O&G Technology Trials Lack Transparency

Let us face reality...O&G Tech companies are here to sell you something. There is an exchange of goods, a product that gives a customer value in exchange for $$.

There is no more apparent value in O&G than pre and post-workover production vs. cost for payback and ROI. There is a visible impact on the E&P company's bottom line. But what about the value of a technology trial?

The Problem:

It is easy to fall victim to false promises, results, and inflated value projections from Tech companies. Tech is selling aggressively & trials are more of a formality than a process to develop a transparent, genuine value case to help a customer.

I have been on both sides, from the vendor to the customer, and there are plenty of excuses on why Tech companies only show customers positive results, optimistic views, and filtered values. An example of an optimistic outlook is 100 BOPD were added, 3 FTE's reduced, & 1 software can be removed.

The reality is:

• 100 BOPD came from offset frac positive interference, line pressure reduction, chemical treatments,  picking high points in the analysis, facility optimization, and many more non trail related gains
• The customer cannot reduce the 3 FTE' because of the amount of regulatory site inspection work required
• More groups use the software for work than just the trial group

... So the trial has a much lower value than assumed by the Tech company.

The excuses for why Tech has too optimistic views of trial success are:

• Investor pressure to show growth
• Narrow analysis from a lack of understanding of customers business
• Market competition "appearing" to grow and thrive
• Trying to cross the line from trial to commercial agreement "at all costs."
• The staff needs to eat more than Ramen & Cheetos

The Solution:

Customers need to request radical transparency from the software provider on the value analysis for the trials. If you do not, you will end up with another system that doesn't impact the bottom line.

Radical transparency looks like handing over the books for an audit, including:

• Details on why certain wells are excluded
• Commentary on performance gain or loss
• Projections based on detailed assumptions
• Raw data for validation of calculations
• Dates of events for pre and post analysis

With this, E&P companies can view the value case through a realistic lens. They can now responsibly answer: Will this positively impact my bottom line?

When O&G tech vendors mask their problems through optimistic analysis, they lose the value of product improvement to deliver actual customer value. Tech vendors may get a few sales that drive the increasing pressure for more and more growth, but if they aren't truly adding value to the customer, the tech will be one of the first items to go in the next round of budget cuts.

At Tasq, we believe in radical transparency. We provide:

• Details on why certain wells are excluded validated by operations, no cherry-picking!
• Commentary on performance gain or loss to provide context into learnings
• Projections based on detailed assumptions to dial in realistic future value
• Raw data for validation of calculations in a quick, interactive report for anyone to review!
• Dates of events for pre and post volume analysis validated by operations, so the value #'s aren't fudged

We have seen firsthand how technology value cases are created internally & externally, and we want to change the game. We set the engineers & field up for success with our trial value case report, so there is 100% alignment on the value Tasq provides to the bottom line.

We want to shake some shit up and truly help our customers become top-tier performers.

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