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 […]
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?