Guest Editorial: Why Can’t We Apply Advanced Technologies More Often to Vertical Wells in Mature Fields?

Abstract

Guest editorial When I started working in the oil and gas business in the 1970s, we spent a great deal of time designing vertical wells. The horizontal well was by and large a far-fetched idea on everyone’s wish list—the capability to have a completion go through the sweet spot was almost too good to be true. Fast forward to 2017 and we are now drilling horizontals everywhere, surpassing drilling times again and again. But what about vertical wells, are we not still drilling those? The answer is “Yes, we are.” From 2011 to 2016, the industry drilled 117,624 vertical wells in the United States while, in that same time frame, it drilled 84,200 horizontals. The fact is, vertical wells still have several key applications: They are typically used as the preliminary wellbore in exploration, production, and acreage delineation, and can be used for infill drilling, injection, and disposal. So, can we not apply advanced technologies more often to mature vertical wells? We can, but two factors need to be considered when doing so—technology and cost. First, embracing advanced technologies. Some energy and production companies lead the way in innovation while others are more risk-adverse. Regardless, new technologies are consistently being developed, refined, and eventually adopted more broadly. For example, vertical injection wells can be refractured using more advanced diversion technology, ultimately extending the life of the well or even potentially adding more reserves. Or we can accurately apply acid in a vertical well to establish better communication with a reservoir. Such applications are now part of the mature field landscape, but the widespread adoption of newer technologies often moves at a glacial pace. The second factor is cost. We know that the application of advanced technologies can prolong the life of mature fields, but it has to be done cost-effectively. Mature fields are exceptionally cost-sensitive, and any high-dollar application must yield acceptable returns: You are not going to pump an expensive chemical into a well for a 0.5% return—it just does not make sense. Looking ahead, the well intervention market for mature fields will be demanding more and more of our attention. By 2019, it is expected to be in the range of USD 13 billion per year globally.