Boosting capital efficiency in the oil and gas industry involves various innovative approaches to drilling and production, utilizing advanced technologies and optimization strategies.
Here are four examples demonstrating different methods and their results:
Example 1: Haynesville Single Laterals
- Operators: Lowered CapEx while improving production.
- Approach: Aethon Energy used AI to connect and analyze data from various sources, redesigning well processes.
- Results: Drilling days were reduced by half, and the number of fracking stages per day increased from five to seven.
Example 2: Permian Single Laterals
- Optimization: Since 2009, the optimal well design by 2018 included two-mile horizontals with 40 frac treatments.
- Innovation: ExxonMobil introduced four-mile wells using advanced directional tools and rotary steerable tools to minimize production section doglegs.
- Achievements: Wells like the 20,000-foot Poker Lake well were drilled in less than a month, with fracking completed in 11 days.
Example 3: EnCana Cubes in Permian Stacked Pay
- Development: Cube development at RAB Davidson involved 45 wells, achieving peak production of 17,000 barrels of oil per day (bopd).
- Efficiency: Cube cycle time was the lowest among 12 peer companies in the Midland Basin.
- Optimization: Well spacings were adjusted to greater than the initial 300-400 feet.
Example 4: ExxonMobil Cubes in Permian Stacked Pay
- Efficiency: Longer wells in cube development reduced costs by needing fewer vertical wells.
- Future Plans: Following the acquisition of Pioneer Natural Resources, ExxonMobil plans to drill more capital-efficient wells in the Midland Basin.
- Cube Dimensions: Delaware cube: 0.6-1.2 cubic miles; Midland cube: 0.2-0.4 cubic miles.
- Technological Integration: Cube development allows for quicker production, reduced costs, increased recovery, and minimized environmental impact.
Takeaways
Cube development involves drilling multiple horizontal wells from a single pad, enabling efficient and rapid production from large areas. This method minimizes interference, optimizes recovery, and significantly improves capital efficiency. The use of longer laterals and innovative drilling techniques further enhances these benefits. Variations of the cube concept can adapt to different formations and market conditions, demonstrating its versatility and effectiveness in maximizing returns in the shale industry.
