On The Road Again: Managing Transportation Logistics for Unconventional Drilling
Managing transportation logistics for unconventional drilling
Advancements in drilling for unconventional resources have significantly changed the development of shale into a long-term, viable source of hydrocarbons in North America. Natural gas production from shale grew from 2 percent in 2001 to 23 percent in 2010 and analysts predict that it will account for nearly 49 percent of domestic gas production in 20351. Analysts also predict that production will increase by an estimated 375 percent in oil- and liquid-rich shale plays like Marcellus and Eagle Ford from 2011 to 20162.
Traditionally, oil and gas operators have lacked a central focus on transportation and logistics for onshore operations, often pushing the coordination to service providers or the field. Given the change in operational demands, operators should consider a more focused approach to wellsite logistics. This proactive approach will address safety, cost and productivity issues by formalizing the management of transportation and logistics activities associated with their wellsites.
This surge in shale development significantly increases the transportation and logistics requirements at the well site. This article explores the impact of these requirements on safety, cost and productivity concerns for oil and gas operators and the opportunities for operators to take an active approach to managing transportation and to drive greater value for the company.
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1Source: U.S. DOE/EIA, Annual Energy Outlook 2012
2Source: Bloomberg, “U.S. Shale Oil Output to Reduce Imports, Purvin & Gertz Says,” June 2011