![]() By applying better modern technology and better equipment, the company can re-frack the older horizontal wells to unlock the trapped oil and natural gas left behind in the initial frack process. I believe that one of the absolute best ways to do this is to eliminate as much of the drilling costs of a new well as possible and focus on re-entering an existing well. Now that oil has fallen to new lows and management teams are coming to the realization that prices aren’t going up anytime soon, oil producers need to find ways to reduce drilling costs and increase production (recovery) from existing wells. This can be done currently at about 25% of the cost that cost will only improve with more “re-fracks” and as better techniques develop with time. In the next few years, you’ll very likely be hearing a lot about re-fracking… and it will likely also become as common as fracking is today over that time frame.Įssentially, rather than drilling a new well, a company re-enters and re-fractures existing horizontal wells. But I believe the greatest efficiency and success of this downturn will be re-fracking. The need to modify drill and production programs to be efficient is greater than ever.Ĭompanies will focus on increasing the number of wells per pad and down spacing, which allows producers to increase extraction efficiency by reducing the length between wells on a per acre basis. The need to bring down costs and increase the recovery of oil and natural gas is now a prerequisite to stay alive in the oil patch during a major price correction, such as we’re currently in. Whether you read the word fracking, fraccing, or fracing, they all refer to hydraulic fracturing.īut in the oil patch, you either innovate or disintegrate. It’s a battle I don’t care to fight (I care about making money, not academic nonsense), so fracking will be the spelling in Casey publications moving forward. ![]() ![]() The latter tell me it should actually follow some rule involving a part of speech called a “gerund” and get the “k” added. But mainstream media, Microsoft Office Word 2013, and most important, my proofreaders disagree. I prefer to spell the shorthand for hydraulic fracturing as “fracing,” because it’s an adaptation of the word “fracturing,” which is what happens to the formation of rock. Hydraulic fracturing has experienced many innovations, such as increased lengths both vertically and laterally as well as new completion designs which have increased fracture stages along the well and perforations (number of fractures) between each cluster stage, to name a few. He became famous when his prediction became reality in 1970.īut everything changed when the innovations in horizontal drilling and fracturing allowed companies to recover oil and natural gas from new and deeper formations such as the Bakken, Eagle Ford, and Permian Basin at the dawn of the 21 st century. In 1956 Marion King Hubbert, a geoscientist from Shell, predicted peak oil production would be reached between 19. Where We Were, Where We Are, and Where We’re Going Some will call it Fracking 2.0., but I call it Re-Fracking.Īdversity is understating the potential headwinds heavily indebted oil and gas companies face as 2015 begins, oil prices stay suppressed, and hedges on their production eventually wind down.Īdversity always results in innovation in the top oil and gas producers, operators, and servicers in the industry in every downturn. This cutting-edge technology is new, and I’ll walk you through everything you need to know about the next game-changing technology in the shale revolution. This will be one of the most important missives I will ever write.
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