As written in our “Mission Statement”, it is SCFM’s sincere desire to deliver profit to our customer’s bottom line through employing the industries best technical skills and innovative equipment applications of compression equipment. Below you will find one such story of SCFM delivering an unequaled “Value Proposition”.
The Customer
For the sake of confidentiality and protection of the customer’s privacy, we will not name them in this article, but will describe them so the reader can understand the primary business of the client. In the course of making normal contact with our customers and prospective customers, SCFM made contact with this new client. Our Customer is an independent energy company engaged primarily in the exploration and development of unconventional natural gas properties. They are one of the leading developers of coal bed methane reserves in the United States.
The Situation
During our visit, our customer described a situation he was facing in a major gathering field. He was experiencing what many clients experience in the Coal Bed Methane patch that has been in production for a few years – Declining Production and Decreasing Revenues because he had limited displacement. We asked for more details and further elaboration of his specific conditions. He described that his existing units were not maintaining the flow rates as reservoir pressures decline. We asked him about his action plan. The client advised he was looking at supplementing his existing equipment with new screw compressors. His current equipment was less than 8 years old.
SCFM asked the following question: “If we could develop a solution that would work for you, put money on your bottom line, do it cost effectively, and timely, would you give us the business?” The Answer of Course was YES!
The Solution
SCFM went to work by tasking our team of application engineers and our design engineers to develop a unique solution that would resolve the challenge for our customer and put PROFIT on his bottom line. The solution SCFM developed was highly complex and to our knowledge had never been employed in the industry previously. Without going into great detail, the solution was to Boost or Supercharge our client’s existing compressors. After the SCFM application and design engineers worked several weeks, we phoned the customer and asked for a meeting to outline our plan. The customer was delighted with the solution that was developed, so he agreed to purchase it.
The Result
SCFM manufactured the equipment as spec’d, delivered the units on-time and within the price guidelines as quoted. The two units were completed in 16 weeks. Both site startups went well with minimal delay.
The economics of the innovative solution was better than expected. There were two sites involved in this project. One location produced 4 million cubic feet (mmcf) more per day after employing the SCFM solution. The other site sold 3 (mmcf) more per day. Using $5.00 per thousand as the market price for natural gas (current price as of this writing), the following economics are generated:
At one site 4100 horsepower (h.p.) of compression was no longer needed and at the other 7100 h.p. of compression was retired. The above financial numbers do not include maintenance on the compressors that were no longer needed.
The Summary
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