CERAWeek: New play types drive innovations

Guntis Moritis
OGJ Production Editor

HOUSTON, Mar. 9 -- New play types are driving innovations in the oil and gas industry, Jonathan Lewis, Halliburton senior vice-president, drilling and evaluation, said at the IHS-CERA energy conference in Houston. Deepwater presalt and shale gas are two examples of the new type of plays that the industry is developing.

But with such plays as shale gas, the industry can ill afford the 20-30% nonproductive rig time common in the industry and the industry needs integrated work flows to gain efficiencies in well construction, Lewis said. This cannot be done in laboratories but must be done at the wellsite and operations centers, he added.

Operating companies have been driving down costs and gaining efficiencies in tight gas sands and in shale plays. As an example, Charles Stanley, president and chief executive officer of QEP Resources Inc., said QEP in 2010 completed gas wells in the Haynesville shale in 40 days compared with the 66 days/well when the company first started developing the play. For these 12,000-ft wells in the vertical depth and with 5,000-ft horizontal laterals, fraced with 14-16 stages, well completion costs have continued to come down with costs in the later half of 2010 averaging $8.5 million/well compared with $10 million/well in 2009, he said.

Another example of efficiency gains is the Pinedale tight gas sands. In 2004, QEP needed 64 days to complete a well compared to 16.8 days/well averaged in 2010, Stanley said. Initially QEP drilled these 14,000-ft wells that contain a 5,000-ft gross gas column from well sites with single wells. Now QEP has some well pads with up to 50 wells. Costs for completing these wells with about 14 frac stages have dropped to $3.9 million/well from the $8 million/well spent in 2003-04, Stanley said.

Stanley attributed much of the gains in efficiency to the people involved, to real-time data that allows speedy improvements in the process, and using the appropriate technology for the economics involved. He noted that the industry has a lot of innovative tools but many are too expensive to deploy.

Contact Guntis Moritis at guntism@ogjonline.com.

Related Articles

PwC: US oil, gas transaction value hits 10-year high in 3Q

10/29/2014 Driven by a rise in billion-dollar deals, midstream activity, and interest in upstream shale plays from foreign buyers, mergers and acquisitions in...

Williams Partners, Access Midstream Partners to merge

10/27/2014 Williams Partners LP and Access Midstream Partners LP, both owned by Williams Cos., Tulsa, have agreed to merge. Williams in June purchased the rem...

BHI: Permian, Eagle Ford help boost US rig count 9 units to 1,927

10/24/2014 The US drilling rig count gained 9 units to reach 1,927 rigs working during the week ended Oct. 24, boosted by gains in Texas, Baker Hughes Inc. re...

Shell expands leasehold position in Marcellus, Utica

10/16/2014 Royal Dutch Shell PLC has signed two separate deals that will enable it to exit its positions in the Haynesville shale and Pinedale field in exchan...

Freeport LNG supply header, compression trains advance

09/11/2014 Gulf South Pipeline Co. LP, a subsidiary of Boardwalk Pipeline Partners LP has reached 20-year firm precedent agreements with foundation shippers t...

Shell reshuffles US shale assets in two major deals

08/14/2014 Royal Dutch Shell PLC has agreed to two separate transactions in which it will exit its Pinedale and Haynesville onshore gas assets in exchange for...

MarkWest units announce capacities plans, update projects

08/07/2014 MarkWest Energy Partners LP, Denver, will add 720 MMcfd of natural gas processing capacity and 110,000 b/d of NGL fractionation capacity in seven p...

Vanguard to acquire Cotton Valley, East Haynesville acreage

08/04/2014 Vanguard Natural Resources LLC, Houston, has entered into a definitive agreement to acquire natural gas, natural gas liquids, and oil assets in Nor...

Algorithm provides new EUR estimates for US shale plays

08/04/2014 Since the early 2000s, US shale gas production has grown exponentially and reached a production level of 26 bcfd in 2013, 40% of total US gas outpu...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected