Oil Well Efficiency: Lower Lifting Costs and Boost Productivity from Your Existing Wells

A pumpjack against a digital background

In the world of oil production, volatility is usually the name of the game. Prices will trend down as they did in 2023, and up as they did in 2024. Political agendas will change, bringing uncertainty to exploration ventures. And the technology used to extract fossil fuels from land and sea will continue to advance.

The only real defense against so much unpredictability is to bring ever-greater efficiency to the investments your company has already made. In other words, to drive the greatest possible productivity and the lowest possible recovery costs from your producing wells. Not only does greater oil well efficiency insulate your operations from market volatility, but it also protects company profits.

Focusing on Oil Well Efficiency

Writing for RBN Energy in December 2024, Nick Cacchione highlighted the financial performance of a peer group of 15 oil majors RBN tracks. He wrote: “In our first blog on Q3 2024 earnings, ‘Who’ll Stop The Rain,’ we explained that softening oil prices have eroded profits and cash flows since early 2023. The average realized price for the Oil-Weighted peer group fell 8% to $45.12/boe in Q3 2024, triggering a 12% decline in pre-tax operating profits to $17.63/boe, slipping below the $20/boe mark for the first time since 2020. Cash flows were 8% lower at $31.82/boe.

“However, all 15 companies in the peer group remained profitable during the quarter. A major factor was a continuing emphasis on efficiency, as producers lowered lifting costs by a significant 7% in Q3 2024…. [C]ompanies have ratcheted down the percentage of cash flows allocated to organic finding and development (F&D) activities, concentrating on their highest-margin assets….”

Clearly, finding ways to improve the efficiency of existing wells can significantly benefit consumers as well as shareholders.

Finding the Right Levers to Improve Oil Well Efficiency

Greater oil well efficiency can come in many forms. For mature wells using sucker-rod pumps, the downhole artificial lift equipment can provide a significant opportunity for optimization. Because the rod pump and/or some of its components are changed relatively frequently for planned or unplanned maintenance, production engineers can test new equipment whenever those components are replaced. The conditions of the well may dictate some of the available options – such as a gas separator for a high GOR well – while other tools and upgrades can be applied more broadly across many applications.

One downhole tool that can offer efficiency gains across a wide range of use cases is the tubing anchor catcher. A staple of the oil field for decades, the tubing anchor catcher, or TAC, minimizes wear on rods, tubing, casing and the rod pump; prevents the tubing from contracting and stretching; and stops any parted pipe from falling into the well. However, traditional B2-style anchors can also make a well susceptible to several common problems. Because the annular area between the B2-style TAC OD and the casing ID is so small, the anchor can create a restriction that can reduce the ability of the gas to breakout and migrate to the surface, which in turn reduces pump fillage and gas locks the pump. This restriction also creates a pressure drop at the anchor producing an environment conducive to the formation of scale, iron sulfide and paraffin.

An alternative to the traditional B2 TAC, which has the potential to significantly improve well productivity and lower lifting costs is the Slimline® Tubing Anchor Catcher from TechTAC®.

Greater Efficiency with the Slimline TAC

Close up of a 7.0" Slimline TAC

The reduced OD and unique design of the Slimline TAC allows for up to 245% more flow-by area between the anchor and the casing. In some well designs, that increased annular area can not only help prevent gas interference and scale, but it can also boost production and lower lifting costs by:

Increasing pump fillage

Many operators have experienced a boost in production after replacing standard B2 anchors with the Slimline TAC. One such customer – a superintendent with an independent production company – said, “We have seen increased pump fillage on wells we converted to the Slimline TAC. Increases of 15-to-25 percent are common.

“The typical wells we have installed the Slimline anchors in are horizontal wells with an average total fluid rate of 20-to-25 bbls per day. We have increased the majority of these to 35-to-40 bbls per day due to increased pump fillage and runtimes.”

Minimizing pressure drop

According to CFD research, the net pressure drop around a standard B2 anchor, as fluid passes through the annular cavity around the anchor, is more than double the pressure drop around the Slimline TAC. That pressure drop is not only a primary contributor to gas interference and scale formation, but it also creates a more turbulent fluid flow – all of which have a negative impact on production.

CFD analysis of two tubing anchors

In contrast, the design of the Slimline TAC creates far less pressure drop and therefore greater production. Speaking to these advantages, one engineer with a Fortune 500 energy company said, “Wells do produce higher rates with a Slimline tubing anchor, so we want to run them where[ver] we can get them set….”

It should also be noted that the production benefits of the Slimline TAC don’t just apply to oil-only wells. Gassy oil wells can benefit significantly as well. A senior completion foreman with a subsidiary of an oil major explained, “We had one well that had a 500 mcf gas increase per day just by switching to a Slimline anchor.”

Could the Slimline TAC Benefit Your Designs?

TechTAC offers a wide variety of technical and business resources to help engineers and operators determine if the Slimline TAC could increase their oil well efficiency. Some of those resources include:

For more specific questions or to get a quote, you can contact a member of the TechTAC team by visiting techtac.com/contact, emailing info@techtac.com or calling 435-781-1675.

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