In a recent report, the EIA forecasts the members of the OPEC to gain $323 billion in net oil export revenues in 2020, which would be the lowest in 18 years if realized. A major plummet in crude oil prices as well as in export volumes have led to this big decrease.
Correspondingly, the iea released the Oil Market Report of October, in which they maintained conservative expectations for the market as we entered the fourth quarter of the year 2020.
On one hand, the second wave of Covid-19 pandemic is sweeping over the Europe and America, driving energy demand to continue to drop. On the other hand, leading global oil producers agreed to cut production massively at the beginning of the year in order to offset the plummeting oil demand. In the past six months, oil market has been steadily re-establishing with mild oil price fluctuations.
Looking ahead, iea believes that the aftermath of Covid-19 remains unpredictable since the recovery of global economy is not performing as strong as anticipated. In the meanwhile, tightening movement restrictions by many countries seem to only worsen the situation by stalling demand recovery.
The uncertain outlook is reflected in the fact that oil prices have weakened, which has brought down the front of the forward curve for Brent crude oil. The longer term of price hovering at a low point offers little encouragement for the producers
The good news is that starting from 1 January next year, the planned 1.9 mb/d production increase among OPEC+ is coming into reality, which will provide certain headroom for the market to grab in the next few months.
Facing this situation, for many oil producers, it is a primary issue to bring high efficiency in line with a moderate cost for the rest of 2020 and even the next year.
As a leading oil & gas solution provider in the world, Jereh is committed to providing customized and competitive equipment and solutions to help client enhance efficiency while maintaining a reasonable overall cost, by virtue of its competitive and customized completion & stimulation equipment.
For example, this June the new generation 7000hp electric frac pumper went offline and passed factory test in Yantai, China. The product owns the biggest power within China, which is up to 7000hp, 3 times of regular 2500hp diesel frac unit. In the meanwhile, the power density of electric frac pumper is up to 134kW/t, the largest in the world and more than twice that of conventional diesel drive counterparts.
This means it only takes 9 electric fracturing units now to accomplish the same amount of work that required 18 sets of diesel-driven fracturing equipment in the past. As thus, the operation needs not only less space for operation, but also less cost for purchasing and maintenance.
Recently, Jereh 10,000hp electric fracturing trailer and 5000hp electric fracturing skid have started to participate in key shale oil projects in China, helping to accomplish maximum fracking, 11 sections a day in Bohai Bay.
As for cementing equipment, Jereh draws on previous experience and independently developed world's first dual-mixing cementing unit. Featuring large displacement and high power, it has the max. slurry mixing capacity of beyond 3.0 m³/min, setting a new world record for single-tank cementing unit.
It was common sense that single pump cementing unit, twin pump cementing unit or quintuplex pumper fail to satisfy current operation just by one unit. It sometimes takes 6 units to run simultaneously for a large-displacement operation, demanding rather high money and manpower input.
The new equipment is equipped with Jereh-developed AMS 4.1 automatic mixing system, with max. slurry mixing capacity surpassing 3.0m³/min while the density reached 1.83g/cm³.
In the field of coiled tubing, Jereh also stands out from its competitors. Last year, China's largest coiled tubing unit developed by Jereh was delivered to North America, which has the longest coiled tubing string and largest diameter, aiming at making local oil & gas operation more efficient and safer.
By adopting Jereh 140K injector and latest super large reel, over 7,560 meters of coiled tubing (2.625’’) can be wound on the reel. Meanwhile, a special chassis was used to carry coiled tubing up to 57 tons, suitable for operations like large-displacement fracturing and coiled tubing drilling.
Facing unstable external forces, Jereh shall respond to all changes with constant innovation and keep pursuing better technologies to deliver a step-change in raising operation efficiency and help global clients to overcome the hard times side by side.
For more information please visit: https://www.jereh.com
