Unique by Six Million
I NNO VATION RockPile Energy Services is a pioneer in completion services. As we have found, there are new and innovative ways to do the “same old thing”. What we did not realize when we embarked on our quest to improve oil production was how substantial the impact is economically and environmentally.
is in the pudding”. We needed evidence of the value that you get from us. This document shows just that. And, whether you are a completions manager trying to cut capital costs, field operations manager combating Silica Dust reduction or a CEO dealing with investors wanting you to become “greener” while simultaneously increasing the stock value, you will find that RockPile Energy Services is unique, innovative and proven. We are in your court and want to improve your results.
We expect that you will be as fascinated and compelled by our results and findings as we are. PIONEERING CHALLENGES Our executive team has more than 165 years of combined experience in the energy space. Many have worked in the largest and most prominent energy companies in the world. We know how the job has been done for so long.
Everything that you find here is operating in the field today. So take a moment to see how your operation will be positively changed beyond what you could imagine.
When RockPile Energy Services was formed in 2011, we took time to evaluate the many areas that could be improved, where efficiencies could be gained and the carbon footprint lightened. We have seen amazing results, but we also found that measuring the impact is not an industry norm. No one had delivered services like this before.
We are RockPile.
Curt Dacar
That led to a new problem. How do we communicate the value to our clients if we were not exactly sure ourselves? We saw the inherent benefits but knew that the “proof
CEO RockPile Energy Services, LLC
2
CONTENTS
4
Econo mi c Im pact
9
Safet y
10
Enviro n me n t a l Im pact
In this section, you will find a few of the areas where RockPile impacts your organization economically. The list is quite exhaustive, but we want to illustrate a select population to give you a better feel for how we approach business and are continuing to innovatively work to create separation from all other service providers. When added together, we have found that the incremental gains become quite large. This should prove exciting to you. Today, two major service areas that we are focusing on include how proppant is delivered and handled and how chemicals are optimized for each job. In the future, we are looking at ways to better manage and measure the entire process – in real time. And, we are exploring the use of electrical frac fleets, natural gas utilization and other major innovations that will have lasting impact. We conducted extensive analysis to arrive at our conclusions. The research was done over a year’s period (common contract) using 3.7 million pounds of proppant per well, 30 stages per well and 48 wells per year as our baseline assumptions.
3
1
2
RockPile’s completion services support downspacing, remote fracing and faster time to production.
With our “Dry on the Fly” chemical system, there is no more mineral oil to transport because mineral oil is eliminated from the design. This also means there is no more excess of quar slurry to be wasted.
The impact is far-reaching: smaller footprints, lower truck traffic and diesel costs, safer job sites with less non-productive time. Our clients get a more productive and profitable operation.
We transport the dry guar to the site just like you would powdered milk. This means that we can eliminate up to 70% of the bulk weight transportation costs.
Our research shows that due to the efficiency of our proppant technology we reduce our non-productive time on average by 1 hour and 9 minutes per well. With operating expenses of ~$5,000 per hour, every second counts. Net production analysis shows savings of up to ~$240,000 per year for our clients.
At ~$50/gal for guar slurry, a 20% reduction in product costs due to eliminating mineral oil equals ~$100,000 per typical well or ~$4,800,000 per year. As the number of stages increase, this number only gets better. RUNNING TOTAL:
RUNNING TOTAL:
Per Well: $105,000 Per Year: $5,040,000
Per Well: $5,000 Per Year: $240,000
Calculate Your Own Savings 55% transportation cost for chemicals
guar slurry costs
4
we used 55%
Your Savings with RockPile
% of which is mineral oil
Cost when you use RockPile
H AV E Y O U
3
Reduced land costs. We typically see up to five sand movers on a well. At 50 feet by 10 feet, there is quite a bit of landscape reclaimed when sand movers are no longer used.
considered? Not Every Well Reacts the Same to Your Chemical Design!
This can reduce total land requirements by ~4,000 square feet at the wellhead. At $~20+/sq foot, that amounts to ~$80,000 in savings. Over the course of the year, this totals ~$384,000.
RockPile conducts lab tests before every well that we complete – every, single time. We help clients design the best solution for each well because we have found that there can be a great variance, even in close proximity.
And clients are finding we can frac in areas that were impossible before. RUNNING TOTAL:
Per Well: $185,000 Per Year: $5,434,000
The result? We use exactly the chemicals that are needed for the specific job. One of our early clients proved our hypothesis. Their design called for 34# gel, while our lab tests showed that 25# was a better solution. We went with 25# and ended up saving the client $195,000 per well.
On a 10-well pad, that totals
almost $2,000,000. We test every time.
4
Our chemicals are transported in bulk tanks— not totes. With that comes several economic benefits:
•
You no longer have obsolescence due to “bottoms”
•
Spillage is reduced greatly because you hook up to the tank a lot less frequently than totes
•
Chemical exposure to employees is significantly reduced, which improves onsite safety
•
You operate more productively in sub-zero temperatures
•
You only pay for what you use, which equals less cost
5
H AV E Y O U
considered? Frost Laws: a Logistics and Profitability Nightmare In 2014, the Frost Laws were in effect in North Dakota for six weeks straight. We saw months – not weeks of trying to figure out ways to transport proppant to the well site and keep production going. Looking forward, this is going to become a bigger problem because the “mega-well” concept with 90 stages and close to 10 million pounds of proppant per well requires proppant to be available continuously.
5
Reduce delivery wait time. RockPile can stockpile proppant on or near location to make completions a snap. Our offloading time is less than 10 minutes. Compare that to one bulk transport that takes an hour to blow off pneumatically. Proppant delivery no longer dictates the pace at which jobs are completed. This ripples across every operation on the pad. Delivery time being reduced from one hour to 10 minutes improves proppant delivery costs by $8,266 per well and $396,768 over a year.
If you reduce the standard 45,000 pound-load to 25,000, you can see that a typical 3.7 million pound job will require 148 truckloads instead of 82. Mega fracing could see more than 350 truck loads needed for a single well.
RUNNING TOTAL:
Per well: $193,266 Per Year: $5,830,736
At $120 per hour and an average three hours to deliver, transload and return, these costs can add up quickly. What if you could stack the proppant at the site before the Frost Laws kick in? With RockPile, you can.
Calculate Your Own Savings lbs. of sand per well truck loads
45,000 lbs.
RockPile’s Proppant Delivery System allows you to prepare accordingly. We can centralize proppant storage close to the site with unlimited capacity before the laws are enacted. Each truck load is delivered at full capacity rather than half loads.
Pneumatic Costs
1 hr truck loads
trucking costs
per hour
(from above)
pneumatic costs
RockPile’s Proppant Delivery Costs
Ask us how...
.25 hr truck loads (from above)
6
trucking costs
per hour
RockPile’s costs
6
Decrease your non-productive time. Analysis shows that the completions process has approximately 6% in non-productive time. This causes proppant delivery delays, however, our proppant delivery system eliminates those delays by continuing to deliver proppant. Once operations commence, there will be no waiting on proppant delivery. Six percent of non-productive time averages 5.7 hours. If utilizing 10 trucks during proppant delivery and not wasting those 5.7 hours, clients save approximately $6,840 per well or $328,320 per year.
7
Increase eďŹƒcency. Our sand delivery system greatly eliminates proppant loss due to spillage and blown sand. Gravity is the force used to unload sand the RockPile way, and our clients see the economic benefit. The exact savings is challenging because the variables are many but with an increase in sand costs, your economic savings will continue to increase. And, with sand shortages as a real possibility, prices are sure to go up. Plus, demand is said to double from 2014 to 2017. Sand is becoming a key issue.
RUNNING TOTAL:
Per Well: $200,106 Per Year: $6,159,056
Source: Freedonia Industry Study, Proppants in North America.
Estimate Your Own Savings
pounds of sand lost due to blowing
cost per pound
savings per well
48 savings per well
7
wells
savings per year
8
Yes, we said seven, but here is an added bonus just to get you thinking. Have you ever considered how much it costs to replace air filters? We know that every cost of doing business ultimately hits the market.
With pneumatic blowers creating dust, diesel engines require that air filters be changed 1.5 times per month. With the elimination of sand blowers, we now change the filters one time per quarter. This adds up to almost $400,000 in lowered operating expenses per fleet. Lower costs ultimately filter down to each client. No pun intended!
So, what does this all mean to you? Over the course of a year, RockPile’s innovative ways of doing business have a
$6,159,056 impact for each client.
8
a note on
SA F E T Y Here are a few areas where we are improving the safety of all employees: Consider the fact that Sand Kings are gone, and a forklift now delivers sand to the conveyor belt. This frees up pad space for greater flow. That translates to less truck traffic on the roads and on the pad. This eliminates the potential of a truck backing up over a worker or colliding with another piece of equipment. One adjustment has a lasting effect. Our Silica Dust is at historically low levels. OSHA has recommendations and other “suggestions”, but the truth is that gravity is the simplest way to eliminate blowing. When blowing goes, so does the dust created in the process. Simple but effective. Breathe easier. You might think about the diesel particulates being emitted. With long line of trucks waiting to unload sand now gone, the trucks are not sitting around emitting fumes. With onehour transload time reduced to 10 minutes, a ~84% reduction, you have eliminated emissions from the trucks idling on the pad. Field staff are no longer breathing in so many fumes. Breathe cleaner. Another consideration is that the time to produce is greatly reduced because of the NPT time eliminated. This gets the completions crew in and out in shorter time.
9
Finally, consider how loud the “Sand Banshee” is. When pneumatic blowers are going, the decibels are piercing. Again, gravity is our friend. Along with the sand “falling into place”, we eliminate the screeching sound and what it does to everyone’s ears. Hear better. From a chemical perspective, we have killed the tote. Math alone tells us that we are no longer connecting and reconnecting to numerous totes. The reduced frequency lowers spill opportunity, which makes the work environment safer. This is safe handling, and employee risk is greatly reduced. Hug longer. Since RockPile runs lab tests for every well, we only use the chemicals that are needed to do the job. This eliminates excess, which also makes it safer because people are dealing with less chemical management. A safer job site makes a competitive difference. As you can see, each innovation impacts our clients in many ways. We are committed to finding new methods of doing the “same old thing”. And, we are focused on bringing that value to you, our client.
We are RockPile.
E N V I R O N M E N TA L
impact
We originally set out to uncover the economic impact that we were having on completions. What we discovered is that the environment is also benefitting. RockPile is taking an aggressive stance in reducing our carbon footprint. The EPA, state regulators and other organizations are starting to look at how we do business. In the future, our opinion is that E&P, Completions Services and everyone else in the food chain will need to do the job differently. For those lagging behind, it will be a struggle to implement new technologies and methodologies under the guise of protecting the environment because their costs will be higher. For example, we are watching how the regulations are impacting operators regarding Vapor Recovery. It could prove very costly to implement remediation to vapor recovery unless innovation steps up. At RockPile, we are looking at it from all perspectives. We know how to deliver our services in a more environmentally friendly manner while maintaining a keen eye on lowering costs.
Here are several green discoveries:
1
Pneumatic blowing of sand is a major ordeal, and OSHA and the EPA are cracking down on the effects. RockPile conducted a study to compare pneumatic blowers against our Proppant Delivery System. The results stated: “The geometric mean result for employee exposure samples from sand handling workers using RockPile’s Sand Delivery System was .0874 mg/m3 - almost a four fold reduction.” We saw a 73% reduction in Silica Dust. If you are interested in learning more, ask for our Silica Dust study. 10
2
Reduced emissions because trucks aren’t waiting to unload proppant. The diesel fumes from the line of trucks waiting is unnecessary and a carbon footprint detriment.
With our proppant transportation, loading and offloading is quick ~10 minutes. We have a seen a reduction of 1,852 Ibs of CO2 per well. Over a year, that is 88,896 Ibs of CO2 not being burned. Now, that’s cleaner.
3
Road degradation is minimized during frost laws, because you can stack the sand at a neutral site close to the job, using forklifts to move the sand to the conveyor.
dents are reduced, including chemical spills.
8
Consider all of the totes that go to waste. By using tanks, we do not throw totes away, reducing chemical exposure to the earth’s surface. Now, that’s green.
4
Noise is a big pollutant. It is a common complaint from the public. Our proppant delivery system doesn’t require blowers thus decreasing the decibel range. The decrease in noise improves our environmental impact. Now, that’s quieter.
9
We test chemical designs for every well. We have found that water chemistry can react quite differently from one well to another – even within very short distances. Because of this, we test every well to see how they will react and to formulate the exact design needed at the well, which means that we only shoot the precise chemicals needed to do the job.
5
Communication is key. RockPile has found that its success with keeping the environment safe is a direct product of its communication efforts. When a new team is coming on, the outgoing team has a meeting to convey everything that is happening. This produces great synergy and consistency.
10
Our water testing process is uncharacteristically green. We spend 20% to 30% of our lab time figuring out ways to use produced water most efficiently and are adopting “green fluids” as part of our Standard Operating Procedure.
6
Our chemical tanks have their own heating systems, which require less fuel than the traditional diesel engines.
7
RockPile enjoys a smaller footprint at each job site. This is a product of eliminating sand movers and using tanks instead of totes. The result is that acci11
Compelling? Disruptive? Motivating? RockPile is doing the work differently, and we are committed to your success. In fact, our aim is to make it overwhelmingly obvious that we deliver significant value to you so that you do not even consider calling our competition.
Call us today at (303) 825-8170