Frac Efficiencies People, Processes and Technology

Dave McKayDirector, Bakken Project

Efficiency built upon sustainable system improvement:

• People are fully engaged• Leaders foster a learning and improving culture• People enabled to solve problems at their level

• Processes drive system improvements• Guard against “sub-optimization”• Capture and build upon learning• Lots of little improvement add up

• Technology benefits are actually realized• Pilots must generate answers• Technology must be reliable – simple is better than complex

People, Processes and Technology

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Create an “Army of Problem Solvers”

• Establish a strong “Safety Culture” – Foster “front-line” engagement and ownership– Train leaders to listen

• Cultivate supplier partnerships– Create trusted win-win relationships– Work with the best – performance and values

• Optimize the well construction process– Eliminate defects– Standardize work, “Plan, Do, Check, Adjust”

Engage everyone in improvement, starting with Safety

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Get Technology to the “Bottom-line”

• Improve proppant use– Ceramics vs. white sand– Proppant volume– Number of zones

• Transition from “plug and perf” to sleeves– Simplifies operation– Reduces overall job time

• Optimize water handling– Manage jobs size– Utilize dispatch system– Improve sourcing and disposal

Build simple, robust, repeatable systems

Conclusion

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• Build a strong, people-centric safety culture – listen and learn

• Drive organization discipline – sustain the gains

• Utilize technology effectively – get the good stuff to the bottom line fast