The strategic advantage of production optimisation

Optimising output from wells already in operation may be the most effective near- to mid-term path for the industry to address the energy trilemma—supplying global demand at the lowest possible cost while minimising carbon emissions. Unlocking production from underutilised reservoirs can deliver significant additional volumes at financial and environmental costs that rival, or even outperform, those of new developments in more remote regions. With global proven reserves estimated at roughly 1.7 trillion barrels, and typical recovery rates ranging from 20% to 40% for oil and 60% to 80% for gas, the scale of the opportunity is exceptionally large.

There’s no question that boosting production efficiency comes with significant challenges—something every petroleum engineer understands well. However, with global energy resources now highly developed and new exploration becoming increasingly costly, risky, and complex, optimising existing production offers substantial value for established energy companies. Here’s why taking a closer look at it truly pays off.

A real case of optimised production

An operator managing more than 350 mature gas and condensate wells sought to increase the share of condensate—relative to gas and water—produced through its existing facilities, aiming to capture the higher market value of condensate. The main obstacles were challenging flow dynamics and a lack of real-time operational data, which made it difficult for well and operations teams to act in a coordinated, timely, and effective way.

By introducing digital and AI-driven solutions, the company gained far clearer insight into the real drivers of production behavior. Instead of relying solely on theoretical models, teams could now understand how actual operating conditions—such as bottom-hole pressure, tubing-head pressure, and back-pressure interactions between wells—affected production, using both historical information and, eventually, live data.

With this improved visibility, the operator was able to optimise condensate output. For instance, the team discovered that high liquid levels in the separator were linked to reduced condensate recovery. This understanding enabled them to fine-tune liquid loading and adjust choke settings to boost performance. The AI system modified its recommendations by learning from historical trends and real-time inputs, ensuring decisions were both accurate and low risk.

Overall, the company unlocked more than a 5% improvement in optimisation potential, translating into over $100 million in annual value. The new tool also established a real-time, unified view of operations for production, well, and reservoir teams, streamlining “barrel-chasing” activities, sharpening communication, and enhancing cross-team coordination and collaboration.

Overcoming the typical barriers

Although the advantages are clear, production optimisation is still an underused approach. A major reason is that energy companies often prioritise cost reduction, an area where they have deep experience and can generate quick, high-impact results. However, cutting costs does not add reserves or boost revenue, and operators seeking higher output usually turn to drilling new wells. Increasing recovery from existing reservoirs has historically received far less focus and typically involves addressing persistent structural and technical hurdles.

Leading energy companies now possess—or can readily obtain—the capabilities required to break through the obstacles to adoption. By leveraging advanced technologies, making better use of data, and adopting flexible operational strategies and organisational models, they can speed up production and raise the total recoverable output from wells and fields. A focus on production optimisation reshapes processes and work practices, applying cutting-edge tools like AI to complex technical issues and helping operators overcome the challenges that limit recovery.