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The problem with the cost-cutting mindset is that it often allows for actions that seem really counter-intuitive. A friend of mine was spec'ing out some pumps f
by angersock 12y ago
The problem with the cost-cutting mindset is that it often allows for actions that seem really counter-intuitive. A friend of mine was spec'ing out some pumps for an off-shore platform, and they were rentals. Turned out renting was like thousands a day or some similarly absurd number. Company ended up renting like twice as many pumps, just in case they needed them for redundancy.
It literally made more sense to spend hundreds of thousands of dollars for pumps that sat around and did nothing just to make damned-sure a multi-million dollar rig never sat idle.
So, when we hear that there is too much complexity in, say, making sure nobody is drinking from wells within a mile of where the stuff is being injected, we look askance.
O&G is full of money and talented engineers, so I doubt that this is a problem we can't overcome.