How often does an engineer dash off a simple water forecast, doing something like applying a flat WOR to their oil prediction? It’s easy to ignore water, but unexpectedly high production can damage well economics, or–in the worst cases–force shut-in if disposal capacity is full. Fortunately, advanced machine learning methods developed for oil can be […]
Machine learning in oil and gas
Read through our Masters Series covering real world applications of machine learning in oil & gas companies. Seasoned, experienced veterans present their findings and outcomes with visual delivery.
“Upsizing completions increases production 37.5%*!!!” Sure, but when? Where that asterisk lands will have a huge impact on the returns of any completions decision. If it’s Peak Rate, that might shorten payback. If it’s EUR — now you might have a real valuable well. Machine learning models can be trained to predict a time series […]
90% of American drivers say they’re better than average, and 90% of Shale focused Operators have “peer-leading” breakevens, returns and well production forecasts. Suuuure they do! How do you cut through Investor Relations fluff to identify top-performing operators to learn from — or underperformers to acquire? Simply looking at raw production numbers without the context […]
We know that many current students have had their summer plans upended with internships canceled or delayed. To give those students a chance to still differentiate themselves, we are announcing the Novi Labs Machine Learning in Oil & Gas Blog Student Contest. We will pay $500 each to any posts selected for publication to our […]
Involvement in exploring a substantial discovery and bringing it too development is an exciting opportunity. There is nothing more valuable to a company than taking an unknown prospect, acquiring the land for low cost, and turning it into a cash generating machine. Finding such a play is the motivation for many teams. It can be […]
Whether exploring for oil offshore Brazil or scaling type curves in Lea County, engineers and geologists rely upon the power of analogy to estimate the productivity of a given area or engineering design choice. Wells are grouped according to geologic and engineering similarity, and an average of that group is used for a prediction. Decision-tree […]
Capital allocation decisions made by Engineers that work at E&P companies are completely rational and unimpacted by their own experiences or personal exposure to the play. Recommendations are objective, uncolored by cultural influence, and based on unbiased P50 estimates. If this is your belief, and it must be a belief, please stop reading this post […]
Earlier this month, Whiting Petroleum (NYSE: WLL) declared bankruptcy, becoming the first high-profile E&P casualty in the Coronavirus downturn. While it’s unclear how exactly the Chapter 11 process will turn out, we’ve taken the opportunity to dig through their inventory looking for potential bargains. We calculated breakeven prices for their four big remaining acreage chunks, […]
Golf, like drilling oil wells, is a strategy game. When do I go for the green versus laying up and saving par? Sub $30 oil demands a great short game while still preserving upside when it’s time to deploy the long game.
Introduction: Problem we are trying to solve; methodology we are applying to solve it We have written a couple of posts about optimizing completions on DUC (Drilled but UnCompleted) well inventory given the extreme constraints on capital that Operators are facing. In our first post, we focused on QEP’s inventory in the Midland, and then […]
Given the extreme capital constraints imposed by a lower commodity price environment, many operators have announced CAPEX reductions and significant rig layoffs. Given these reductions, it would make sense to apply what capital remains to complete through DUC (Drilled, but UnCompleted) wells. If this is true, it would also make sense to revisit the completion […]
Should QEP change its development strategy in this lower price environment? Using our machine learning models and Novi software we analyzed QEP’s Midland Asset development plans to determine the best plan going forward. Based on evaluation of the data, QEP should consider: Downsizing completion designs in primary zones. Discontinuing development of non-core zones. How much […]
We must lean out to survive this price shock. Novi founder Jon Ludwig provides some historical context and outlines the case for operators and finance professionals serving the industry to adopt digital oilfield technologies now.
With the current oil price downturn, many have started to wonder whether activity in the Bakken will ever return to its previous heights. Using our machine learning models, we estimate that <10% of the remaining inventory is Tier 1, with the real number perhaps <5% due to surface constraints. With lower-tier locations predicted to produce […]
How much of the oil & gas industry’s recent underperformance comes from misapplication of large completions designs with tight spacing configurations?