As prices of crude oil remained unstable, many companies are now looking for better ways of cutting down the cost of production.The newly formed company - Baker Hughes, a GE company (BHGE), said that it has invented smarter ways of reducing the cost of producing a barrel of crude oil.
As prices of crude oil remained unstable, many companies are now looking for better ways of cutting down the cost of production.The newly formed company - Baker Hughes, a GE company (BHGE), said that it has invented smarter ways of reducing the cost of producing a barrel of crude oil.
According to the Sub Saharan Africa, Baker Hughes, a GE company (BHGE), Ado Oseragbaje , the new company is the first and only to bring together industry-leading equipment, services and digital solutions across the entire spectrum of oil and gas development.
Oseragbaje disclosed that BHGE would help its customers acquire, transport and refine hydrocarbons more efficiently, productively and safely, with a smaller environmental footprint and at lower cost per barrel. He explained that applying digital and advanced technologies to oil and gas could bring approximately five per cent productivity improvements across the entire industry.
“BHGE will use cloud-based software, advanced manufacturing and brilliant factory solutions to help its customers capture some of this opportunity—reducing risk and improving productivity in their operations as well as its own”, he added.
Giving details of the merger between GE and Baker Hughes, he stated: “We were trying to find a company with similar value to GE and we engaged Baker Hughes. We needed to expand our footprint in the upstream and use latest technology to impact on productivity in the sector.
“With the technology, you can increase production as we as reduce cost. Many oil and gas companies have started diversifying into refineries due to the low oil prices. We are also able to assist those who are trying to diversify into refineries.
“To reduce your cost, there are two ways to do it: it’s either you cut the cost itself, or you become more efficient with the same cost. If you then look at it in terms of an oil and gas company, it means you produce more for the same cost. There are several ways they can do that: either their equipment is more reliable, or the predictability and the usability of their reservoir improve. This is what will happen when you start to then look at some of the things that we would launch into the market, particularly around the digital offerings.
Dwelling on the oil and gas expectation from the Federal Government, Oseragbaje insisted that the policies must be right to attract and sustain investment in the country. “Government policies need to be clear. The competitive landscape is changing and if the policies are not fight, investors may be forced to look elsewhere with better policies.”
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