The new normal of lower oil prices has led to a simple conclusion—drilling costs must be lowered in order for many projects to be economic. It is not enough to slash big-ticket expenses like cement, mud, and casing, which often lead to potential problems, now and in the future. Operational expenses must be systematically lowered and become much more predictable and repeatable. This requires an approach not dissimilar from LEAN methodologies which are widely used in other industries.
by Nathan Zenero, Michael Behounek
