Halliburton, the global oilfield services company that works with many of the world’s largest oil and gas players, has adopted IBM Cloud to run more detailed reservoir simulations, which may help struggling producers cut costs.
Record low oil prices, caused by strong output among oil producing nations amid weaker global demand, have put pressure on producers of the fossil fuel to lower extraction costs. Crude oil prices have fallen by more than half in the past two years, and talks between OPEC and Russia aimed at curbing production have stalled.
“Using high performance computing of the IBM Cloud, we can run very detailed simulation models and evaluate a wide range of field development options, which translates into better field development plans for our clients and a competitive advantage for our business,” Steven Knabe, a Halliburton Consulting director, said in an IBM statement.
The world’s biggest oil companies are expected to report their worst quarterly earnings in more than a decade because the industry’s cost-cutting efforts haven’t yet offset the decline in crude prices, Bloomberg reported. This adds pressure on producers to leverage technology to help plan reservoir development in a way that maximizes returns.
Like many industries, oil and gas companies are turning to technical advances available through cloud computing, data analytics, and machine learning to boost productivity.
And there is room for growth. “While some oil and gas companies have invested in their analytics capabilities, many struggle to get their arms around this powerful new opportunity,” consulting firm Bain & Company said in a report titled “Big Data analytics in oil and gas.”
Adopting IBM Cloud technology allows Halliburton to “quickly run hundreds of simulation cases to forecast the possible behavior of complex oil and gas fields,” according to the IBM statement, which doesn’t disclose terms for the company’s usage of IBM Cloud.
IBM markets a range of solutions for enhancing production, improving processing efficiency, and optimizing global operations for the oil and gas industry.
Halliburton Consulting specializes in formulating development plans for both new and mature fields.