I shopped at Kroger (grocery store) over the weekend. When I checked out, the cashier told me that because I was a Kroger member, I saved more than $9. “You just saved more than I earn in an hour!” he grinned.
His words gave more pleasure than the actual saving. I think it is because he put things in perspective and gave me a fresh idea of looking at things from a new angle.
Stores have been using coupons, promotional codes, and sales campaigns to attract customers. And we, as consumers, do win from the battles between stores. Saving brings us joy because we can put the money saved to another use, live happily on less, or be proud of ourselves for being environmentally sensitive.
For a family, a penny saved is a penny earned. For a business, a dollar saved is a buck in profit.
In both the personal and the business worlds, we appreciate the savings when they are obvious, but are often blind to hidden and big savings.
For example, during the oil well drilling phase, cost overruns can easily occur due to unexpected issues related to pipe failure (torque and drag), loss of circulation (hydraulics), etc. These issues result in nonproductive time (NPT), which is much more than the cost of a certain failed part. Considering the potential cost overruns, it is reported that oil companies sometimes earmark 10% to 25% of the AFE (authorized for expenditure) to cover the unexpected costs.
Being involved in engineering consulting and drilling software development, we believe that using engineering software during the design stage can lead to significant savings. For instance, casing wear can create very serious problems for operators because it could potentially lead to catastrophic events such as oil spills, blow outs, or well loss. Software such as CWPRO (casing wear prediction model) exists to predict casing wear before pumping starts. If the predicted casing wear is severe enough, then drilling parameters, tool joint coating, or drill pipe protectors can be used/modified to avoid the catastrophic event.
Here, I listed a few benefits of drilling software:
- Identify potential problems
- Know your options
- Optimize operation
- Reduce risk and cost
Are you taking advantage of technology? Use it to save money and make drilling easier.