Apr 12, 2016
4 Ways Surveyors Keep the Oil Patch Profitable – Even During a Recession
Economic conditions in the Albertan oil fields aren’t great at the moment, making the work done by land surveyors even more important.
It’s obvious that if you don’t put a well in the right spot, you won’t get any oil. But not many people realize just how essential surveying and plotting infrastructure is for oil extraction.
There are four key ways that surveyors help make sure the patch stays profitable.
1. Data for Environmental Assessments
Given the importance of environmental regulations, Alberta’s land surveying companies are the “tip of the sword” when it comes to our oil industry.
All of the data collected by a surveying company is included in the approval process of the Alberta Energy Regulator (AER) and becomes part of a final wellsite survey plan.
This information allows the AER to understand and rule on the viability of the drilling process and any impact a well might have on the environment.
Considering that the AER rules on over 10,000 sites per year, land surveyors have a huge influence on this part of the industry.
2. Drones and Other Advanced Technologies
The implementation of new technology has allowed surveys to be completed faster and more cost-effectively.
Entire software suites are now dedicated to modeling environmental impacts, surveyors are able to use sophisticated technology including 3D laser scanning, and drones are taking to the skies.
As the technology has progressed, the amount of time it takes to survey even a large area has been dramatically reduced. In decades past, a truly thorough survey may have taken up to a month, but today, due to drone data and computers, that same survey could be done in less than a week.
Of course, this fantastic new tech doesn’t replace good old-fashioned human excellence. The engineers and surveyors who handle these processes very rarely make errors in relation to the wellsite survey plan. It comes down to experience, and these men and women have amassed an amazing skillset over their years in the field.
3. Future Proofing
Not only are surveys important for operational wells, but they provide a “savings account” of future profits that will pay out when the energy sector rebounds.
Although it may not be profitable to extract oil from a well this year, detailed surveys allow companies to plan for infrastructure costs and figure out exactly when a well will turn a profit.
If Company X knows that a given well will yield a certain number of barrels of crude, they can then extrapolate the costs of access, egress, equipment and permitting to know that oil prices on the open market need to be at, for example, $21 a barrel for the well to be profitable. Even if they don’t drill and begin to extract oil right now, they will be ready to go as soon as the price is right.
The surveying technology of today allows a precise understanding of the costs and benefits of doing business in the oil patch before the first piece of heavy equipment is even set up. It is turning potential oil-bearing properties into known investments that can be looked at as a savings account for the industry.
4. Home Grown Talent
Finally, Canadian surveyors are in high demand for their skills and Alberta has invested in an industry that brings money into the province from contract work across the country and beyond.
The Albertan Land Surveyors’ Association puts it best: “The oil industry cannot exist without land surveyors… If you put a well in the wrong place, no oilfield technology or amount of drilling will correct that.”
If you are thinking of a career in land surveying this is a great time to get on board. Our experience continues to drive business not only in the oil patch but also all over the world, even as we work through the current downturn in the energy sector.