Hess’ Bakken Strategy Fuels Interest at DUG Rockies
Hess Corporation Logo
SEARCH

Hess’ Bakken Strategy Fuels Interest at DUG Rockies

  • Bakken VP Gerbert Schoonman speaks at DUG Rockies

As an industry leader in the Bakken, Hess has proven its ability to deliver process improvements that create value.  In a keynote address at the DUG Rockies oil and gas conference in Denver on March 10, Bakken Vice President Gerbert Schoonman described the company’s strategy for keeping that momentum going even in a down market.

In North Dakota, Lean efficiencies and supplier savings have helped Hess drive down costs to enable the company to profitably bring some 80 wells online this year, despite the low price of crude oil.  “Lean has given us fantastic results in terms of driving our well costs down and giving us efficiencies, which has helped us a great deal working in an environment like this,” Schoonman said to about 1,000 attendees at the conference.

The company’s strategy, Schoonman said, is based simply on maximizing value.  For example, Hess recently changed its standards from 35- to 50-stage fracs.

“We believe that adds value even in the current environment,” Schoonman said. “The productivity of our wells is expected to increase by about 20 percent because of that change and because we work on efficiencies with the contractors that are executing the fracs we can actually absorb the extra cost that comes with the increase of those extra 15 stages.”

A key to Hess’ success in the current price environment is that Hess has more Drilling Space Units (DSU) in the core of the middle Bakken than any other operator. Advanced subsurface modeling and big data are also important.

“All of these things work together and our understanding of the Bakken is increasing substantially,” he said. “We’re also looking at the spacing of our wells. Ultimately, we want to extract as much value as possible from each DSU that we operate. And that’s going to be done through a combination of tighter spacing, optimized completion techniques and perfect targeting of the zones.”

Schoonman also described the deployment of Lean into the operations and maintenance areas, known at Hess as Operations of the Future.  “We are ahead of the pack when it comes to our Lean journey,” Schoonman said. “It gives us a significant competitive advantage.”

Latest Hess News
  • Hess Recognized Among World’s 100 Most Sustainable Corporations

    Hess Corporation has been recognized as one of the Global 100 Most Sustainable Corporations for the third time by the Toronto-based media and investment research firm Corporate Knights. The 2017 list was announced at the World Economic Forum in Davos, Switzerland.
    Full story
  • Hess in the Media: Stampede Safety Focus Key to Successful Project Execution

    Offshore Engineer has published an in-depth profile of the Stampede deepwater development project highlighting how Hess’ strategic focus on safety has been key to delivering successful project execution.
    Full story
  • Hess Announces New Oil Discovery Offshore Guyana, Further Increasing Resource Potential

    Hess Corporation announced positive results from the Payara-1 well offshore Guyana, which is the second oil discovery on the Stabroek Block following the world-class Liza oil discovery in 2015.
    Full story