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Unconventional Yearbook 2018

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84 | January 2018 | hartenergy.com 2018 UNCONVENTIONAL YEARBOOK | COMPLETION OPTIMIZATION Aviles said that a 24% reduction in cumulative production over five years was discovered at the Avalon when the spacing between parent and child wells was 660 ft. "To avoid [negative production interference], two solutions were proposed for this particular study," Aviles said. "[First], keep the well spacing at a minimum of 1,320 ft, where little to no produc- tion interference was observed. [Second], if possi- ble, land the child wells 150 ft deeper, which allows 660-ft spacing while affecting the cumulative pro- duction by less than 10% over five years." The optimal well spacing and completion design is critical to maintain and/or increase hydrocarbon production and maximize economic returns. Trends in proppants Proppant loading amounts have increased substan- tially during the past four years, as companies frac- ture more stages and drill longer wells. According to Emerge Energy Services (EMES), proppant consumption reached its peak in about the first half of 2015, when the Eagle Ford was con- suming more than 4.5 million tons of proppant and operators in the Permian were using 3 mil- lion tons. By the first half of 2016, those amounts declined to about 1.7 million tons in the Eagle Ford and 1.4 million tons in the Permian. But, according to EMES, the most substantial gains since then have been realized on a per-well basis. For example, proppant consumption more than doubled in the Northeast basins from 3 million tons per well at the end of 2015 to more than 6 million tons per well by the end of 2016. The Eagle Ford (more than 4 million tons), Permian (5 million tons), Bakken (3 million tons) and Midcontinent (4 million tons) all saw record amounts of proppant consumption per horizontal well, according to EMES. Taso Melisaris, product director for Fairmount Santrol, said he expects the proppant market to con- tinue its growth trajectory into this year and that demand for proppant will grow "very substantially." According to Fairmount Santrol, raw fracture sand prices are expected to increase $7 to $9 per ton on average. Melisaris said that although some 2018 projec- tions put sand demand at 90 billion tons, and some Sand producers are expecting the demand for hydraulic fracturing sand to be about 100 billion tons across unconventional plays in North America in 2018. (Photo by Tom Fox, courtesy of Hart Energy's Oil and Gas Investor)

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