Recently, the Downhole Operations Company of Sinopec Shengli Petroleum Engineering Co., Ltd. reported breakthrough progress in the results-validation stage of its lean management project, “Enhancing Fracturing Equipment Utilization.” Through scientific management and technological innovation, the average utilization rate of fracturing equipment rose from 64.8% to 72.6%, surpassing the original target and providing strong support for efficient oilfield development.

Since the beginning of this year, the Downhole Operations Company has adhered to its core objectives of “quality improvement, cost reduction, and efficiency enhancement,” establishing 43 lean management projects across multiple levels. The company regularly reviews progress, evaluates the promotion and application of ECRS improvement cases, selects exemplary achievements, and refines and standardizes effective practices to enable widespread replication.

Background
As unconventional oil and gas development expands, hydraulic fracturing has become a key means of boosting single-well output. However, low fracturing equipment utilization and resource waste remain longstanding issues, with annual utilization at some domestic oilfields hovering between 50% and 65%, well below international standards.

Early this year, the company launched the “Enhancing Fracturing Equipment Utilization” project and formed a special task group. Using the ECRS analytical framework, the team targeted challenges such as uneven workload distribution, rigid leasing models, and low equipment compatibility, implementing a series of coordinated measures to enhance equipment efficiency.

1. Integrated Operations to Get Planning Ahead
   By deepening the integrated “connection–testing–fracturing” workflow, the company strengthened global scheduling and developed detailed annual and monthly fracturing plans. As a result, balanced workload allocation in the Shengli work area increased from 52.7% to 77.4%.

2. Early-Warning Coordination to Keep Equipment Moving
   A two-tier early-warning mechanism and an efficient cross-area equipment dispatch system were introduced. When equipment idling rates rose in a particular area, the system triggered rapid redeployment to busier areas. To date, four cross-area mobilizations have been completed, enabling efficient fracturing operations for 235 stages in 10 wells.

3. Optimized Leasing to Cut Costs
   Flexible leasing models—such as short-term or stage-based rentals—were promoted to ensure supply cycles match operational needs, enabling “on-demand leasing.” Temporary equipment rental days have been reduced by 1,491 unit-days year-on-year, a 13% decrease.

4. Technical Integration to Unlock Potential
   To address the low applicability of electric-driven equipment, the company developed a three-tier matching scheme for all-electric and diesel–electric hybrid systems. These solutions have been widely applied in shale oil fracturing operations in the Shengli work area, further tapping the potential of different equipment types and improving utilization.

These effective measures not only significantly increased equipment utilization but also reduced rental needs and lowered overall costs. The results offer replicable management and technical solutions for the industry and hold strong relevance for efficient unconventional resource development nationwide.

Looking ahead, the Downhole Operations Company will accelerate the construction of its “1+2+N=1” lean management system, advance benchmark centers for fracturing and offshore operations, and deepen integration of lean practices into all business lines. Through precise guidance, workflow optimization, technological innovation, full-staff participation, and regular reviews, the company aims to continuously enhance internal improvement momentum, optimize resource allocation at lower cost and higher efficiency, and promote high-quality lean management across the board.