Yahoo Finance Halliburton (HAL), Wintershall Collaborate on UEM Solution
Halliburton Company HAL, one of the world’s leading providers of products and services to the energy industry, and German gas and oil producer Wintershall Dea GmbH have announced a significant license agreement. Under this agreement, Wintershall Dea will employ the new Unified Ensemble Modeling (UEM) solution from Halliburton Landmark, a subsidiary of Halliburton, in the drilling campaign at the Maria Field in 2025.
This innovative approach integrates static and dynamic data in real time to represent subsurface conditions across multiple scales. This development is crucial for optimizing reservoir recovery under uncertainty.
The Significance of UEM
Integrating Static and Dynamic Data
The UEM solution marks a revolutionary advancement in reservoir modeling. UEM provides a comprehensive and real-time representation of subsurface conditions by integrating static and dynamic data. This integration allows for the consistent incorporation of geologic uncertainties, which is essential for creating accurate reservoir models.
Improving Reservoir Recovery
The ability to accurately model reservoirs under uncertainty is vital for optimizing recovery rates. UEM's approach ensures that all available static and dynamic data is used to continuously refine and improve the model. This leads to more informed decision-making and better outcomes in terms of reservoir recovery.
Application in Norway’s Maria Offshore Field
DecisionSpace 365 Deployment
The first application of DecisionSpace 365 will be in Norway's Maria Offshore Field. This deployment will showcase the capabilities of UEM in a real-world scenario. By continuously updating risk assessments for active drilling programs after drilling each new well, Wintershall Dea can significantly improve drilling efficiency, reduce costs and enhance worker safety.
Real-Time Updates and Decision-Making
UEM allows for real-time updates to drilling targets and their associated uncertainties. According to Nagaraj Srinivasan, senior vice president of Landmark, Halliburton Digital Solutions and Consulting, this capability provides operators with unparalleled decision-making abilities. The rapid updating of earth models, made possible by data acquired during drilling, ensures that subsurface and drilling objectives are aligned, leading to improved well productivity at a lower cost.
Future Implications and Industry Impact
Advancing Oil and Gas Exploration
The introduction of UEM is set to advance oil and gas exploration significantly. By providing more accurate and real-time data, companies like Wintershall Dea can make better decisions, optimize their operations and achieve better results. This advancement is particularly important as the industry faces increasing pressure to improve efficiency and reduce environmental impact.
Setting a New Standard in Reservoir Modeling
UEM’s ability to integrate static and dynamic data, continuously update models and incorporate geologic uncertainties sets it apart from traditional methods. The company has set a new standard in reservoir modeling. As more companies adopt this approach, it is likely to become the industry standard for reservoir modeling.
Enhancing Competitiveness
For companies in the oil and gas industry, staying competitive requires the adoption of innovative technologies like UEM. By improving efficiency, reducing costs and enhancing safety, UEM provides a significant competitive advantage. Companies that embrace this technology will be better positioned to succeed in the evolving energy landscape.
Conclusion
The license agreement between Halliburton and Wintershall Dea for the use of the UEM solution marks a significant milestone in the oil and gas industry. By integrating static and dynamic data in real time, UEM provides a more accurate representation of subsurface conditions, optimizing reservoir recovery under uncertainty. The deployment of DecisionSpace 365 in Norway's Maria Offshore Field will demonstrate the practical benefits of this innovative approach. As the industry continues to evolve, the adoption of advanced technologies like UEM will be crucial for maintaining competitiveness and achieving sustainable success.
Zacks Rank and Key Picks
Currently, HAL carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Archrock, Inc. AROC and SM Energy Company SM, each sporting a Zacks Rank #1 (Strong Buy) and Sunoco LP SUN, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is valued at $3.33 billion. The company currently pays a dividend of 66 cents per share, or 3.10%, on an annual basis.
AROC, together with its subsidiaries, works as an energy infrastructure company in the United States. The company operates under two segments — Contract Operations and Aftermarket Services.
Denver, CO-based SM Energy is valued at $5.69 billion. The company currently pays a dividend of 72 cents per share, or 1.46%, on an annual basis.
SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.
Sunoco is valued at $5.44 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income and the Brownsville terminal expansion will add to its revenue diversification.
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