Details

• This oil well site (G4A) in Lee County, Texas is located in a cow pasture 8 miles down a single lane gravel road that only a 4-wheel-drive vehicle can safely reach. Before that gravel road is 15 miles of two-lane Farm to Market road feeding from a four-lane divided highway. In other words, it is a 30-minute drive each direction from civilization or one hour roundtrip.
• On average, the site produces 3 truckloads (180 barrels each load) worth of crude oil each year. It is one of the over 99,000 sites within the 1 to 2 BOE/day output group according to the US EIA annual output report. This is a prime example of what OverWatch-RT can do for the operator of this site which is on the extreme low end of the revenue spectrum.
• The OverWatch-RT setup for this site includes the system unit, one safety barrier and one pressure sensor to monitor tank level. Total equipment cost is $1,600 before cabling and self-installation expenses.
• Before OverWatch-RT ,the operator could only afford to check the site twice per week. The cost balance prohibits them from visiting more frequently. Stretching out the time between visits risks loss of production due to potential mechanical failure and increases the risk of a spill. Now, with OverWatch-RT installed and watching over the site, the operator can reduce the site visits to once per weeks while getting notification within minutes when an error condition occurs. In essence, OverWatch-RT dropped the labor cost and truck expense to one half of what it was before the equipment installation.
• In Texas, an oilfield company pumper and truck expenses average $60,000 a year or about $30 an hour. The weekly site visit adds up to $4,160 ($30/hr x 104 x 1hr 20m each trip) each year. After OverWatch-RT installation, the site visit frequency is reduced by half, thus reducing the site visit cost by $2,080 a year. These savings put the ROI of OverWatch-RT on $1,600 of equipment and $365 on annual subscription (total $1,965 total initial cost) divided by $2080 savings or 12 months.
• Finally, each early detection and quick repair further reduces the ROI of OverWatch-RT. At todays over $70/BBL price, a simple broken belt or the site losing utility power translates to $140 of lost revenue ($70/BBL x 2 BOE/D) each day. Without OverWatch-RT, the operator may lose up to four days of production which translates to $560 of lost revenue between site visits. But now with OverWatch-RT monitoring the site, the operator will get immediate notification thus allowing for early repair and restart revenue generation.