With rising oil prices and an oversupplied natural gas market, current economics clearly favors oil production over natural gas production. However, conventional oil reserves are dwindling, with companies struggling to find new oil; this is recently illustrated by the unfavorable spotlight that was thrown on ExxonMobil regarding its dubious reserve replacement ratio. This raises more questions needing to be address: How will ExxonMobil be able to successfully execute on its mission to produce more oil? ; What type of new technological innovations and infrastructure and process improvements are required to succeed?
The ability to explore on another corner of the world without leaving the office and directly playing it on a large computer screen with an array of high-end computers significantly reduces the costs of exploration.
This technology has dramatically reduced the exploration costs, while increasing the success rate of finding new wells. ? “Horizontal Drilling”53 – This innovation is typically used for natural gas exploration, and is a method to drill thousands of feet vertically and then drill a thousand feet horizontally along targeted reservoir, which allows well bore to contact a larger cross section to increase productivity rates.