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Cabimas – Zulia
Applying Techniques
A few months ago, discussions about sustainability in the oil and gas indu focused on
the environmental effects ofshale oil and gas development technology had W enabled
the "first wave" of the unconventional resource revolution that swept North America
and propelled it toward energy independence, concerns about the usage of water and
chemicals and the environmental effect of large numbers of wells signaled the need
for new thinking to address these concerns.
How quickly times have changed! While safety and environmental sustainabil ity
remain at the top of operational considerations, the precipitous drop in global o prices
has added another key question to the mix: At what price do unconventiona plays
cease to be economically sustainable? Basin-related, break-even prices are now top
agenda items at planning and budgeting meetings. No longer are we discussing
efficient well delivery, improving completion effectiveness and fracturing designs, and
increasing estimated ultimate recovery as changes we should make. These are chang
es we now must make to boost production, ensure sustainable cash flow, and increase
booked reserves during the "next wave" of unconventional resource development.
The high oil prices of the past several years shielded the industry from inefficien-
cies that were "built in" to the first wave of unconventional development. Of the hun
dreds of thousands of shale wells that have been drilled and hydraulically fractured,
many have been significantly less productive than expected, delivering typical recov
ery factors below 10%. Despite these less-than-optimal recovery factors, efficiency
remained our industry's key focus of innovation in the unconventional plays. In fact
factory drilling of a large number of wells and geometric fracturing a the later al
continues to represent the most popular approach to developing unconventional
assets. But with oil prices below USD 50/bbl, is drilling and stimulating more w at low
really the solution for long-term economic sustainability of unconven tional plays?
t lenges need to be overcome, is to determine the it time tion for a best rejuvenation
solu- we specific well. In some cases, have seen that cleanouts alone have proven at
restoring produc tion to levels at which no further reju- venation efforts are required. In
other nstances, a cleanout coupled with the installation of artificial lift offers the most
cost-effective means of improv- ing production. In recent years, many North American
operators have experi- enced good success with electrical sub- mersible pumps (ESP)
for the lower production rates com- monly found in mature unconven- tional wells,
boosting production by more than 40% with lower operating expenses compared with
traditional rod-lift operations. If the workflow determines that the optimal solution for
boosting produc tion is additional stimulation refrac- turing programs can be designed
to stimulate previously untreated zones, restimulate underperforming intervals, or re-
establish wellbore connectivity through pre-existing fractures. Because this workflow
has already investigated s the well's mechanical integrity, and for- b mation evaluation
data have been gath- a ered, we can design an effective and effi- m cient restimulation
program that meets n the well's technical, production and a economic objectives a
Furthermore, if multiple wells in w field are targeted for rejuvenation, then w
microseismic and real-time downhole pressure monitoring during the treat- tal ment, as
wel as post-refrac produce ro tion analysis, are critical to refining and als enriching
reservoir models for the next restimulation operation. That is because there are always
new discoveries to be mo made and more understanding to be developed. As an
industry, we are s working to fully understand the phy ics of fracture propagation in
tight rock and the flow of fluids through fractures. The acquisition of more subsurface
will drive that im understanding and enable more and and more reliable. simulation.
modeling
Next Unconventional Redevelopment targeting and techniques can rejuvenate existing
unconvention. al wells to drive meaningful additional cash flow and improve ultimate
recov. ery-and thus reserves by provid ing an avenue to economic sustainabil. ity. It
simply requires a new, hard look at what we thought were the "truths" about
unconventional plays and a will. ngness to embrace new concepts. For the future, the
pathway to success may be "refrac-ready" wells based on learn- ngs from current and
upcoming reju venation projects. This next wave in the development of unconventional
reser. voirs will be key to generating a higher return on investment for a longer peri- od
of time. In the end, it may be overly opti say that current oil price situation is an
opportunity in disguise but it does present both a warning and an opportunity to the
industry that we must refocus our thinking from "bus as usual" to new, more effective
more sustainable ways of devel e- and oping unconventional resources. With an
approach leveraging new workflows for rejuvenating existing tion the industry can
achieve pro tain and recovery levels needed to sus t ronment of lower plays in an em
achieve the efficiency we have been we can oi prices. by di e wells. In this instance,
cheaper more wells we ll We are replacing field replacing with analysis productive
wells e and planning mentation are replacing horsepower brainpower, with brainpower.