESPONSIVESALES

    PERSONNEL 7 7 6 6 7 4 8 T3 2

    PRICECOMPETITIVENESS 8 9 7 8 8 8 7 8 7

    OVERALLREPUTATIONANDTRACK

    RECORD 9 8 10 9 9 9 9 9 9

    UNIQUEDESIGNFEATURES/

    TECHNOLOGY 10 10 9 10 10 10 10 10 10

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    21/37

    41

    NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION

    -ESPS-

    8%8%

    3%

    5%10%

    4%

    13%4%

    9%

    6%15%

    19%

    50%

    37%29%

    49%42%

    46%

    0% 20% 40% 60%

    EQUIPMENT QUALITY/

    RELIABILITY/ LONGEVITY

    AFTER-SALE SERVICE/ TECH

    SUPPORT

    EXPERIENCE/ TRACK

    RECORD

    TECHNOLOGY/ DESIGNS

    AVAILABILITY

    OTHER

    2008 SURVEY 2010 SURVEY 2012 SURVEY

    PERCENT OF ESP USERS Welling & Company

    ELECTRIC SUBMERSIBLE PUMPSStated Importance Weights vs. Correlation to Likely to Recommend

    MATRIXQUADRANT ATTRIBUTE

    COMMITMENTTOHSEINITIATIVES(1)

    ACCEPTABLEDELIVERYSCHEDULE(2)

    DOCUMENTEDLONGEVITY/LOWFAILURERATE(6)

    TECHNICALSUPPORT(3)

    HIGHLY CAPABLEFIELDPERSONNEL(4)

    QUICK

    RESPONSE

    TO

    SERVICE

    CALLS

    (5)

    KNOWLEDGEABLE

    &

    RESPONSIVE

    PERSONNEL

    (7)

    OVERALLREPUTATIONANDTRACKRECORD(9)

    PRICECOMPETITIVENESS(8)

    UNIQUEDESIGNFEATURES/TECHNOLOGY(10)

    Baseline Requirements(High Stated - Lo w Correlation)

    These are essentially entry tickets to the market. Competent performance is expected.

    Gaps in baseline requirements are known to cause sw itching. Closing gaps in baseline

    performance factors takes f irst priority. Some competitors choose to diff erentiate on

    baseline requirements.

    Conscio us Differentiators

    (High Stated - High Correlation)Factors in this area actively drive supplier selection decisions. Winning on fac tors in

    this category can be a power force f or profitability, growth and customer retention.

    Closing gaps in conscious differentiators takes second priority.

    Latent Differentiators

    (Low Stated - High Correlation)Customers dont say these factors are important but they correlate highly to a

    dependant variable that assesses overall satisfaction w ith a supplier (in this study

    likely to recommend is the dependent variable). Latent differ entiators repres ent

    opportunities to make a pull-ahead move.

    Low Impact(Low Stated - Low Correlation)

    Low impact items are areas w here performance at parity w ith competitors is

    sufficient.

    42

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    22/37

    PROGRESSING CAVITY PUMP SECTION

    TOTAL

    NUMBER

    OF

    RESPONDENTS:

    49

    43

    44

    FOCUS OF DESIRED IMPROVEMENTS FROM PCP SUPPLIERS

    PERCENT OF PCPUSERS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    23/37

    45

    WHAT CAN BE DONE TO EXTEND RUN LIFE IN PCP SYSTEMS

    PERCENT OF PCP USERS FEELING IMPROVEMENTS IN RELIABILITY SHOULD BE SUPPLIERS FOCUS Welling & Company

    46

    DESIRED IMPROVEMENTS IN CUSTOMER SERVICE

    FROM PCP SUPPLIERS

    PERCENT OF PCP USERS FEELING IMPROVEMENTS IN CUSTOMER SERVICE SHOULD BE SUPPLIERS FOCUS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    24/37

    47

    CHARACTERISTICS OF WELLS USING PCPTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELL USING PCP LIFTED WELLS Welling & Company

    MEDIAN TOTAL FLUID PRODUCED :

    571 BPD

    AVERAGE WATER CUT:

    66%

    48

    PREFERRED DRIVE TYPE FOR PCP APPLICATIONS

    PERCENT OF PCP USERS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    25/37

    49

    PERCENT OF TIME PCP SYSTEM COMPONENTS ARE BUNDLEDWITH A SINGLE SUPPLIER

    AVERAGE PER COMPANY / PCP USERS ONLY (2010 SURVEY IN RED) Welling & Company

    (54%)

    IMPORTANCE OF SELECTION CRITERIA FOR PCPS

    AVERAGERATING,SCALE110

    50

    Welling&Company

    2008RANK

    5

    7

    6

    4

    1

    3

    2

    8

    10

    9

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    26/37

    51

    NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION

    -PCPS-

    PERCENT OF PCP USERS (2010 SURVEY IN RED) Welling & Company

    (56%)

    (19%)

    (NA)

    (23%)

    (16%)

    (8%)

    (NA)

    PROGRESSING CAVITY PUMPSStated Importance Weights vs. Correlation to Likely to Recommend

    MATRIXQUADRANT ATTRIBUTE

    COMMITMENTTOHSEINITIATIVES(1)

    ACCEPTABLEDELIVERYSCHEDULE(T3)

    QUICKRESPONSETOSERVICECALLS(T5)

    TECHNICALSUPPORT(2)

    PRICECOMPETITIVENESS (T3)

    DOCUMENTEDLONGEVITY/LOWFAILURERATE(T5)

    HIGHLY

    CAPABLE

    FIELD

    PERSONNEL

    (7)

    KNOWLEDGEABLE&RESPONSIVEPERSONNEL(8)

    UNIQUEDESIGNFEATURES/TECHNOLOGY(10)

    Low Impact(Low Stated - Low Correlation )

    Low impact items are areas w here performance at parity w ith competitors is

    sufficient.

    OVERALLREPUTATIONANDTRACKRECORD(9)

    Baseline Requirements(High Stated - Low Correlation)

    These are essentially entry tickets to the market. Competent performance is expected.

    Gaps in baseline requirements are know n to cause sw itching. Closing gaps in baseline

    performance factors takes firs t priority. Some competitors choose to differentiate on

    baseline requirements.

    Consciou s Differentiators

    (High Stated - High Correlation)Factors in this area actively drive supplier selection decisions. Winning on factors in

    this category can be a power force f or profitability, growth and customer retention.

    Closing gaps in conscious differentiators takes second priority.

    Latent Differentiators

    (Low Stated - High Correlation)Customers dont say these factors are important but they correlate highly to a

    dependant variable that assesses overall satisfaction w ith a supplier (in this study

    likely to recommend is the dependent variable). Latent differ entiators repres ent

    opportunities to make a pull-ahead move.

    52

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    27/37

    ROD LIFT SECTION(Includes: Surface Units, Sucker Rods and Downhole Pumps)

    TOTAL

    NUMBER

    OF

    RESPONDENTS:

    167

    53

    Welling&Company

    54

    FOCUS OF DESIRED IMPROVEMENTS FROM ROD SYSTEM

    SUPPLIERS

    PERCENT OF ROD SYSTEM USERS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    28/37

    55

    WHAT CAN BE DONE TO EXTEND RUN LIFE IN ROD SYSTEMS

    PERCENT OF ROD SYSTEM USERS FEELING IMPROVEMENTS IN RELIABILITY SHOULD BE SUPPLIERS FOCUS Welling & Company

    56

    DESIRED IMPROVEMENTS IN CUSTOMER SERVICE

    FROM ROD SYSTEM SUPPLIERS

    PERCENT OF ROD SYSTEM USERS FEELING IMPROVEMENTS IN CUSTOMER SERVICE SHOULD BE SUPPLIERS FOCUS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    29/37

    57

    CHARACTERISTICS OF WELLS USING ROD SYSTEMSTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELL USING ROD LIFTED WELLS Welling & Company

    TOTAL SAMPLE

    MEDIAN TOTAL FLUID PRODUCED :

    325 BPD

    AVERAGE WATER CUT:

    68%

    58

    CHARACTERISTICS OF WELLS USING ROD SYSTEMSTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELL USING ROD LIFTED WELLS Welling & Company

    NORTH AMERICA

    MEDIAN TOTAL FLUID PRODUCED :

    243 BPD

    AVERAGE WATER CUT:

    68%

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    30/37

    59

    CHARACTERISTICS OF WELLS USING ROD SYSTEMSTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELL USING ROD LIFTED WELLS Welling & Company

    INTERNATIONAL

    SAMPLE

    MEDIAN TOTAL FLUID PRODUCED :

    1145 BPD

    AVERAGE WATER CUT:

    68%

    60

    SHARE OF SUCKER RODS CURRENTLY USED BY TYPEAND TREND OVER NEXT 2-3 YEARS

    PERCENT OF ROD SYSTEM USERS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    31/37

    RANKING OF SELECTION CRITERIA FOR ROD SYSTEMSBY SELECTED SUB-SAMPLES

    61

    Welling&Company

    TOTAL

    SAMPLE NORTH

    AMERICA INTL

    SAMPLE BETTER

    SERVICE BETTER

    RELIABILITY BETTER

    PRICE

    COMMITMENT

    TO

    HSE

    INITIATIVES 1 1 1 2 1 1

    ACCEPTABLE

    DELIVERY

    SCHEDULE 2 4 3 4 3 2

    TECHNICALSUPPORT 3 5 2 3 5 3

    HIGHLY

    CAPABLE

    FIELD

    PERSONNEL 4 3 7 1 6 6

    DOCUMENTED

    LONGEVITY

    /LOW

    FAILURERATE 5 2 8 5 2 8

    QUICK

    RESPONSE

    TO

    SERVICE

    CALLS 6 6 5 7 7 4

    KNOWLEDGEABLE&RESPONSIVE

    SALESPERSONNEL 7 7 4 6 4 5

    PRICE

    COMPETITIVENESS 8 9 6 10 10 7

    OVERALL

    REPUTATION

    AND

    TRACK

    RECORD 9 8 9 8 8 9

    UNIQUEDESIGNFEATURES/

    TECHNOLOGY 10 10 10 9 9 10

    62

    NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION-ROD LIFT EQUIPMENT-

    PERCENT OF ROD EQUIPMENT USERS (2010 SURVEY IN RED) Welling & Company

    (55%)

    (31%)

    (17%)

    (20%)

    (5%)

    (10%)

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    32/37

    ROD LIFT SYSTEMSStated Importance Weights vs. Correlation to Likely to Recommend

    MATRIX

    QUADRANT ATTRIBUTE

    COMMITMENTTOHSEINITIATIVES(1)

    ACCEPTABLEDELIVERYSCHEDULE(2)

    TECHNICALSUPPORT(3)

    HIGHLYCAPABLEFIELDPERSONNEL(4)

    DOCUMENTEDLONGEVITY/LOWFAILURERATE(5)

    QUICKRESPONSETOSERVICECALLS(6)

    KNOWLEDGEABLE&RESPONSIVESALESPERSONNEL(7)

    OVERALLREPUTATIONANDTRACKRECORD(9)

    PRICECOMPETITIVENESS (8)

    UNIQUEDESIGNFEATURES/TECHNOLOGY(10)

    Baseline Requirements(High Stated - Low Correlation)

    These are essentially entry tickets to the market. Competent performance is expected.

    Gaps in baseline requirements are know n to cause sw itching. Closing gaps in baseline

    performance factors takes firs t priority. Some competitors choose to differentiate on

    baseline requirements.

    Consciou s Differentiators

    (High Stated - High Correlation)Factors in this area actively drive supplier selection decisions. Winning on factors in

    this category can be a power force f or profitability, growth and customer retention.

    Closing gaps in conscious differentiators takes second priority.

    Latent Differentiators

    (Low Stated - High Correlation)Customers dont say these factors are important but they correlate highly to a

    dependant variable that assesses overall satisfaction w ith a supplier (in this studylikely to recommend is the dependent variable). Latent differ entiators repres ent

    opportunities to make a pull-ahead move.

    Low Impact(Low Stated - Low Correlation )

    Low impact items are areas w here performance at parity w ith competitors is

    sufficient.63

    GAS LIFT SECTION

    TOTAL

    NUMBER

    OF

    RESPONDENTS

    =

    125

    64

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    33/37

    65

    FOCUS OF DESIRED IMPROVEMENTS FROM GAS LIFTSUPPLIERS

    PERCENT OF WELLS USING GAS LIFT Welling & Company

    66

    WHAT CAN BE DONE TO EXTEND RUN LIFE IN GAS LIFT SYSTEMS

    PERCENT OF GAS LIFT USERS FEELING IMPROVEMENTS IN RELIABILITY SHOULD BE SUPPLIERS FOCUS Welling & Company

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    34/37

    67

    DESIRED IMPROVEMENTS IN CUSTOMER SERVICEFROM GAS LIFT SUPPLIERS

    PERCENT OF GAS LIFT USERS FEELING IMPROVEMENTS IN CUSTOMER SERVICE SHOULD BE SUPPLIERS FOCUS Welling & Company

    68

    CHARACTERISTICS OF WELLS USING GAS LIFTTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELLS USING GAS LIFT Welling & Company

    TOTAL

    SAMPLE

    MEDIAN TOTAL FLUID PRODUCED :

    1167 BPD

    AVERAGE WATER CUT:

    54%

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    35/37

    69

    CHARACTERISTICS OF WELLS USING GAS LIFTTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELLS USING GAS LIFT Welling & Company

    NORTH

    AMERICA

    MEDIAN TOTAL FLUID PRODUCED :

    455 BPD

    AVERAGE WATER CUT:

    58%

    70

    CHARACTERISTICS OF WELLS USING GAS LIFTTOTAL FLUID PRODUCED PER DAY

    PERCENT OF WELLS USING GAS LIFT Welling & Company

    INTERNATIONAL

    SAMPLE

    MEDIAN TOTAL FLUID PRODUCED :

    2171 BPD

    AVERAGE WATER CUT:

    50%

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    36/37

    IMPORTANCE OF SELECTION CRITERIA FOR GAS LIFT

    AVERAGERATING,SCALE110

    71

    Welling&Company

    2010

    RANK

    1

    3

    2

    6

    7

    5

    4

    9

    10

    8

    72

    NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION-GAS LIFT SYSTEMS-

    PERCENT OF GAS LIFT USERS (2010 SURVEY IN RED) Welling & Company

    (38%)

    (37%)

    (2%)

    (18%)

    (15%)

    (10%)

    (12%)

  • 7/26/2019 The Welling Report - 2012 Executive Summary for Artificial Lift Equipment

    37/37

    GAS LIFT EQUIPMENTStated Importance Weights vs. Correlation to Likely to Recommend

    MATRIX

    QUADRANT ATTRIBUTE

    COMMITMENT

    TO

    HSE

    INITIATIVES

    (1)

    ACCEPTABLE

    DELIVERY

    SCHEDULE

    (4)

    KNOWLEDGEABLE

    &

    RESPONSIVE

    SALES

    PERSONNEL

    (6)

    QUICKRESPONSETOSERVICECALLS(7)

    DOCUMENTED

    LONGEVITY

    /LOW

    FAILURE

    RATE

    (2)

    HIGHLY

    CAPABLE

    FIELD

    PERSONNEL

    (3)

    TECHNICALSUPPORT(5)

    Latent Differentiators

    (Low Stated - High Correlation)

    Customers dont say these factors are important but they correlate highly to adependant variable that assess es overall satisfaction w ith a supplier (in this study

    likely to recommend is the dependent variable). Latent differentiators repres ent

    opportunities to make a pull-ahead move.

    OVERALL

    REPUTATION

    AND

    TRACK

    RECORD

    (8)

    UNIQUEDESIGNFEATURES/TECHNOLOGY(9)

    PRICE

    COMPETITIVENESS

    (10)

    Baseline Requirements

    (High Stated - Low Correlation)These are essentially entry tickets to the market. Competent performance is expec ted.

    Gaps in baseline requirements are known to c ause sw itching. Closing gaps in baseline

    performance factors takes first priority. Some competitors choose to differentiate on

    baseline requirements.

    Conscious Differentiators

    (High Stated - High Correlation)Factors in this area actively drive supplier selection decisions. Winning on factors in

    this category can be a power f orce for prof itability, growth and customer retention.

    Closing gaps in conscious differentiators takes second priority.

    Low Impact(Low Stated - Low Correlation)

    Low impact items are areas where performance at parity with competitors is

    sufficient.

    73


Recommended