The Rejuvenation of the 30-Year-Old McAllen Ranch Field: An Application of Cross-Functional Team Management

Abstract

Summary This case history overview describes the application of crossfunctional team management in redevelopment of a 30-year-old south Texas gas field. Multidisciplinary cooperation and synergism were emphasized, and efforts focused on a common team goal. The results have been extraordinary; all areas have shown significant improvement, including gas production, which is up by more than 250%. Introduction By the mid-1980's, McAllen Ranch field gas production had declined to a low of 24 MMcf/D owing to reservoir depletion and curtailment. The end of curtailment and subsequent development drilling activity increased the rate to 80 MMcf/D by early 1988. However, with reduced drilling and natural decline, the rate had fallen again to about 50 MMcf/D by early 1989. At this time, a cross- functional team was established to evaluate additional investment opportunity and to develop a plan to increase production from the noncontributing reserves that were behind pipe. This team looked at all aspects of the field's production and developed a consensus plan that included acquisition, processing, and interpretation of a fine-grid 3D seismic survey; development drilling focused in the northern portion of the field (B-area); procedures to obtain regulatory approval to commingle noncontributing reserves in existing wellbores; and enhanced drilling and completion techniques. This paper describes the interaction and synergism among the various specialties and functions involved in the producing operations at McAllen Ranch and how the concept of cross-functional team management has led to the rejuvenation of this 30-year-old field. It focuses on the process of cross-functional team management rather than just the results achieved.