VSO Petroleum Consultants

Tier 2 is becoming the new Tier 1. In this #VSOViewpoint, Louis Skrobarczyk III discusses the consolidation trend in the industry which is often followed by divestment of non-core assets. This may provide opportunity for new entrants. However, the new entrants must be thoughtful in their appraisal, acquisition, and development approaches to ensure a confident forecast and to unlock value outside of historical core areas. Our industry has a history of innovating and we expect this challenge will be taken head on. #energy #oilandgas #DelawareBasin #Permian #Innovate

Is infill development in the Eagle Ford the new re-frac? In this #VSOViewpoint, Preston Young reviews how operators are developing full infill pads between existing development across the Eagle Ford as a means of re-stimulating the reservoir and capturing incremental reserves. A multitude of factors including vintage date, completion intensity, and depletion can help screen pads that are good candidates for infill development and can even help predict the productivity of the infill pad itself. As prime tier 1 acreage is drilled up, operators are getting creative with how they capture reserves. #energy #oilandgas #EagleFord #infill #refrac #VSO

Will the recent penetration of Electric Vehicles (“EVs”) into the world car market lead to peak oil in the 2020s? In this #VSOViewpoint, Preston Freisner reviews the International Energy Agency’s (“IEA”) 2023 Energy Outlook and compares it to previous forecasts from their 2019 report. The organization’s latest forecasts do not consider high oil production scenarios like the 2019 report apparently due to the rise of EV sales in China and many western markets. EV penetrations have grown significantly in the last few years, but they will need to keep on their current trend to meet the IEA’s forecast. What is your take? Is the growth of EVs at a point to greatly reduce oil demand? Is the “green” future already here? #energy #oil&gas #EV #IEA #VSO

With reduction in Tier 1 inventory, operators have begun testing the deep Barnett and Woodford formations in the Permian Basin. In this #VSOViewpoint, Justin Funk compares the reservoir quality of the deep formations between the Midland and Delaware Basins. Subsurface analysis indicates the Delaware reservoirs should outperform their Midland counterparts and early production tends to agree with that interpretation. However, since the Midland Barnett target is almost ~2,000’ shallower, well costs should be lower which may lead to intriguing economics. #VSO #Wildcatting #Exploration #PermianBasin #OilandGas #Geology #Woodford #Barnett

As the oil and gas industry continues to mature, we are drilling in more challenging areas. In many horizontal plays, we are drilling through existing legacy fields with depleted reservoirs. To go along with those depleted reservoir hazards, we are injecting byproduct water into charged shallow injection zones. This combination of charged injection zones, and depleted reservoirs create a hazard that can affect how mud systems are set up and create challenges for how wells are designed. In this month’s #vsoviewpoint, Brian Moore shares how identifying subsurface hazards pre-drill can save on drilling time, cost, and minimize unexpected hazardous operating conditions. #geoscience #drilling #energy #oilandgas #consulting #vso

Unlocking remaining inventory is the perpetual challenge for every operator. In the Midland Basin, “Wolfcamp D” has become one of the new buzzwords echoed on Wall Street in an attempt to alleviate that concern for investors. But how does the Wolfcamp D truly measure up to these operators’ main drilling targets? Here’s the headline: WCD performance is trailing by around 10%. In this #VSOViewpoint, Rob Quigley benchmarks recent Wolfcamp D ("WCD") performance with recent “primary” bench (Wolfcamp A, Wolfcamp B, Lower Spraberry) performance in the Midland Basin.   ---   As operators deplete their inventory in primary benches in the Midland Basin they are testing “upside” benches (such as Wolfcamp D, Middle Spraberry, and Jo Mill) with hopes to prove up additional drilling inventory.   Our analysis shows that 2022-23 WCD performance is 15% below 2022-23 primary benches in the North AOI and 7% below in the Central AOI (based on 18-month cumulative oil production).   What sets the WCD apart from the primary benches and other upside benches? While most other benches are often co-developed with 2-3 benches drilled together (i.e. cube development), the WCD typically stands alone, essentially as one-bench drilling. Additionally, because it's in the early stages of development, operators will encounter less depletion from Parent/Child effects compared to the primary targets. This distinction is crucial as it underscores the importance of contextualizing the performance metrics. Right now, we’re essentially comparing down-spaced, fully developed primary benches against largely parent WCD results. Not the same animal from a development perspective!   So, what does this performance bench marking mean for operators navigating the complex landscape of the Permian Basin? It's clear that there's some potential lurking beneath the surface in the WCD bench. But at what point will it compete for capital? What do operators perceive as the comparative break-even oil price? By venturing beyond the confines of the familiar primary benches and exploring the possibilities presented by benches like the WCD, operators are working to answer these questions and prove up additional inventory to maximize the potential of their assets.   The story of the Permian Basin continues to unfold, and with new targets like the Wolfcamp D, the horizon is brimming with possibility. #energy #OilandGas #PermianBasin #MidlandBasin #Wolfcamp #WolfcampD #VSO

Did you know that an operator drilled & completed a nearly 21,000’ horizontal well in the Midland Basin? In this #vsoviewpoint, Grant Olsen illustrates operators’ hunger for longer and longer laterals in the Permian Basin. In 2023, a staggering 13% of all Spraberry through Wolfcamp horizontal completions in the Midland Basin exceeded 15,000’ in completed length! This underscores the critical need for reserves evaluators to thoroughly consider the impact of lateral length on well performance when assessing Permian properties. While average lateral lengths have been on the rise throughout the Permian, Midland Basin Completed Lateral Lengths ("CLLs") were notably 20% longer on average than those in the Delaware Basin during 2023. Additionally, CLLs exceeding 15,000’ were more frequently targeted in the Midland Basin compared to the Delaware Basin. The five Permian Basin horizontal producing wells with the longest laterals as of late 2023 were all located in the Midland Basin. The record holder as of late 2023 was the Clarice Starling Sundown D 4542WA well at 20,932’! Which operator will try to eclipse this mark and claim the prize as completing the longest Permian lateral? Will this well always hold the record? #vso #petroleum #permian #midland #delaware #petroleumengineering #oilandgas #energy

In our previous post we showed the exciting results of Refracs in the Eagle Ford. But now how do we find more of these Refrac opportunities? In this #VSOViewPoint, Omer Yasin demonstrates a methodology to map Fluid Loads as an initial screening technique to find areas that are potentially under-stimulated. Based on this initial screening, the Eagle Ford looks to have substantial Refrac potential! #vso #petroleum #petroleumengineering #oilandgas #ReFrac #energy #eagleford #completions #Stimulations #FluidLoad

Drilling horizontal oil and gas wells is hard work. We have demands to optimize resource recovery, while lowering our drilling costs, and delivering a wellbore without severe doglegs. Our wells need to be completed and produced for decades. These objectives don’t always go hand in hand, which is why it takes a team to have an economically successful drilling project. This report takes a deep dive into how communication of geosteering guidance can impact the success of a well.   In this month’s #vsoviewpoint, Brian Moore puts definitions around the directional plan line, geologic window and the drilling window. Sticking to these definitions can save on communication headaches down the road.   Special thanks to ROGII for allowing the use of their #StarSteer training demo.   #geoscience #drilling #energy #oilandgas #consulting #vso

Re-Frac’s Outperforming? Vintage wells in shale basins across the United States have been and are being recompleted with modern completion loads. The question is, how much will the new frac increase near term production and how will the performance hold up long term against the original production. In this #vsoviewpoint, Cullen Guglielmo compares the performance of re-frac’s in the #eagleford . The cumulative production data shows that both near and long-term oil production after the re-frac is 25-30% greater than the production from the original frac. #vso #petroleum #eagleford #petroleumengineering #oilandgas #energy #frac #completions