Cycles of Low Oil Prices have occurred so far three times in the last two decades, and it has become evident that it is a feature of the Industry.

In the low oil price scenario a condition arises whereby the break even value of the field is higher than the sales price. The traditional response recipes have been so far a resize of the activity involving layoffs and cancelling or putting projects indefinitely on hold.

A closer look tough shows that while the average production cost of the barrel may be non economical, still certain oil generating activities can yield profitable oil.

On the other side stream lining the process for both surface and down hole activities incorporating cost effective innovative solutions and best practices can reduce the production cost. Further looking into the capital expenses with critical eyes, performance oriented contracts, merging from purchasing to leasing, among others can result in additional savings. Likewise goal alignment to explore for creative models jointly with the Product and Service Providers provides another stream of cost optimization.

This paper presents a viable alternative that allows E & Ps to refocus on cost effective measures to keep profitability or at least to minimize loses. Specific real case examples are shared.

For heavy and Extra heavy Oil Fields the impact of above is emphasized due to the lowered marked price that the higher oil viscosity triggers.

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