Halliburton’s HAL subsidiary, Landmark, is a major construction company of refineries, oil fields, pipelines and chemical plants. It has recently been awarded a contract by Hess Corporation HES to use DecisionSpace 365 well construction applications for its construction projects.This new partnership aims to enhance the safety, efficiency and reliability of Hess' well construction process.
Hess' adoption of DecisionSpace 365 is part of its ongoing efforts to modernize operations and leverage digital technologies for better functional efficiency.
Apart from the services mentioned in the contract, Halliburton will also deploy its state-of-the-art digital solutions to optimize HES' operations. HAL's digital solutions will use advanced data analytics, artificial intelligence and machine learning to help Hess make informed, real-time decisions. This will improve the latter’s operational efficiency and reduce downtime.
DecisionSpace 365 Overview
DecisionSpace 365 is a cloud-based digital platform that enables oil and gas operators to streamline their well construction workflows and improve their decision-making capabilities. The platform provides a comprehensive set of applications that cover the entire well construction lifecycle, from planning to execution and analysis. Some of the key benefits of DecisionSpace 365 include:
Enhanced collaboration and communication between teams and stakeholdersGreater visibility and control over project timelines, costs and risksImproved quality and accuracy of well designs and drilling plansOptimized resource allocation and utilizationIncreased operational efficiency and productivityEnhanced safety and regulatory complianceEnhanced collaboration and communication between teams and stakeholdersGreater visibility and control over project timelines, costs and risksImproved quality and accuracy of well designs and drilling plansOptimized resource allocation and utilizationIncreased operational efficiency and productivityEnhanced safety and regulatory complianceEnhanced collaboration and communication between teams and stakeholdersGreater visibility and control over project timelines, costs and risksImproved quality and accuracy of well designs and drilling plansOptimized resource allocation and utilizationIncreased operational efficiency and productivityEnhanced safety and regulatory complianceEnhanced collaboration and communication between teams and stakeholdersGreater visibility and control over project timelines, costs and risksImproved quality and accuracy of well designs and drilling plansOptimized resource allocation and utilizationIncreased operational efficiency and productivityEnhanced safety and regulatory compliance- Enhanced collaboration and communication between teams and stakeholders
- Greater visibility and control over project timelines, costs and risks
- Improved quality and accuracy of well designs and drilling plans
- Optimized resource allocation and utilization
- Increased operational efficiency and productivity
- Enhanced safety and regulatory compliance
Hess’ Use Case
Hess has selected several modules of the DecisionSpace 365 suite to support its well-construction activities. These include:
Well Engineering: The Well Engineering application provides a unified platform for well design, casing and cementing, and completion planning. It integrates data from various sources, such as geology, geophysics and drilling to enable engineers to create optimal well designs that meet performance and safety requirements. The application also includes advanced analytical and simulation tools to help engineers assess and optimize drilling parameters, such as torque and drag, hydraulics and wellbore stability.
Well Planning: The Well Planning application enables engineers and drilling operations personnel to create detailed boring plans that account for various constraints, such as directional drilling, well spacing and geohazards. The application uses real-time data feeds from downhole sensors and surface monitoring systems to update the drilling plan and adjust parameters as needed. This helps minimize the non-productive time, and maximize drilling efficiency and accuracy.
Well Operations: The Well Operations application provides a centralized platform for real-time monitoring and control of drilling and completion operations. It integrates data from multiple sources, such as drilling rigs, wellheads and downhole sensors to provide a comprehensive view of well performance and status. The application includes automated workflows and alerts to notify personnel of any anomalies or issues that require attention. This ensures safe and efficient execution of drilling and completion operations.
Well Data Analytics: The Well Data Analytics application enables Hess to leverage its well data to gain insights and optimize its well construction processes. The application includes a range of analytics tools, such as machine learning, data visualization and statistical analysis to help Hess identify trends, patterns and anomalies in its well data. This will help the company in making data-driven decisions and improve its well-construction operations.
Benefits of DecisionSpace 365
Hess expects to derive several benefits from using Landmark’s DecisionSpace 365. These are:
- Greater visibility and control over its well construction projects, leading to reduced costs and risks and improved performance
- Optimized well designs and drilling plans, leading to increased productivity and profitability
- Enhanced safety and regulatory compliance, leading to reduced incidents and liability
- Increased use of digital technologies and data analytics, leading to continuous improvement and innovation
According to Halliburton, its DecisionSpace 365 applications use the iEnergy hybrid cloud to enable a flexible organization with integrated planning, design and operations. This creates a digital replica of the well construction process. With these applications, operators can collaborate with oilfield service providers and drilling contractors in an efficient and real-time manner.
The partnership between Hess and Halliburton’s subsidiary, Landmark, is expected to bring significant benefits to both the companies. For Hess, the adoption of DecisionSpace 365 is an important step toward achieving its strategic goals of reducing costs, increasing production and improving operational efficiency. Meanwhile, Halliburton will be able to showcase its innovative software solutions and demonstrate its expertise in the oil and gas industry.
Overall, the contract is a significant win for Halliburton and underscores the company's commitment to providing innovative solutions to the oil and gas industry. With its cutting-edge technology and deep expertise, the company is well poised to continue its growth and shape the industry in the years to come.
Hess is a leading global independent energy company, engaged in the exploration and production of crude oil and natural gas. It operates primarily in North Africa, Southeast Asia, the United States and the Gulf of Mexico.
In addition to its well construction applications, the company also provides a range of other software solutions for exploration, production, reservoir management and drilling operations. Hess is a leader in digital transformation within the energy sector and has a strong track record of delivering value to its customers through innovative software solutions.
On the other hand, Landmark is a prominent supplier of technology solutions to the upstream oil and natural gas industries under Halliburton. Its services include providing software for exploration and production companies, and data analysis solutions.
Zacks Rank and Key Picks
Currently, both Hess and Halliburton carry a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like NGL Energy Partners NGL, sporting a Zacks Rank #1 (Strong Buy), and Energy Transfer ET holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NGL Energy Partners: The company is worth approximately $367.70 million. Its shares have increased 19.5% in the past year.
NGL is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.
Energy Transfer LP: The company is valued at around $37.10 billion. It delivered an average earnings surprise of 11.43% for the last four quarters and its current dividend yield is 10.18%.
ET currently has a forward P/E ratio of 8.41. In comparison, its industry has an average forward P/E of 9.20, which means the company is trading at a discount to the group.
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Hess Corporation (HES) : Free Stock Analysis Report
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