Article Written By: Jacoby Garcia, Director of Sales, RigData
Part 1 of 3
Various extraction industries such as mining or oil and gas (O&G) drilling are all: labor, capital and risk intensive. O&G specifically requires extensive investments to be made far in advance in equipment, services and people to eventually produce the quantities of O&G demanded by markets worldwide for trade, energy and transportation. The worldwide O&G market that is made up by equipment manufacturers, (field) service providers, producers, gatherers, transporters, refiners and marketers, is a $1 Trillion market. And while the very latest seismic and completion technologies enable a 50% success of “hitting” O&G, only 1 in 3 O&G wells drilled are producible in economic quantities.
While many metrics are used to predict future drilling and completion activity, none are more predictive than drilling permits (licenses in Canada) filed with different regulatory agencies which reflect O&G operators’ intent to drill. Industry estimates show that 50% of all permits are drilled within the various term limits that the various US states and Canadian provinces impose.
Given the forward-looking nature of drilling permits to predict drilling and rig location data to identify current well construction as well as predicting completion and production activity, RigData has, for 30 years, enabled oilfield service providers, manufacturers, drilling contractors and marketers and gatherers working within the O&G industry value chain (shown below) and seeking to minimize risk and maximize the utilization of their labor and capital, to better identify, plan, predict and perform sales, logistics and operations in US & Canadian oilfields through the market intelligence provided by RigData’s permit, drilling rig location and production activity data.