Lean manufacturing practices have allowed Hess to drive down drilling and completion cost, even during the low oil price environment of the last two years.
Hess has made efficiency a cornerstone of its operations to successfully weather a low oil price environment as well as position it for an oil price recovery. The company's Lean efficiency journey, which began when the price of crude was still rising to $100 per barrel, has allowed the company to continue to drill and complete wells in its prime acreage in North Dakota during a time many other operators were forced to delay operations.
In its fast-paced operation in the Bakken, Hess recently changed its standard completions design from 35- to 50-stage hydraulic fractures per 10,000-foot lateral. The 15 additional stages are resulting in a 15 percent to 20 percent increase in initial production with additional costs offset by future efficiency gains.
Efficient lean manufacturing practices in the Bakken have resulted in wide-ranging impacts. Hess reduced the number of days it takes to drill a well from 45 to 16 days and cut drilling and completion costs 60 percent over five years while simultaneously improving safety.
Our high-quality Bakken acreage, industry-leading drilling and completion costs and advantaged infrastructure position our Bakken asset to be a major contributor to the company's future production and cash flow growth.