Shale Drillers’ Key to Survival: Efficiency - WSJ
Hess, which exported the first cargo of Bakken crude from the U.S. Gulf Coast last month, says it is implementing lean manufacturing techniques borrowed from Toyota Motor Corp. such as just-in-time supply chain logistics and greater use of standardized parts. It is operating three rigs, down from a high of 17 in 2014, but it has increased the number of wells drilled per rig to 22 a year, up from 16 wells a year 18 months ago.
Standing near a quartet of pump jacks surrounded by farm land, David McKay, the vice president of what Hess calls its Bakken “Well Factory,” credits the downturn for forcing producers to rethink their operations. “There was a time when we were all cheeks and heels” in the rush to boost output, he said in an interview. “The slowdown actually has helped convince people of the need to do everything more efficiently,” he said.