Low output (revenue) of less than 15 barrel per day does not justify the cost of traditional automation.
Operator can only afford to perform visual check of site and record output volume twice per week.
Solution:
Installation of OverWatch-WM well monitoring system with three tank sensors.
Results:
Daily update on production instead of twice per week.
Immediate notification of events and errors allowing quick remedy.
Reduction of labor and truck expense.
Return on Investment (ROI):
Production loss of 2 days between one site check pays for itself.
Details
This oil well site (TW8) in Burleson County, Texas is located in a cow pasture three miles into a gravel road that takes 10 minutes to safely reach. Before that is 3 miles of single lane county road. And before the single lane county road is 6 miles of two-lane Farm to Market Road feeding from a four-lane divided highway. It is a 25-minute trip one-way from civilization.
On average, the site produces close to 15 barrels of crude oil each day. It falls within the 10 to 15 BOE/day output group according to the US EIA annual output report. This site represents the top end of what EIA considers as a low production site or Stripper Well.
The OverWatch-WM system for this location includes the system unit, three safety block, three pressure sensors to monitor tank level and off-grid solar setup with battery. Total cost is $4,150 before self-installation.
Before OverWatch-WM, the operator checks the site twice each week. Again, it is a cost balance that prohibits them from visiting more frequently. Stretching out the time further between visits risks loss of production due to potential mechanical failure and increases the risk of a spill. After installation, they still tried to maintain site visits as they did before. However, they felt more comfortable stretching out site visits because they know OverWatch-WM will immediately notify them of any abnormal condition. They also gain daily production data and get immediate notification when a crude oil truck picks up a load for sell. That in itself provides valuable operation metrics to justify an OverWatch-WM system. i.e., They know crude oil (money) is going into the tank each day.
Perhaps there is an even simpler way to highlight the ROI on OverWatch-WM for a higher output site like TW8. Mechanical failure from a simple broken belt to the loss of utility power after a storm are bound to happen. At todays over $70/BBL price and 15 BBL output each day, this site generates up to $1,050 in revenue daily. Before OverWatch-WM, the operator will not find out their pump has stopped until the next site visit. They can potentially lose up to four days’ worth of production equaling over $4,000. Hence, one early notification of stopped pump and quick remedy to restart production will more than pay for the entire OverWatch-WM system for this site.
