The successful management of downturns depends on how companies and the industry manage upturns. Technological innovation has driven the domestic crude oil and natural gas industry over the past decade. Enhanced recovery techniques, horizontal drilling, and fracking have made the extraction of domestic shale oil and gas more economical. It is not surprising that technology will lead the oil and gas industry out of the current recession.
As the industry emerges from the recent market downturn, those that have survived have had to take measures to drive down capital expenditures and operating expenses and technological innovation plays an important role. A significant emerging technological trend is the use of longer laterals and greater proppants.
Many operators now use laterals which are twice as long with two to three times the amount of fracking material on new wells. One well can potentially produce the capacity of three wells, greatly reducing capital expenditures and enhancing overall well efficiency.
The use of “big data” is another technological innovation. Exploration and production companies can now access thousands of data points on each producing well, which maximizes efficiency and facilitates more economic product recovery.
These emerging technological trends have the potential to significantly impact Bakken Resources Inc. The Company currently has considerable unrealized well capacity in its current North Dakota acreage. The use of longer laterals and heavier fracking has the potential to accelerate oil and natural gas production. This technology also provides economic incentives to our operators to drill new wells. “Big data” can greatly enhance the potential return from our currently producing wells and therefore, reduce overall risk.