An abundance of oil underground doesn't necessarily translate to higher profits in the industry. Producers must ensure they are equipped with the tools needed to manage efficient extraction procedures if they are to maintain economic viability.
According to a report from CBC News, Exxon Mobil, Shell and BP all posted disappointing earnings this week. The sentiment surrounding this news contradicts reports regarding oil availability.
"New troves of oil have been found all over the globe, and oil companies are taking in around $100 for every barrel they produce," the article says. "But these seemingly prosperous conditions aren't doing much for Big Oil. Profit and production at the world's largest oil companies are slumping badly."
There are many factors that can limit an oil company's profitability, regardless of how much is available. If producers don't follow best practices or have tools that limit their efficiency or compliance efforts, they could suffer. Inefficient extraction can be costly, as can failure to follow regulations. If someone were to be hurt or if oil isn't properly extracted and managed, the ramifications, from both a legal and economic sense, could be costly.
That's why oil companies must rely on a combination of factors to ensure their own success. Oil availability is certainly crucial, but companies need to capitalize on that opportunity with the right oilfield equipment. Artificial lift solutions can help organizations properly manage the extraction process more efficiently and ultimately assist with company profits. Working with an equipment provider can allow producers to obtain the best tools to fit their needs.