PLUG AND ABANDONMENT: COILED TUBING
Throughout 2017 the industry has witnessed operators moving back into healthier profits after efficiently lowering their cost base to support production operations in a $50 oil price environment. “Lower for longer” continues to be the saying from the industry gurus and VIPs in every oil conference around the world. No matter the origin of the forecast (OPEC, IEA, etc.), opinions defers to how soon the demand will catch up with the oversupply created by the U.S. shale, but nobody dare placing the Brent crude oil price above 80$ by the end of this year. That goes without mentioning that most experts see any increase above 60$ as the trigger for reactivation of those shale projects that were put on hold when prices were low, (which will then fuel back the oversupply and destroy prices again…).
In summary, Oil will remain low, leading to increased demand for workover and P&A operations. The need for adapting the cost structure and remain profitable pushes the operators towards CT interventions looking for “efficiency and effectiveness” and significant cost savings. These factors combined with the largely available CT fleet around the world present us with more and more workover programs aiming to achieve zonal isolation through CT interventions around the globe. So you better get ready to do yours with coiled tubing too!