Number of words: 184<\/p>\n\n\n\n
Andrew Gould, chairman of Schlumberger, a French-American oil services giant, points out that twenty-five years ago, only one-sixth of exploration wells were successful, while two-thirds are today. Over that time, the success rate for development wells has risen from about 33 percent to nearly 100 percent. He is convinced that the future lies in embedding digital technologies such as down-hole sensors, real-time communications equipment, and other fancy tools that add up to the smart oil field of the future. Companies already use some of these techniques today when they drill wells, but he argues the key is to use them for monitoring wells \u201cfrom day one.\u201d \u201cProgressive illumination\u201d was the management philosophy of the past:\u00a0\u201cYou learned as you went along. Now, you draw a much better picture up front, and monitor the reservoir carefully from\u00a0day one.\u201d Private-sector companies do not want to spend such\u00a0money up front, at least not yet, but he points approvingly to Saudi Aramco\u2019s long-term thinking.\u00a0<\/p>\n\n\n\n