HORIZONTAL WELLS SEEN BOOST FOR CANADIAN OIL FLOW

Horizontal drilling could increase crude oil recovery from Canada's western sedimentary basin by 2 billion bbl in the next 10-15 years, a study says.

Selwyn Springer of Springer Consulting Services, Calgary, told the Canadian Institute of Mining, Metallurgy and Petroleum horizontal drilling will increase reservoir recovery to 30% from 28% of oil in place. At $20 (U.S.)/bbl, the 2 percentage points would be worth $40 billion during the next 15 years.

Springer is one of five authors of the study that examined results of the first 500 Horizontal wells drilled in Canada.

A total of 741 horizontal wells had been completed in western Canada to the end of 1992 with current production of about 48,000 bid. Springer estimated 10,000 horizontal wells will be drilled in the next 15 years.

Springer said horizontal drilling for gas is still in the experimental stage, but more companies will try it as wellhead prices rise.

Meanwhile, the Canadian Association of Petroleum Producers reports a substantial increase in drilling activity in first quarter 1993.

CAPP said well completions in western Canada almost doubled to 2,220 from 1,175 in the first 3 months of 1992. Drilling contractors forecast 6,100 Canadian wells will be drilled this year, up from 4,700 in 1992.

William Harlan, vice-president of CAPP, said reduced royalties in Alberta have been a major factor in the turnaround. Oil and gas production also is up due to technology such as 3D seismic mapping, computer enhancement of geophysical data, and horizontal drilling.

Harlan said the industry continues to trim costs.

CAPP said industry revenue from oil and gas production fell to $17 billion (Canadian) in 1992 from $18.1 billion in 1991 and about $21 billion in 1990.

Copyright 1993 Oil & Gas Journal. All Rights Reserved.