Oilfield Tech Yields Better Returns at OGIS 2016
Tuesday April 19, 2016
On April 11 and 12, 2016, the Independent Petroleum Association of America presented their 22nd annual Oil & Gas Investment Symposia – OGIS 2016.
In addition to restructuring debt and G&A, focusing on prime acreage (such as the Permian Basin), and stockpiling cash, many of the operators highlighted technical advances in their operations that are generating positive yields. Let’s take a look at some of the more commonly referenced.Everything at Once
WPX Energy had a great slide that pulled a number of their technical improvements together into their vision for the company.
Image Source: Company OGIS 2016 Presentation
A couple of things that really stand out to me on this slide:
- As opposed to a number of other Permian Operators, they are keeping their laterals under a mile (many others are going for the 7,500-10,000 laterals).
- 1500 lb/ft+ of Proppant. That’s a lot of proppant. 4750 feet X 1500lbs = 7,125,000 lbs! If we go with the upper end of the amount of sand a railcar can carry (220,000 lbs) that’s 32 railcars per well. Of just sand. And that plus sign is a big plus sign – if they go up to 2000 lbs/ft, that’d be 43 railcars.
- An increase of focus on the real-time drilling problem of 3D Seismic/ Geosteering.
Density
A number of operator...