NOVOMET » Surviving the Oil Price Crash

Surviving the Oil Price Crash

If you are an oil producer and you are still in business, that means you are strong and resilient. The CAPEX cuts you made were difficult. Having to let valuable employees go has forced those who remain to do more with less in a dangerously stressful and uncertain time. You have cut and slashed and you are surviving not just an oil price crash, but a global pandemic as well.

So, take a breath. You are doing what you have to do. You have had to be disciplined and creative. And you are making it. You also undoubtedly understand that finding and maintaining new efficiencies is critical, not just to surviving now, but also to accelerating when the rebound happens.

Short-Term and Long-Term Efficiencies from New Technology

Now is the time to focus on short-term and long-term efficiencies. It’s time to look to new technologies that can help you reduce ongoing costs. It’s time to begin again. To move forward. And to do it in a way that not only helps you when times are tight, but in a way that will give you an advantage over your competitors when the market returns.

A Dollar Saved is a Dollar Earned

It’s a simple fact. Producers who manage and control their lifting costs make more profit than those who do not. If electrical submersible pumps (ESPs) are part of your production plan, you need to take a hard look at the inefficient ESPs you’ve been installing. In ESP replacements and future installations, you will likely be better served to run a high-efficiency ESP system instead. It just doesn’t make smart financial sense to spend more than you need to on electricity month after month after month.

High-Efficiency ESP Systems – The Path Forward

Get Up to 50% Reduction in Monthly ESP-Related Power Costs

Complete PowerSave ESP systems with permanent magnet motors typically reduce ESP power consumption around 30%. Using our high-efficiency pumps with a standard induction motor typically saves around 15%. Depending on conditions, it is not unusual to see PowerSave systems reduce ESP-related electricity consumption by 50%. It’s not magic. It’s science. And only Novomet has it.

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Up to 50% Reduction in Monthly ESP-Related Power Costs

High-efficiency ESP systems give you a financial advantage over other producers. Our ESP systems reduce the electricity required to pump a barrel of fluid. That lowers your overall lifting costs and reduces your OPEX. And we’re not talking by a mere 2 or 3 percent.

Longer Well Life and Increased Reserves

Lowering your lifting costs has long-term benefits also. Lowering the cost to produce a barrel of oil extends the economic life of a well. It has also been shown to increase reserve estimates for many of our customers.

The Cleanest Energy is the Energy You Never Had to Use

With Novomet high-efficiency ESPs, you get ongoing OPEX savings while also reducing your electricity use. Lowering your power usage gives you a competitive advantage over your neighbors in the good times and insulates you from draconian cost-cutting measures during downturns.

It also reduces your carbon consumption. While the drive to reduce our carbon footprint may have taken a backseat to the global pandemic and the oil price crash, it will come back into focus. When it does, having high-efficiency ESPs shows investors that you are committed to more environmentally responsible oil production.

High-Efficiency ESP Technologies

High-efficiency ESP technologies from Novomet were developed over a decade ago. While many oilfield services companies in the world were obsessed with drilling longer, faster wells and creating standardized ESPs in cost-out initiatives, Novomet was using its R&D budget to improve ESP efficiency and find ways to reduce lifting costs. The result is a family of high-efficiency ESP systems with over 8,000 installations that have saved customers over 300 million kilowatt hours. This is proven technology that can help boost your returns and profits today. Check out our offerings below.


Maximum Power Savings—PowerSave ESP Systems

PowerSave high-efficiency ESP systems reduce power consumption up to 50% compared to many older and low-cost ESPs. Compared to the next most efficient ESP, they typically save between 25 and 30%.
PowerSave ESP systems combine our permanent magnet motor with our aerospace-inspired high-efficiency pumps to reduce heat, fluid friction, and vibration. The result is a system that reduces electrical waste and generates more fluid per kilowatt hour than other ESPs. These systems are shorter and lighter than competing systems, offering more lift per foot.
PowerSave ESPs are driven by a variable speed drive on the surface. Unlike direct drives, the speed can be adjusted to improve efficiency, handle reservoir gas, and avoid cycling. To further reduce risk and improve efficiency, pair our PowerSave ESP systems with the Novomet Track remote monitoring and control system.

Significant Power Savings—High-Efficiency Pumps Paired with an Induction Motor

We also have a power savings solution for customers who can’t convert to a variable speed drive (VSD). While you need a VSD to drive a permanent magnet motor, you can use a standard direct drive to control induction motors. Customers who use this solution typically reduce ESP power use around 15%. For this power saving approach, we combine our aerospace-inspired high-efficiency pumps with standard asynchronous induction motors. These motors are the predecessor of our permanent magnet motors and have been used in the artificial lift industry for decades. Our high-efficiency pump stages feature a proprietary design that improves lift efficiency. Because they are manufactured using an aerospace-inspired powder metallurgy process, all surfaces are smooth and erosion resistant. These pumps generate less heat and fluid friction. The result is significant efficiency and power savings over pumps from competing artificial lift companies.

Access Trapped Reserves—SlimLine ESP Systems

Our SlimLine ESP systems use the same highly efficient design as our PowerSave systems and offer it in small-diameter packages. They can be run in narrow and restricted casing, in narrow-bore sidetracks, and in larger casing sizes to greater depths than other ESPs. SlimLine ESPs feature permanent magnet motors and high-efficiency pumps in 2.72-in. (69 mm) and 3.19-in. (81 mm) sizes . These systems are driven by variable speed drives and are used to produce wells with casing sizes as small as 4 and 4.5 in. (102 and 114 mm). They can also be run deeper in 5-in. (127-mm) casing, putting the ESP intake closer to (and in some cases, below) the perforated production zone.

Reduce Risk, Time, and Cost—Novomet Track Remote Monitoring and Control Systems

Novomet Track remote monitoring and control systems combine software and hardware to deliver real-time access to the VSD. This enables you to monitor production from your office and adjust ESP motor speed to respond to issues before they can become failures.

Not only do these remote access systems reduce ESP cycling and operating costs, they also enable you to control an ESP from the safety and security of your home or office. All you need is a live internet connection. This capability has increased in value in recent months as the likelihood of exposure to the novel coronavirus has increased. Why take the risk if you don’t have to?

Your data belongs to you. It can be securely stored in the cloud or on your own servers, whichever you choose. It can also be used to generate reports and visual representations of well output so you get a better picture of production trends.

The Novomet Commitment—Business as Usual
Novomet is classified as an essential business. We remain open to help oil producers manage their wells and lifting costs. We continue to ship and install equipment and to offer the oilfield services necessary for managing production.

The safety and health of our employees and partners remains a top priority. We follow all health authority recommendations.

Surviving the oil price crash and the unprecedented economic slowdown is not easy. Our commitment to customers is to help them reduce lifting costs while also positioning their businesses to take advantage of the upswing when it comes. Some of the best near- and long-term advice is to find ways to improve efficiencies.

Novomet technologies are proven and ready to go. They are a solid choice for oil producers already using ESPs. Our PowerSave systems, high-efficiency pumps, SlimLine systems, and Novomet Track monitoring and control systems can help bring down your monthly operating costs. These technologies can help you survive today. And they will position you to win tomorrow.  


Contact us today to learn how you can join the companies that have already saved 323 million kWh of electricity with Novomet high-efficiency ESP systems.