Optimize Water Hauling.
Reduce Costs
by One Million Dollars Per Month.
Customer Success Story
$
$
$
$
H2O
A Leader in Upstream Oil &
Gas
This is a case study about an upstream
E&P operator in the STACK, Delaware,
Eagle Ford and Rockies basins,
producing 275,000 boe of oil per day, 1.6
bcf of natural gas per day and, 130,000
barrels of NGL per day. The company has
more than doubled their onshore North
American oil production since 2011.
*The customers identity/logo is not
shown to comply with the customers
corporate policies and to avoid divulging
potential confidential information.
Unlocking Cost Savings
Insights
During the industry downturn, a leading
challenge for oil and gas operators was
to cut opex costs while sustaining
production. At this E&P operating
company, Logistics Analysts were given
the responsibility to accomplish the task
of reducing the highest cost line
Houston | Denver | Los Angeles | Bangalore | 805.242.4288 | www.sevenlakes.com
CASE STUDY
$
$
$
Bank
$
$
item water hauling. An analyst in
the Permian basin was determined to
achieve this for his area. He attacked the
problem head on by diving into water
hauling expenditures which made up
~34% of LOE in their Southeast New
Mexico Business Unit. To find savings
on this line item, the analyst began to
excavate water production information
and related processes. He immediately
ran into roadblocks; he was not able to
see how much water the wells produced
and compare that data to actual contract
terms and amounts. Strangely enough,
Production Engineers did not have the
information available either.
The Logistics Analyst did not let the
unknown data barrier stop his efforts
to reduce water disposal costs. He
turned to the Engineering Analytics
& Data Management department for
answers. They gave him access to
the Seven Lakes Production and LOS
Analytics Solutions that allowed him to
analyze the water production reports
and associated costs.
 With drill downs, insightful Shifting Behaviors
visualizations and configurable
Leading E&P Operator reporting, he uncovered the information Water production was not a large item
he needed. By creating and applying of concern historically. Therefore,
filters, I have been able to find some
BASINS engineers did not pay much attention
data for which I had been looking and to it. Engineers are now concentrating
US Operations: STACK, asking, for about six months. With on water production and related
Delaware, Eagle Ford and the solution, in 20 minutes or less, I expenditures because they understand
Rockies was able to find and download water the bottom line impact. With the power
production for every well in the Cotton to access real time data anywhere at any
GROSS PRODUCING WELLS Draw Area. With these reports, he time, they are able to make production
proved the current contract rates did not
~ 30,000 changes that are based on smart
match the production activity. They were production insights. Now operations
REGION paying the same haul-off disposal rates team members have access to well data
regardless of whether it was 5 barrels that they trust and they are able to
Southeast New Mexico
or 5,000 barrels. The water hauling make instant daily decisions at the time
contracts were sent out for new bids they need to cut expenses and balance
LARGEST OPERATIONAL
and the following negotiations led to
EXPENSE production.
haul rates that were about 30-50%
Water Hauling lower than the prior hauling contracts.
From 6 Months to 20 Minutes
HOURS SAVED TO UNLOCK DATA and $30 Million Annual
Gaining Insights to Take
Savings
1,460 Immediate Action
What a great deal indeed, the company
COST SAVINGS PER YEAR The Logistics Analyst went one
unlocked a $12M per year savings in their
$12 Million step further with the reports and
Southeast New Mexico Business Unit
collaborated with the Transportation
alone and theyre now moving on to
Engineers to determine if the vendors
their other business units. The company
were using the most efficient routes for
wide savings are estimated to result in
disposal. He found that they werent,
a total of $25 million to $30 million
and based on the township and well
annually. By exploiting the companys
locations, he was able to decrease the
data, the logistics analyst gained
contract amounts by listing the routes
valuable insights that lead to an
that were most cost-effective. The
impactful cost cutting decision. He
logistics analyst collaborated with
didnt have to change the way the
other departments to find all possible
well was being maintained, but instead,
opportunities for cost savings. When
found an improved process. The
the entire organization had access to
information was always there. Drastic
production data and invoicing details,
cost reduction became possible only
their collaboration led to data driven
when the operations team was given
business decisions that set the
technology that unlocked their data.
company up for success.

Optimize Water Hauling. Reduce Costs by One Million Dollars Per Month - Customer Success Story 02
 Production only used to care about
hydrocarbons but now water disposal is one of
the highest spends for our LOE and that is what
we have absolutely got to cut in the current
environment. We cant control what the price is,
but we have to control our production costs. If
you can put a dent in the highest cost, just by
having information, then that is a pretty good
deal!

Logistics Analyst,
Leading E&P Operator

Optimize Water Hauling. Reduce Costs by One Million Dollars Per Month - Customer Success Story 03