CHARACTERISTICS OF THE SAMPLE

COMPANY TYPE

TOTAL NUMBER
OF RESPONDENTS:
315

NORTH AMERICA = 52%

INTERNATIONAL = 48%
1
Welling & Company

PERCENT OF TOTAL SAMPLE

CHARACTERISTICS OF THE SAMPLE

GEOGRAPHIC AREAS OF INVOLVEMENT OVER NEXT FEW YEARS - LAND

232 RESPONDENTS RESPONSIBLE FOR 245 GEOGRAPHIC REGIONS

MID-CONTINENT

13%
13%

ROCKIES

8%

PERMIAN BASIN
WILLISTON/ BAKKEN

7%

GULF COAST

5%

HAYNESVILLE

3%
3%

S. TEXAS/ EAGLE FORD

CALIFORNIA

2%
2%

MARCELLUS/ UTICA
ALASKA
OTHER US BASINS

1%
1%

LATIN AMERICA

15%
12%

N. AFRICA/ MIDDLE EAST

CANADA

9%
7%

ASIA PACIFIC

4%

CONTINENTAL EUROPE
WEST AFRICA

0%

1%

5%

PERCENT OF LAND SAMPLE (MULTIPLE RESPONSES ALLOWED)

10%

15%

20%
2
Welling & Company

CHARACTERISTICS OF THE SAMPLE

GEOGRAPHIC AREAS OF INVOLVEMENT OVER NEXT FEW YEARS - OFFSHORE

83 RESPONDENTS RESPONSIBLE FOR 85 GEOGRAPHIC REGIONS

PERCENT OF OFFSHORE SAMPLE (MULTIPLE RESPONSES ALLOWED)

3
Welling & Company

CHARACTERISTICS OF THE SAMPLE

TITLE OF RESPONDENT

AVERAGETENUREINROLERELATEDTOARTIFICIALLIFT=15.8YEARS
FINALDECISIONMAKER=15%;PARTOFEVALUATIONTEAM=85%
PERCENT OF TOTAL SAMPLE

4
Welling & Company

LOCATION OR GROUP MAKING BUYING DECISION

FOR ARTIFICIAL LIFT EQUIPMENT

PERCENT OF TOTAL SAMPLE

5
Welling & Company

CHARACTERISTICS OF THE SAMPLE

NUMBER OF PRODUCING WELLS IN OPERATION OR MANAGED

AVERAGE PER RESPONDENT

6
Welling & Company

TREND IN CRUDE WELLS USING ARTIFICIAL LIFT

AVERAGE SHARE OF OIL WELLS PER OPERATOR

7
Welling & Company

TREND IN GAS WELLS USING ARTIFICIAL LIFT

AVERAGE SHARE OF GAS WELLS PER OPERATOR

8
Welling & Company

SHARE OF RESPONDENTS WITH PRODUCING WELLS IN

UNCONVENTIONAL PLAYS

PERCENT OF TOTAL SAMPLE

9
Welling & Company

ARTIFICIAL LIFT SYSTEMS USED ON UNCONVENTIONAL WELLS

10
SAMPLE WITH UNCONVENTIONAL WELLS

Welling & Company

TREND IN UNCONVENTIONAL WELLS TO USE ARTIFICIAL LIFT

11
Welling & Company

AVERAGE SHARE OF UNCONVENTIONAL WELLS TO USE ARTIFICIAL LIFT

CHARACTERISTICS OF ARTIFICIALLY LIFTED WELLS

AVERAGE TYPICAL AND MAXIMUM DEPTH BY SYSTEM TYPE

AVERAGE TYPICAL DEPTH

MEDIAN
TOTAL FLUID
PRODUCED (BPD)

AVERAGE MAX DEPTH

7869

ROD SYSTEMS

(6585)

325BPD

(4501)

5807

9406 (8083)

ESP
6675
4603
PCP

3525

2588BPD

(5816)

(4030)

571BPD

(2910)

11823 (9608)

GAS LIFT
8022
0

5000

1167BPD

(6759)

10000

15000
12

AVERAGE PER COMPANY (IN FEET) 2010 SURVEY IN RED

Welling & Company

SHARE OF COMPANIES WHO CURRENTLY OPERATE EACH SYSTEM TYPE

13
PERCENT OF TOTAL SAMPLE

Welling & Company

SHARE OF INSTALLED BASE BY ARTIFICIAL LIFT TYPE

-TOTAL SAMPLE-

(6%) (8%) (14%)

(12%) (11%) (8%)

(12%) (9%) (7%)

(53%)
(57%)
(61%)

(17%) (15%) (7%)

(<1%) (<1%) (3%)

SHARE OF CURRENTLY OPERATING SYSTEMS (2010 SURVEY IN RED) (2008 IN BLUE) (2004 IN GREEN)

14
Welling & Company

SHARE OF INSTALLED BASE BY ARTIFICIAL LIFT TYPE

-NORTH AMERICA-

15
Welling & Company

SHARE OF CURRENTLY OPERATING SYSTEMS

SHARE OF INSTALLED BASE BY ARTIFICIAL LIFT TYPE

-INTERNATIONAL-

SHARE OF CURRENTLY OPERATING SYSTEMS

16
Welling & Company

NUMBER OF ARTIFICIAL LIFT SYSTEMS OPERATED

BY TYPE

AVERAGE NUMBER OF SYSTEMS PER CO.

17
Welling & Company

PERCENT OF COMPANIES PLANNING INSTALLS

OF SELECTED SYSTEMS IN 2012

18
PERCENT OF TOTAL SAMPLE PLANNING ANY INSTALLS

Welling & Company

SHARE OF PLANNED ARTIFICIAL LIFT INSTALLATIONS

BY TYPE 2012

(9%)

(4%)

(18%)

(45%)

(22%)

(2%)
19
Welling & Company

ESTIMATED SHARE OF PLANNED INSTALLATIONS (2010 SURVEY IN RED)

SHARE OF PLANNED ARTIFICIAL LIFT INSTALLATIONS

BY TYPE 2013

(10%)

(18%)

(16%)

(41%)

(13%)

(2%)
ESTIMATED SHARE OF PLANNED INSTALLATIONS (2012 SURVEY DATA FROM PREVIOUS SLIDE IN RED)

20
Welling & Company

10

DOWNHOLE ISSUES AFFECTING PERFORMANCE

OR RESTRICTING PRODUCTION ON ARTIFICIALLY LIFTED WELLS
2010RANK

1
2
3
4
6
NA
5
7
8
NA
NA
NA
9
10
NA

PERCENT OF TOTAL SAMPLE

21
Welling & Company

MONTHS

MEAN TIME BETWEEN FAILURES FOR SELECTED SYSTEMS

8.6%6.5%4.6%11.0%6.8%71.7%
AVERAGE MTBF EXPERIENCED FOR EACH SYSTEM IN MONTHS (IMPROVEMENT /DECLINE FROM 2010 IN RED)

NA
22
Welling & Company

11

FOCUS OF DESIRED IMPROVEMENTS FROM ARTIFICIAL LIFT SUPPLIERS

23
PERCENT OF TOTAL SAMPLE

Welling & Company

TUBING ISSUES

TOTALNUMBEROFRESPONDENTS:236

24

12

LIFE EXPECTANCY PRODUCTION TUBING STRINGS

AVERAGE LIFEEXPECTANCY=88.8Months
MEDIAN LIFEEXPECTANCY=60.0Months

25
Welling & Company

PERCENT OF TOTAL SAMPLE

NUMBER OF PRODUCTION TUBING STRINGS REPAIRED/ REPLACED

DUE TO CORROSION RELATED PROBLEMS

(5.1%)
(2.7%)

(1.5%)
(1.8%)

(3.7%)

AVERAGE NUMBER OF STRINGS PER COMPANY

(SHARE OF OVERALL PRODUCTION STRINGS REPLACED DUE TO CORROSION ANNUALLY IN RED)

26
Welling & Company

13

FAMILIARITY WITH GLASS REINFORCED EPOXY PIPE (GRE)

FOR USE IN PRODUCTION TUBING STRINGS

27
Welling & Company

PERCENT OF TOTAL SAMPLE

AUTOMATION SECTION

TOTALNUMBEROFRESPONDENTS:293

28

14

SHARE OF ARTIFICIALLY LIFTED WELLS EQUIPPED WITH

DOWNHOLE SENSORS

2010SURVEY31%44%30%19%43% 43%28%13%44%
2008SURVEY25%43%29%13%34% 37%20%11%28%

29
Welling & Company

PERCENT OF WELLS

TYPES OF DOWNHOLE SENSORS USED WITH ARTIFICIAL LIFT EQUIPMENT

ESP USERS

100%

PCP USERS

ROD PUMP USERS

GAS LIFT USERS

99% 100% 99%

96%
88%
83%
75%

88%

75%

50%
30%
21%
16% 17%

25%

2%

3%

1%

0%
PRESSURE SENSORS

PERCENT OF THOSE USING DOWNHOLE SENSORS

TEMPERATURE
SENSORS

VIBRATION SENSORS

OTHER SENSORS

30
Welling & Company

15

SHARE OF ARTIFICIALLY LIFTED WELLS USING SCADA

TO MONITOR WELL OR EQUIPMENT PERFORMANCE

PERCENT OF WELLS

31
Welling & Company

IMPORTANCE OF VARIOUS FUNCTIONS REQUIRED FROM AUTOMATION SOFTWARE

AND HOW WELL NEEDS ARE MET IN EACH AREA BY CURRENT OFFERINGS

2010SURVEY
IMPORTANCE NEEDSMET

9.10

7.91

8.32

7.46

8.42

7.73

8.56

7.51

NA

NA

NA

NA

32
AVERAGE RATING, SCALE 1-10 (10 = HIGHEST IMPORTANCE / NEEDS TOTALLY MET)

Welling & Company

16

ELECTRIC SUBMERSIBLE PUMP SECTION

TOTALNUMBEROFRESPONDENTS:154

33

FOCUS OF DESIRED IMPROVEMENTS FROM ESP SUPPLIERS

PERCENT OF ESP USERS

34
Welling & Company

17

WHAT CAN BE DONE TO EXTEND RUN LIFE IN ESP SYSTEMS

PERCENT OF ESP USERS FEELING IMPROVEMENTS IN RELIABILITY SHOULD BE SUPPLIERS FOCUS

35
Welling & Company

DESIRED IMPROVEMENTS IN CUSTOMER SERVICE

FROM ESP SUPPLIERS

PERCENT OF ESP USERS FEELING IMPROVEMENTS IN CUSTOMER SERVICE SHOULD BE SUPPLIERS FOCUS

36
Welling & Company

18

CHARACTERISTICS OF WELLS USING ESP

TOTAL FLUID PRODUCED PER DAY

TOTAL SAMPLE

MEDIAN TOTAL FLUID PRODUCED :

2588 BPD
AVERAGE WATER CUT:
69%
PERCENT OF WELL USING ESP LIFTED WELLS

37
Welling & Company

CHARACTERISTICS OF WELLS USING ESP

TOTAL FLUID PRODUCED PER DAY

NORTH AMERICA

MEDIAN TOTAL FLUID PRODUCED :

1321 BPD
AVERAGE WATER CUT:
73%
PERCENT OF WELL USING ESP LIFTED WELLS

38
Welling & Company

19

CHARACTERISTICS OF WELLS USING ESP

TOTAL FLUID PRODUCED PER DAY

INTERNATIONAL
SAMPLE

MEDIAN TOTAL FLUID PRODUCED :

8526 BPD
AVERAGE WATER CUT:
66%
39
Welling & Company

PERCENT OF WELL USING ESP LIFTED WELLS

RANKING OF SELECTION CRITERIA FOR ESPS

BY SELECTED SUB-SAMPLES
TOTAL
SAMPLE

NORTH
AMERICA

INTL
SAMPLE

BETTER
BETTER
SERVICE RELIABILITY

BETTER
PRICE

15
615
>15
INSTALLS INSTALLS INSTALLS

COMMITMENTTOHSEINITIATIVES

ACCEPTABLEDELIVERYSCHEDULE

T4

TECHNICALSUPPORT

T4

T3

HIGHLYCAPABLEFIELDPERSONNEL

T5

QUICKRESPONSETOSERVICECALLS

T5

DOCUMENTEDLONGEVITY/LOW
FAILURERATE

KNOWLEDGEABLE&RESPONSIVESALES
PERSONNEL

T3

PRICECOMPETITIVENESS

OVERALLREPUTATIONANDTRACK
RECORD

10

UNIQUEDESIGNFEATURES/
TECHNOLOGY

10

10

10

10

10

10

10

10

40
Welling&Company

20

NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION

-ESPS2008 SURVEY

2010 SURVEY

2012 SURVEY
46%

EQUIPMENT QUALITY/
RELIABILITY/ LONGEVITY

42%
29%

AFTER-SALE SERVICE/ TECH

SUPPORT

AVAILABILITY

37%
50%

19%
15%

EXPERIENCE/ TRACK
RECORD

TECHNOLOGY/ DESIGNS

49%

6%
9%
4%
4%
5%
3%

OTHER

13%
10%
8%
8%

0%

20%

40%

60%
41
Welling & Company

PERCENT OF ESP USERS

ELECTRIC SUBMERSIBLE PUMPS

Stated Importance Weights vs. Correlation to Likely to Recommend

MATRIXQUADRANT

ATTRIBUTE

Baseline Requirements

COMMITMENTTOHSEINITIATIVES(1)

(High Stated - Low Correlation)

These are essentially entry tickets to the market. Competent performance is expected.
Gaps in baseline requirements are know n to cause sw itching. Closing gaps in baseline
performance factors takes first priority. Some competitors choose to differentiate on
baseline requirements.

Conscious Differentiators
(High Stated - High Correlation)
Factors in this area actively drive supplier selection decisions. Winning on factors in
this category can be a pow er force for profitability, grow th and customer retention.
Closing gaps in conscious differentiators takes second priority.

ACCEPTABLEDELIVERYSCHEDULE(2)
DOCUMENTEDLONGEVITY/LOWFAILURERATE(6)
TECHNICALSUPPORT(3)
HIGHLYCAPABLEFIELDPERSONNEL(4)
QUICKRESPONSETOSERVICECALLS(5)

Latent Differentiators
(Low Stated - High Correlation)
Customers dont say these factors are important but they correlate highly to a
dependant variable that assesses overall satisfaction w ith a supplier (in this study
likely to recommend is the dependent variable). Latent differentiators represent
opportunities to make a pull-ahead move.

Low Impact

KNOWLEDGEABLE&RESPONSIVEPERSONNEL(7)

OVERALLREPUTATIONANDTRACKRECORD(9)
PRICECOMPETITIVENESS(8)

(Low Stated - Low Correlation)

Low impact items are areas w here performance at parity w ith competitors is
sufficient.

UNIQUEDESIGNFEATURES/TECHNOLOGY(10)
42

21

PROGRESSING CAVITY PUMP SECTION

TOTALNUMBEROFRESPONDENTS:49

43

FOCUS OF DESIRED IMPROVEMENTS FROM PCP SUPPLIERS

PERCENT OF PCPUSERS

44
Welling & Company

22

WHAT CAN BE DONE TO EXTEND RUN LIFE IN PCP SYSTEMS

PERCENT OF PCP USERS FEELING IMPROVEMENTS IN RELIABILITY SHOULD BE SUPPLIERS FOCUS

45
Welling & Company

DESIRED IMPROVEMENTS IN CUSTOMER SERVICE

FROM PCP SUPPLIERS

PERCENT OF PCP USERS FEELING IMPROVEMENTS IN CUSTOMER SERVICE SHOULD BE SUPPLIERS FOCUS

46
Welling & Company

23

CHARACTERISTICS OF WELLS USING PCP

TOTAL FLUID PRODUCED PER DAY

MEDIAN TOTAL FLUID PRODUCED :

571 BPD
AVERAGE WATER CUT:
66%

PERCENT OF WELL USING PCP LIFTED WELLS

47
Welling & Company

PREFERRED DRIVE TYPE FOR PCP APPLICATIONS

48
PERCENT OF PCP USERS

Welling & Company

24

PERCENT OF TIME PCP SYSTEM COMPONENTS ARE BUNDLED

WITH A SINGLE SUPPLIER

(54%)

AVERAGE PER COMPANY / PCP USERS ONLY (2010 SURVEY IN RED)

49
Welling & Company

IMPORTANCE OF SELECTION CRITERIA FOR PCPS

2008RANK

5
7
6
4
1
3
2
8
10
9

50
Welling&Company
AVERAGERATING,SCALE110

25

NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION

-PCPS-

(56%)

(19%)

(8%)

(16%)

(23%)

(NA)
(NA)

51
Welling & Company

PERCENT OF PCP USERS (2010 SURVEY IN RED)

PROGRESSING CAVITY PUMPS

Stated Importance Weights vs. Correlation to Likely to Recommend

MATRIXQUADRANT
Baseline Requirements

ATTRIBUTE
COMMITMENTTOHSEINITIATIVES(1)

(High Stated - Low Correlation)

These are essentially entry tickets to the market. Competent performance is expected.
Gaps in baseline requirements are know n to cause sw itching. Closing gaps in baseline
performance factors takes first priority. Some competitors choose to differentiate on
baseline requirements.

Conscious Differentiators
(High Stated - High Correlation)
Factors in this area actively drive supplier selection decisions. Winning on factors in
this category can be a pow er force for profitability, grow th and customer retention.
Closing gaps in conscious differentiators takes second priority.

Latent Differentiators

ACCEPTABLEDELIVERYSCHEDULE(T3)

QUICKRESPONSETOSERVICECALLS(T5)
TECHNICALSUPPORT(2)
PRICECOMPETITIVENESS(T3)
DOCUMENTEDLONGEVITY/LOWFAILURERATE(T5)
HIGHLYCAPABLEFIELDPERSONNEL(7)

(Low Stated - High Correlation)

Customers dont say these factors are important but they correlate highly to a
dependant variable that assesses overall satisfaction w ith a supplier (in this study
likely to recommend is the dependent variable). Latent differentiators represent
opportunities to make a pull-ahead move.

KNOWLEDGEABLE&RESPONSIVEPERSONNEL(8)
UNIQUEDESIGNFEATURES/TECHNOLOGY(10)

Low Impact
(Low Stated - Low Correlation)
Low impact items are areas w here performance at parity w ith competitors is
sufficient.

OVERALLREPUTATIONANDTRACKRECORD(9)

52

26

ROD LIFT SECTION

(Includes: Surface Units, Sucker Rods and Downhole Pumps)

TOTALNUMBEROFRESPONDENTS:167

53
Welling&Company

FOCUS OF DESIRED IMPROVEMENTS FROM ROD SYSTEM

SUPPLIERS

PERCENT OF ROD SYSTEM USERS

54
Welling & Company

27

WHAT CAN BE DONE TO EXTEND RUN LIFE IN ROD SYSTEMS

PERCENT OF ROD SYSTEM USERS FEELING IMPROVEMENTS IN RELIABILITY SHOULD BE SUPPLIERS FOCUS

55
Welling & Company

DESIRED IMPROVEMENTS IN CUSTOMER SERVICE

FROM ROD SYSTEM SUPPLIERS

PERCENT OF ROD SYSTEM USERS FEELING IMPROVEMENTS IN CUSTOMER SERVICE SHOULD BE SUPPLIERS FOCUS

56
Welling & Company

28

CHARACTERISTICS OF WELLS USING ROD SYSTEMS

TOTAL FLUID PRODUCED PER DAY

TOTAL SAMPLE

MEDIAN TOTAL FLUID PRODUCED :

325 BPD
AVERAGE WATER CUT:
68%
PERCENT OF WELL USING ROD LIFTED WELLS

57
Welling & Company

CHARACTERISTICS OF WELLS USING ROD SYSTEMS

TOTAL FLUID PRODUCED PER DAY

NORTH AMERICA

MEDIAN TOTAL FLUID PRODUCED :

243 BPD
AVERAGE WATER CUT:
68%
PERCENT OF WELL USING ROD LIFTED WELLS

58
Welling & Company

29

CHARACTERISTICS OF WELLS USING ROD SYSTEMS

TOTAL FLUID PRODUCED PER DAY

INTERNATIONAL
SAMPLE

MEDIAN TOTAL FLUID PRODUCED :

1145 BPD
AVERAGE WATER CUT:
68%
PERCENT OF WELL USING ROD LIFTED WELLS

59
Welling & Company

SHARE OF SUCKER RODS CURRENTLY USED BY TYPE

AND TREND OVER NEXT 2-3 YEARS

PERCENT OF ROD SYSTEM USERS

60
Welling & Company

30

RANKING OF SELECTION CRITERIA FOR ROD SYSTEMS

BY SELECTED SUB-SAMPLES
TOTALSAMPLE

NORTH
AMERICA

INTLSAMPLE

BETTERSERVICE

BETTER
RELIABILITY

BETTERPRICE

COMMITMENTTOHSEINITIATIVES

ACCEPTABLEDELIVERYSCHEDULE

TECHNICALSUPPORT

HIGHLYCAPABLEFIELDPERSONNEL

DOCUMENTEDLONGEVITY/LOW
FAILURERATE

QUICKRESPONSETOSERVICECALLS

KNOWLEDGEABLE&RESPONSIVE
SALESPERSONNEL

PRICECOMPETITIVENESS

10

10

OVERALLREPUTATIONANDTRACK
RECORD

10

10

10

UNIQUEDESIGNFEATURES/
TECHNOLOGY

10
61
Welling&Company

NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION

-ROD LIFT EQUIPMENT-

(55%)

(31%)

(17%)

(20%)

(5%)

(10%)

PERCENT OF ROD EQUIPMENT USERS (2010 SURVEY IN RED)

62
Welling & Company

31

ROD LIFT SYSTEMS

Stated Importance Weights vs. Correlation to Likely to Recommend

MATRIXQUADRANT
Baseline Requirements
(High Stated - Low Correlation)
These are essentially entry tickets to the market. Competent performance is expected.
Gaps in baseline requirements are know n to cause sw itching. Closing gaps in baseline
performance factors takes first priority. Some competitors choose to differentiate on
baseline requirements.

ATTRIBUTE
COMMITMENTTOHSEINITIATIVES(1)

ACCEPTABLEDELIVERYSCHEDULE(2)
TECHNICALSUPPORT(3)

Conscious Differentiators
(High Stated - High Correlation)
Factors in this area actively drive supplier selection decisions. Winning on factors in
this category can be a pow er force for profitability, grow th and customer retention.
Closing gaps in conscious differentiators takes second priority.

HIGHLYCAPABLEFIELDPERSONNEL(4)
DOCUMENTEDLONGEVITY/LOWFAILURERATE(5)
QUICKRESPONSETOSERVICECALLS(6)

Latent Differentiators
(Low Stated - High Correlation)
Customers dont say these factors are important but they correlate highly to a
dependant variable that assesses overall satisfaction w ith a supplier (in this study
likely to recommend is the dependent variable). Latent differentiators represent
opportunities to make a pull-ahead move.

Low Impact

KNOWLEDGEABLE&RESPONSIVESALESPERSONNEL(7)
OVERALLREPUTATIONANDTRACKRECORD(9)
PRICECOMPETITIVENESS(8)

(Low Stated - Low Correlation)

Low impact items are areas w here performance at parity w ith competitors is
sufficient.

UNIQUEDESIGNFEATURES/TECHNOLOGY(10)

63

GAS LIFT SECTION

TOTALNUMBEROFRESPONDENTS=125

64

32

FOCUS OF DESIRED IMPROVEMENTS FROM GAS LIFT

SUPPLIERS

PERCENT OF WELLS USING GAS LIFT

65
Welling & Company

WHAT CAN BE DONE TO EXTEND RUN LIFE IN GAS LIFT SYSTEMS

PERCENT OF GAS LIFT USERS FEELING IMPROVEMENTS IN RELIABILITY SHOULD BE SUPPLIERS FOCUS

66
Welling & Company

33

DESIRED IMPROVEMENTS IN CUSTOMER SERVICE

FROM GAS LIFT SUPPLIERS

PERCENT OF GAS LIFT USERS FEELING IMPROVEMENTS IN CUSTOMER SERVICE SHOULD BE SUPPLIERS FOCUS

67
Welling & Company

CHARACTERISTICS OF WELLS USING GAS LIFT

TOTAL FLUID PRODUCED PER DAY

TOTAL
SAMPLE

MEDIAN TOTAL FLUID PRODUCED :

1167 BPD
AVERAGE WATER CUT:
54%
PERCENT OF WELLS USING GAS LIFT

68
Welling & Company

34

CHARACTERISTICS OF WELLS USING GAS LIFT

TOTAL FLUID PRODUCED PER DAY

NORTH
AMERICA

MEDIAN TOTAL FLUID PRODUCED :

455 BPD
AVERAGE WATER CUT:
58%
69
Welling & Company

PERCENT OF WELLS USING GAS LIFT

CHARACTERISTICS OF WELLS USING GAS LIFT

TOTAL FLUID PRODUCED PER DAY

INTERNATIONAL
SAMPLE

MEDIAN TOTAL FLUID PRODUCED :

2171 BPD
AVERAGE WATER CUT:
50%
PERCENT OF WELLS USING GAS LIFT

70
Welling & Company

35

IMPORTANCE OF SELECTION CRITERIA FOR GAS LIFT

2010
RANK

1
3
2
6
7
5
4
9
10
8

71
Welling&Company

AVERAGERATING,SCALE110

NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION

-GAS LIFT SYSTEMS-

(38%)

(37%)

(2%)
(18%)

(12%)

(10%)

(15%)

PERCENT OF GAS LIFT USERS (2010 SURVEY IN RED)

72
Welling & Company

36

GAS LIFT EQUIPMENT

Stated Importance Weights vs. Correlation to Likely to Recommend

MATRIXQUADRANT

ATTRIBUTE
COMMITMENTTOHSEINITIATIVES(1)

Baseline Requirements
(High Stated - Low Correlation)

ACCEPTABLEDELIVERYSCHEDULE(4)

These are essentially entry tickets to the market. Competent performance is expected.
Gaps in baseline requirements are know n to cause sw itching. Closing gaps in baseline
performance factors takes first priority. Some competitors choose to differentiate on
baseline requirements.

KNOWLEDGEABLE&RESPONSIVESALESPERSONNEL(6)
QUICKRESPONSETOSERVICECALLS(7)

Conscious Differentiators
(High Stated - High Correlation)
Factors in this area actively drive supplier selection decisions. Winning on factors in
this category can be a pow er force for profitability, grow th and customer retention.
Closing gaps in conscious differentiators takes second priority.

DOCUMENTEDLONGEVITY/LOWFAILURERATE(2)
HIGHLYCAPABLEFIELDPERSONNEL(3)
TECHNICALSUPPORT(5)

Latent Differentiators
(Low Stated - High Correlation)
Customers dont say these factors are important but they correlate highly to a
dependant variable that assesses overall satisfaction w ith a supplier (in this study
likely to recommend is the dependent variable). Latent differentiators represent
opportunities to make a pull-ahead move.

OVERALLREPUTATIONANDTRACKRECORD(8)

Low Impact

UNIQUEDESIGNFEATURES/TECHNOLOGY(9)

(Low Stated - Low Correlation)

Low impact items are areas w here performance at parity w ith competitors is
sufficient.

PRICECOMPETITIVENESS(10)

73

37