|Theme||Visible||Selectable||Appearance||Zoom Range (now: 0)|
The independent holds around 400,000 net acres in the DJ Basin and hopes to increase production to more than 400,000 BOE/D by 2021. But the existing out here is dedicated for midstream. Relatively few Everybody kind of knows who has what, Denver-Julesburg (DJ) companies have large positions in the and we do development around that." Basin and overlapping Niobrara Shale. Denver also serves surge, attention has been drawn to the nearby competitors. Operators have flocked to West of SRC Energy, previously known as Synergy like in the Bakken and Permian where Texas, southeastern New Mexico, and Resources and one of the region's labor costs and turnover can be high. We don't have a lot of disposal leaner era for the industry. The expansive good rate of return" due mainly to low issues," which are common in areas such Permian alone, which covers more than well and takeaway costs, which makes it as the Permian. "The key is the big players--Anadarko, bulk of US oil production increases and He previously served as completions Noble, and PDC--feel the economics mergers and acquisitions over the last manager for Anadarko Petroleum's DJ compete with the best shale economics couple of years.
Colorado oil production is surging to record levels, outpacing the other major producing US states in year-over-year gains on the backs of the steady-and-predictable Denver-Julesburg (DJ) Basin and overlapping Niobrara Shale. As overall US oil output continues to surge, attention has been drawn to the Permian Basin and SCOOP and STACK plays. Operators have flocked to West Texas, southeastern New Mexico, and central Oklahoma to stake claims to land they believe will usher them into a new, leaner era for the industry. The expansive Permian alone, which covers more than 75,000 sq miles, has accounted for the bulk of US oil production increases and mergers and acquisitions over the last couple of years. Although they are intertwined and together encompass parts of Colorado border states Wyoming, Nebraska, and Kansas, the DJ and Niobrara offer a fraction of the acreage and prospective resources of the Permian.
SPE's recent Liquids-Rich Basins Conference rewarded attendees with far-reaching insight into how to economically exploit liquids-rich plays. Based on the theme "New Technology for Old Plays," SPE held the conference in Midland, Texas, from 11 to 12 September. The 29 speakers explored a wide range of topics and points of view from macro to detailed perspectives, centered on strategic thinking; current understanding of reservoir characteristics; proper application of completion, stimulation, and production techniques and tactics; and case histories. This is the third year the conference has been presented. Almost 300 attendees gathered at the Midland Convention Center to listen to four technical sessions--each with three speakers--each day; interact with four Knowledge-Sharing Poster speakers who presented during four half-hour breaks; hear a keynote speaker at Thursday's luncheon; and investigate the offerings of more than 20 exhibitors. Two training courses were also given--a 2-day course Monday and Tuesday, 9 and 10 September, titled "Modern Production Data Analysis for Unconventional Reservoirs"; and a 1-day course Friday, 13 September, titled "An Overview of Microseismic Imaging of Hydraulic Fracturing." The first session highlighted commercial and financial interests in oil resource plays and price pressures imposed by limited transportation in the areas of rapid development. Dave Pursell, managing director of Tudor Pickering Holt, kicked off the conference with his presentation, "US Crude Oil Production Growth and the Impact on Price Differentials… or Get Me off This Rock!" "'Liquids-rich' is my least favorite term," he said. Basically, he said further, what people are talking about is natural-gas liquids (NGLs): "If it's crude, they're going to say it." When considering the question of why Brent crude is at USD 110/bbl, he said, "Risk premium is the last possible answer before the shoulder shrug." He assured the audience that global crude fundamentals are fine, with crude inventories pointing to a balanced global market and global refined inventories below 10-year norms. The big story is taking place in the US. While US crude production has grown from around 7 million B/D in 2005 to around 9 million B/D in 2012, non-US, non-Organization of Petroleum Exporting Countries' (OPEC) crude production during the same period has remained fairly stagnant at around 44 million B/D. Organisation for Economic Cooperation and Development (OECD) countries' demand, which hovered at around 50 million B/D from 2000 to 2007, has tapered down to around 46 million B/D in 2012 and non-OECD demand has grown precipitously from less than 30 million B/D in 2000 to close to 45 million B/D in 2012. "When considering global growth," said Pursell, "it is really important to note that the only real growth in crude production is happening in the US."
Abstract This paper presents construction and validation of a reservoir model for the Niobrara and Codell Formations in Wattenberg Field of the Denver-Julesburg Basin. Characterization of Niobrara-Codell system is challenging because of the geologic complexity resulting from the presence of numerous faults. Because of extensive reservoir stimulation via multi-stage hydraulic fracturing, a dual-porosity model was adopted to represent the various reservoir complexities using data from geology, geophysics, petrophysics, well completion and production. After successful history matching two-and-half years of reservoir performance, the localized presence of high intensity macrofractures and resulting evolution of gas saturation was correlated with the time-lapse seismic and microseismic interpretations. The agreement between the evolved free gas saturation in the fracture system and the seismic anomalies and microseismic events pointed to the viability of the dual-porosity modeling as a tool for forecasting and future reservoir development, such as re-stimulation, infill drilling, and enhanced oil recovery strategies.
The “shale gale” is not all about natural gas. While US shale gas drilling continues, it now is primarily to hold acreage and build gas reserves. As illustrated in Fig. 1, there is a definite trend in the US away from natural gas to crude oil. Many companies have pulled rigs from development drilling in gas shales to explore wet gas and oil-bearing shale plays. Lured by the prospect of high-value oil, whose margins promise a much higher return than those for natural gas, shale oil in US plays like the Bakken, Eagle Ford, Niobrara, Leonard (or Avalon), and Monterey is being extracted from low-permeability rock in increasing quantities.
For example, while 33 permits were issued in 2008 for drilling in the Eagle Ford Shale, for the first 11 months of 2010, 1,018 permits were issued. Oil and condensate production has also sharply increased in the Eagle Ford, from a combined 0.8 million bbl in 2009 to roughly 3.9 million bbl in the first 10 months of 2010. A recent study—“The Economic Impact of the Eagle Ford Shale,” prepared by the Center for Community and Business Research, University of Texas at San Antonio—forecasts annual Eagle Ford oil production at 15 million bbl for this year, rising consistently until 2020, when it is projected to reach 111.5 million bbl.
In 2008, the US Geological Survey estimated that the US portion of the Bakken formation contains between 3 billion and 4.3 billion bbl (a mean of 3.63 billion bbl) of undiscovered, recoverable oil, ranking it among the largest US oil plays ever. Production in 2009 reached nearly 8 million bbl per month from roughly 4,500 producing wells. Oil production in North Dakota—in the heart of the Bakken—increased from 35 million bbl in 2005 to nearly 80 million bbl in 2009.
Technology Is the Enabler
“The technology drivers that lifted gas recovery from 1% to 50% in the Barnett,” stated Apache global technology consultant George E. King, “will ultimately be the springboard that drives oil recovery from the initial 1% to 1.5% in the Bakken and Eagle Ford oil-producing shales to much higher values.”
Continental Resources, the number one driller and lease holder in the Bakken as of November 2010, with 864,559 net acres, has been driving its production upward with advances in technology. For example, in 2009, it per-formed the first 24-hour continuous hydraulic fracture in the North Dakota portion of the play. In 2010, Continental developed a drilling concept it calls the Eco-Pad, whereby the company drills multiple horizontal wells from a single pad with zero boundary-line setbacks. This concept is expected to reduce drilling and completion costs per well by approximately 10%, with about 70% less surface footprint area than four conventional drilling pads and only one access road.