Source: Baker Hughes
Annual production from a horizontal well in the Bakken shale formation increased by 5,238 barrels after an operator in Saskatchewan, Canada, replaced a rod pumping system with a Baker Hughes (NYSE: BHI) Centrilift electrical submersible pumping (ESP) system, boosting annual revenue to $845,000.
Cost savings
Revenue per year increased more than $419,000 (at $80/bbl oil price). The ESP system extended pumping system has a run life from an average of three months to one year, saving an estimated $420,000 in annual workover costs. Because the system required only half the horsepower of the rod lift system, the company saved $6,000 ($500/month) in power costs. Switching from the rod pump to ESP technology also saved the company from shutting in the well at the then-oil price of $35 per barrel.
Increased production
The Baker Hughes lift solution initially increased oil production to 89 barrels of oil per day (b/d) vs. 5.28 b/d with the rod lift system. This production was achieved by drawing down the pressure on the tight Bakken shale formation, allowing additional oil to escape. The well soon reached a stable production level of 19.63 b/d, above the capability of the previous rod lift system.