HartEnergy.

com

JANUARY 2020

Stimulating
Processing &
Interpretation
MPD/UBD

FUTURE
Plugs
Sand/Water Flowback
Management Positive results emerging from
Floating Production fracturing field laboratories
Special Section:
SPE Hydraulic
Fracturing Conference
Technology Showcase

Unconventional
Report:
MIDCONTINENT

2020

HONOREES
EXPLORATION & PRODUCTION J ANUA RY 20 20
VOLUME 93 n ISSUE 01
WORLDWIDE COVERAGE

A H AR T E N E RG Y P U B L IC ATI ON ww w . H ar t E n e rg y. c o m

COVER STORY: FRACTURING ADVANCES

SPECIAL SECTION:
SPE HYDRAULIC FRACTURING
Stimulating
CONFERENCE TECHNOLOGY SHOWCASE
48 E&P highlights some of the latest
technologies that will be featured at
18 future

SPE’s Hydraulic Fracturing Technology

Conference and Exhibition.

PROCESSING & INTERPRETATION

66 Single comprehensive environment for
interpretation, static and dynamic modeling

68 Accelerating data-driven completion

decisions through fluid tracking and
cloud computing

MPD/UBD
70 Implementing a flexible MPD approach in
Vaca Muerta

PLUGS
72 Plugs evolving to meet new demands in
the field
30 Key frac ingredients moving in
different directions

74 Eliminating mill-out times

SAND/WATER FLOWBACK MANAGEMENT

44 A comparison of proppant
crush strengths

76 Proppant flowback control additive leads

to improved production INDUSTRY PULSE
80 Data under pressure: Flowback goes digital
8 Three steps toward
building a secure future
FLOATING PRODUCTION for natural gas
84 Unlocking stranded offshore reserves with
unattended installations 2020 ENERGY INNOVATORS
Recognizing today’s
UNCONVENTIONAL REPORT:
54
96 MIDCONTINENT
technology influencers:
The 2020 Energy Innovators
honorees

56 Fueling the next-generation

workforce

62 The skills gap

 PERF PODS SEAL AT A 1:1 RATIO

SlicFrac®
Zonal Isolation
Thru Tubing Solutions’ SlicFrac diverting SlicFrac Benefits:
technology is the only diverter that will seal off
irregular shaped holes making it the ideal • Reduce or eliminate bridge plugs
solution for new completions and re-frac • Reduce overall completion costs
operations.
• Mid-stage diversion for maximum cluster
SlicFrac is replacing the need for frac plugs efficiency
while providing an economical solution for
better fracture stimulation. Unlike other • Eliminate bashing on offset wellbores
diverting agents, TTS’ Perf PODs are designed • Block flow at the perforation in the casing
to effectively seal directly inside the
• Perf PODs form to geometry of irregular
perforations and eliminate any formation
damage or residual fracture obstructions. shaped holes

TTS’ SlicFrac diverting technology is setting

the standard for optimizing well stimulation.

Our Service Makes the Difference www.ThruTubing.com

Replace Frac Plugs with SlicFrac
Incorporating Perf PODs as an alternative to frac plugs for zonal
isolation allowed the operator to complete the wellbore as designed,
despite casing limitations.

Due to multiple casing ID restrictions, a customer in the DJ Basin

required an alternative solution to isolate intervals and effectively
stimulate the entire lateral.

The customer replaced

all frac plugs with
SlicFrac Perf PODs,
deployed between each
frac stimulation to
isolate and divert the
flow to the next interval
of perforations. By
isolating each
perforation the customer
was able to efficiently
stimulate the entire
lateral; attaining more
reservoir contact with
improved perf cluster
efficiency. SlicFrac Perf
PODs were deployed to
divert fluid from the dominant perforations and provide breakdown of the less dominant or
under-stimulated perf clusters within each interval.

For this 55 stage completion, degradable Perf PODs were deployed from surface maintaining
isolation for the entirety of the 10 day frac stimulation. TTS’ Standard Milling BHA was used post
frac to cleanout residual sand and circulate the wellbore clean before putting the well onto
production.

By replacing frac plugs with SlicFrac Diversion, the customer was able to effectively stimulate the
entire wellbore as designed, while reducing overall completion costs and eliminating the risks
associated with setting and removing reduced OD plugs. The chart above shows production of the
well where SlicFrac was used in comparison to other wells in the field; the production is higher than
many of the wells and continuing to trend upward.

Visit www.SlicFrac.com to see how SlicFrac can optimize your well!

 DEPARTMENTS AND COMMENTARY

AS I SEE IT
The million-barrel question 7

MARKET INTELLIGENCE
Less is more in the Midcon 12

OFFSHORE ADVANCES
A tale of two provinces 15

COMPLETIONS & PRODUCTION

Unlocking value in well designs 17

DIGITAL SOLUTIONS
Unlocking oil and gas security synergies 86

OPERATOR SOLUTIONS
Ensuring confidence in risk management platforms 88

SHALE SOLUTIONS
Driving drilling performance to lower operating costs 92
Combining drilling power and operational flexibility 94

TECH WATCH
Safety optimization for cable-deployed ESPs 100

TECH TRENDS 104

INTERNATIONAL HIGHLIGHTS 108

ON THE MOVE/INDEX TO ADVERTISERS 110-111

LAST WORD
Sharing data and best practice advice between operators 112

COMING NEXT MONTH The February issue of E&P will focus on drilling innovations.
Other features will cover rock physics, drilling fluids, perforating systems, flow assurance
and deepwater intervention. This issue also will include an ADIPEC special report. While
you’re waiting for your next copy of E&P, be sure to visit HartEnergy.com for the latest news,
industry updates and unique industry analysis.

ABOUT THE COVER A lubricator is connected to an oil well during

wireline operations for the Hydraulic Fracturing Test Site 2. Left, a pump-
jack operates near Woodward, Okla. (Cover photo by Mike Lillejord,
courtesy of GTI; Left photo courtesy of Bob Pool/Shutterstock.com;
Cover design by Felicia Hammons)

E&P (ISSN 1527-4063) (PM40036185) is published monthly by Hart Energy Publishing, LP, 1616 S. Voss Road, Suite 1000, Houston, Texas 77057.
Periodicals postage paid at Houston, TX, and additional mailing offices. Subscription rates: 1 year (12 issues), US $149; 2 years (24 issues), US $279.
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 ONLINE CONTENT JANUARY 2020

AVAILABLE ONLY ONLINE Subscribe at HartEnergy.com/subscribe

Fuel cell technology makes way for subsea supercharger

By Velda Addison, Group Senior Editor
A division of Teledyne Technologies Inc. has taken its fuel cell system tech-
nology, originally developed for NASA applications, to the sea by providing
untethered power with energy storage offshore.
Spur Energy CEO: ‘Hardest dang thing we’ve ever done’
By Paul Hart, Midstream Editor-at-Large, Oil and Gas Investor
At Hart Energy’s recent Executive Oil Conference, CEO Jay Graham said
Spur Energy Partners’ northwest shelf deal got done because of extra effort.
BP exec: Inflection point requires shift in energy industry thinking
By Velda Addison, Group Senior Editor
The company’s general manager of projects shares thoughts on energy,
emissions, standardization and collaboration and where BP stands.
E&P momentum: Austin Chalk redux
By Richard Mason, Chief Technical Director
Overall news is mixed as challenging formational issues bedevil E&P efforts
to create another Austin Chalk revival.
DUG Midcontinent: Hamm says ‘future’s bright’ and prices
will correct
By Hart Energy staff
Harold Hamm, founder, chairman and CEO of Continental Resources Inc.,
declared that “the future’s bright” for Oklahoma oil and gas, as he opened
for Hart Energy’s DUG Midcontinent conference.
ADIPEC: Long-term policies needed for affordable energy
By Faiza Rizvi, Associate Editor, E&P
A panel of energy ministers from Pakistan, Senegal and the United Arab
Emirates addressed access to sustainable and affordable energy supply at
the 2019 ADIPEC ministerial session.
Privately held operators explain key to Permian Basin success
By Larry Prado, Activity Editor, Digital News Group
Execs from private operators Caza Oil & Gas, Henry Resources and Zarvona
Energy talk key to survival in the industry’s new hold-for-longer mode.
‘World’s first’ digital completions tech delivers real-time results
By Mary Holcomb, Associate Editor, Digital News Group
Cold Bore’s SmartPAD completions system is first to deliver real-time, sensor-
driven tracking of operations data with analytics, President Brett Chell said.

VIDEOS:
n Forty Under 40: Abhijeet Inamdar, Equinor
Named one of Hart Energy’s Forty Under 40 honorees, Abhijeet Inamdar
has led four crucial startup investments for Equinor as a deal-flow leader
of the company’s Technology Ventures shale oil and gas group.
n Forty Under 40: Mickey Friedrich, Driftwood Energy
Mickey Friedrich, a Forty Under 40 honoree, helped lead the initial hori-
zontal Wolfcamp development in the Midland Basin earlier in his career
while still with Pioneer.
n Forty Under 40: Joe Colletti, Exxon Mobil
A Forty Under 40 honoree, Joe J. Colletti oversees business development
opportunities in the U.S. for Exxon Mobil.
n Forty Under 40: Anthony Bilotto, Covenant Testing Technologies
Anthony Bilotto, a Forty Under 40 honoree, was responsible for almost all of
the systems Covenant Testing Technologies used as its foundation to grow
over time.
To view all of the 2019 Forty Under 40 honorees,
visit hartenergy.com/fortyunder40/2019.

By Jessica Morales, Video Reporter, Digital News Group

 As I
1616 S. VOSS ROAD, STE 1000 JENNIFER PRESLEY SEE IT
HOUSTON, TEXAS 77057 Executive Editor
P: +1 713.260.6400 F: +1 713.840.0923
HartEnergy.com
EPmag.com
jpresley@hartenergy.com

ExecutiveDirector
Editorial Editor JENNIFER
LEN VERMILLION
PRESLEY Read more commentary at
Executive EditorDirector
Chief Technical JENNIFER
RICHARD PRESLEY
MASON HartEnergy.com
Chief
SeniorTechnical Director
Editor, Exploration RICHARD MASON
RHONDA DUEY
Group Senior Editor
Senior Editor, VELDA ADDISON
Digital News Group VELDA ADDISON
Senior Editor BRIAN WALZEL
Senior Contributing Editor,
Associate
Offshore Editor FAIZA
JUDY RIZVI
MURRAY
Activity
Associate
Digital
Editor,
Production
Managing
Editor,
News Group
Technologies
Editor, Print Media
Assistant Editor
LARRY PRADO
BRIAN WALZEL
JOALEXA
ANN DAVY
WEST
The million-barrel question
Senior
Group Managing Editor , JO ANN DAVY Can U.S. shale hit the gas on its crude oil production at a
Print Media ARIANA HURTADO
Associate Managing Editor ARIANA BENAVIDEZ moment’s notice?
Creative Director ALEXA SANDERS
Corporate Art Director ALEXA SANDERS
Senior Graphic Designer FELICIA HAMMONS

M
Senior Graphic Designer FELICIA HAMMONS
Publisher HENRY TINNE odern-day history is chock full of “where were you when ‘xyz’ event hap-
Vice President of Publishing RUSSELL LAAS pened?” moments. Most people of a certain age vividly remember what
Editorial Advisory Board
Editorial Advisory Board they were doing on Nov. 22, 1963, when they learned the news of the assassi-
CHRIS BARTON nation of U.S. President John F. Kennedy.
CHRIS BARTON
Wood
Wood Even more remember hearing the news of American Airlines Flight 11’s
KEVIN BRADY crash into the North Tower of the World Trade Center on Sept. 11, 2001,
KEVIN9 BRADY
Highway Consulting and the following realization that it was not accidental as three more planes
Highway 9 Consulting
MIKE FORREST crashed into infamy.
MIKE FORREST
Consultant These events shape our response to future tragedies. Take, for example, the
Consultant drone attack on the two Saudi Aramco refineries at Abqaiq and Khurais. It
GARRETT FRAZIER
GARRETT FRAZIER
Magnum Oil Tools rekindled memories of Kuwait, Desert Storm and my first taste of the fear that
Magnum Oil Tools surrounds possible oil supply disruptions. I was a teenager itching to get my
RICHARD “DICK” GHISELIN, P.E.
Qittitut Consulting
first car and driver’s license at the time.
DICK GHISELIN LLC
Consultant The meteoric rise of unconventional oil and gas development answered the
PETER LOVIE collective call to lessen U.S. dependence on foreign oil. However, the drone
PeterOLGA
M Lovie
KOPERPE LLC
attacks—even though I know the U.S. is producing 12-plus MMbbl/d of crude
Battelle
ERIC NAMTVEDT oil—brought forward the spectre of a supply disruption.
Namtvedt Energy
PETER LOVIEAdvisors It was with curious ears that I listened to Stratas Advisors’ Stephen Beck
Peter M Lovie PE LLC at the recent DUG Midcontinent Conference give his answer to the million-
DONALD PAUL
USC
ERIC NAMTVEDT barrel question. Can U.S. shale hit the gas on crude production at a moment’s
Namtvedt Energy Advisors notice? What would it take to deliver an additional 1 MMbbl/d of oil?
KEITH RAPPOLD
Aramco Services According to Beck, it would take an estimated 280-rig increase to turbo-
DONALD PAUL
USC charge shale production within a short window of time.
EVE SPRUNT It would require a coordinated, multilayered effort. In his estimate, to
Consultant
KEITH RAPPOLD increase production by another million barrels within a six-month time frame,
Aramco Services
SCOTT WEEDEN it would require 420 additional wells added above plan each month with 2,100
Consultant
EVE SPRUNT truckload movements per month just to move those rigs. It would require
Consultant 15,960 additional stages completed each month, with 93 completion spreads
TOM WILLIAMS
RPSEA
SCOTT WEEDEN added to service, more than 6 Blb of additional proppant and more than 7
Consultant Bgal of additional water.
It would require a tremendous amount of steel, supplies and sweat to make
TOM WILLIAMS
RPSEA it happen. As Beck noted, it would be a daunting task, but we’ve done it
before, so why not again?
Senior Vice President, Media
E&P/Conferences
Helping in this daunting quest will be people like this year’s Energy Innova-
RUSSELL LAAS tors. E&P is honored to recognize the men and women listed on page 55 for
Editorial Director their leadership and contributions in advancing oil- and gas-related technolo-
VicePEGGY
President of Content
WILLIAMS
PEGGY WILLIAMS
gies. Visit hartenergy.com/energy-innovators for detailed
Chief Financial Officer profiles of each honoree.
ChiefCHRIS
Financial
ARNDT Officer
CHRIS ARNDT
Chief Executive Officer
Chief Executive
RICHARD Officer
A. EICHLER
RICHARD A. EICHLER 7
industry
PULSE

Three steps toward building a secure

future for natural gas
The challenge confronting the industry involves ensuring there is sufficient demand for the
gas that the industry produces.

supply surplus of LNG are part of the reason for the low
Alex Dewar, Boston Consulting Group prices. But the more fundamental cause is long-term
structural trends reducing the cost of production and

T he global gas industry would appear to have much

to cheer about. In recent years, technology break-
throughs have increased upstream productivity and low-
ered breakeven costs. These improvements have opened
up new reserves and boosted production growth. How-
ever, the industry needs to urgently find ways to stimu-
late demand if this abundant supply of natural gas isn’t
to become a burden.
Record low benchmark gas prices underline the
new dynamic. In the U.S., the Henry Hub spot price
remained below $2.50/MMBtu for much of 2019. Spot
prices in the Permian Basin turned negative in May
2019, with some producers paying others to take their
output. In Europe, the Dutch Title Transfer Facility
spot price hit a low of $3.20/MMBtu in July 2019.
As the Northern Hemisphere enters the peak winter
heating season, key trading hub prices are rebounding
slightly but remain at multiyear lows for this time of the
year. Short-term cyclicality in gas markets and a global
increasing the availability of resources.
In the U.S., rig productivity in key basins has more
than tripled, and breakeven costs have halved, as pro-
ducers of shale and other unconventional gas have
embraced new technologies. As a result of these improve-
ments, following a slow start, unconventional gas produc-
tion is growing worldwide. Argentina, Algeria, China and
Saudi Arabia are all ramping up production. New sources
of oil and NGL also are leading to an increased supply of
associated gas at zero, or even negative, marginal costs.
Boston Consulting Group estimates nearly 100 Tcm
of proved gas reserves are contained within fields
where average breakeven costs are less than $3/
MMBtu. Currently, only about 2.7 Tcm are produced
each year from these fields (Figure 1). At this rate,
they could generate about 35 years of supply of natu-
ral gas. The development of additional assets and fur-
ther reductions in production costs will only increase
the quantity of low-cost reserves.

COMMERCIALIZATION OF <$3/MMBtu RESERVES BY REGION

Annual production of <$3/MMBtu Share of <$3/MMBtu gas reserves
breakeven gas (Bcm) produced per year (%)
800 6

4.4 4.4
600
3.5 4
3.3 3.1
3.0
400
2.0 2.0
1.6 1.4 2
200 1.3

0 0
US Russia Qatar Iran Canada Saudi Turkmenistan China Australia Algeria All other
Arabia
Note: Low cost defined as gas fields with
an estimated breakeven of less than
$3 per MMBtu; Note: Gas fields with less
Share of <$3/MMBtu gas reserves produced per year (%)
than 1 MMboe reserves excluded from analysis.
Source: Rystad, BCG analysis
Annual production of <$3/MMBtu breakeven gas (Bcm)

FIGURE 1. Low-cost gas reserves are not being developed to their full potential across regions. (Source: Boston Consulting Group)

8 January 2020 | E&P | HartEnergy.com

 industry
PULSE

Given these trends, the pressing challenge confront- on gas demand. The European Investment Bank was
ing the industry is not related to the supply of natural recently the first major multilateral lender to stop lend-
gas. It involves ensuring there is sufficient demand for ing for natural gas projects due to concerns that gas is
the gas that the industry produces. incompatible with a 2 C pathway. Other lenders have
Global demand for natural gas curbed lending to gas pipeline proj-
has risen rapidly over the past two ects, jeopardizing investment in the
years, but the growth is concen- Natural gas often is infrastructure needed to encourage
trated in just a few countries. Over described within the demand. In the power generation
the last year, the U.S. and China sector, declining costs for solar,
accounted for more than 60% of
energy industry as wind and battery storage mean they
global gas demand growth. Asia the fuel of the are a competitive alternative to gas.
offers significant growth potential future due to its Because of these forces, gas
for natural gas given that today demand in Europe is projected to
it supplies less than 10% of total low-carbon properties plateau and start to decline in the
energy supplied to the region. Yet, and affordability. 2030s. Demand in North America
Asian markets outside China have could follow the same pattern, pos-
been slow to develop. sibly in the same time frame.
Climate change fears, skepticism surrounding the Faced with a scenario of weakening demand, the gas
role of natural gas in energy transitions and the rise of industry will need to act and facilitate the development
renewables are contributing to the downward pressures of gas markets if it is to guarantee future demand.

HartEnergy.com | E&P | January 2020 9

 industry
PULSE
REQUIRED INVESTMENT TO ACHIEVE NATURAL
GAS MARKET GROWTH PROJECTIONS
Upstream 240 260
LNG liquefaction 30 40
Mid/downstream
Gas power gen
Total 440
0 100 200 300
Note: Estimate of required investment to
achieve natural gas market growth in the
IEA New Policies Scenario. Source: IEA, WoodMac,
Investment ($ billion)
Oxford Institute for Energy Studies, BCG analysis
FIGURE 2. Natural gas infrastructure investment is falling short of requirements to achieve growth projections.
(Source: Boston Consulting Group)
Failure to do so could result in stranded assets for
companies across the value chain. Countries including
Canada and Turkmenistan are already producing gas
at levels far below their potential. Turkmenistan is
one of several producers that have significant low-cost
reserves but are hampered by poor pipeline infra-
structure, limiting their access to external markets for
their gas.
Boston Consulting Group believes there are three
immediate steps the industry can take. First, it needs
to accelerate efficiency improvements across the
supply chain, particularly with a focus on midstream
and downstream where costs remain high. In the mid-
stream segment, 60% of the delivered cost of LNG
comes from transmission, liquefaction and regasifica-
tion. In the downstream segment, reducing the capital
costs of accessing gas supply as well as for combustion
equipment will be critical to bolster demand. New
innovations, such as microturbines and small-scale
LNG, are helping to reduce midstream and down-
stream costs, but the industry needs to do more.
Second, greater infrastructure investment is required
to allow broad market access to gas. Global investment
in gas infrastructure was about $360 billion in 2018,
but the annual figure should be between $440 billion
and $500 billion if demand growth is to increase in line
with forecasts (Figure 2). A key investment gap exists
in transmission and distribution infrastructure, particu-
larly in non-OECD markets. In Asia, the region with the
greatest potential, growth is significantly constrained by
a lack of access to gas.
10
2018 ESTIMATED NATURAL GAS
INFRASTRUCTURE INVESTMENT
Upstream 155
Low
High
LNG liquefaction 30
130 150 Mid/downstream 125
40 50 Gas power gen 50
500 Total 360
400 500 0 100 200 300 400 500
Investment ($ billion)
Third, supportive government policies are needed
to enable fuel switching to gas. In countries that have
adopted clear and consistent climate and air quality
measures, switching from more polluting fuels to nat-
ural gas has helped to reduce greenhouse-gas (GHG)
emissions and improve air quality. However, such mea-
sures remain insufficient in most markets.
To increase the positive, near-term impacts of natural
gas in reducing GHG emissions and improving air qual-
ity, governments need to establish an adequate carbon
price and effective pollution controls. Over the longer
term, consistent policies are required that enable the
development of technologies that reduce the emissions
intensity of gas consumption, either through the appli-
cation of carbon capture, utilization and storage or the
supply of biomethane and hydrogen. To make the case
for gas, the industry must start by demonstrating mate-
rial progress in reducing its own methane emissions.
Natural gas often is described within the energy
industry as the fuel of the future due to its low-carbon
properties and affordability. Upstream developments
are helping to build solid foundations for the fuel and
make this vision a reality. However, these efforts could
be for naught without a greater focus on building mar-
ket demand through increased midstream and down-
stream investment.
Have a story idea for Industry Pulse? This feature looks
at big-picture trends that are likely to affect the upstream
oil and gas industry. Submit story ideas to Executive Editor
Jennifer Presley at jpresley@hartenergy.com.
January 2020 | E&P | HartEnergy.com
 market
INTELLIGENCE

Less is more in the Midcon

Midcontinent E&P companies reduce well intensity to generate economic returns.

But rig count has not gone to zero for the Mid-
Richard Mason, Chief Technical Director continent. An examination of responses from pre-
senters who still had active field programs outlined

O ne clue about industry direction in the post-volume

production growth phase in tight formation oil and
gas development surfaced during Hart Energy’s recent
coping strategies that may serve as the blueprint in
the new era of mandatory sustainable free cash flow
and deleveraged balance sheets. Solutions were out-
DUG Midcontinent Conference in Oklahoma City. lined typically by smaller independents, both public
This region hosted the most promising new tight and privately held. The recurring theme was that
formation plays in the U.S. outside the Permian less is more when it comes to well design. It means,
Basin just two years ago. Currently, the Midcontinent in part, that lateral lengths have maxed out. Stage
has become the most economically challenged spacing is actually widening after several years of
of all shale plays. The Midcontinent rig count as decreasing, and proppant loading per lateral foot,
of November 2019 had dropped by two-thirds. a common metric in the production volume growth
Specifically, Devon Energy Corp. had gone from 11 phase of tight formation development, was dropping
rigs active to zero in the fourth quarter. Cimarex for the first time in half a decade. It also means
Energy Co. dropped from four active rigs to zero. fewer wells per drilling spacing unit.
Financially challenged Alta Mesa Resources Inc. To frame the change, think about the arc of tight
dropped from eight active formation development over
rigs to one, as did Roan Midcon coping strategies may the last half decade. The goal
Resources Co. Continental serve as the blueprint in the was production volume growth
Resources Inc. cut rig count new era of mandatory at any cost, which translated
from 22 to 12, while XTO sustainable free cash flow and into greater completion inten-
Energy and Encana elimi- deleveraged balance sheets. sity to boost initial potential
nated half their active rigs. (IP). Well designs incorpo-
Simultaneously, active rated greater lateral length, a
fracture stimulation fleets were half the number in move to slickwater completions and the injection of
November than they were in January 2019. more proppant. These designs generated rising IPs
Some reduction in rig count, noticeably by and rising aggregate flush oil production. Yet those
Continental, reflected increased performance effi- same well designs by 2018 were producing a decline in
ciencies in full field development. new well productivity as the industry moved from pri-
Despite previous projections among sell-side mary wells to a greater percentage of infill wells.
energy analysts that the Mississippian play in the What appears to be evolving, and what may be
Anadarko Basin hosted economic breakevens below extensible to tight formation basins in a tough com-
$50, rig count direction and fracture stimulation modity price strip, is that independents now view
activity suggest otherwise. Indeed, one projection properties as an asset class rather than a collection
among presenters was that the industry needed $65 of individual high-performance prospects. Rather
oil for sustainable free cash flow. than pursuing headline-generating individual well
A roundup of the usual suspects in regionwide results, E&P companies are looking at a given area
underperformance included unexpected geological and investigating programs to generate net eco-
heterogeneity as the plays shrink into isolated sweet nomic benefit from the acreage as a whole.
spots, overcapitalization in well intensity and highly Think of it this way: E&P companies are going
aggressive well spacing which, according to present- to quit drilling uneconomic wells and focus on
ers at DUG Midcontinent, saw a rising percentage positive asset class returns. In the new era where
of infill wells producing from 25% to 35% below less is more, it may be possible to do so even in
adjacent primary wells. lower tier acreage.

12 January 2020 | E&P | HartEnergy.com

 offshore
ADVANCES

A tale of two provinces

Deepwater Gulf of Mexico is set for another year of record oil production while U.S.
regulators explore ways to prevent the stranding of resources on the shelf.

D etermining if it is the best of times or the worst

of times for Gulf of Mexico (GoM) producers
depends on their “location, location, location,”
JENNIFER PRESLEY
Executive Editor
jpresley@hartenergy.com
according to two recent and unrelated studies.
As a whole, the GoM is set for another year of
Read more commentary at
record oil production in 2020, according to a Rystad
Energy report. HartEnergy.com
“2020 is expected to be another record year with
average production above 1.9 million barrels per day,”
said Joachim Milling Gregersen, an analyst on Rystad There have been 47,765 wells drilled in the Shal-
Energy’s upstream team, in a press release. low Water Province since 1947. In the past 10 years,
Deepwater projects will provide most of the supply that number has decreased by 89%, according to
growth, according to the energy research firm. Oil pro- the BSEE/BOEM report. There have been 6,991
duction in the GoM has grown every year since 2013, platforms installed (13 in the last five years), of
with an average of 104,000 bbl/d of oil added annu- which 5,102 have been removed (five in the last
ally, according to Gregersen, five years). Of the remaining
with infill drilling in legacy platforms, production flows
producing fields such as Mars, “If this trend continues, from 954.
Thunder Horse and Tahiti pro- There are no new platforms
viding an essential contribution. the lack of development being installed, according to the
“The top contributors to supply will potentially strand 179 BSEE/BOEM press release.
growth in 2019 have so far been “If this trend continues, the
the Big Foot and Crosby fields,”
MMbbl of oil and lack of development will poten-
he said in the release. “However, 4,567 Bcf of natural gas tially strand 179 MMbbl of oil
by the end of the year, the Appo- that have an estimated and 4,567 Bcf of natural gas that
mattox Field is expected to make have an estimated worth of $20
a significant impact by ramping worth of $20 billion.” billion,” the release stated.
up toward its processing capacity The regulatory agencies
of 175,000 boe/d.” — BSEE/BOEM seek to encourage increased
The picture is far different activity in the province by dis-
for shallow-water projects. So counting royalty rates for the
different that the Bureau of Safety and Environmental Shallow Water Province and Deepwater Province by
Enforcement (BSEE) and Bureau of Ocean Energy the BOEM. In addition, BSEE has authority to con-
Management (BOEM) released a report in November sider applications for royalty relief on a “per project”
2019 indicating the need to define the Gulf of Mexico basis, which can include exploratory wells to promote
Shallow Water Province (water depth less than 200 m) development of discovered resources, according to
as a distinct province. The regulators believe by doing the release.
so it will help prevent the stranding of more than $20 Although its fields are mature, the shelf still has life.
billion of the nation’s oil and natural gas resources. Perhaps a few of the innovative approaches that are
“After a careful and detailed review of both shelf helping bring the U.K.’s North Sea back to
and deepwater data, it is apparent that the GoM is life will find their way southwest.
functioning as two distinct provinces—one active and Uncle Sam doesn’t want to leave
one in sharp decline,” the report’s authors stated. $20 billion on the table.

HartEnergy.com | E&P | January 2020 15

 completions &
PRODUCTION

Unlocking value in well designs

Improved optimization could enhance the returns sought by investors.

B etween stagnating market prices, substantial finan-

cial losses and rising investor demands for returns,
the unconventional oil and gas industry is certainly
BRIAN WALZEL
Senior Editor
taking its punches. Add to those challenges parent/ bwalzel@hartenergy.com
child well issues, steep decline curves in production
and a slowdown in drilling operations, and the ascent Read more commentary at
back up to the “good times” seems to be a precipitous HartEnergy.com
one indeed.
Despite the risk of being overwhelmed by such chal-
lenges, operators and service providers have kept their below 750 boe/d per 10,000 ft of perforated interval,”
heads down and honed in on what they can control. Deloitte reported. “Despite an increase in completion
Among the things they can control are how they opti- intensity of more than 40%, approximately 50% of
mize wells, and thereby optimize their economic value. U.S. horizontal wells had normalized 180-day produc-
A recent study by Deloitte of more than 80,000 wells tivity of below 750 boe/d in the past four years.”
drilled over the past 10 years in the Eagle Ford and The study suggests that there is clearly a lot more to
Permian Basin found that fully optimized wells could learn in unconventional development. Compared to
result in $24 billion in financial opportunity. more venerable oil and gas production developments
The study stated that up to 67% of Eagle Ford such as conventional and offshore, shale is still in its
and Permian wells were either overengineered or infancy. Widespread tight oil development is just over a
underengineered. In addition, decade old, so the industry is still
Deloitte reported that while rock finding its way. The vast array of
quality is important, it tends to technological innovations are still
not necessarily be the main per- Benefits should be being adopted by the industry. For
formance differentiator to the instance, it’s becoming increas-
extent that Tier 1, Tier 2 and
shared among ingly important for companies to
Tier 3 acreage particularly influ- operators and service adopt analytics as well as technol-
ences well performance. providers for the good ogies that can aid in improving
“More than 40% of wells well engineering and production
drilled outside the core of the of the entire industry. such as fluid trackers, tracers and
western Delaware area reported microseismic monitoring.
initial 180-day normalized pro- As Deloitte pointed out, the
ductivity of more than 1,000 benefits should be shared among
boe/d,” the report stated. “In the Eagle Ford, a operators and service providers for the good of the
comparable number of high-performing wells exists entire industry. The principle that a rising tide lifts all
across acreage tiers.” boats applies here.
And in a dissension from common industry belief “Now we are more aware of the challenges facing the
and practices, Deloitte found that some wells drilled viability of shales, and brute force is not necessarily the
over the last two to three years that feature longer answer,” said Scott Sanderson, principal at Deloitte
laterals and more proppants saw diminished produc- LLP’s oil and gas strategy and operations practice.
tivity, which the firm’s analysts explained is leading to “E&Ps should use analytic insights like this to
concerns from investors and financial markets. course-correct both operational tasks
“During this period, more than 3,000 wells that and commercial arrangements to bring
were completed with massive volumes of proppant (in sustainable benefits to shareholders and
excess of 1,800 pounds per foot) yielded productivity the extended oil and gas ecosystem.”

HartEnergy.com | E&P | January 2020 17

 COVER STORY:
FRACTURING ADVANCES

Stimulating
FUTURE
Positive results emerging from
fracturing field laboratories
John Duda and Cassie Shaner, NETL

A lubricator is connected to an oil well during wireline

operations for the Hydraulic Fracturing Test Site 2.
(Photo by Mike Lillejord, courtesy of GTI)

18 January 2020 | E&P | HartEnergy.com


H
ydraulic fracturing has come a long way as
a means of stimulating oil and natural gas
reservoirs since its first experimental use in
the 1940s, thanks in large part to revolutionary tech-
nological advances led by the U.S. Department of
Energy (DOE) that helped usher in the modern shale
gas boom.
Natural gas derived from shale formations
accounts for the bulk of U.S. natural gas produc-
tion, rising from 1.3 Tcf in 2007—the first year for
shale-specific record-keeping by the U.S. Energy
Information Administration (EIA)—to 18.6 Tcf in 2017.
Production from shale formations and tight oil plays
is expected to rise to roughly 33.3 Tcf by 2050,
accounting for more than 75% of the natural gas pro-
duced nationwide.
Because of plentiful domestic shale gas produced
using hydraulic fracturing techniques, the U.S. led
the world in natural gas production in 2018, notch-
ing record growth and setting a new annual produc-
tion benchmark.
The DOE’s National Energy Technology Laboratory
(NETL), the nation’s only federal research laboratory
dedicated to fossil fuels, has a rich history of inno-
vation when it comes to hydraulic fracturing. In the
Marcellus Shale Energy and
Environmental Laboratory
Established in 2014, the Marcellus Shale Energy and
Environmental Laboratory (MSEEL) was among the
DOE’s first field laboratories. The $25 million project
was created to develop and validate new knowledge and
technology to improve recovery efficiency and mini-
mize the environmental implications of unconventional
resource development.
The NETL manages the project and provides
technical oversight on behalf of the Office of Fossil
Energy. The MSEEL, which spans two Northeast
Natural Energy (NNE) production sites outside
Morgantown, W.Va., is run by nearby West Virginia
University (WVU) and involves a consortium of other
universities and national laboratories.
The initial site at the Morgantown Industrial Park
(MIP) featured two wells, which provided a well-
documented baseline of production and environmen-
tal characterization data. A dedicated scientific obser-
vation well was drilled to collect detailed subsurface
data, including log data. Operators collected
111 ft of 4-in. whole round core, believed to be
HartEnergy.com | E&P | January 2020
COVER STORY:
FRACTURING ADVANCES
1970s, fears that U.S. natural gas resources were
dwindling prompted federally sponsored research
focused on unconventional natural gas reservoirs,
such as gas shales, tight sandstones and coal seams
that were previously uneconomical to develop.
As part of the Eastern Gas Shales Research
Program, the NETL helped to advance large-volume
hydraulic fracturing technology. In 1975 a DOE-
industry joint venture drilled the first directional
wells in the Appalachian Basin to tap shale gas and,
shortly thereafter, completed the first horizontal
shale well that used seven individual hydraulically
fractured intervals. The DOE integrated basic core
and geologic data from 35 research wells to prepare
the first publicly available estimates of technically
recoverable gas for gas shales in West Virginia, Ohio
and Kentucky.
Today the NETL is building upon that legacy via
collaborative investigation of ways to increase
resource recovery efficiency. Field laboratories
within the Permian, Appalachian, Williston and Eagle
Ford basins are shedding light on subsurface ques-
tions associated with unconventional reservoirs
and providing meaningful insights to help meet the
energy needs of future generations.
the first core extracted through the entirety of the
Marcellus Formation.
In addition, 147 sidewall core samples were taken,
which researchers used to conduct geochemical,
microbiological and geomechanical investigations. The
observation well also was instrumented with a downhole
seismic array to monitor stimulation events in two new
production wells (identified as MIP 3H and 5H) that
NNE began drilling in late June 2015. The MIP 3H
lateral was logged and instrumented with permanent
fiber-optic sensors.
NNE recently established a second MSEEL location,
known as the Boggess site, featuring six horizontal
production wells—all logged with the latest LWD tools
and including one fully instrumented with permanent
fiber-optic wiring and sensors to provide near-real-time
information during fracturing and production.
The initial project plan called for sample and data
collection as well as testing and demonstration of
advanced technologies. But the project’s phased
approach and access to multiple Marcellus wells pro-
vided the flexibility to expand the project’s scope by
identifying and incorporating innovative new tools and
techniques focused on increasing recovery efficiency.
19
 COVER STORY:
FRACTURING ADVANCES
The MSEEL’s Boggess site, established in 2018, features six horizontal production wells, including one fully instrumented with permanent
fiber-optic wiring and sensors to provide near-real-time information during hydraulic fracturing and production. (Source: NETL)
Lessons learned from the MSEEL within the past five
years have increased reserves at the MIP well site by 20%
and contributed to best practices that NNE incorpo-
rated into its other operations. Other operators in the
Appalachian Basin are adopting state-of-the-art techniques
and technologies that have been demonstrated and con-
firmed as part of this project. For example, the use of
100 mesh sand proppant and synthetic drilling mud has
become a common practice throughout the basin.
Completion design
The MSEEL team developed an engineered design meth-
odology for well completion that enhances effectiveness
by increasing the percentage of perforation clusters along
the lateral contributing to production. The methodol-
ogy—based on core sampling, fiber-optic sensing and
LWD data—minimizes the effect of lateral heterogeneity
on fracture stimulation. These measurements are used
to predict breakdown pressure, which was then used to
place stages and perforation clusters in rock with similar
mechanical properties, thereby improving the probability
of stimulating all clusters within a given treatment stage.
Perforation impacts on productivity
Research at the MSEEL site indicated that fewer perfo-
rations are needed per stage than had been previously
used. By using fewer and smaller holes, NNE was able to
increase the rate of injection, which facilitated more effi-
cient fracturing by delivering sand more effectively into
20
the induced cracks. Coupled with this, NNE learned that
upgrading the casing string and frac stack to withstand
higher pressures more effectively ensured that every per-
foration cluster was stimulated effectively.
Vehicle impacts
NNE learned that silica exposure can be controlled by
using a cost-effective box-type sand delivery system ver-
sus a standard truck-and-trailer system. This is another
technique widely used throughout the basin. Research-
ers also learned that a natural gas hybrid rig does not
reduce emissions as much as previously believed, nor
does it provide significant cost savings.
Drilling mud
The MSEEL provided confirmation that synthetic drill-
ing mud produces cuttings that are more environmen-
tally friendly to dispose of than traditional cuttings and
improved drilling performance. This type of mud is com-
monly used by NNE and other operators in the basin.
Recovery efficiency
Fiber optics and production logging proved that increased
100 mesh sand concentrations do not degrade reservoir
performance when compared to larger sand proppant.
It improves both fracture stimulation and decreases costs
as more sand can be shipped per container volume. NNE
uses a much higher percentage of 100 mesh sand as part
of its standard frac design.
January 2020 | E&P | HartEnergy.com
 COVER STORY:
FRACTURING ADVANCES

Fracturing and efficiency

WVU developed a software system called FIBPRO to analyze fiber-optic distrib-
uted acoustic sensing, distributed temperature sensing and microseismic data
collected during hydraulic fracturing of the MIP 3H well. Analyses using FIB-
PRO showed that the distribution of deformation and crossflow between stages
demonstrated differences in completion efficiency among stages and clusters.
These differences affected production efficiency and resulted in a better under-
standing of the geological/geomechanical controls on completion and, ulti-
mately, on well production.

Fracture geometry
WVU developed an integrated geomechanical and discrete natural fracture
model to investigate the complexity of hydraulic fracture geometry. History
matching and production response, as measured by fiber-optic data and
production logging, confirmed the reservoir simulation and importance of
engineered hydraulic fractures. Well spacing sensitivity research was done to
identify the optimal distance between laterals to maximize recovery and the
number of wells per section.
Numerical modeling was conducted to simulate stimulation Stages 1
through 3 of the MIP 3H well, using measured injection data. Comparison of
measured data and slurry volumes, slurry rates and proppant mass estimated
by the model showed strong correlation with stimulation efficiency. This mod-
eling will continue for other stages, incorporating microseismic and produc-
tion spinner test data, to better model fracture geometries.

Geochemistry
New microorganisms have been recognized in the deep biosphere represented
by the Marcellus Shale. Subsurface microbial communities affect energy pro-
duction, reservoir properties and wellbore integrity through processes such
as biomineralization (scaling), acid formation (corrosion), biofilm formation
(biofouling) and metal mobility. Understanding these organisms is important
to reduce downhole well damage and scaling as well as precipitation of radium
in surface facilities. To better analyze the biogeochemical characteristics of
Marcellus Shale and investigate geological controls on microbial distribu-
tion, diversity and function, researchers developed new methods to maximize
recovery and reproducibility of lipid biomarkers—efforts that are enhancing
researchers’ understanding of subsurface biogeochemistry and the effect on
long-term production. Researchers at the NETL have investigated water/rock
interactions and the effects of barite precipitation on production efficiency.

Water impacts
Continuous monitoring of flowback and produced waters for nearly a year
showed that total dissolved solids leveled off, with little change in ionic compo-
sition. Radionuclides in the drill cuttings were consistently below West Virginia
Department of Environmental Protection levels for landfill disposal and well
below U.S. Department of Transportation levels for classification as low-level
radioactive waste. Findings from the analysis of the MSEEL drill cuttings aided
West Virginia legislators in establishing new statewide waste disposal criteria
based on the U.S. EPA’s toxicity characteristic leaching procedure, which has
not been exceeded for either organic or inorganic constituents in the MSEEL
drill cuttings.

HartEnergy.com | E&P | January 2020 21

 COVER STORY:
FRACTURING ADVANCES
Emissions
Direct-reading aerosol sampling was conducted through-
out all stages of well development at the MIP site except
pad preparation. Sampling locations included the drill
pad, 1-km and 2-km distances. EPA-regulated PM2.5
(particles less than 2.5 micrometers in diameter, capable
of reaching human lung airspaces) emissions were not
detectable from background at 1-km downwind during
the highest emissions periods (hydraulic fracturing) on
the well pad. Monitoring during drilling and completion
operations indicated that a significant portion of air emis-
sions was from truck traffic and other mobile sources, not
from emissions due to pad operations. Emissions audits
conducted at the MIP site using stationary and mobile sys-
tems indicated that the primary contributor to methane
emissions on site was a produced water tank.
Next steps
Continued work at the MSEEL’s two sites builds upon
the revelations and achievements of the project’s earlier
work, with a focus on economics.
The initial efforts at the MSEEL advanced hydrau-
lic fracturing stimulation techniques that the NETL
researchers pioneered years ago. The current R&D is
geared toward cost-effectively improving gas recovery
from horizontal drilling and hydraulic fracturing in
the region. A key objective of the latest field test is to
demonstrate optimal completion strategies that can be
applied to other areas of the Marcellus Shale play to
improve overall resource recovery efficiency.
For example, modeling from nanopore to reservoir-
scale by WVU at the original MSEEL site advanced the
understanding of the frac response and affected rock
volume and the approaches and capabilities to handle
and process large datasets from a single well. It also
helped optimize spacing between laterals, stage length
and cluster design. Technologies advanced at the
MSEEL enabled NNE to design better wells. In addi-
tion, several technologies have been developed since
the MSEEL began that facilitate acquisition of the same
type of information much more cost-effectively when
coupled with advanced modeling. That is the critical
focus of the MSEEL project’s next phase.
The NETL and its project partners also are building
better models that offer deeper insights. A team of
NETL researchers is conducting computed tomogra-
phy imaging and logging 139 ft of 4-in. whole round
core and 50 sidewall cores retrieved from the Boggess
site’s 17H pilot well. The data will be used to develop a
high-resolution geomechanical model of the Marcellus
that could yield the capability to improve production
22
Work at MSEEL’s Boggess site near Morgantown, W.Va., is
focused on learning from prior research and integrating the
latest innovations to improve resource recovery and project
economics while reducing environmental impacts.
(Source: NETL)
efficiency and environmental performance throughout
the Marcellus Shale region.
The MSEEL project demonstrated a model govern-
ment-private sector partnership, with WVU at the helm.
The project has shown that safe and efficient operations
can be conducted with no long-term environmental
consequences. Because of NNE’s successful demonstra-
tion of technologies and techniques, these practices
have been adopted by other operators in the basin.
Hydraulic Fracturing Test Sites 1 and 2
The NETL teamed up with the Gas Technology Institute
(GTI), of Des Plaines, Ill., in 2014 to launch a comprehen-
sive diagnostics and testing program focused on reducing
and minimizing environmental impacts, demonstrating
safe and reliable operations, and improving the efficiency
of hydraulic fracturing. The research collaboration is
focused on two hydraulic fracturing test sites (HFTS 1
and HFTS 2) about 140 miles apart in the Permian Basin
of West Texas and New Mexico. The program emulates
field experiments that the DOE/NETL and the Gas
Research Institute—one of two entities that combined to
form GTI—performed in vertical wells in the 1990s.
Technology has evolved to favor longer horizontal shale
wells with multiple hydraulic fracturing stages, introduc-
ing a new set of challenges and unanswered questions.
For instance, the optimal number of fracturing stages
during multistage fracture stimulation in horizontal wells
is unknown. Multistage fracturing in horizontal wells
January 2020 | E&P | HartEnergy.com
 COVER STORY:
FRACTURING ADVANCES

raises costs, yet the increase in fracturing stages does not most meaningful dataset to date for unconventional oil
always correlate to a rise in production. and gas production, providing information essential to
Applying a uniform fracture stimulation design to understanding induced fractures, validating and devel-
all stages does not account for geological variations oping models, and assessing how predictive analytics can
along the wellbore, and efficiency is not maximized. improve the process.
Improvements in the design and
execution of fracturing processes will
reduce the number of infill wells to be
drilled, the amount of working fluid
used and energy demand for future oil
and gas recovery activity.
Optimization of the fracturing pro-
cess requires an understanding of the
cause-and-effect relationship between
fracturing parameters and geological
properties at a given location along the
wellbore. A comprehensive understand-
ing of the quantifiable impacts of a
shale’s geomechanical and depositional
features is required to design and
implement an optimal hydraulic frac-
turing strategy. Researchers at HFTS
1 and 2 are conducting conclusive
tests designed and implemented using
advanced technologies to characterize,
evaluate and improve the effectiveness
of individual hydraulic fracture stages.
Laredo Petroleum provided a
field site in Reagan County, Texas,
for the $32 million HFTS 1 project.
The site features 11 horizontal wells
in the Wolfcamp Formation of the
Permian-Midland Basin. Prior to and
after hydraulic fracturing operations,
researchers with GTI conducted seis-
mic surveys to produce images of the
subsurface geology, collected water
and air samples and undertook micro-
seismic monitoring to detect very
small-scale seismic events that occurred
as a result of fracturing.
In addition, researchers used tracers
to study the distribution of proppant.
While all planned Phase 1 fieldwork
for HFTS 1 has been completed, data
analysis and integration are ongoing.
Additionally, pressure, temperature
and production data from the test
wells continue to be collected for
future analyses. The information
gathered through the project is the

HartEnergy.com | E&P | January 2020 23

 COVER STORY:
FRACTURING ADVANCES

faults were identified, all within

the Upper Wolfcamp Formation.
More than 700 fractures (natural
and induced) were identified in
the core.

Fracture insights
Results indicate that fracture
quantity and complexity are far
beyond what current simulators/
models can predict. Stimulation
creates multiple far-field fractures
(100 ft away), which are not uni-
form in distribution with fracture
clusters and voids.
Variable-rate fracturing pro-
vides an uplift to production by
improving perforation efficiency
without adding extra costs.

Air and water impacts

The NETL-funded HFTS 1 and HFTS 2 are located about 140 miles apart in the Permian Basin of Air and water samples were col-
West Texas and New Mexico. (Source: NETL) lected prior to, during and after
hydraulic fracturing operations.
The $27 million HFTS 2 project was initiated in 2018. Air quality data and analysis indicated a little-to-no
Anadarko Petroleum Corp. and Shell Exploration increase in regulated air quality compounds during frac-
and Production Co. agreed to host a new field site in turing and production operations at the test site, though
Loving County, Texas, within the Permian-Delaware there is potential for elevated emissions during flowback
Basin, that features different depths, pressures and per- when open systems are used. In addition, there was no
meability than HFTS 1. evidence of natural gas or produced water migration to
As of mid-2019, all wells on the eight-well pad
were drilled, and two were fitted with fiber-
optic sensors. An additional vertical pilot well
was drilled, cored and instrumented with per-
manent fiber-optic cable and pressure gauges.
Fracturing operations were underway, with asso-
ciated analyses pending.
While the goal of HFTS 1 was to understand
and define the relationships of shale geology
and fracture dynamics, HFTS 2 is focused on
optimizing hydraulic fracturing and well spacing.

Impacts of fracturing operations

More than 400 fracture stages were completed in
the 11 wells at HFTS 1. The core description was
completed by multiple teams, and results have
been incorporated into a final core description
report. Two main sets of natural opening-mode
fractures filled with calcite cement were iden-
tified, trending broadly northeast to southeast A proppant pack is shown in a hydraulic fracture of an Upper Wolfcamp
and west-northwest to east-southeast. Eleven Formation core. (Source: NETL)

24 January 2020 | E&P | HartEnergy.com

 COVER STORY:
FRACTURING ADVANCES

the groundwater aquifer. Research to date

shows that hydraulic fractures do not grow
into freshwater zones.

Proppant impacts
Vertical proppant distribution measured
in the core is only a fraction (5%) of the
measured microseismic geometry. Multiple
proppant packs were found. Others were
likely washed out during coring, indicating
inefficient proppant placement. Propped
fracture dimensions are very different
from hydraulic fracturing dimensions.

Geological distinctions
A slant core well was successfully drilled
through the stimulated rock volume
between two horizontal wells, recovering
595 ft of core spanning the upper and mid- Core samples from HFTS 1 show unique distinctions between natural fractures and
dle portions of the Wolfcamp Formation. those produced via hydraulic fracturing. (Source: NETL)

HartEnergy.com | E&P | January 2020 25

 COVER STORY:
FRACTURING ADVANCES
This was the first such core ever taken as part of a pub-
licly funded research project. Analysis indicated that the
Upper and Middle Wolfcamp formations vary consider-
ably. The Upper Wolfcamp features many times more
hydraulic and natural fractures, leading to very different
fracture half-lengths and spacing implications.
Next steps
The HFTS projects are capturing fundamental hydraulic
fracturing insights that will influence the exploration
and development of different shale formations for many
years. Researchers are continuing to analyze and inte-
grate various datasets to gain an enhanced understand-
ing of the fracturing process.
As the primary research work at HFTS 2 proceeds,
HFTS 1 has moved on to Phase 2, which focuses on EOR
methods. The EOR field pilot involves a new set of wells
about 1 mile northwest of the existing Phase 1 experi-
mental wells, with an updated completion design that
reflects lessons learned in Phase 1. The site includes a
central injector/producer to test cyclic gas injection, off-
set by horizontal and vertical wells equipped with down-
hole pressure and temperature gauges used to monitor
gas movement during injection in the reservoir.
Both HFTS projects offer an immediate impact
to the industry because each effort involves a joint
industry partnership (JIP) composed of more than a
dozen oil and gas companies and operators (including
six involved in both projects) that provide technical
support and share costs. The JIPs will accelerate the
adoption of technology innovations and best practices
being developed.
Bakken/Eagle Ford Laboratories
As hydraulic fracturing methods continue to evolve and
allow improvements in stimulated volume, a large per-
centage of recoverable oil remains in the ground after
IP. The NETL partnered with the University of North
Dakota’s Energy & Environmental Research Center
(UND-EERC) to initiate an EOR-focused field labora-
tory project at the Stomping Horse complex within the
Williston Basin’s Bakken Shale play in western North
Dakota. The collaboration began in September 2017.
Preliminary laboratory investigations suggest that
ethane and mixtures of methane and ethane may
be used to mobilize oil from the Bakken reservoir
and be viable injectate for tertiary EOR operations.
The EERC engaged Liberty Resources and the North
Dakota Industrial Commission, through the Bakken
Production Optimization Program, to design and con-
26
duct an EOR pilot test using rich gas. The primary goal
of the project, along with the newer Eagle Ford Shale
Laboratory launched in 2018, is to better characterize
existing fracture networks, stimulated reservoir volume
and fluid flow dynamics to improve EOR opportunities.
Baseline reservoir characterization data collection has
been completed for all wells within the Leon-Gohrick
drill spacing units in the Stomping Horse complex.
Parameters measured included analysis of produced oil,
water and gas as well as bottomhole pressure and tem-
perature for wells permitted for injection and offset wells.
Pressure
Minimum miscibility pressure (MMP) studies have been
conducted to determine the MMP of rich gas compo-
nents and different rich gas mixtures in oil from the
Stomping Horse complex. MMP data for methane, eth-
ane, propane and different relevant mixtures have shown
that “richer” gas mixtures will result in lower MMP values
(e.g., methane MMP > ethane MMP > propane MMP).
Types of injection gas
Rock extraction studies of the rich gas components
on Bakken shale and nonshale samples show that, when
it comes to mobilizing hydrocarbons from Bakken rocks,
methane is the least effective, propane is the most effec-
tive and ethane has an intermediate effect. The rock
extraction studies also show that propane is effective at
all pressures; ethane is effective at higher pressures and
methane is the least effective at any pressure.
Modeling studies
Modeling-based studies of the potential effects of rich
gas EOR operations on the surface infrastructure of the
Stomping Horse complex predict that the process will
not adversely affect surface facility operations. Reservoir
modeling of selected injection/production scenarios
predicts that incremental oil recovery may exceed 25%.
Injection testing
Small-scale injectivity tests were conducted in two wells
in the Stomping Horse complex during summer 2018. A
total of 24.6 MMscf of rich gas was injected during three
tests. The maximum injection rate achieved was 1.14
MMscf/d. Downhole pressure and temperature data
were collected before, during and after the injection
tests from six wells in the drill spacing unit, including
the injection wells and the immediately adjacent offset
wells. Data obtained from the small-scale injection tests
were used to refine the design of the subsequent larger
pilot tests.
January 2020 | E&P | HartEnergy.com
 COVER STORY:
FRACTURING ADVANCES
Fast flow pathways
A tracer was introduced to the injection well during
large-scale pilot tests. Multiple sampling events from
multiple wells were conducted in the Stomping Horse
complex as a means of identifying fast flow pathways
between the injector and various offset wells. The maxi-
mum injection rate for the large-scale test is 2 MMscf/d.
In general, each cycle injection is conducted until one
of three criteria is achieved: total injection of 60 MMscf,
30 days of injection or clear evidence of substantial
breakthrough at an offset well.
Next steps
Management of rich gas production from the Bakken is
a high priority for government and industry stakehold-
ers in North Dakota, due to economic challenges associ-
ated with expanding gas-gathering infrastructure in the
relatively geographically isolated location. The NETL’s
efforts with UND-EERC aim to demonstrate the viability
of using rich gas for EOR in the Bakken, which would
result in reduced flaring and improve oil recovery.
A pilot injection test and associated monitoring activ-
ities are ongoing, and shale permeability and shale
sorption studies, using a flow-through testing approach,
continue. The effects of rich gas exposure on the
properties of Bakken shale and nonshale tight rocks,
including clays and mineralogy, wettability and relative
permeability, are being examined using a variety of lab-
oratory techniques, such as nuclear magnetic resonance
and field emission scanning electron microscopy. The
potential for preferential sorption of different rich gas
components in Bakken rocks also is being examined
using flow-through experiments under reservoir pres-
sure and temperature conditions.
Similarly, the emerging Eagle Ford Shale Laboratory
seeks to improve the efficiency of oil and gas recov-
ery from hydraulically fractured horizontal wells
on INPEX Eagle Ford LLC’s shale properties in
LaSalle County, Texas. The project teams Texas A&M
University with Lawrence Berkeley National Laboratory
and Stanford University. Funding is provided by the
NETL, with a match from INPEX Eagle Ford LLC and
contributions by other operators and service compa-
nies via a JIP agreement.
Field-based research within the Eagle Ford Shale
formation began in April 2018 and is ongoing. Using
newly developed and comprehensive monitoring solu-
tions, the team will deliver unprecedented and com-
prehensive high-quality field data to improve scientific
knowledge of the hydraulic fracturing process, refrac-
turing and subsequent huff-and-puff gas injection. This
28
knowledge will facilitate optimized production from a
reduced number of new wells, with less material and
energy use.
Key Takeaways and Future Steps
The research conducted by the NETL’s field laborato-
ries has helped to redefine the public’s perception of
unconventional oil and natural gas exploration by deliv-
ering an unbiased view of the environmental impacts of
the drilling and stimulation processes, which research
has demonstrated to be relatively benign. Simulta-
neously, the NETL is identifying new possibilities for
hydraulic fracturing technologies that offer the poten-
tial to optimize operations and boost resource recovery
beyond current levels.
For instance, several technologies have been devel-
oped since the MSEEL began that, when coupled with
advanced modeling, could allow the acquisition of the
same type of information in a much more cost-effective
way. If the project’s current efforts prove that these inno-
vations work and lead to improved production results,
the project will lead to more efficient and effective
resource recovery within the Marcellus Shale region and
possibly throughout other shale plays nationwide—partic-
ularly when combined with insights from HFTS 1 and 2.
The Phase 2 work at HFTS 1 complements the EOR
field research underway at the Bakken laboratory site.
Each project ultimately seeks to improve the effective-
ness of shale oil production by providing new scientific
knowledge related to stimulation and production as
well as enhanced recovery via refracturing and EOR.
Research by the NETL and its partners is providing
new insights into the fracture stimulation and EOR pro-
cesses, which will aid in the development of new meth-
odologies and tools to maximize the production of oil
from fractured shale. While some research results will
apply to specific formations, many realistic and practical
learnings will be applicable to other unconventional
plays and subsurface applications, such as tight gas sand
reservoirs and even saline formations for CO2 storage.
The DOE is using data collected from these demon-
stration projects and new field laboratory projects
awarded in fiscal year 2019 to support artificial intelli-
gence and machine learning. The results of this work
will yield fundamental knowledge of shale fracture and
matrix properties. Additionally, analytical tools for
assessing hydraulic fracture performance and methods
of targeting distinct features of the hydraulic fracture
system will be developed to improve production effi-
ciency and increase resource recovery.
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 COVER STORY:
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Key frac ingredients moving in
different directions
The dialing in of optimal completion designs by operators is keeping sand and
water providers busy right-sizing their logistical response.
Jim Redden, Contributing Editor
W ith investor pressure sidelining ceramic and other
fancy proppant and alternative carrier media like
CO2 still but pipe dreams, sand and water will remain
indispensable hydraulic fracturing ingredients for the
foreseeable future. Those immediate futures, however,
are on markedly different trajectories, with the former
fretting over too many players and shaky demand pros-
pects and the latter emerging as the newest darling of
an otherwise tightfisted equity market.
Not surprisingly, the multizone Permian Basin
remains the centerpiece of any evaluation of the sup-
ply-demand equation. The numbers speak volumes:
Any analysis of U.S. frac sand consumption in 2020
estimates well over half the demand will be in the
Permian’s Midland and Delaware basins; the Permian
also accounts for $13.4 billion of the $37.5 billion that
IHS Markit estimated to be spent on water management
across the U.S. in 2019.
The sand and water combo have been among the
biggest beneficiaries of the near-universal trend of
longer laterals and multiple frac stages, with proppant
loadings of 2,000 lb/ft to 2,500 lb/ft now seen as the
optimum completions design. Recent completion
programs by and large also incorporate fine-grain 100
mesh and 40/70 mesh sand, particularly in plays with
in-basin capacity.
Corresponding with the switch to finer grain sand,
modified frac fluid chemistry and assorted treatment
technologies have enabled the wholesale push to recycle
spent water, with some operators reporting 100% reuse.
Consequently, sourcing fresh frac water represents a
mere 5% of the total water management spend.
“We’ve changed the requirements for frac water, so
the water doesn’t need to be completely clean. There
are still some plays where they use a lot of freshwater,
like in Oklahoma’s Stack and Scoop, but they use a
lot of brackish water in Texas, which is a lot cheaper,”
said Paola Perez Peña, an IHS Markit principal
research analyst.
30
That leaves the gathering, treatment or disposal of
flowback and produced water emerging as a midstream
industry unto itself—one that is highly localized and
among the few areas in the unconventional sector where
the money is readily available.
“The water business is becoming more like a mid-
stream infrastructure industry with a lot of capital being
tossed about,” Perez Peña said. “With more localized
infrastructure, operators are able to treat water and
reduce costs. The entire process becomes more effi-
cient. A lot of people see this as a solution to the
whole water problem.”
Avoiding the use of freshwater in frac fluids is par-
ticularly crucial in the Permian’s arid and perpetually
drought-stricken home turf of West Texas and southeast-
ern New Mexico, which until last summer had different
rules governing prodigious produced water volumes.
Laws enacted in both states clarify, in part, that operators
own the water their wells produce and contractually can
relinquish control to midstream companies for recycling.
Sand balancing act
The divergent trend lines projected for sand in 2020
reflect the intrinsic ambiguities and fluidity of opera-
tors’ spending and completions strategies, as activity
going forward remains at the mercy of commodity prices
and circumspect investors. Nevertheless, analysts agree a
rebalancing of the supply-demand equilibrium is begin-
ning to take shape.
Rystad Energy sees cumulative sand demand increas-
ing from 115 MMtons in 2019 to 132 MMtons in 2020.
Rystad’s estimate is more bullish than that of Westwood
Global Energy, which predicts U.S. frac sand consump-
tion of 106 MMtons in 2020, up year over year from
the estimated 94 MMtons pumped in 2019. The 2019
demand forecast parallels what Westwood estimates will
be a 5% and 3% decline in drilling and completions,
respectively (Figure 1).
Efforts to bring supply and demand into balance
begins and ends in the Permian, where Hi-Crush
Partners ignited the stampede to construct in-basin
surface and subsurface sand mines some two years ago.
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 COVER STORY:
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US LAND: FRAC SAND DEMAND
MMtons
Appalachia Permian Eagle Ford Bakken D-J Basin Midcontinent
FIGURE 1. Frac sand demand was expected to drop 6% and 8%, respectively, in the third and fourth
quarters of 2019. (Source: Rystad Energy ShaleWellCube)
Expectations did not meet realities, and the Permian
became oversaturated; at one point in 2019, prices dove
to below $10/ton. About 22 active mines remained in
the Permian in late 2019, but between five and seven of
those were expected to either pull back production or
possibly shut down.
“Prices crashed in West Texas but have held up rather
decently in other basins, where there are not as many
suppliers,” said Thomas Jacob, a Rystad senior analyst.
“It’s not just the capacity; it’s the number of people
holding that capacity. So with so many companies in
that play, the supply is very fragmented.
“The Permian holds 73 million tons in nameplate
capacity on paper, but some mines are being utilized
at 50% to 60% of capacity. If they had to increase pro-
duction suddenly, it would take time to increase shifts
and eliminate inefficiencies in the supply chain, so the
effective supply would be about 80% to 90% of that 73
million nameplate capacity.”
The 13% increased demand Westwood forecasts in
the Lower 48 in 2020 falls short of growth expectations
but is partly offset with a nationwide supply pullback
from 140 MMtons in 2019 to 112 MMtons in 2020.
“In talking with many of the mine owners, you have var-
ious strategies being used right now, but obviously they’re
kind of pulling back the production of sand, especially in
the Permian,” said Todd Bush, Westwood head of NAM
and unconventionals. “They’re trying to get closer to the
supply-demand balance toward the end of [2019], but
that could extend into the first half of 2020.”
32
After closing one of its
three Permian mines, Black
Mountain Sand, for one,
opened two mines in the
Eagle Ford in 2019 and
another in Blaine County,
Okla., its first outside of
Texas. Annual production
from the five active facilities
totals 16.3 MMtons, with all
but 6.3 MMtons coming out
of the two operational West
Texas mines.
“For the overall market,
we see demand increasing
over the long term and very
Powder River Rest of U.S. little new supply of sand
or last-mile services being
added to the market,”
said Bob Rasmus, CEO of
Hi-Crush, which expected
to sell between 2.4 MMtons and 2.7 MMtons in the
third quarter of 2019, compared to second-quarter
deliveries of 2.7 MMtons.
After ramping up capacity at its Kosse, Texas, mine
earlier in 2019, U.S. Silica Holdings in November closed
mines in Tyler, Texas, and Utica, Ill., citing the declining
outlook in completion activity. “Energy markets deterio-
rated further and faster than expected during the [third]
quarter as E&P budget exhaustion slowed completion
activity, resulting in lower demand and pricing pressure,”
President and CEO Bryan Shinn told investors on Oct. 30.
Meanwhile, truckers naturally followed miners into
the Permian and quickly found themselves surrounded
by too many trucks and too little to haul. “We heard of
several trucking companies that have actually pulled
out of the Permian because the pricing and competi-
tion are so fierce that many were not making margins,”
Westwood’s Bush said.
Plans to expand in-basin mines beyond the Permian,
Eagle Ford, Oklahoma and the Haynesville have been
stymied by low-quality sand reserves, insufficient activity
to justify the investment or stifling permitting require-
ments. The regulatory climate is particularly chancy in
the contentious Colorado core of the Niobrara-Codell
play in the Rockies’ Denver-Julesburg (D-J) Basin.
“We currently have plans for expansion, but the
process of permits and exploration takes a while,” said
Allison Donahue, Black Mountain’s brand manager.
“We’ve announced our intent to expand into the D-J
Basin, but it’s going to take a little time.”
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 COVER STORY:
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Black Mountain’s Blaine mine in Blaine County, Okla., is fully operational at an
annual run rate of about 2.3 MMtons. (Source: Black Mountain Sand)
Owing to their proximity to Upper Midwest mines,
operators in the Appalachia Basin’s Marcellus and Utica
plays, the D-J Basin and the Bakken rely mostly on the
once-dominant Northern White sand. Along with direct
rail access, plays like the naturally fractured Bakken
require comparatively low proppant loadings per well,
making in-basin mines impractical.
“The Bakken has sand reserves, and some are of suffi-
cient quality, but they don’t use a lot of frac sand from
a completions intensity perspective, so the incentive’s
not there,” Rystad’s Jacob said. “The Appalachia also
has sand reserves, but the quality is really poor.”
The stress factor
Northern White sand, which held roughly three-fourths
of the U.S. proppant market in 2014, was prized primarily
for higher crush strengths than the Texas sand typically
recovered either from dunes or the Hickory and similarly
sand-prone formations. Owing to tightening economic
margins and rail transport from mines in Wisconsin,
Minnesota, Missouri and elsewhere representing nearly
half of total sand costs, Permian operators rely primarily
on homegrown reserves. Based on IP rates, finer-grain
in-basin sand is seen as sufficient and, from a logistical
perspective, makes for a more cost-effective option, even
in the higher stresses intrinsic to the Delaware Basin.
“The Delaware has deeper formations with higher clos-
ing pressure, but when we actually look at the IP30 and
34
IP60 day rates and how that’s trended over
time for the past two years when in-basin sand
started being used, we haven’t seen a change
in the data,” Jacobs said.
Northern White sand miners concede that
competing with local proppant is a taxing
proposition. “I think with the economics of
Northern White sand versus local, it remains
a very compelling proposition for the
operators there [Permian] to be trying the
local sand,” Covia Corp. CFO Andrew Eich
told analysts in an August 2019 earnings
call. “Even if they moved back to Northern
White, I think it’s a little early for there to
be a broad swing.”
Westwood’s Bush said that while some of
the larger Permian operators are still using
Northern White, local demand will likely
remain flat.
“One thing we’re watching pretty closely
is some of the trainload activity in the south-
ern New Mexico area. Some Delaware Basin
operators are still shipping from Wisconsin,
but from a demand perspective, we see it probably
remaining flat. The operators are looking at how they
can reduce costs, either through sand or last-mile logis-
tics,” he said.
To the immediate east, lower-quality sand in the South
Texas Eagle Ford presents an opportunity for importers.
“We certainly are hearing increasing chatter in the
Eagle Ford that the local sand quality is significantly
worse than Northern White in terms of performance,”
Eich said. “I think that’s probably the first basin where
you see a broad shift back to Northern White.”
Jacobs said a comparative analysis of treatment pres-
sures seems to bear that out. Some 95% of the treat-
ment pressures in the Midland Basin fell below 8,000
psi, making it well-suited for in-basin sand. Conversely,
of the completions examined in the Delaware and Eagle
Ford, 70% and 60%, respectively, averaged about 8,000-
psi treatment pressures.
“We actually looked at the average treatment pres-
sures of every well in the Delaware, Midland and Eagle
Ford. While the Delaware and Eagle Ford are similar in
average treatment pressure, Eagle Ford in-basin sand
is not of the same quality as that in the Permian. The
crush strength is much lower,” he said. “We’ve heard
that some [Eagle Ford] operators have used in-basin
sand and shifted back, while some use in-basin sand and
are happy with it. The dust hasn’t settled yet, so it’s too
early to make any definitive conclusions.”
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 COVER STORY:
FRACTURING ADVANCES
As much as appeasement of returns-focused investors
helped decimate the demand for premium ceramic prop-
pant, the high-strength, resin-coated sand sector faces a
similarly tough slog. Black Mountain discovered as much
in August after forming a partnership with Hexion Inc.
to offer in-basin, resin-coated proppant, using the com-
pany’s Voyager mobile resin-coating service.
“Resin-coating has some proven benefits, but we
do not see a really large demand yet,” said Black
Mountain’s Donahue. “We like to provide the option
to our customers because it is really efficient and eco-
nomical to make.”
A Hexion spokesman said the mobile unit remains on
station at one of Black Mountain’s Permian Basin mines.
Sidestepping pumpers
The once typical model of bundling all stimulation
services under usually integrated pressure pumping
companies has been largely upended, as sand providers
sell directly to operators. Self-sourcing took hold in
the Permian, where the multitude of local mines gave
operators a competitive edge, but it has since expanded
elsewhere and, in the process, increased the logistical
pressures on proppant providers.
“Obviously, some E&Ps have long-standing relation-
ships with pressure pumpers and they’ll continue to rely
on them, but others are going directly to the mine com-
panies,” Bush said. “You can see some significant savings
on the costs of sand and sand delivery.”
At mid-year 2019, Hi-Crush said direct sales to oper-
ators increased to a record 66% of the overall tonnage
delivered, more than double the 31% sold directly
during the second quarter of 2018. U.S. Silica, for
another example, pointed to recent direct-sale con-
tracts as signs of a continuing and welcomed trend.
“My experience is that energy companies have much
better visibility as to what they’re going to use in terms
of proppant as opposed to the service companies that
obviously move around a lot and work for different
energy companies,” U.S. Silica’s Shinn said.
As much as direct purchasing reduces costs for opera-
tors, it increases the last-mile pressures on sand compa-
nies, leaving single-source providers at a decidedly com-
petitive disadvantage. “As more E&P companies begin
direct sourcing, there’ll be additional requirements put
on a provider’s logistics team to make sure sand gets to
the well site,” Bush said. “They’ll have to coordinate all
activity, so there’s no downtime.”
Hi-Crush and U.S. Silica are among the integrated
sand companies that provide distinct logistics networks,
complemented by digital and automated platforms, to
36
better track inventories and deliveries. Covia, however,
believes the plethora of players in the logistics arena
makes it more economically prudent to team up with
specialized last-mile providers.
“We continue to believe that the market is fully satu-
rated and potentially oversupplied, and the prices and
margins will come down for that solution,” said Richard
Navarre, Covia’s president and CEO. “And the technol-
ogy continues to change, which requires continuous
capital investment in that market. We’ve taken the asset
and capital-light approach and partnering with last-mile
providers, so we can still provide for our customers that
want a last-mile solution.”
Monetizing water
Meanwhile, transactions over the past year reflect the
growing trend among operators to liquidate water assets
and, in turn, team up with localized third-party water
management companies to cut costs.
“Right now the market is so hot, and the valuation of
that water is very high,” said IHS Markit’s Perez Peña.
“The capital is not going to stop coming in, at least for
the next couple of years. The perception is very positive.”
To point, Continental Resources netted $85 million
on July 31, 2019, for a “small portion” of what it values
as a $1 billion water gathering and recycling network
across Oklahoma and North Dakota. The sale and asso-
ciated long-term water management arrangement with
Oklahoma-based Lagoon Water Solutions encompasses
Continental’s infrastructure in Blaine County, Okla.,
which serves its Stack asset. The deal gives two-year-old
Lagoon the largest such system in Oklahoma and will
make it the state’s first midstream company to provide
recycled water for completions. Complementing its
30,000-bbl/d recycling capacity, Lagoon also holds 200
miles of pipe and 17 saltwater disposal (SWD) wells with
a cumulative 310,000-bbl/d capacity.
Prior to an Oct. 8 Bloomberg report to the contrary,
Continental CEO Harold Hamm shrugged off ques-
tions that the entirety of the two-state water network
is for sale. “This is a very valuable asset, and if we ever
did anything in near-term, it would probably be a small
stake, but there is nothing grooming or contemplated
right now,” he told analysts on Aug. 6.
Also in Oklahoma, Marathon Oil Co. signed a 15-year
water gathering and disposal agreement with local water
management company Bison, which claims the only
infrastructure dedicated exclusively to the Scoop and
Stack plays.
Elsewhere, Concho Resources forged a long-term water
management agreement with Solaris Water Midstream
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 COVER STORY:
FRACTURING ADVANCES
LLC on July 31 that takes in some 1.6 million acres in
the northern Delaware Basin. Solaris paid an undisclosed
sum for 13 SWD wells and roughly 40 miles of large-
diameter pipeline, which the midstream company inte-
grated into its Pecos Star pipeline network. At the time
of the agreement, Solaris held more than 300 miles of
largely 16-in. water gathering pipelines and over 500,000
bbl/d of recycling, disposal and storage capacity.
The joint venture, taking in New Mexico’s Eddy
and Lee counties and extending into Reeves and
Culberson counties in West Texas, came on the heels
of an earlier 16-MMbbl recycling contract that Solaris
signed with Concho.
Concho signed a similar sale and management agree-
ment with high-rolling WaterBridge Resources LLC in
January 2019 for its produced water assets in the south-
ern Delaware Basin of Reeves, Pecos and Ward counties
in Texas. Armed with $800 million in debt facilities,
WaterBridge, in separate transactions in December
2018, also snapped up the Texas Permian water assets
of Halcón Resources and NGL Energy Partners.
H2O Midstream acquired the Howard County, Texas,
water assets of Sabalo Energy LLC on Aug. 21, concur-
rent with a 15-year water gathering, disposal and recy-
cling services agreement.
More water assets could soon come on the block.
Callon Petroleum hinted its pending acquisition of
Carrizo Oil & Gas could put the combined Permian
Basin and Eagle Ford water network up for sale.
“We’re not in the water business, but we do have an
investment that we think there’s significant value to
unlock,” Callon President and CEO Joe Gatto told
analysts in an Aug. 8 call.
It’s the same for Pioneer Natural Resources’ Permian-
centered water management entity. “We’re evaluating it
now and the board will make a decision in 2020,” said
Pioneer President and CEO Scott Sheffield.
Perennial expansion
Solaris Water, for its part, is engaged in what its princi-
pals characterize as a continuous expansion required to
handle the tremendous volumes of flowback and pro-
duced water generated in the Delaware Basin. The mid-
stream company, which participated in developing the
New Mexico produced water ownership and transporta-
tion legislation that took effect in July, plans to have at
least five recycling facilities up and running by mid-2020.
The company moved closer to that target in late
October with the startup of the Bronco produced water
recycling and blending center in Lee County, N.M.,
which has 130,000 bbl/d of maximum throughput
38
capacity. The development of the Bronco facility fol-
lowed the completion of the Lobo Ranch recycling and
blending facility in Eddy County, N.M., with maximum
capacity of 240,000 bbl/d, said Amanda Brock, Solaris
Midstream’s COO and chief commercial officer.
Solaris Water’s integrated Pecos Star System, which
traverses Lee and Eddy counties, likewise is in a contin-
ual expansion mode and was expected to stretch more
than 330 miles by year-end 2019.
“We originally said we would have Phase 1, Phase 2
and Phase 3 expansion plans. Now, it seems we’re on
Phase 15, so it’s really just been a matter of continual
expansion,” Solaris CEO Bill Zartler said.
With the combination of flowback and the notori-
ously high water cut in the Delaware Basin throwing the
water-oil ratio out of whack, gathering systems face tre-
mendous pressure to move as much as five times more
water than oil. Attesting to the increased volumes being
pushed through the network, Brock said pipe larger
than the typical 16-in. is being considered, as autho-
rized under right-of-way agreements.
“We are looking at increasing the size of our pipe as
we look at laying a second pipe in the existing right of
way. We hoped we were sizing our system appropriately,
but with the rapid unprecedented growth we see in the
Delaware Basin, we may not have sized our pipe large
enough in certain areas and will have to expand our
capacity faster than we thought to meet our customers’
needs,” she said. “We don’t use trucks and have no
intention of using trucks.”
While operators have come to accept higher percent-
age blends of treated produced to brackish water for
reuse, the quality of water entering the pipeline net-
work must meet stringent contractual specifications.
“For the most part, water coming out of New Mexico
aquifers is nonpotable, so it needs some treatment. We
call that brackish water, and while we see anywhere
from 50/50 to 90/10 blends on average, we’re close
to 70/30 blended treated, produced water to brack-
ish water,” Zartler said. “When we talk about brackish
water, we’re really talking about any water that’s over
1,500 TDS to 2,000 TDS [total dissolved solids].”
During treatment, flowback and produced water are
run through chemical and mechanical processes to
reduce the levels of contaminants like iron and oil. The
water is then run through a series of weir tanks and, after
additional filtration, is sent to a pond or aboveground
storage tank where, depending on the specifications, the
treated water may be blended with nonpotable water.
While the quality of produced water in the Delaware
is generally better than that of its sister sub-basin,
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 COVER STORY:
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Zartler said much of the disparity could be attributed to duced water or increase the capacity of disposal wells.
the maturity of the Midland Basin, where injection in One of the conclusions of the report released in August
SWD wells is more commonplace. 2019 found that “enhanced evaporation allows excess
“It’s area-specific, but the water quality in the Midland produced water to be dealt with when reuse and dis-
Basin isn’t as good, so the treatment to get it to spec is a posal are already at their practical limits.”
little more involved. I’m not sure the water coming out Seismic jitters also extend to the Permian, but future
of the ground is any different, but a lot of it has to do injection capacity is a primary issue.
with older surface equipment that is not separating the “The concern there is with the disposal capacity,” said
oil as well, and the oil is a bit heavier,” he said. “We’ve IHS Markit’s Perez Peña. “We see the Midland [Basin]
been recycling there for three years, but the Midland having enough capacity for the next three years, but
Basin is complicated by a large number of landowners, if they continue to produce as much water as they do
making it a bit more difficult to build larger integrated right now, it’s going to be a big issue.”
[gathering and recycling] systems.” The Railroad Commission of Texas, the state’s chief
Throughout the Permian, a key enabler to reusing oil and gas regulator, issued 540 injection well permits
large volumes of produced water has been the transi- for the core Permian districts between Jan. 1 and Oct. 1,
tion from gels to slickwater fracs that entail heavy load- 2019, compared to 527 similar authorizations for the
ings of finer grain sand. same period in 2018. “The Railroad Commission is
“If you look back three to four years, operators working on more regulations for injection rates, so
needed gelling agents to thicken up the frac fluid so [in 2020] we may see a delay in getting those permits
it could carry larger grains of sand into the reservoir. approved,” she said.
Today, with the use of sand with A dearth of approved and
a finer grain, they don’t need as compatible disposal receptacles
much viscosity, so they can carry “We see the Midland is particularly glaring across the
massive amounts of sand much [Basin] having enough Marcellus and Utica fairways of
farther using lower quality water Pennsylvania, West Virginia and
enhanced with additives like [disposal] capacity for the Ohio in the gas-rich Appalachia
friction reducers that work very next three years, but if they Basin, where low prices also
well with saltwater,” Zartler said. inhibit the widespread construc-
continue to produce as tion of large-scale treatment
Disposal capacity issues much water as they do facilities. Antero Resources’
In plays where flowback and pro- right now, it’s going to be a $275 million Clearwater treat-
duced water streams are either ment facility in West Virginia
too dirty to economically treat big issue.” fell victim to doggedly low gas
and reuse or those where activity prices in September when it was
levels, prices and low water cuts —Paola Perez Peña, temporarily idled for an eco-
are insufficient to justify large- IHS Markit nomic reevaluation after only
scale treatment facilities, SWD two years of operation. Antero
wells remain the only available has not responded to requests
alternative. However, injections are being hit on a num- for comment on when a decision on the future of the
ber of fronts, primarily related to stringent regulations plant may be forthcoming, but the company suggested
and capacity limitations. in late October the closure could be permanent.
Problems with SWD wells have long been on display “By transitioning our operations to localized blend-
in Oklahoma where injections into the deep Arbuckle ing and reuse starting in August and shifting away
Formation have been blamed for what, until recently, from the Antero Clearwater Facility in September, as
was a spate of earthquakes. The state responded to the facility was idled, we were able to drive down our
induced seismicity events by forcing the closure of LOE [lease operating expense] substantially,” CEO
some wells and limiting injection rates in others, while Paul Rady said in an Oct. 30 conference call.
seeking alternatives. A feasibility study commissioned by Conversely, restrictive disposal regulations, especially
the state-sanctioned Produced Water Working Group in Pennsylvania, force many operators to truck pro-
(PWWG) recently examined, for instance, new itera- duced water to Ohio where permitting disposal wells is
tions of evaporation technologies to either reuse pro- less daunting.

40 January 2020 | E&P | HartEnergy.com

 COVER STORY:
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“There’s a huge lack of disposal capacity in the
Appalachia Basin because of the strict regulations, so
operators are paying premium trucking fees,” Perez
Peña said. “They are trying to build some pipelines, but
there are no clear regulations in place for moving pro-
duced water. I think you’ll see more pipelines coming
into the Marcellus but only when gas prices get better.”
Tight restrictions on sourcing water from streams
and rivers likewise force many Appalachia operators
to truck freshwater to well sites. Replicating a practice
common to portions of the Permian and elsewhere, an
operator in West Virginia, however, managed to secure
a permit to source groundwater adjacent to a two-pad
development. The operator contracted Emery & Garrett
Groundwater Investigations, a New Hampshire-based
groundwater exploration and
development company, which
after locating a more than
500,000-gal/d water reservoir
within a fractured bedrock,
recently drilled two 8-in. water
production wells.
Contaminants pose yet
another obstacle
“In the Appalachian Basin,
the supply of freshwater is
relatively plentiful. But the Two RWI evaporators, like the one shown in a test pond at
TDS levels are very high and the company’s Grand Junction, Colo., headquarters, can
NORM [naturally occurring evaporate some 1 bbl/min of produced water at a cost
radioactive materials] can of $.006/bbl. The systems utilize low power-intensive fans
be a problem as well for the to evaporate just under 7.2 MMgal/month on average.
produced water,” said Jared (Source: Resource West Inc.)
Ciferno, technology manager
for the U.S. Department of Energy’s National Energy
Technology Laboratory in Morgantown, W.Va. “How-
ever, a lack of good deep-injection options in Pennsyl-
vania means that many companies are using chemical
additives to permit reuse of higher TDS flowback water
for fracturing.”
Lower volumes, ample disposal capacity and less
expensive trucking in the D-J, Powder River and
Williston basins make injection a more cost-effective
option, according to Perez Peña. “The water cut is low
in newer Bakken wells, but we do see a big water cut in
the older ones. It’s slightly higher than the D-J but cer-
tainly not on the scale of the Delaware,” she said.
While not part of the Oklahoma PWWG study, a
Colorado company claims its take on evaporation tech-
nology can extend the life of SWD wells up to twenty-
fold while eliminating airborne salt pollutants.
42
“We take care of the really nasty stuff that can’t be
recycled. By hyper-concentrating the water, we can
make disposal wells last about 20 times as long, because
you’re putting a concentrate down the hole that won’t
clog up the formation you’re injecting into,” Robert
Ballantyne, R&D director of Resource West Inc. (RWI),
said following a September demonstration for a major
operator in Midland, Texas.
In what he described as enhanced evaporation with
drift control technology, Ballantyne said the RWI system
uses velocity and sedimentation control to squeeze con-
taminants into hydrated 100-μ droplets. The evapora-
tion systems float on the impoundment pond, enabling
the now-concentrated droplets to fall back into the
water quickly. Like a number of evaporation systems
still in use, Ballantyne said the
genesis of the RWI technology
could be traced to converted
snowmakers which, like those
adapted from common sprin-
kler systems, rely on extreme
velocity to stream produced
water over a holding pond.
The high-velocity flow paths
cause the droplets to dry out
and shrink to as low as 5 μ,
with the particulate matter
going into the atmosphere
as dry aerosol. These minute
fragments, Ballantyne said,
can float for miles before pre-
cipitating out and falling into
the environment as sodium
chloride, sodium sulfate, cal-
cium chloride and equally noxious salts.
“We were using converted snowmaking machines, but
saw their time in the oil field was coming to an end,
as the water was getting saltier and saltier, and those
machines were creating so many pollution problems
by spraying saltwater everywhere,” he said of the three-
year, $1.9-million development program that led to the
current system. “With such highly contaminated water,
we needed more control over the droplets.”
By never allowing the droplets to dry out, the system
keeps ionic contaminants tightly concentrated, with con-
trolled pre-injection deposition into the impoundment.
“Concentrating the volume relieves the pressure on the
disposal well. You’re still sending all the material you
need to downhole, but you don’t need the pressures,
and your saltwater disposal wells are not constantly
under a pressure and relaxation cycle,” he said.
January 2020 | E&P | HartEnergy.com
 COVER STORY:
FRACTURING ADVANCES

A comparison of proppant
crush strengths
Permian Basin production rates are compared for
Northern white and in-basin proppant types.

In recent years, operators have pumped an increasing

Alex Yang, Rystad Energy amount of proppant per stimulated foot, while simulta-
neously lengthening laterals. To mitigate the resultant

A Rystad Energy analysis has found little evidence

that lower crush strength proppants appreciably
change production decline curves in the Midland
Basin. Yet in the Delaware Basin, brown sand appears
to increase the decline rate when analyzing operators
in aggregate.
Proppant is required to withstand high temperatures
and pressures downhole to allow hydrocarbons to flow
to the wellbore. Proppant had sometimes been made
of synthetic ceramics, but operators have determined
this is rarely worth the cost. Historically, operators
believed that only Northern white sand, mined in
Wisconsin and neighboring states, fits the strength
and shape requirements for most shale wells. However,
brown sand mines in Central Texas have long served
frac sand to the Permian Basin even before 2014. The
downturn forced operators to cut costs and, as a result,
brown sand volumes increased in 2015 and 2016. In
late 2017, in-basin sand mines began to come online
in the Permian, cannibalizing demand for Northern
white sand and imported brown sand.
MIDLAND BASIN 2015-2016 AVERAGE OIL PRODUCTION
1.6
1.4
boe/lateral ft
costs and logistical difficulties, operators and service
companies alike have switched to lower cost in-basin
sands. Yet concerns remain whether the new design
profile of wells—which require massive amounts of
lower crush strength sand—will result in steeper pro-
duction decline.
In-basin sand adoption in the Permian is at approx-
imately 80%, which is among the highest of all plays
in the U.S. The Delaware has deeper formations with
higher downhole pressures, whereas the Midland has
shallower formations with lower downhole pressures.
In-basin sand adoption on the Midland side of the
Permian Basin has historically been higher relative to
the Delaware due to this very reason. There are about
20 active in-basin sand mines serving the Permian.
Methods
When analyzing a well’s performance with available
data, the most important factors to consider are the
well’s location, operator and completion date as well
as the mass of the proppant used and lateral length.
Different acreage locations
have different production
potential; therefore, the
effects of proppant will
differ. Operators will apply

1.2 varying techniques, which

1.0 may have a significant effect
0.8 on production but will not
0.6 appear in publically available
0.4
data. Similarly, completion
techniques change over time;
0.2
thus, models must keep the
0.0
0 2 4 6 8 10 12 14 16 18 20 22 24 25 28 30 32 34 36 completion date of analyzed
wells in mind.
Months
The total amount of
FIGURE 1. In a comparison of Texas brown sand versus Northern white sand, Rystad Energy did not proppant and the length of
find a statistical relationship between production decline in the Midland Basin and the type of sand laterals will both increase
used. (Source: Rystad Energy) production. These are mathe-

44 January 2020 | E&P | HartEnergy.com


matically simple to control, and many linear models find
that controlling for one eliminates the need to control
for the other. Lateral length can thus be controlled
by dividing production by lateral length. Because well
production rises slightly less than linearly with lateral
length, this method is not perfect, but it should hold
when examining small groups of wells with roughly simi-
lar lateral lengths.
Data on the sand type used are sourced from self-
reported numbers in the FracFocus Chemical Disclosure
Registry. Coverage is not complete, and there is some
bias for wells where Rystad does not know which sand
type has been used. Rystad also has made an effort to fill
in data gaps by utilizing other sources when possible.
Midland Basin results
In previous studies, Rystad Energy did not find a statisti-
cal relationship between production decline in the Mid-
land and the type of sand used. As seen in Figure 1,
initial results show that for 2015 and 2016 horizontal
HartEnergy.com | E&P | January 2020
COVER STORY:
FRACTURING ADVANCES
wells, brown sand had little effect on well curves in the
Midland Basin.
Rystad identified 68 brown sand fracs and 126 white
sand fracs operated by Operator A in 2016 and 262
wells operated in the same region by other operators
in 2016. Operator B’s brown and white sand wells per-
formed similarly in terms of barrels of oil produced per
lateral foot, though brown sand fracs displayed slightly
lower IP per lateral foot. However, both outperformed
other Midland wells in the area. Rystad cannot con-
clude from this analysis alone that lower crush strength
sands had no effect on decline rates, as the data do not
have visibility over a variety of factors. Nevertheless, it
does appear that Operator B has come to this conclu-
sion itself, as the company appears to have continued
to use brown sand in fracs and was one of a handful of
companies that publically announced its usage of lower
cost sand.
Operator C presents another interesting, counterin-
tuitive case study. Rystad positively identified that 37 of
45
 COVER STORY:
FRACTURING ADVANCES

sand wells. As in the Midland

DELAWARE BASIN DECLINE RATIO
Basin, more insight can be gained
7 by examining operators that used
both brown and white sand in
6
the Delaware Basin. Rystad pos-
Production Decline Ratio

5 itively identified Operator D as

having 25 fracs using brown sand
4 White
and 16 using white sand in 2015.
3 Brown Operator D also exhibited simi-
lar production profiles for white
2 Linear (White)
and brown wells. Rystad could
Linear (Brown) not compare these against wells
1
fracked by other operators in the
0 vicinity, as Operator D has a large
0 20 40 60 acreage position.
Proppant Mass (MMlb)
Conclusions
Rystad found little evidence that
FIGURE 2. In this scatterplot, a slightly positive correlation between proppant mass and
decline ratio is depicted in wells in the Delaware Basin. (Source: Rystad Energy) the usage of lower crush strength
proppants appreciably changes
its wells in 2015 were fracked with white sand, 11 with production decline curves in the Midland Basin, and the
brown sand and 37 with a mix of white and brown sand. behavior of operators that have used both Northern white
Rystad compared these wells to 173 wells fracked by sand and Texas brown sand within the same area suggests
other operators near Operator C’s acreage. Operator that these operators have come to the same conclusion.
C’s 2015 production profiles revealed that its white sand In the Delaware Basin, Rystad found evidence that,
wells significantly underperformed its brown sand wells, in aggregate, brown sand increases the decline rate.
its mixed sand wells and offset However, Rystad did not see
wells completed by other oper- this pattern when examining
ators. One major reason is the individual operators. Instead,
lower proppant loading, averag- In-basin sand adoption Rystad saw that for one opera-
ing 20% fewer pounds of prop- in the Permian is at tor, brown sand wells performed
pant per foot than its brown very similarly to white sand
and mixed sand wells. This approximately 80%, wells. For another operator,
may demonstrate why operators which is among the Rystad again saw lower IP but
choose lower cost proppant, not a faster decline.
which means operators can
highest of all plays An expanded statistical study
use more proppant for less in the U.S. of the aggregate effect of sand
money, usually leading to type in the Delaware Basin
higher production. would be informative, con-
trolling for downspacing, depth,
Delaware Basin results treatment pressure, frac fluid type and other variables.
Intuitively, it might be expected that brown sands have a An economic analysis, contextualizing the difference in
greater effect in the Delaware Basin, as treatment pres- performance between white sand and brown sand and
sures are higher than in the Midland Basin. In 2014 and taking into account the difference in costs in the form
2015, Rystad saw higher IP but faster decline for brown of a net present value or internal rate of return analysis
sand wells. would be important next steps in understanding the
Figure 2, a scatterplot of all wells in the Delaware effect of sand type in the Delaware Basin.
Basin, shows a slightly positive correlation between
proppant mass and decline ratio. In this case, a higher Editor’s note: View additional data charts from Rystad Ener-
decline ratio means slower production decline. This gy’s proppant analysis in the online version of this article at
positive relationship does not appear to exist for brown hartenergy.com/publications/ep-magazine/2020/01.

46 January 2020 | E&P | HartEnergy.com

 SPE HYDRAULIC FRACTURING CONFERENCE
TECHNOLOGY SHOWCASE
Headway in hydraulic fracturing
Companies highlight technological advances at SPE conference.
Compiled by Bethany Farnsworth, Contributing Editor
E ach year innovators in the hydraulic fracturing
space find new ways to push the industry forward,
improving the efficiency of operations while lowering
costs. Hydraulic fracturing experts will gather Feb. 4-6
at the Society of Petroleum Engineers’ (SPE) Hydraulic
Fracturing Technology Conference and Exhibition in
Houston to share knowledge and discuss the industry’s
challenges, and many companies will feature their new-
est and most impressive technologies. The following is a
sampling of the latest products and services that will be
showcased at the conference.
Editor’s note: The copy herein is contributed from service
companies and does not reflect the opinions of Hart Energy.
Microproppant improves production
CARBO’s NANOMITE microproppant is a fraction of
the size of the smallest proppant commonly deployed
and is offered in both ceramic and sand versions:
NANOMITE C and NANOMITE S. This cost-effective
offering is for operators experiencing difficulty with
proppant placement, elevated treatment pressure and
early screenouts during treatment. Traditional prop-
pant is too large to fit into a complex fracture network’s
microfractures, and its transport characteristics limit
how far it travels into the area. NANOMITE C’s small-
est particles are more than five times smaller than the
The small size of NANOMITE C enables the microproppant to
navigate tight angles. (Source: Carbo Ceramics)
48
smallest particles in 100 mesh frac sand. This allows the
particles to prop open even the narrowest secondary
fractures and microfractures experienced in complex
fracture networks. NANOMITE ensures operators’
microfractures contribute to production, increases
propped reservoir volume, diminishes treatment pres-
sure and ensures long-term well productivity for opera-
tors. carboceramics.com
Company highlights proppant data, features
resin-coated frac sand
Covia provides oil and gas completions solutions span-
ning any well environment in all major basins. At the
SPE Hydraulic Fracturing Technology Conference,
the company will showcase the value of an engineered
approach to proppant selection, the incremental ben-
efits of resin-coated sands and a comprehensive mine-
to-wellhead, full-service supply chain. Testing and field
data indicate that the enhanced physical and chemical
properties found in Tier 1 sands offer higher oil produc-
tion when compared to completions using cheaper Tier
2 sands in high-stress basins. Covia is introducing Back-
stop, the Permian’s dedicated proppant flowback sand.
Backstop is a resin-coated in-basin frac sand that ensures
proppant stays in the well where it belongs. coviacorp.com
Smaller footprint, higher horsepower of frac
pump decrease costs
Cudd’s new Q-3000 frac pumps deliver maximum effi-
ciency, durability and lower operating costs, requiring a
smaller footprint compared to a conventional lower-horse-
power fleet. These powerful units are the first final Tier
4 emissions-compliant, diesel-powered 3,000-bottom-
hole-pressure frac units in the industry. They provide
more than 2,800 hydraulic horsepower (hhp) at pressures
up to 14,000 psi (higher pressures available with 4.5-in.
plungers). The 550-gal fuel capacity enables extended
pumping operations with higher fuel efficiency and power
density per spread. The Q-3000 pumps include an exhaust
gas recirculation system that reduces emissions without
compromising performance and does not require diesel
exhaust fluid or diesel particulate filters. A smaller foot-
print with increased horsepower means less nonproduc-
tive time and improved safety, all of which contribute to a
lower operational cost. cuddenergyservices.com
January 2020 | E&P | HartEnergy.com
 SPE HYDRAULIC FRACTURING CONFERENCE
TECHNOLOGY SHOWCASE

Valve addresses operational challenges potentially costly maintenance, allowing pressure

of diverter pumping operations to continue at their maximum
The impact of pumping large volumes of diverter efficiency. diverterplus.com, nov.com
through stimulation pumping equipment is a well-
Disks Beads
known industry challenge. DiverterPlus and National
Oilwell Varco (NOV) have coordinated their efforts to
minimize or eliminate the accelerated wear and poten-
tial damage that can occur when particulate diverter
embeds into the valve insert. Through manipulation
of the polymers’ mechanical properties and geom-
etries via new manufacturing techniques of its Div+
line of particulate diverters, DiverterPlus has been
Flakes Powder
able to eliminate the need for additional equipment
in aggressive diversion deployments. Utilizing NOV’s
Blue Thunder valve and the additional data gained
from cooperative development, the insert compound
used with the valve is highly resistant to wear and
exhibits none of the problematic embedment issues DiverterPlus and NOV developed a solution to minimize wear
traditionally associated with large particle diverters. and damage when pumping large amounts of diverter.
The combined system eliminates downtime risk and (Source: DiverterPlus)

HartEnergy.com | E&P | January 2020 49

SPE HYDRAULIC FRACTURING CONFERENCE
TECHNOLOGY SHOWCASE
Solid expandable liners enhance operations
Enventure Global Technology Inc. is a provider of solid
expandable technologies for the energy industry. Solid
expandable technology can be used for multistage
fracturing in unlimited zones or sections and provides
a large inside diameter to accommodate larger perfo-
rating guns and flow areas as well as larger frac volumes
and rates. Solid Expandable Refrac Liners are multizone
isolation completion tools that utilize solid expandable
technology and elastomer technology to enhance frac-
turing operations. In addition, ReFrac products support
any type of perforating, plug and fracturing program
from conventional-shaped charge perforation on coil to
pumpdown composite plugs for isolation. These solu-
tions allow the creation of multiple new performation
and fracture intervals or zones to support refracturing
programs. The newly released next-generation solid
expandable refracturing liner provides operators more
options when selecting mechanical zonal isolation tech-
niques. enventuregt.com
Importance of tank monitoring and
asset tracking
Using measurement tools in storage and transporta-
tion tanks has a positive effect on the efficiency and
lifetime of chemicals and equipment. Liquid moni-
toring and asset tracking technology play a huge part
in the monitoring of chemicals from the chemical
companies to the final user and can help ensure
timely delivery and real-time monitoring of quan-
tities of chemicals contained. When selecting asset
monitoring solutions, there are several main points
to consider. These include looking for a range of
scalable solutions with viable costs and capabilities to
fit needs and budgets. It is important that the solu-
tion is tailored to a direct need. Tangible value and
benefits should be aligned with a company’s opera-
tional goals and objectives. Additionally, technology
options, such as satellite and cellular, should accom-
modate difficult transmission from remote locations.
hooverferguson.com

Platform uses data to help operators
improve production
FracRx is the formalization of MicroSeismic Inc.’s
data analytics and synthesis platform integrated with
multiphysics data that show operators precisely when
to start or stop fracturing in real time based on rate of
return. FracRx focuses on drilling profitable wells by
constructing a complete stimulated reservoir model
based upon a propped and unpropped discrete fracture
network, as illuminated by the monitoring data, using
MicroSeismic’s technique. After building an economic
model based on the operator’s cost and price decks,
FracRx performs a reservoir simulation to estimate fluid
volumes produced and drainage volumes achieved over
time, and then it creates a financial model to estimate
the most economic (greatest net present value) com-
pletion parameters. The platform offers a complete
description and map of the treated reservoir, including
drainage volume, during the frac by delivering the
stage-by-stage answers that engineers want and need
SPE HYDRAULIC FRACTURING CONFERENCE
TECHNOLOGY SHOWCASE
to improve production and increase asset value while
pumping. microseismic.com
Diverter hydrolyzes faster in lower temps
Historically, degradable polylactide (PLA) diverter
functionality has been limited to wells greater than 150
F. While PLA-based products could adequately divert
below 150 F, they were slow to hydrolyze at these cooler
well temperatures. Commercial alternatives that would
hydrolyze faster at low temperatures tended to present
handling issues, sometimes requiring refrigerated stor-
age. Developed with A. Schulman, NatureWorks’ Ingeo
DH1000 hydrolyzes up to four times faster at downhole
temperatures in the previously unmet range of 120 F to
150 F while retaining the inherent mechanical proper-
ties of PLA. In addition, DH1000 is delivered to the well
site in pails or bags and requires no special handling.
Available in formulations of varying particle sizes, these
diverters can be used in near-wellbore as well as far-field
applications where they can be employed to minimize
 SPE HYDRAULIC FRACTURING CONFERENCE
TECHNOLOGY SHOWCASE
the incidence of frac hits. Commercially available in
2019, DH1000 has been placed in more than 75 wells
across the Permian Basin as well as several international
trials. natureworksllc.com
Fast degrading diverters made with Ingeo DH1000 retain the
mechanical properties of PLA and are suitable for low-temperature
wells down to 120 F. (Source: NatureWorks)
Proppant delivery system lowers
trucking costs
Proppant Express Investments LLC (PropX) is a pri-
vately held company headquartered in Denver. PropX
is a last-mile containerized system for frac proppant
delivery from mine or transload terminal to well sites.
The system is designed to lower last-mile trucking costs,
end truck traffic, eliminate demurrage, offer more flex-
ible maximized load volume and produce less dust and
noise than incumbent methods, as well as allow some
of the highest throughput frac operations in the world
(greater than 9 MMlb/d per crew in several instances).
The ability to unload and load sand containers in less
than 10 minutes (versus 45 minutes for the same prop-
pant mass with pneumatic transfer) dramatically reduces
the truck staging problem and demurrage fees charged
by the truckers while standing by waiting on their turn
to unload. PropX deliveries incorporate a smartphone
and desktop app, which provides fast, easy ordering of
sand, trackability of loads by driver from terminal to well
site, sand inventory at the well site and frac stage report
summaries. propx.com
Silica dust engineering system designed for
hydraulic fracturing
Sierra Dust Control LLC’s vacuum-based system uses
containment that has proven 100% effective in all
weather types and equipment configurations, including
box and silo sand delivery systems. Results are accom-
52
plished with zero impediment on well completion oper-
ations or personnel. OSHA requires continued exposure
monitoring for levels above 25 µg/cu. m. Under a new
rule commencing June 23, 2021, hydraulic fracturing
work sites must implement engineering controls that
maintain free silica dust exposures below the permissi-
ble exposure limit. sierradustcontrol.com
New service measures frac performance in
real time through wireline
To improve stimulation and completion designs and
deal with the growing concern of interwell commu-
nications, operators need data to gain insight into
reservoirs. Evaluating stimulation performance in real
time and quantitatively measuring the extent of frac-
tures are the biggest tasks in shale play development.
According to Silixa, it has released the first fiber-optic
wireline-deployed hydraulic fracture monitoring service
with Carina XwellXpress. The service allows the real-
time monitoring of the buildup of poro-elastic strain
and identification of frac hits while accurately co-lo-
cating microseismic events and collecting high-quality
seismic data. This enables operators to optimize well
spacing and change frac designs on the fly to improve
production and reduce overall completion costs. The
system is easily deployable using conventional wireline
pumpdown or tractor technology. A number of cables
can be deployed or redeployed during the frac program
delivering an accurate surface visualization of the devel-
opment of the fracture network as the frac program
develops. silixa.com
Shorter pump trucks featured in new fleet
USWS will be unveiling the next-generation fleet in the
first quarter of 2020. The latest design has reduced the
overall length of the pump trucks by 23% from 48 ft to
36.9 ft. The reduction in the length of the pump trailer
was achieved through the development of the Power
Cube System, which allows the transformer and electric
motor controls to be housed together. USWS sources
components to boost efficiency and life of the equip-
ment and has upgraded the power end, which has a
more robust construction to stand up to the industry’s
harsh working environments. Another upgrade to the
next-generation Clean Fleet is a packing lubrication sys-
tem that utilizes multiple sensors to lubricate more effi-
ciently. This system will improve packing life, reduce
waste and increase operational efficiencies. In addition,
this next-generation fleet will have a design to fit oil
lubrication, which will reduce the cleanup associated
with grease-based systems. uswellservices.com
January 2020 | E&P | HartEnergy.com
 Recognizing
Today’s Technology Influencers

I
E&P’s new nnovation is the lifeblood of the oil and gas industry.
Energy Innovators However, innovation requires invention. Invention
requires ideation. Ideation requires inspiration.
program spotlights
The value of an idea is found in how it is used,
the oil and gas industry’s as Thomas Edison, the inventor of the modern-day
leading inventors, lightbulb and more, once noted. Ideas and all of their
leaders and thinkers. possible uses become reality when the brightest minds
transform inspiration into innovation.
In recognition of the oil and gas industry’s bright-
est minds, inventive innovators and leaders of cut-
ting-edge technology development, E&P is proud to
announce the 2020 Energy Innovators.
These men and women, nominated by their peers and
colleagues, have demonstrated leadership and made
significant contributions to advancing oil- and gas-
related technologies. It is in their hands that the next
generation of innovations and the industry will thrive.
For complete details on all the 2020 Energy Innova-
tors honorees, please visit hartenergy.com/energy-
innovators.
— Jennifer Presley, Executive Editor

54 January 2020 | E&P | HartEnergy.com

2 0 2 0 E N E R G Y
I N N O VAT O R H O N O R E E S
Geoff Bland Trevor Pugh Steve Deiker Christopher Daeffler
Aggreko Deep Imaging Kairos Aerospace Schlumberger
Rami Mattar Zvi Koren, Ph.D. Hege Skryseth Richard McConomy
Amerapex Corp. Emerson Automation Kongsberg Seadrill
Mike Rumbaugh Solutions
Gautier Noiray Stuart Fraser Wright
Apergy Anthony Mason McDermott Sensia, a Rockwell
Sandy Williams Endurance Lift Solutions Automation &
Rachael Cole
Artificial Lift Schlumberger JV
Ian Donald M-I SWACO,
Performance Enpro Subsea a Schlumberger Co. Stig Olav Settemsdal
Kimberly L. Ayers Siemens
Allen Gilmer Kendall Zakariassen
Ayers Petroleum Enverus Moblize Gaurab Chakrabarti
Consulting Solugen Inc.
Brad Thompson Chad Kamann
Albert Rooyakkers Epex Solutions NatureWorks Casee Lemons
Bedrock Automation Sourcewater Inc.
Greg Wyatt Nii Ahele Nunoo
Shahram Farhadi Nia, Exterran Corp. National Oilwell Varco Keith Moore
Ph.D. SparkCognition
Beyond Limits Jeremy Angelle Luther Birdzell
Frank’s International OAG Analytics Arvind Sharma, Ph.D.
Mathew Bennett TGS
Calfrac Well Services Melanie Popp Jim McNab
geoLOGIC systems Oceaneering International Adam Garland
Derek Kamp WaterLens
Caterpillar Inc. Preston Weintraub David Wesson
Gilmore, a Proserv Co. Oil States International Manoj Nimbalkar
Stephen Robinson Weatherford International
DarkVision Donald Westacott Igor Uvarov
Technologies Inc. Halliburton ROGII Inc. Dan Purkis
Well-SENSE
Andrew Bruce Jay Hewitt Saad Al-Driweesh
Data Gumbo Hewitt Energy Strategies Saudi Aramco Edward Spatz
XR Lateral

HartEnergy.com | E&P | January 2020 55

 Fueling the next-generation
workforce
Amid a looming talent crisis and an aging workforce, the energy industry
must adopt new strategies to attract fresh talent.
Skewed perceptions
Faiza Rizvi, Associate Editor
A s the current workforce heads into retirement, it
is critical for oil and gas companies to recruit and
retain fresh talent for the advancement of the oil and
gas industry. With nearly 1.9 million job opportunities
projected in the oil and natural gas and petrochemical
industries through 2035, there is a vast opportunity for
the energy industry to attract, retain and develop life-
long careers for millennials, according to API.
While industry insiders know that this is an excit-
ing time for the sector—with digital transformation,
advanced analytics and artificial intelligence (AI)
impacting industry processes, several studies indicate
that the oil and gas industry still maintains its static pub-
lic image of being old-fashioned and lacking innovation.
Key findings also show that millennials—who consti-
tute the largest part of the U.S. workforce—continue
to hold a negative opinion of the energy industry com-
pared to other industries and do not favor a career in
oil and gas. An EY poll revealed that the industry has
been unsuccessful in wooing the younger generation,
which views the industry’s jobs as unstable, blue-collar,
difficult, dangerous and harmful to society.
Consequently, it has become crucial for energy
companies to discard traditional methods and
adopt new approaches to attracting the up-and-
coming workforce.
INTEREST IN PURSUING A CAREER BY INDUSTRY
FIGURE 1. A 2019 ADNOC survey revealed that the oil and gas industry faces stiff competition
from other sectors in attracting STEM millennials and Gen Z. (Source: ADNOC)
56
With a new wave of industry innovation, the array of
career opportunities is extensive. The bad news is that
millennials are not interested.
According to EY’s study, when Generation Z respon-
dents were asked why they found an oil and gas career
unappealing, more than 40% said it simply did not
interest them. But another major reason was their
awareness of environmental issues, with 23% saying the
industry was bad for the environment in some way.
“The millennials are looking for jobs in purpose-driven
and environmentally friendly organizations. They per-
ceive that the oil and gas industry is not environmentally
friendly [and] not progressive in terms of technologies,
work environment and culture. That’s not necessarily
the case, but that is surely the perception,” said Rachel
Everaard, co-author of the research and principal in EY’s
U.S. Oil & Gas People Advisory Services.
To gather an in-depth perception of millennials’
views toward the oil and gas industry, Abu Dhabi
National Oil Co. (ADNOC) conducted a study in 2019
titled “Oil and Gas 4.0: Attracting the Workforce of
the Future,” which polled 3,000 students and young
professionals across 10 countries representing a mix of
major global economies. The study revealed that only
44% of STEM millennials and Gen Z are interested
in pursuing a career in oil and gas, which is sparse
compared to 77% interested in working in technolo-
gy-driven sectors and 58% interested in life sciences
and pharmaceuticals (Figure 1).
Despite the industry’s progress
toward digitalization, one of the
primary reasons among future
employees’ disinterest in the oil and
gas industry is their perception that
the sector is not technology-driven,
according to the ADNOC study.
Although millennials and Gen Z are
drawn toward sectors in which tech-
nology plays an important role, they
do not favor a career path in the oil
and gas sector.
January 2020 | E&P | HartEnergy.com
 The study also revealed that 72% of the
future workforce believes that new technolo-
gies can empower the energy industry, but they
do not perceive technical and creative skills as
job requirements for this sector. Additionally,
as opposed to the 37% of students and young
professionals who see IT and computer knowl-
edge as fundamental skills for the future, only
18% view them as requirements needed for a
career in the oil and gas industry.
“If we are seen as low-tech and old-fashioned,
we must showcase our high-tech breakthroughs
and our cutting-edge practices. When we are
perceived as environmentally unfriendly, we
need to highlight the work we are doing to
protect and safeguard our natural world,” said
ADNOC CEO Sultan Al Jaber while presenting
the inaugural report of the ADNOC survey.
“We are not an industry set in the past; we are
an industry that is embracing the future and According to recent research, energy companies need to highlight their
enabling the 4th Industrial Age.” digital advancements to attract millennials, who perceive the oil and gas
industry as technologically backward. (Source: Matva/Shutterstock.com)
Career choices
For millennials and Gen Z, the major drivers behind a but as part of the move to a low-carbon sustainable
career choice include a good salary, work-life balance, future, can be a reason to attract people who want
job security and on-the-job happiness and fulfillment, to make a difference. However, this only works if the
according to the ADNOC survey. Additionally, the potential employees feel this ambition is authentic and
study concluded that students and young profession- implies that new hires should be given an opportunity
als are drawn toward careers that they perceive will to contribute to this transformation,” Oosterhuis said.
be most impacted by new technologies. The energy
industry scored low on this measure, as only 42% of Attracting millennial interest
millennials believe new technologies would have a Even though the industry has successfully produced
major impact on the sector, compared to the IT indus- greater quantities of oil and gas from more complex
try, which according to 73% of respondents will be geologies using advanced technologies while increasing
impacted by new technologies. environmental stewardship, millennials perceive the sec-
These findings suggest that attracting the best tor as backward and dangerous to the environment. This
STEM graduates and professionals into the oil and gas points toward an urgent need for executives of oil com-
industry will require more efforts from companies to panies to address the perception gap by highlighting the
highlight the role of technology in driving the industry industry’s sustainability efforts and technological depth.
toward the future. “A fresh emphasis on pioneering technology could
“The energy industry must convey a stronger message make oil and gas an aspirational career choice for a
to millennials about its importance to the national and new generation of recruits whose interests lie more in
global economy and the industry’s digital transforma- the technology and coding spheres,” according to Jeff
tion with newer, greener business and a wider purpose,” Williams, global oil and gas advisory leader at EY.
said Inge Oosterhuis, managing director of talent and In an analysis of job-seeker click behavior, younger
organization at Accenture. applicants were far more likely to click on jobs with a
She added that the industry also must recognize that digital element, such as developers and data scientists,
younger generations are more driven by the need to he said.
contribute to society at large. Williams also pointed out that as many as 70% of mil-
“The fact that in energy we are working on one of the lennials believe oil and gas jobs are physically demand-
most dramatic pivots not just from a digital perspective, ing. To overcome this barrier, he suggested that oil and

58 January 2020 | E&P | HartEnergy.com

 gas companies must work together or collaborate with critical driver” for the company and said the digital
technology firms toward a transformation of their struc- factory would attract new talent essential for the com-
ture, generating new roles like that of a drilling data sci- pany’s future.
entist, an Internet of Things (IoT) platform engineer or
a rig automation supervisor. This change can promote Strategic partnerships
the oil and gas industry as being on the leading edge of Collaboration between the energy industry and academia
innovation, thereby attracting fresh talent. is critical to developing the right skill sets of STEM stu-
Millennials are looking for employers that will dents, preparing them to pursue a career in the energy
expose them to Industry 4.0, but they may not realize industry. Oil and gas companies have made some prog-
that their opportunity to work with new technologies ress in this area, partnering with educational institutions
doesn’t have to be at a traditionally defined “technol- to train, upskill and develop the future workforce.
ogy” firm, according to an For instance, the
analysis by Matt Campbell Society of Exploration
and Crystal Thompson Geophysicists, in cooper-
from the People & Change ation with Halliburton, is
Advisory team at KPMG.
“The energy industry must preparing students and
New technologies create convey a stronger message to young professionals for
opportunities to attract the millennials about its jobs in the energy industry
future workforce as organi- with the multidisciplinary
zations shift their employee importance to the national and EVOLVE student program,
base toward higher-value global economy and the which began in 2015 with
work like strategy and ana- a pilot program. Ten uni-
lytics, and away from repeti-
industry’s digital transformation versity teams from the U.S.,
tive, manual tasks. with newer, greener Canada, Europe and Latin
The future generation of business and a wider purpose.” America participated in
workers wants exposure to 2018, and the program was
the digital technologies that expanded to 20 interna-
the oil and gas companies
—Inge Oosterhuis, Accenture tional teams in 2019.
have implemented over Similarly, Midland
the last decade under eco- College and operators
nomic and regulatory pres- such as Pioneer Natural
sure to make operations safer and more efficient. A few Resources jointly launched the Petroleum Academy,
examples include automated production, remote asset a program that allows local high school students
monitoring through IoT sensors and data analytics to interested in a career in oil and natural gas to receive
crunch vast amounts of valuable information, Campbell hands-on, real-world experience in the industry by learn-
and Thomson stated. Exxon Mobil and MIT’s effort to ing directly in their classrooms from energy employees.
leverage AI to detect natural seeps in deep ocean waters Recently, Emerson partnered with San Jacinto
is the kind of project millennials can get excited about. College’s new Center for Petrochemical, Energy and
In this regard, several oil companies have stepped Technology to help design, equip and provide training
up efforts, identifying the need to promote their new tools to empower students with the skills and training
technologies. For instance, Emerson recently launched needed to support careers in the petrochemical and
a new digital transformation business line focused on refining industries.
automation processes and programs. Other corporations such as Chevron, Exxon Mobil
In a similar effort, Total partnered with Google and Schlumberger have partnered with educational
to launch a new “digital factory” in Paris, seeking institutions to support STEM education. Exxon Mobil
to reduce its environmental impact and opening supports numerous programs that aim to inspire and
itself to potential new businesses. In a press release, prepare students for a career in the energy industry,
Total announced it would hire up to 300 developers, including STEM camps, professional development
data scientists and other tech experts in early 2020 camps for STEM teachers and events featuring company
to accelerate its digital transformation. Total CEO employees, demonstrating their experiences within the
Patrick Pouyanné described new technologies as “a energy industry.

60 January 2020 | E&P | HartEnergy.com

 The skills gap
An aging workforce and increased competition for tomorrow’s technical talent
have left the oil and gas industry nervous about its future.
Contributed by GETI authors
O n the heels of the 2019 Global Energy Talent
Index (GETI), the report’s authors came together
to discuss the sector’s ongoing struggle with the skills
gap and what can be done to ensure oil and gas compa-
nies begin to close it.
Roundtable participants included Janette Marx,
Airswift CEO; Jim Stuart, senior vice president of Digital
Products at Lloyd’s Register; and Hannah Peet, manag-
ing director at Energy Jobline.
The GETI revealed that the industry (40%) is already in the
midst of a significant skills crisis. How is this impact being felt?
Peet: The people working in the sector feel this [crisis].
Maybe there are not as many people supporting them in
their roles as they would like, and they are feeling that
pinch. I think young people in particular are conscious
of the skills gap. They are happy on the whole, but
According to the GETI, 48% of oil and
gas professionals are concerned about
an impending talent emergency.
(Source: ALPA PROD/Shutterstock.com)
62
maybe they’re seeing bigger workloads than expected,
less training or leaner teams. People were understand-
ably cutting back during the downturn, which trickles
down and now we are feeling the consequences.
Stuart: I would agree; it’s something we notice a lot and
you’re right that it feels more pronounced a few years
downstream from the downturn. We see the impact
broadly anywhere where you have heavy industry with
complex systems. These systems take really specific
knowledge to operate and those people are at the front-
line of the skills crisis.
Marx: People are feeling the pressure from smaller
teams. On the other hand, we should not neglect to
mention the upside for people in the industry, which
is that the skills shortage is putting upward pressure
on wages. We have talked a lot about the people,
which is right as they are the lifeblood of any com-
pany, but there are also impacts at an organizational
level. If you cannot get enough of the right people
January 2020 | E&P | HartEnergy.com
 onto a project at the right time, then you start to get
project delays.
Respondents believe the skills shortage has the potential to
decrease efficiency (58%), reduce productivity (51%) and
increase operating costs (50%). What is the industry doing to
combat this, and which regions are most at risk?
Marx: A big thing we have seen is the industry making
renewed efforts to get more students trained up and
entering the market. There is a lot of recognition that
there simply is not enough technical talent to go around,
and firms are trying to get ahead of the problem. The
other thing, which I am very pleased to see, is that there
are more companies focusing on gender diversity.
Stuart: For us, technology is really important. We frame
the problem in terms of ‘organizational memory,’ think-
ing about skills and the expertise that is leaking out of
the industry and causing the skills crisis. Is there a way
to capture and codify that, to put it into systems that
can then automate tasks? That way you retain skills and
experience. That is what we’re trying to achieve with
[Lloyd’s Register’s] AllAssets software.
Moving on to regions most at risk though, to my mind
it is actually the United States. If you are a young, tech-
nically minded person looking for a career path, you
have this thriving and attractive technology economy
that takes talent away from the energy sector.
Peet: I would echo that the U.S. is a region at risk. I
would add two things: one, that the U.S.’ heavy restric-
tions on immigration make it difficult to bring in
high-quality ex-pat talent, and two, the U.S. also strug-
gles to attract enough blue-collar workers.
What can the industry as a whole do to help solve the skills
gap—culturally and technologically—through education
and diversity?
Marx: All of those things are vital. Get culture right, and
you will be less exposed to the skills gap. Technologi-
cally, it is about embracing automation. The more you
automate, the more efficient employees can be. In terms
of diversity, it is about making sure that every company
is set up in a way to accept, encourage and drive diver-
sity. That comes down to the hiring processes.
Stuart: To my mind, culture and diversity are insepa-
rable, as they both speak to the changing workforce.
Diversity matters to the next generation of talent; it
64
reflects the open, social, collaborative culture they want
to work in. So you’ll get the right culture partly through
diversity. But to get diversity, you need it to be part of
the culture so that it comes naturally.
Education is, of course, important, but technology is
what excites me the most. We are focusing on codifying
subject matter experts’ expertise, so that it is not lost,
using technology. This is the type of thing that will go
a long way to mitigating the skills shortage—arguably
more than anything else in the short term.
Peet: In terms of culture, it struck me that 30% of
respondents think a more flexible culture will help
attract and retain more staff. That’s not a majority, but it
is significant. More respondents, though, cited training
and career progression, 57% and 51%, respectively.
In the short term, it’s all about training; in the long
term, we need to look at diversity. I don’t mean diver-
sity shouldn’t be a priority now—it absolutely should.
However, it will take time to build a diverse workforce
and right now most of the existing talent is male, which
cannot be ignored.
Finally, 81% of GETI respondents under 25 would enter the
energy sector if they were starting their careers now. How do
we market that optimism to the next generation?
Stuart: That is a hugely encouraging statistic, and it tells
me that despite all of the very real problems we have dis-
cussed, we are doing something right as an industry.
That said, I think the area we need to focus on in
marketing is the relevancy aspect. Look at BP, look at
Statoil’s transformation to Equinor—they are push-
ing that relevancy story. But we still need to do better
around the collaboration- and the community-driven
idea that younger people want in their employers.
Marx: Those companies you mention are great exam-
ples of businesses that have tapped into the meaning
behind what they are doing. People want to know what
they do makes a difference. If we can market that to the
next generation, people will want to join.
Peet: It is great to see such positivity in the under-25s,
but we have to bear in mind that it is not mirrored by
their older counterparts. That says to me we need to
focus on maintaining the strong graduate pipeline, yes,
but that those efforts perhaps have not been replicated
for the older generation. Have we invested enough in
retaining them? It is great to see the positivity for the
future, but let’s not be complacent.
January 2020 | E&P | HartEnergy.com
 EXPLORATION: PROCESSING
AND INTERPRETATION

Single comprehensive
environment for interpretation,
static and dynamic modeling
Software combines static and dynamic modeling in a
single program launched by one executable file.

Joe Lynch and Vasilii Shelkov, Rock Flow Dynamics

I n the context of reservoir management, interpretation

is the start of a process that has significant impacts
downstream. Many decisions about how to manage res-
ervoirs, especially very productive reservoirs, are based
on results from reservoir simulation. But there are barri-
ers on the journey from interpretation through model-
ing to simulation.
The topic of reservoir management has historically
been divided into multiple areas: seismic interpretation,
well interpretation, static modeling and dynamic model-
ing (or reservoir simulation). There are reasons for this:
one is that different computer programs are used for
each area and another is that they are performed by dif-
ferent disciplines. Geoscientists interpret and construct
static models, and reservoir engineers characterize flu-
ids and drive dynamic models.
In some less enlightened organizations, an “over-the- The tNavigator 3-D-gridded geobody is represented with seismic
wall” mentality still exists at the boundary between the volume for backdrop and quality assurance.
static and dynamic worlds. Once a geoscientist completes (Source: Rock Flow Dynamics)
a static model, they never see it used. On the other side,
the reservoir engineer does not see the static model on Comprehensive workflows and
which their dynamic model is built until the geoscientist fast performance
is finished. Sometimes a geomodeler is in a different tNavigator covers the range from seismic interpre-
department or even a different country from those per- tation, depth conversion, well correlation, reservoir
forming the interpretation, and a similar communication structure, property modeling, fluid analysis (pressure
problem exists. These examples are extreme but are volume temperature [PVT]), well modeling (vertical
indicative of the processes in some organizations. flow performance [VFP]) and reservoir simulation to
There are multiple reasons for over-the-wall sickness. surface network design. As part of this process, tNavi-
The reasons can be related to training, organizational gator includes much functionality that was previously
design, office politics, personalities, etc. Until recently, performed in dedicated programs. This functionality
the industry did not have a good solution to the prob- includes well correlation, geostatistics, PVT, EOR,
lem that separate computer programs were required on post-processing and history matching.
the static and dynamic sides. Rock Flow Dynamics has Underlying the tNavigator functional modules is a
removed this barrier with its tNavigator software, which framework to capture, record and replay workflows.
combines static and dynamic modeling in a single pro- This, in turn, can connect to the optimization and uncer-
gram launched by a single executable file. tainty modeling engine (named AHM—Assisted History

66 January 2020 | E&P | HartEnergy.com


Matching) to deliver powerful
solutions that cover the entire res-
ervoir management domain.
Unlike some legacy programs,
tNavigator was written using
modern computing architec-
ture with an ambition to be fast
and scalable. This means that
performance enablers such as
parallelization are intrinsic in
tNavigator. Parallel code is harder
to write, but it delivers massive
performance benefits.
The diagram depicts tNavigator’s functionality. (Source: Rock Flow Dynamics)
GPU and adaptability
The modern computing architecture on which tNaviga-
tor is built has allowed it to adapt to new technologies
quickly. A good example of this is the use of the GPU
for processing more than just graphics. The use of
modern GPUs can significantly speed up some reservoir
simulations, particularly those simulations that spend
proportionately a lot of time in the linear or nonlinear
solvers. But the GPU is not the answer to all problems;
modeling of aquifers, some well and surface network
controls often can be better processed on the CPU.
tNavigator allows the user to select the types of tasks sent
to the GPU. Geoscientists are not left out from benefit-
ting from GPU processing. Computationally expensive
geostatistical algorithms also can be sent to the GPU.
Initial tests indicate a speedup of more than four times
in processing these calculations. This can make a differ-
ence in same-day versus next-day results for some com-
plex stochastic geostatistical simulation runs.
Another beneficial result from developing on modern
computing architecture is the ability to work on the
computing hardware that clients have available—from
laptop to workstation to cluster to the cloud, Windows
or Linux, with or without GPU, for conventionals or
unconventionals.
3-D grids
Additionally, tNavigator helps minimize the barrier of
constructing a 3-D grid. Many geological uncertainty
studies focus on facies and petrophysical modeling.
There is little doubt that these are important parts of
the workflow with significant uncertainty. But facies
and petrophysical modeling have the advantage that
they don’t require the rebuilding of a 3-D grid for
every realization.
Dealing with interpretation uncertainties upstream
of 3-D grid building is a more complex process, as it
HartEnergy.com | E&P | January 2020
EXPLORATION: PROCESSING
AND INTERPRETATION
does require the rebuilding of a 3-D grid. Some of these
uncertainties can be very significant. They include seismic
interpretation, depth conversion and well correlation.
The tNavigator software has features that make 3-D grid
building less of a problem and more feasible as part of a
workflow. First is the availability of an unstructured grid-
ding format for dealing with complex structures. Second
is the speed and scalability of the tNavigator infrastruc-
ture to process the geometric calculations required. Then
the result is a robust grid that is calculated rapidly.
Machine learning and analytics
tNavigator is a full-geoscience and full-physics approach
to reservoir management. It includes a comprehensive
environment for processing and analysis of static and
dynamic models that allow multiple views of the data
and results.
It also benefits from some of the advances in the
worlds of artificial intelligence, machine learning, Big
Data and analytics. Rock Flow Dynamics incorporates
these methodologies where they deliver reliable results
and speed up turnaround times. Examples include the
traditional use of genetic-type algorithms and neural
networks for history matching.
Summary
tNavigator is a single comprehensive environment for
interpretation, static and dynamic modeling. Workflows
can be cross-domain. tNavigator’s modern computing
architecture means improved speed and scalability.
GPUs can benefit both engineers and geoscientists. The
software adapts to solve specific problems in a user’s
environment using their language. The barrier of 3-D
gridding is minimized. It is easy to convert projects and
get started. The software also incorporates machine
learning paradigms.
67
 EXPLORATION: PROCESSING
AND INTERPRETATION
Accelerating data-driven
completion decisions through fluid
tracking and cloud computing
Cost-effective technologies available for completion engineers rapidly interpret data and
make real-time decisions, much like their drilling counterparts.
Ellen Scott and David Moore, Deep Imaging
I n the early days of hydraulic fracturing, engineers com-
monly performed diagnostics and modeled fracture
dimensions on every treatment stage. As the industry
moved from vertical wells with a few stages to long, hor-
izontal wells with treatment stages spaced every approx-
imately 150 ft, engineers had neither the time nor the
resources for diagnostics or fracture
geometry understanding. Compared
to completions, recent drilling oper-
ations have progressed more rapidly
toward data-driven automation.
To produce economic unconven-
tional wells, operators have focused
on factory-style operations in the
past few years. In this quest for
optimization, lateral wells are being
drilled and completed quicker and
longer with 40 to 70 stages per well,
requiring more proppant placed at
higher rates.
To meet the demands of efficiency,
completion engineers typically spend
more time using spreadsheets than
fracture simulation software, where
formulaic outputs dictate treatment
stage spacing, perforation cluster FIGURE 1. This map depicts the view of EM enabling completions engineers
depth and the pump schedule. This fluid-tracking data for a 19-stage horizon- to move beyond factory-style com-
is confounded by the fact that com- tal well. (Source: Deep Imaging)
pletion engineers often orchestrate
simultaneous fracturing and zipper fracturing operations
with multiple horizontal wells. These complex operations
leave no time to review data or perform diagnostic tests
between stages.
This is in contrast to the origins of hydraulic fractur-
ing, where a slower pace of operations meant engineers
commonly had diagnostics, fracture models and onsite
68
design changes on each stage. However, as well and
stage spacing become tighter and rock quality dimin-
ishes, even with time to make decisions, novel diagnos-
tics are needed to sufficiently explain the subsurface. In
relatively high-permeability rock, pump-in tests gave past
completion engineers quick, meaningful information on
fluid leak-off. Today’s completions target much lower
permeability formations, thus requiring a new approach.
Finally, the predictive capability of fracture models dif-
fers from those of the past. In more
conventional reservoirs, calibrated
models could relatively accurately pre-
dict fracture dimensions in a vertical
well’s treatment. Models are generally
uncalibrated because of sparse data,
aggravated by complex multistage
treatments with multiple perforation
clusters per stage, creating interstage
and intercluster stress effects that are
difficult to model.
The paradox of today’s comple-
tions designs is that while comple-
tions are more complex, traditional
measurements are poorly suited for
most drilling targets, and the drive
for efficiency requires real-time
solutions. This article will focus
on recent technological advances
pletions and make real-time data-
driven decisions.
A paradigm shift
After several years of factory-style development, the
unconventional industry is experiencing a paradigm
shift. Operators and investors realize the growth model
(i.e., continuously increasing drilled feet and proppant
pumped per day) is neither sustainable nor realistic.
January 2020 | E&P | HartEnergy.com

Especially in today’s low-price environment, most real-
ize the need to focus on capital efficiency. Doing so
requires a continuous improvement program to move
toward optimized reservoir development. Important
variables to tweak and test include well spacing, lateral
target zones, drilling parameters, completion designs
and flowback strategies. Compared to a trial-and-error
method, cost-effective data acquisition and processing
can accelerate the continuous improvement process.
In several ways, drilling departments are further
along this path than their completion counterparts.
Compared to the relatively standard set of measure-
ments in real-time drilling data streams, completions
data currently lack such standardization. For example,
each pumping service company has its own name for
the same chemical additive. Although there is still room
for improvement, direct downhole measurements are
also more common during drilling than during comple-
tions. Gamma ray measurements, for example, provide
a direct measure of the subsurface and are commonly
used to steer the well in the correct target formation.
On the other hand, completion engineers primarily
rely on data calculated from surface measurements to
interpret downhole conditions. As a result, large drill-
ing departments have control rooms with a few engi-
neers and geoscientists remotely drilling and steering
multiple wells. For completions, an equivalent remote
decision-making process, informed by real-time data
streams, is uncommon. One of the main challenges of
a data-driven, remotely controlled process is that cur-
rent modeling capabilities are not enough to accurately
predict the results of real-time changes. Because com-
pletion engineers cannot rely on models, the processing
and interpretation of data are critical.
Real-time fracture monitoring empowers completion
engineers to make decisions during fracturing and
immediately see the results of those decisions. This
feedback accelerates the learning curve and provides a
continuous improvement platform.
Fluid tracking and cloud computing
Real-time completions monitoring options range from
low-cost, scalable measurements to high-resolution
methods that provide vast data but are often cost-pro-
hibitive. For instance, wellhead pressure gauges are
inexpensive and easily installed on every wellhead, but
their information is limited to pressure communication
at specific times. In contrast, permanently installed
fiber-optic cables can provide data from well construc-
tion, stimulation and production. However, budgets
often preclude multiwell fiber deployment.
HartEnergy.com | E&P | January 2020
EXPLORATION: PROCESSING
AND INTERPRETATION
Electromagnetic (EM) fluid tracking is one of the
recent options for cost-effective completions monitor-
ing. Deep Imaging uses controlled-source EM technol-
ogy to measure the changes in subsurface resistivity
caused by treatment fluid injection. Injection of the
hydraulic fracture fluid into the source rock perturbs a
generated electrical field causing measurable EM field
differences on the surface. As a result, the technology
creates a map of fluid movement in each treatment
stage or during flowback. It has a relatively small foot-
print with no impact to operations because it requires
neither well intervention nor additives to the fluid or
proppant. The technique involves a transmitter and
grounded electrodes spaced out over the horizontal
portion of the well, not on the well pad.
One operator used the technology to monitor its first
horizontal well in the area (Figure 1). The results illus-
trated the east and west extents of the stages’ fluid, which
were used to optimize subsequent well spacing. These
data also indicated that lithologic changes along the
toe-up well affected fluid movement, which suggests the
landing zone target impacts fracture geometry. Surface
treating pressure alone did not show such variations in
stages with different lithology. Thus, the processing and
interpretation of far-field fracture monitoring data pro-
vide greater insights than traditional measurements and
are effective in guiding field development.
In some cases, particularly for smaller operators that
only drill a few wells per year, reviewing data after com-
pleting the fracture treatments is enough. Alternatively,
larger operators that drill multiple wells per month
often plan the next well’s completion before finishing
that of the prior well. In these cases, real-time process-
ing and interpretation add significantly more value.
Because fluid-tracking processing requires neither an
inversion nor a calibrated model, it involves little inter-
pretation and is easily automated in the cloud.
Deep Imaging has collaborated with Amazon Web
Services (AWS) for its demonstration of real-time pro-
cessing and interpretation capabilities. The scalability
of a cloud-based infrastructure allows rapid deploy-
ment of computational power scaled to meet each
project, while allowing Deep Imaging to be agile and
design for the ideal solution, not the existing infra-
structure. Detailed fluid tracking creates extremely
large datasets, and without a cloud-native approach,
data-intensive analysis of these data would be limited
to existing capabilities. Instead, by leveraging AWS’
technology infrastructure platform, Deep Imaging will
be able to focus on its primary goal of delivering
results to customers in real time.
69
 DRILLING: MPD/UBD
Implementing a flexible MPD
approach in Vaca Muerta
As activity in the Vaca Muerta Basin continues, operators should consider MPD for all wells.
Scott Miller and Ernesto Caballero, Halliburton
T he Vaca Muerta Basin is a prolific basin considered
by many to be the next large shale play globally. As
of 2018, the operators there collectively were producing
about 160,000 boe/d, and activity is expected to con-
tinue, primarily in greenfield blocks with a focus on hor-
izontal wells. Despite current instability in the country
due to the political environment and soaring inflation,
the Vaca Muerta Basin remains a promising development
for both national and international oil companies alike.
While in many respects operators in the Vaca Muerta
are trying to apply the same techniques and technolo-
gies deployed in the U.S. shale plays, the Vaca Muerta
Basin presents some unique challenges of its own. In
This map shows the general hydrocarbon type and operators of each block. (Source: Wood Mackenzie)
70
particular, operators have noticed that geographical
location influences the lithology and features of the
reservoir. Not all wells within the same field and region
have similar drilling challenges, as the reservoirs will
exhibit a range of permeability, gas-oil ratio (GOR) val-
ues and potential of encountering natural fractures.
In regions with a high GOR (dry gas), an influx can
quickly become a well control event if not properly
handled due to the high-rate expansion of the gas as it
comes to the surface. The areas that are heavily liquid
loaded (black oil) can still deliver influxes and have nat-
ural fractures, but they will not carry the same risk when
compared with the gas wells.
To manage these drilling challenges and the complex-
ity of the field, operators have implemented managed
pressure drilling (MPD). However, they also realized
Red = Dry Gas
Orange = Wet Gas
Yellow = Gas Condensate
Light Green = Light Oil
Dark Green = Black Oil
January 2020 | E&P | HartEnergy.com

that the MPD service can be optimized depending on
the location and overall knowledge of the field. The
value of MPD lies in the ability to immediately detect
kicks and losses and effectively manage equivalent cir-
culating density (ECD) while drilling, especially at the
heel of the well and while drilling the lateral. Missing
these drilling events could lead to a significant loss of
performance in terms of time and added cost to manage
a scenario with combined influx and losses. In areas
with high understanding of the wells’ characteristics
and potential drilling challenges and less risk of large
gas influxes, MPD remains a valuable tool to manage
the bottomhole pressure to mitigate kicks and losses.
However, it does not require the same level of sophis-
tication as the more complex wells
within the basin.
In 2019 a major operator transi-
tioned from a conventional full MPD
package to a flexible MPD system with
a simplified interface to apply a tai-
lored approach to ECD management
while drilling. This initiative, which
paved the way for implementing an
optimized and cost-effective MPD
service, was a product of a compre-
hensive standardization campaign
enabled by the data and learnings
gathered in more than 45 wells drilled
in various fields across the basin.
Traditionally, two major categories Halliburton operators use the Flex Pro MPD system. Because of the simplified
of MPD configurations have been service in Argentina. (Source: Halliburton)
offered in the market: a sophisticated
setup with high system intellect targeted for complex
applications (such as deepwater and exploration wells)
and a simple off-the-shelf system with a basic surface
pressure control system oriented toward land opera-
tions. Until recently, using a flexible MPD system that
could be scaled to address both applications had not yet
been specifically explored.
Halliburton’s Flex MPD system is a tiered system that
is offered in three service levels depending on the appli-
cation: Flex MPD, Flex Pro MPD and traditional Full
MPD using the same equipment and system compo-
nents and providing more flexibility to an MPD system.
Using Flex MPD, operators and drillers can control
the backpressure set point or choke position based on
their own engineering and basin knowledge. A simple
user interface on a tablet enables wireless control in
hazardous areas. With Flex Pro MPD, an added Coriolis
meter and imported real-time rig data help monitor
flow-in and flow-out measurements for basic kick detec-
HartEnergy.com | E&P | January 2020
DRILLING: MPD/UBD
tion. It also provides basic compensation for surge and
swab as well as sweeps and mud changes. It allows the
operator to build a backpressure-target table, based on
both depth and flow-rate data, from which the system
creates a backpressure map throughout the openhole
section. Full MPD is defined by what the industry typi-
cally thinks of when referring to MPD with a real-time
hydraulics model, automated kick detection and control.
Since its introduction, the Halliburton Flex MPD sys-
tem has been used extensively in the Vaca Muerta Basin.
A major operator implemented both the Flex and Flex
Pro MPD service levels on multiple wells in Argentina.
These wells, located in the southeast region of the basin,
were good candidates for a simpler and streamlined
MPD service given their broad knowl-
edge of the field, extensive availability
of offset data and that the formation
fluids were liquid loaded.
Although the streamlined MPD
service was the right tool for the job,
it did demand more from the smaller
MPD crew, the operator and the drill-
ing contractor. An unintended bene-
fit of running an MPD system without
a hydraulics model is it required all
involved to be more educated in how
MPD manages downhole pressure,
kicks and losses as well as how to
get the maximum advantage of the
service, all parties became more edu-
cated in the value of MPD and how
to effectively use MPD as both a well control technology
and as an efficiency tool. Similar to understanding the
relationship between the accelerator, engine, transmis-
sion and wheels after operating a car with a manual
transmission versus an automatic, the operators and
drillers were able to understand the dynamics between
the reservoir behavior and the surface backpressure
manipulation with MPD at a deeper level.
In total, the operator has drilled eight wells with the
Flex and Flex Pro MPD service. Now, as the rig shifts
west to another block with less wells drilled, and thus
less offset data, the Full MPD service will be run for the
new pad without swapping or changing any equipment
or system components.
As activity in the Vaca Muerta continues, operators
should consider MPD for all wells, picking the right
level of MPD service depending on the area and well
challenges, continuing to safely deliver wells while opti-
mizing operations and capital efficiency.
71
 COMPLETIONS: PLUGS
Plugs evolving to meet new
demands in the field
Modern frac plugs have enabled the successful completion of extended-reach wells.
Nick Pottmeyer, Nine Energy Service
A s operators face increasing financial pressures
within the evolving oil and gas market, reducing
cycle times and improving profit margins have never
been more critical. Project scopes are increasing to four,
six and up to 14 or more well pads per site, requiring
significant capital outlay upfront, which in turn squeezes
operators to generate revenue faster to recoup their
investment. Another trend on the rise is the drilling
of longer laterals. While this can be an efficient way to
develop acreage, it requires additional stages and, there-
fore, additional plugs.
Changes in material for composite plugs will further reduce
mill-out times and accompanying debris while providing the
reliability necessary to hold the frac.
(Source: Nine Energy Service)
To keep costs in check as project complexity grows,
operators are scrutinizing all aspects of the drilling and
completion process to identify potential savings. When it
comes to frac plugs, faster drill-out times and the ability
to bring product to the surface quickly positively impacts
revenue and returns. As the needs of the field have pro-
gressed, so too has the evolution of the frac plug.
The first drillable frac plugs were made from cast iron.
Although cast iron plugs met deployment requirements
and pressure ratings, the time required to remove them
72
was too long to be efficient at 15 to 25 minutes per plug.
In addition to lengthy mill-out times, operators found it
difficult to circulate cast iron out of the well, increasing
the chance of getting stuck and the associated downtime.
Composite plugs
Given the challenges that cast iron plugs posed, the log-
ical next step was to develop frac plugs using composite
material with ceramic button slips to accelerate the mill-
out process. With composites, well intervention—while
still necessary—is less intrusive, as these plugs are easier
to drill out and circulate out of the well. The advent of
composite plugs has proved instrumental in the devel-
opment and acceleration of the horizontal completion
market over the past 15 years, especially as the number
of wells per pad and plugs per well has increased.
Rather than millouts requiring as much as 25 minutes
per plug, early composite frac plugs required only 10 to
15 minutes per plug. This evolved to mill-out times of
just 6 to 10 minutes per plug, a marked improvement
compared to cast iron.
In one 20,000-ft horizontal well in the Utica Basin, a
northeast operator was able to drill out 144 Scorpion
Composite plugs with an average drill time of 10 min-
utes per plug, with a single bit due to the shorter plug
length and overall design. This saved the operator thou-
sands of dollars by foregoing multiple bit trips.
However, using composite frac plugs in the toe stages
of extended-reach horizontal wells poses a challenge due
to the need to drill them out. To resolve this issue and
support the increasing use of extended-reach horizontal
wells, companies developed dissolvable plugs. Dissolvable
frac plugs at the toe stages of extended-reach laterals
eliminate the need to get coiled tubing (CT) to the
bottom, which allows operators to produce wells much
sooner. By eliminating the drillout of toe stages, dissolv-
able frac plugs have enabled the successful completion of
extended-reach horizontal wells, which often exceed the
practical range for use of CT or jointed tubing.
Interventionless options
Dissolvable plugs have significantly improved the
economics of extended-reach horizontal wells. One
January 2020 | E&P | HartEnergy.com

operator in the Stack needed to
employ an alternative to composite
plugs because the well’s length elim-
inated the ability to use CT. By uti-
lizing the Magnum Vanishing Plug,
a dissolvable option, the operator
was able to produce the well faster
without drilling out a single plug or
conducting a cleanout run, which is
atypical for wells of its nature in the
region. This resulted in significant
savings in comparison to similar
wells, reducing cycle time and the
safety risks that come with well inter-
vention. Ultimately, the operator was
able to reduce its time to production
after fracturing by 90%.
In another example, an operator
with acreage in both the Marcellus
and Permian basins wanted to ensure it could com-
plete wells with ever-increasing lateral lengths while
relying less on the limitations of the effective reach of
CT. Using a Magnum Vanishing Plug suitable for vari-
ous fluid compositions and bottomhole temperatures
(BHT) ranging from 100 F to 300 F, the operator expe-
rienced the necessary durability during fracturing and
the cleanout run showed complete dissolution. This
provided a proven alternative to long-lateral interven-
tion that the operator was able to apply to future wells.
The next evolution
The need for efficient production in extended-reach
wellbores continues to spur the ongoing evolution of
hydraulic stimulation. As technology companies con-
tinue to engineer frac plug advances, it has become
clear that the ideal plug solution, whether composite or
dissolvable, is dependent upon the well itself.
Operators must consider multiple factors when deter-
mining the right frac plug to keep costs controlled,
minimize risk and maximize returns and revenues.
Things to consider are BHT and how it changes during
the completion, pressure requirements, chemistry
of the frac fluid and the chloride content of the frac
water. A one-size-fits-all approach sounds ideal in theory
but ultimately doesn’t work in the field and can lead to
inefficiencies that reduce profits.
To meet these needs, the next iteration of composite
and dissolvable plugs will see noticeable changes and
improvements that impact time and cost savings for
operators. Early composite plugs were long and had
many component parts, including cast iron slips. Today’s
HartEnergy.com | E&P | January 2020
COMPLETIONS: PLUGS
According to Nine Energy Service,
operators using the Magnum Vanishing
Plug have seen increased production time
and complete plug dissolution.
(Source: Nine Energy Service)
composites are typically between 12
in. and 22 in. long, but as operators’
demands continue to evolve, so will
the dynamics of these plugs. Changes
in material, length and durability will
further reduce mill-out times and
accompanying debris in the well while
providing the reliability necessary to
hold the frac. Plugs that can reliably
hold the frac, expedite the cleanout
run or eliminate the cleanout run
completely allow operators to save
more time and benefit from an
increased return on investment.
Dissolvable frac plugs, popular in high-temperature
shale plays such as the Eagle Ford, will continue to be a
viable option for operators seeking to reduce time spent
on post-frac millout as well as those zones in the lateral
where composites can’t reliably be milled out due to CT
limitations. Next-generation dissolvable frac plugs will
see new design and material options that reduce costs
for operators and promote more complete and reliable
dissolution, while also allowing for use in different BHT
environments and fluid compositions. The introduction
of low-temperature dissolvable material will give opera-
tors even greater flexibility.
Dissolvable frac plugs of the future also will afford
operators greater timesavings and an increased rate of
return while reducing HSE risks and associated service
costs. Eliminating CT can save operators as much as 24
days per six-well pad in reduced drill-out time.
Additionally, as operators continue to focus on envi-
ronmental, social and governance, dissolvable plugs aid
in lowering their carbon footprint by reducing or elim-
inating diesel-powered equipment at the surface used
during a mill-out operation.
Next-generation composite and dissolvable frac plugs
will empower operators to have greater control over the
economics of their well sites by providing access to new
options, new designs and new materials. New technolo-
gies will help operators achieve their goals by taking a
well’s unique dynamics into consideration. Increasing
flexibility and customization in available options will
help operators improve profit margins, speed time to
production and improve safety.
73
 COMPLETIONS: PLUGS

Eliminating mill-out times

The evolution of frac plugs has helped producers go to new
lengths while reducing operational time and risk.

Eric Bruseth and Mark Shaffer,

Packers Plus Energy Services

T here are many similarities between the frac plugs

used decades ago in the early days of multistage frac-
turing and the frac plugs on the market today—and yet,
there are so many differences.
When multistage hydraulic fracturing shifted from
vertical wells to horizontal wells, and as horizontal
wells became longer with tighter stage spacing to
access more reservoir, stimulation operations became
more time-consuming and complex with a higher
risk of issues. The need for continuous improvement
in plugs arose due to increasing setting depths, chal-
lenges such as presetting during installation, long
run-in times and the ability to quickly remove the
plugs for production.
Completion equipment providers responded, con-
tinually evolving the design and material composi-
tion of frac plugs to overcome these challenges that
stemmed from advancements in horizontal multistage
hydraulic fracturing.
In December 2018, Packers Plus released its TREX
Lightning Frac Plugs designed to overcome opera-
tor challenges and provide increased efficiency with
reduced operational risk to get the most out of every
well. The full lineup includes the Lightning Frac Plug Composite materials are lighter, which facilitate faster
and LightningPLUS Composite Plug, which both pumpdown times and result in finer mill-out cuttings for
enable quick mill-out times, and the LightningBOLT manageable debris. (Source: Packers Plus Energy Services)
Dissolvable Plug to fully eliminate millout.
The short length of the Lightning and LightningPLUS
Frac plug installation plugs enables fast pumpdown operations with typical
The plug-and-perf method is inherently slow for com- operations averaging 450 ft/min to 550 ft/min with line
pleting wells by virtue of tripping in and out of the well speeds as high as 1,000 ft/min.
with tools for every stage. In vertical wells, and later in Frac plugs that preset while being run in hole is
single stage count horizontal wells, this operational time another issue that can occur during installation. At
was not significant; however, as extended-reach laterals best, this will result in added operational time and cost
become more commonplace and stage counts reach as well as the added expense of retrieval equipment to
into the hundreds, a typical run-in rate of 200 ft/min remove the preset plug before resuming operations.
to 300 ft/min can make for an onerous and expensive Some makeshift, wellsite solutions are sometimes
completion operation. implemented to prevent frac plugs from presetting on
If frac plug design can be improved to enable quicker older style or less reliable plugs, but Packers Plus has
run-in rates, operators can realize significant cost sav- taken additional design measures to mitigate this issue.
ings with reduced fluid use and reduced pump time. The LightningPLUS composite plug includes multiple

74 January 2020 | E&P | HartEnergy.com


engineered anti-preset features built into the plugs as
well as the wireline adapter kit. When combined, the
anti-preset features in the plug and the wireline adapter
kit prevent the tool from prestroking during pickup
and presetting during installation before the plug
reaches its planned depth.
An operator working in the Permian Basin put the
anti-preset feature of the LightningPLUS composite
plug to the test by running three of the plugs in the heel
of a long-string well with a total depth of about 14,500
ft and 67 stages. All three LightningPLUS composite
plugs were successfully run to their planned depth with
an average run-in speed of about 340 ft/min. After the
stimulation was complete, the three plugs were milled
out in an average time of 7.67 minutes with favorably
sized cuttings circulated to the surface due to the light-
weight nature of the composite materials.
Frac plug millout
Decades ago, in the early days of multistage fracturing of
vertical wells, frac plugs were made from heavy material
and outfitted with cast iron slips. These early plugs took
longer to mill out compared to today’s plugs, but it was
less of an issue in vertical wells where typically only one
or two plugs were deployed in a well. Debris from mill
The LightningPLUS composite plug includes multiple engineered
anti-preset features built into the plugs as well as the wireline
adapter kit. (Source: Packers Plus Energy Services)
HartEnergy.com | E&P | January 2020
COMPLETIONS: PLUGS
cuttings also was less of an issue because the plug debris
just fell to the bottom of the well and did not inhibit
current or future operations.
To reduce mill-out times and mitigate stimulation
operational issues due to debris, composite frac
plugs were developed for multistage horizontal wells.
Composite materials are lighter, which facilitate faster
pumpdown times and result in finer mill-out cuttings
for manageable debris. Mill-out times for both the
Lightning and LightningPLUS plugs average less
than 7 minutes with 1,500 lb of weight on bit with the
motor on bottom.
Even with lightweight composite plugs in a well,
extended-reach laterals have made it challenging to
get enough weight on plugs in the farthest depths of
the well for an effective milling operation. To this end,
dissolvable plugs are becoming more prevalent in com-
pletion programs, especially in the toe stages of a well,
and the LightningBOLT dissolvable plug enhances
confidence in this strategy with predictable and reliable
dissolution rates.
An offshore operator working in the Gulf of Mexico
shelf put the LightningBOLT dissolvable plug to the
test after another frac plug was unable to hold pres-
sure. As a result, LightningBOLT dissolvable plugs were
run to complete the last six stimulation zones starting
at more than 17,000 ft and to perform the Bureau of
Safety and Environmental Enforcement (BSEE) casing
integrity test requirement.
Prior to the plugs being run, Packers Plus provided
its ePLUS Retina well monitoring service on the well.
This real-time monitoring system verifies surface and
downhole events without interfering in concurrent
operations, using an array of sensors to collect and
analyze signals from the wellhead to distinguish vari-
ous operations.
Successful zonal isolation was detected for each
LightningBOLT dissolvable plug and the stimulation
treatment was successfully delivered. Following stimula-
tion, a LightningBOLT plug was run as the lower bar-
rier for a BSEE 30-minute casing integrity test and was
verified through qualified third-party testing.
Conclusion
A year after launch, Lightning plugs have been run in
wells across North America. Following the evolution of
frac plugs, this suite of frac plugs incorporates design
enhancements and contemporary materials to improve
operational efficiency with faster run-in times and
reduced or eliminated mill-out times as well as to help
oil and gas producers save time and money.
75
 PRODUCTION: SAND/WATER
FLOWBACK MANAGEMENT
Proppant flowback control additive
leads to improved production
A liquid additive is helping wells in the Permian Basin outperform offset wells.
Adam Harper, Hexion
P roppant flowback presents a prevalent and costly
challenge to the oil and gas industry. Concerns with
this challenge have increased as the industry moves
toward higher proppant intensity, longer laterals and
smaller mesh size proppants. Proppant flowback can
lead to additional hauling and disposal costs, equipment
damage and decreased oil and gas production due to
loss of wellbore connectivity and decreased fracture
width. There may also be downtime and significant costs
associated with remedial treatments and equipment
replacement. Although many solutions to proppant
flowback exist, they are often considered uneconomical.
Liquid additives
In 2018 Hexion released the PropShield flowback con-
trol additive that has since been used successfully in
more than 100 wells in various basins throughout North
America. This additive is a liquid that is added directly
to the blender tub. It has an affinity for sand, so it coats
the proppant and not the equipment. The coating on
the proppant allows grain-to-grain bonding once it is
The PropShield proppant flowback control additive is injected directly into the blender
tub. (Source: Hexion)
76
placed in the formation. This network of bonded sand
grains holds the proppant in place once the well is put
on production.
The additive is applied to frac sand in the blender
tub using a standard liquid additive pump. Isotainers or
totes can be used, depending on the job size. The per-
centage of coating on the proppant can be adjusted for
different formation characteristics, well flowback plans,
proppant mesh size and anticipated sand production.
Laboratory testing results
Unconfined compressive strength testing was used to
determine the effectiveness of the coating during devel-
opment. This is the same testing that is used to measure
bond strength for conventional resin-coated proppants.
After internal unconfined compressive strength testing
demonstrated that adequate bond strength was achieved
to control proppant flowback, third-party testing was
employed to further prove the concept.
Critical flow-rate testing was conducted by a third-
party laboratory to determine the maximum flow rate
before proppant flowback occurs. The treated proppant
was placed in a modified conductivity cell with an open
slot on the end. Nitrogen flow was ramped up until
proppant flowed out of the open-end
slot. Sand treated with the PropShield
additive had a critical flow rate that was
eight times higher than the rate observed
for uncoated frac sand control.
Third-party conductivity testing also
was conducted to ensure the PropShield
additive coating did not have a negative
impact on the proppant pack’s permea-
bility. Test results showed that the sand
coated with the liquid additive had a con-
ductivity curve within the error bars of
the uncoated frac sand control.
Permian Basin case studies
An initial field trial was conducted to
evaluate the performance of the product.
The operator compared a tail-in of 100
mesh frac sand coated with the PropShield
January 2020 | E&P | HartEnergy.com
 PRODUCTION: SAND/WATER
FLOWBACK MANAGEMENT
additive to the existing design of a tail-in of traditional
resin-coated 100 mesh frac sand. These wells were direct
offsets in the same formation. All other completion
details were virtually identical. During drillout, 50% less
proppant was returned for the PropShield additive well.
After the wells were put on production, the liquid additive
well had 80% less proppant flowback after 12 days. These
results led to additional evaluation and further incorpora-
tion of the liquid additive into the operator’s job designs.
It is generally understood that by controlling and
reducing proppant flowback, better oil and gas produc-
tion can be achieved. Since proppant stays in the forma-
tion, fracture width and wellbore connectivity are main-
tained. An operator in the Permian Basin utilized the
new additive to increase its well production. In this case
study, production data from 47 wells were evaluated. All
wells were completed by the same operator in the same
formation. True vertical depth, lateral length and prop-
pant volume were all similar for the wells in the dataset.
Of the wells that were evaluated, 22 wells used a tail-in
of the PropShield additive on 100 mesh frac sand, 20
AVERAGE CUMULATIVE PRODUCTION
Resin-coated
Proppants
Barrels of Oil Equivalent
Months of Production
After six months, wells utilizing the PropShield additive produced 3% more than traditional resin-coated proppant wells and 44% more than
uncoated frac sand wells. (Source: Hexion)
78
wells used a tail-in of traditional resin-coated 100 mesh
frac sand and five wells used only uncoated 100 mesh
frac sand.
Average cumulative production for the PropShield
additive wells surpassed the traditional resin-coated frac
sand wells by 3% after six months. This was after lag-
ging behind the traditional resin-coated frac sand wells
for the first five months. Compared to the wells that
used only uncoated frac sand, the liquid additive wells
had an increase in barrel of oil equivalent of 44%.
Because the PropShield additive was less expensive
than the traditional resin-coated proppant, upfront
costs were lower. The lower upfront costs combined
with the 3% production increase after six months
resulted in an increase in revenue of about $500,000
per well in favor of the PropShield additive.
While the PropShield additive is an increased upfront
expense when compared to the uncoated frac sand
wells, the 44% improvement in production after six
months resulted in an average of about $2 million in
added revenue for each of the liquid additive wells.
January 2020 | E&P | HartEnergy.com
 PRODUCTION: SAND/WATER
FLOWBACK MANAGEMENT
Data under pressure:
Flowback goes digital
Machine learning algorithms allow post-frac companies to develop
automation capabilities to take action for abnormal conditions.
William “Jethro” Harding, Select Energy Services
T he Industrial Internet of Things (IIoT) is changing
the face of many industries, with readily available
data at the forefront of process decisions. The vast
amount of data collected, when organized and displayed
in a manner that makes process decisions seamless, pro-
vides a significant opportunity to enhance safety, pro-
ductivity and compliance with regulatory agencies. Well
testing and flowback is one area in the well life cycle
poised to benefit from these innovative data collection
methods. Services that collect and organize post-frac
monitoring data for operators are expected to contrib-
Flowback operators access data from multiple sensors
simultaneously to quickly identify potential issues on location.
(Source: Select Energy Services)
80
ute to a safer work environment for flowback operators,
assist with the production of oil through automated
choke adjustments and pinpointed choke change sched-
ules, and produce digital and printable reports that
operators can submit to regulatory agencies.
Too many, too far and too late
With the dynamic environment of a well site, a flowback
operator must regularly track sensor information to keep
the fluids balanced while flowing from the wellhead to
the tank. Even a simple post-frac monitoring pad can
require more than 20 sensors—each performing various
functions across several square yards of piping, valves and
equipment, generally residing in a Class 1, Division 2 haz-
ardous environment. Many sensors are out of sight and
out of reach for a flowback operator overseeing the equip-
ment. Tank level monitoring of storage tanks presents
a multitude of safety concerns for a flowback operator,
including slips, trips and falls, and the risk of exposure to
H2S, hydrocarbons, benzene, etc. The work environment
brings flowback operators within a few feet of pipes under
extreme pressure, upward of 5,000 psi as monitored by
pressure gauges. Temperature sensors are placed on pipes
that may exceed 250 F. The safety concerns for a flowback
operator are painfully obvious; however, periodic reading
of these sensors is paramount to a successful flowback.
The flowback operator must have experience and
understand the dynamics of the well pad to make
appropriate changes to the valves and piping. Washout,
spills and many other potential issues may occur on
location if the flowback operator fails to track and mon-
itor sensor data. Flowback operators are required to
walk the site, navigating a path through piping and do
this regularly to gather the appropriate data and manip-
ulate the well appropriately. With such a dynamic sys-
tem, process changes sometimes occur long before the
flowback operator has access to that information. Tanks
can overfill and spill without warning if the workers are
actively engaged on a separate area of the pad. Shut-in
pressure may elevate beyond safe operating levels long
before a flowback operator would notice if they are
reading another gauge elsewhere on location.
January 2020 | E&P | HartEnergy.com

“Collecting post-frac monitoring data from these
various sensors to display in a user-friendly interface
can significantly improve the job functions of flowback
operators,” said Steve Smith, president of flowback and
well testing for Select Energy Services. “Advancements
in wireless technology, such as the WirelessHART proto-
col and increased coverage in cellular communications,
have led us to develop our Post-Frac Monitoring [PFM]
system. While periodic readings of sensors can allow for
a more safe and productive site, we anticipate further
improvements in productivity by adding datapoints with
continuous logging to respond to changing well condi-
tions on a real-time basis.”
Bringing it all together
Every pressure gauge, thermocouple and level display
has a digital counterpart. On a well site, having a web of
wires run across the site from each of the instruments
was simply not feasible. This would increase the pres-
ence of operating hazards, and the associated risks far
outweigh the rewards of having these sensor data. Addi-
tionally, placing a programmable logic controller (PLC)
with local sensor input at every component on a well
pad is cost-prohibitive.
“Accordingly, the PFM system utilizing WirelessHART
sensors spread across a well site will collect sensor data
without the need for multiple PLCs and miles of wires
laid across the well pad or precariously taped to the pip-
ing across the site,” said Cole Hairston, vice president of
flowback and well testing at Select Energy Services.
The PFM system consists of a single PLC and wireless
gateway to receive data from up to 100 sensors. Data
and information from every component engaged in
the flowback process, from the wellhead to the tanks, is
read and logged by the PLC in real time. Pressure read-
ings for every location, flow rates of oil, gas and water,
and the temperature of each fluid are centralized from
this PLC to a custom developed SCADA system.
A flow of data
Having access to extensive data is only beneficial for
improving production if the data are meaningful. Flow-
back service providers will need to further define this
meaning through proprietary processing and analysis of
data to improve the production on a well site. As these
sensor data are collected at the PLC, data relayed to
command centers are organized into a database to cre-
ate actionable reports and visualization.
Through the use of cloud-based data systems, visualiza-
tion software and a SCADA system, data collected from
the multitude of sensors can be presented in an operator-
HartEnergy.com | E&P | January 2020
PRODUCTION: SAND/WATER
FLOWBACK MANAGEMENT
friendly format. Visualization is cross-platform, up-to-the-
minute and historical. Not only can the flowback operator
see what is currently happening, the information is pre-
sented with several hours of historical graphs displaying
historical readings of the applicable sensors. The trending
capabilities of this information show the flowback opera-
tor how production is moving, allowing better responses
to onsite conditions. Furthermore, process alarms can be
set to notify an operator of adverse or potentially adverse
conditions. These conditions could include advance
notice of tank overfills resulting in lost production and
regulatory infractions, pressure dips and spikes resulting
in improper flowback and conditions that could lead to
shut-in situations.
A cloud-based computing platform was chosen for its
reliability and scalability in dealing with large datasets.
“Utilizing this service allows Select Energy Services
to build regulatory compliance reports for customers,
without the need to maintain handwritten records of
the sensor data,” Smith said. “This service provides a
constant stream of data with up-to-the-minute historical
sensor data for each of the devices on a well site, with-
out the risk of overloading a local server.”
The SCADA system provides reliable and scalable
supervisory oversight as well as visualization software
with an interface for everyone who needs to view the
information from the PFM system. SCADA systems are
offered as a web-based service, with multiple devices
capable of connecting to view and act upon the data
from the site. Whether this is a cellular-based tablet
computing device or a desktop connected to the inter-
net, the information is automatically presented in an
organized and efficient manner.
Moving forward
The collection of process information is the first step in
post-frac automation. Advancements in the IIoT have
resulted in machine learning capabilities that can ana-
lyze large datasets and determine process automation
rules based on the cause and effect of a variety of inputs
to the system. Machine learning algorithms will allow
post-frac companies to analyze the data that are col-
lected on multiple sites and further develop automation
capabilities to take action in the event of abnormal con-
ditions on the well site. This will decrease the response
time to maintain desired pressure and flow rates,
increasing the production reliability of the well test.
Flowback operators armed with more meaningful infor-
mation to see the larger picture of the well site at a
glance will increase production capabilities in a safe and
responsive environment.
81
 OFFSHORE:
FLOATING PRODUCTION
Unlocking stranded reserves with 
unattended installations
A digitally enabled floating production buoy concept provides opportunities to
exploit marginal fields in the U.K. North Sea and farther afield.
Elgonda LaGrange, Siemens; and Joel Maisey,
Buoyant Production Technologies Ltd.
T he combined value of stranded (i.e., marginal) off-
shore oil and gas global reserves is estimated at more
than $700 billion.
In the U.K. Continental Shelf alone, there are more
than 360 marginal discoveries holding more than
3.5 Bbbl of technically recoverable oil. Most of these
reserves are too small to be economically recovered by
conventional FPSO vessels or fixed facilities, and many
are unsuitable for a subsea tieback to shore or existing
facility due to distance, flow assurance or facility modifi-
cations requirements.
In recent years, normally unattended installations
(NUIs), which leverage low manning concepts and
increased autonomy, have emerged as a viable solu-
tion to exploit marginal fields. However, the industry
is still in the early stages of deploying these facilities,
and their capabilities are limited. The vast majority in
operation are being used solely as wellhead platforms
for gas production. Very few can process oil, and none
are floating installations.
In 2018 a consortium of international companies
set out to change that by launching a study to push
the envelope of NUIs, both in terms of water depth,
oil production and processing capabilities. The ini-
tiative, which has been led by Buoyant Production
Technologies Ltd. and co-funded by the Oil and Gas
Technology Centre and collaborating partners, includ-
ing Siemens, focuses on leveraging advances in compact
processing technology, rotating equipment and digitali-
zation to improve NUI economics, enabling producers
to unlock stranded reserves in the U.K. North Sea and
further afield.
Production buoy design
The NUI concept explored in the study was an
unmanned floating production buoy designed for
the recovery of small hydrocarbon pools in water
depths beyond the reach of traditional installations.
The standalone facility is based on a deep-draught,
84
single-column slender hull structure and integrated,
buoyant “deck box.” The buoy is designed to deliver
good motions performance in extreme metocean
conditions, enabling deployment throughout the
North Sea.
To enhance the viability of deploying the floating
NUI, particular focus was placed on minimizing upfront
capex. To achieve this, a “back to basics” (i.e., minimal-
ist) design strategy was employed that minimizes spar-
ing and reduces auxiliary systems.
The design strategy also focuses on the integration
of compact process, separation and compression mod-
ules as well as, where possible, low maintenance mate-
rials, such as fiber-reinforced plastic in place of steel to
reduce the need for coatings and maintenance and to
reduce weight. A particularly high priority was placed
on reliability and availability when screening and
selecting production equipment to minimize redun-
dancy, maximize uptime and reduce maintenance,
thereby reducing offshore manning requirements.
Reducing the size, weight and maintenance of tradi-
tional processing infrastructure, while improving per-
formance and reliability, was a major change in mindset
and necessitated extensive engagement with the supply
chain to provide solutions that were field-proven but
still pushed the operational envelope.
Leveraging digitalization
Leveraging technology and automation to create a dig-
itally enabled facility was also a key focus area during
development, as it allows reduced opex through remote
operations, the adoption of condition-based mainte-
nance and data-driven decision-making.
To realize these benefits, the automation system and
digital solutions must be designed and configured to
provide the quantity and, most importantly, the quality
of data to safely operate the facility from a remote loca-
tion. Several prerequisites were identified in the study
to achieve that goal, including enhanced data acquisi-
tion, an integrated control and safety system, unified
data storage, information management and analytics,
and cybersecurity.
January 2020 | E&P | HartEnergy.com
 OFFSHORE:
FLOATING PRODUCTION

Enhanced data acquisition system, vibration monitoring and maintenance man-

Instrumentation is the cornerstone of effectively con- agement systems. The historian itself will be located
trolling and operating a facility remotely. Providing offshore with replication between onshore and offshore
enhanced data acquisition from instrumentation to enable faster data access and allow buffering during
enables detailed insight into the condition and perfor- high data demand scenarios.
mance of the facility. Instrumentation technology is typi-
cally well-established, with recent improvements focused Information management and analytics
on enhanced data acquisition, troubleshooting and The information management and analytics system is
remote functionality. The NUI design leveraged these critical to the successful operation of the facility in a nor-
incremental improvements to provide data for a digitally mally unmanned state. The system aims to process oper-
enabled facility and increase the scope of instrument ational data into a format that focuses on maintenance
maintenance that is performed remotely. efforts through predictive maintenance, decision support
and automated testing.
Integrated control and safety system Data analytics is the powerhouse of the information
The proposed integrated control and safety system and management and analytics system, featuring an interface
supporting infrastructure for that presents the information
the NUI was an enhancement from the data historian and
of existing designs, practices analytics in a clear and con-
and standards rather than a cise format to focus the atten-
fundamental change. The tion of the onshore team on
design extends the controller those areas where they need
and human-machine inter- to take action. The system
face network to a remote provides a standardized, ven-
control room and includes dor-agnostic view into many
an SIL-certified critical action aspects of daily operations
panel to provide remote and maintenance, including
operators with a push-button key performance indicators,
interface for critical actions enabling onshore teams to
(i.e., shutdown, blowdown The buoy is designed to deliver good performance in monitor the operation of the
and extinguishant release). extreme metocean conditions. (Source: Buoyant Production NUI and take quick and deci-
The NUI can be operated Technologies Ltd.) sive action when required.
simultaneously from both
the central control room on the NUI and the duplicated Cybersecurity
remote control room; however, the central control room To ensure safety and continuous operation, the pro-
can at any time disconnect operations from the remote duction buoy integrated control and safety system and
control room. The integrated control and safety system’s supporting infrastructure are designed per IEC 62443
architecture provides enhanced data acquisition of all and the HSE Industrial Automation Cyber Security
equipment, enabling advanced digital capabilities such guideline. Consequently, to provide depth in defense,
as condition monitoring and predictive maintenance. strategic measures are implemented, including the seg-
regation of corporate and automation networks, perim-
Unified data storage eter protection, device hardening and monitoring/
A unified data historian (i.e., data lake) is a single update capability.
location for all data related to the facility, regardless of
origin. This allows data analytics across multiple systems Facility of the future
and a complete understanding of the facility’s perfor- The floating NUI was developed in accordance with rel-
mance and condition from a remote location. The data evant international standards and is ready for pre-FEED
lake forms one of the core building blocks for a digitally study. Overall, its development widens the scope of what
enabled facility. a NUI can deliver in terms of water depth and produc-
Data from the NUI primarily originate from the inte- tion capabilities.
grated control and safety system; however, other edge
systems also will provide data, including the metering References available.

HartEnergy.com | E&P | January 2020 85

 digital solutions
CYBERSECURITY

Unlocking oil and gas

security synergies
The digital capabilities that can make a company more competitive can also protect its
oil and gas operations from cyber threats.

Omar Sikander, Rockwell Automation

C ybersecurity is no longer a concern for only tech

experts in the IT department. It also is top of
mind for executives in the boardroom and operators in
the oil field—and for good reason. More frequent and
sophisticated, high-profile cybersecurity attacks on oil
and gas operations have put the industry on edge. Not
only are breaches disruptive and expensive—costing
some companies hundreds of millions of dollars—but
incidents like the 2017 Ukraine ransomware attack that
affected transportation and logistics company Maersk,
among others, remind the industry that an attack in the
digital world can have dangerous consequences in the
real world.
Without a doubt, companies need comprehensive
security as operations become more digital. But this
security doesn’t need to come at the expense of busi-
ness-improvement goals. In fact, quite the opposite.
The same digital capabilities that can help a company
better compete (e.g., seamless connectivity, production
intelligence and remote support) also can help fortify
its operations. As companies plan and design their oil
and gas cybersecurity strategy, they should capitalize on
the aspects of connected operations that have shared
security and operational benefits. The following are five
key examples of how to unlock cybersecurity synergies.
Dynamic asset inventory
It is hard to mitigate threats if what they might target in
operations is unknown. That is why a comprehensive,
real-time understanding of connected equipment and
systems is essential.
Historically, taking an inventory of the equipment
requires physically sending someone to all production
sites. This process is time-consuming, especially with
dispersed and remote operations. It is also limiting,
because the data captured only give a snapshot in time
of the inventory.
The Industrial Internet of Things is changing this.
Now, using software or connected services, the same
Companies are looking to automate the responsibility of
managing their oil and gas production systems.
(Source: Rockwell Automation; photo by Zivica Kerkez)
communications path as the control system can be used
to gather asset data.
With a continuous, real-time inventory of the oper-
ational equipment, the company can stay on top of
risks to its production environments. For example,
companies can quickly see if security advisories, firm-
ware updates or new patch releases are relevant to its
installed base. Operations also can be better managed.
The data can help, for instance, track life-cycle risks
and inform a company’s modernization strategy.
Real-time process visibility
It is not enough to know what equipment a company
owns. It also needs real-time visibility into how, when
and where people are accessing or manipulating it. A
threat-detection service can identify normal behavior
across an oil and gas network and monitor operations
24/7 for deviations from that baseline.
Operators can then be alerted of any irregularities
or potential threats in real time. This visibility can help
uncover a threat like an outsider security attack at mul-
tiple stages, including:

86 January 2020 | E&P | HartEnergy.com


• When they first gain a foothold on the network,
• When they are moving around the network to do
recon on a company’s operations, and
• When they are making changes to assets (systems,
equipment, networks) to carry out an attack.
The service also can help detect more common
human errors and operational issues that, while lack-
ing nefarious intent, can still disrupt operations. For
instance, it could reveal that an original equipment
manufacturer remotely accessed and made changes to a
controller in the wrong location.
Life-cycle management support
According to the 2019 Global Energy Talent Index
report, 40% of oil and gas respondents said a skills crisis
has already hit the industry, and nearly 30% said the cri-
sis would take hold in the next five years. To lessen the
impact of the skills shortage, more companies are look-
ing to outsource the responsibility of managing their oil
and gas production systems.
One major oil and gas producer turned to a diag-
nostic reliability service from Rockwell Automation
to reduce its cybersecurity risks and lower its business
costs. As part of the service, the provider continuously
scans the process-control network of the oil and gas
producer to identify, interrogate and monitor control
hardware. It captures key data, such as its part number,
series version and firmware version, and it tracks status,
health and parameter changes.
The service helped the producer comply with a new
corporate cybersecurity policy, and it led to operational
improvements such as more proactive maintenance that
helped them reduce manpower costs in the field and
pump more barrels of oil per day.
The use of software with authentication and authorization is
another best practice in that it allows an IT or security team
to define who can access it and where it can be accessed.
(Source: Rockwell Automation; illustration by solarseven)
HartEnergy.com | E&P | January 2020
digital solutions
CYBERSECURITY
Disaster recovery
In the event of a security incident, a company needs a
plan and policies in place to help it recover as quickly as
possible. This will help minimize the impact of security
incidents and maximize uptime. A response plan can
help a company contain, eradicate and quickly recover
from threats against its operations. The plan should
include the steps workers need to take to get back to a
fully operational state.
Policies are just as crucial. For example, policies
should define a method for backing up critical opera-
tional assets. Without backups, a company could find
itself the victim of ransomware and having to decide if
it should pay someone to reengineer its systems or pay
the attacker to get them back.
One solution that can be required in a company’s
policy is asset management software. It can automati-
cally back up application code and configurations for
devices like controllers, drives and operator terminals.
Good security fundamentals
There are security best practices known as security fun-
damentals and sometimes hygiene that every oil and
gas company should use to achieve a fundamental level
of security.
Some are simple, like changing the default log-ins
used in any new network equipment a company pur-
chases. Software with authentication and authorization
is another best practice. It allows an IT or security
team to define who can access the software, what
actions they can take and where they can perform
those actions.
Other security fundamentals are more complex. For
instance, control and enterprise traffic should not be
treated the same on a network. If the network infra-
structure that handles both these traffic types goes
down, then a company’s entire enterprise is no longer
functional. That is why a company should use an indus-
trial demilitarized zone to segment control and enter-
prise traffic.
In addition to securing its operations, these best prac-
tices also can have operational benefits. Segmentation,
for example, allows companies to connect remote
employees and partners with onsite workers to more
quickly troubleshoot and resolve downtime issues.
Getting the most from connected operations and
securing them can go hand in hand. But before
doing anything, a company needs a strategy to iden-
tify where it can be more competitive and where its
threats lie. Then, it can see where these two areas
share common ground.
87
 operator solutions
COST & RISK MANAGEMENT
Ensuring confidence in risk
management platforms
New tools offer E&P operators improved means of managing risk and ensuring
productivity while maintaining stringent HSE standards.
Glyn Rhodes, Lloyd’s Register
M anaging risk has been a constant in the oil and gas
sector since the very first wells were drilled. The
nature of that risk has changed over time as a result of
new technologies and standards, evolving regulation and
greater public awareness. Yet, the dire consequences of
risk management failure remain top of mind for respon-
sible operators.
As managing risk becomes more complex, the tools
and methodologies used also have changed. New
tools offer E&P operators improved means of manag-
ing the essential risk question: ensuring productivity
while maintaining stringent HSE standards. They
also provide what Lloyd’s Register (LR) calls Surety
of Insight—the confidence that operators need to
address the various commercial, economic and opera-
tional pressures they face.
LR’s AllAssets asset performance management software is designed to help users mitigate operational risk and respond to production
challenges. The dashboard displays the most important key performance indicators. (Source: Lloyd’s Register)
88
Digital, data and demographics
The increasing deployment of digital technologies
in oil and gas also is reflected in the growing use of
digital platforms to mitigate operational risk. The
immediate advantage is that they replace much of
the manual processing associated with using spread-
sheets and similar tools. Their greater impact,
however, comes from their ability to gather an
extraordinary range of data, crunch it together and
provide previously obscured insight into asset risk
and performance.
This comprehensive view of asset and plant per-
formance makes it much easier for operators to spot
potential business interruptions. This enables informed
decisions that improve asset uptime and significantly
reduce equipment failure inspection and maintenance
costs. When coupled with advanced analytics that offers
predictive capabilities, it supports a far more effective
preventative maintenance program.
January 2020 | E&P | HartEnergy.com

This is the first layer of advantage that an effective digi-
tal platform strategy gives operators—the ability to capture
unprecedented amounts of asset and performance data.
The second layer is their ability to harness the knowledge,
experience and context that lives in the company and its
people. This layer is becoming an almost existential issue.
LR estimates that between 60% and 80% of the best
maintenance and operations staff will retire within five
years—leaving behind a large knowledge gap. Filling that
gap is an operational imperative. When combined with
the asset data and failure analysis that are locked up in
spreadsheets, it creates the next level of powerful insight
for improving performance and safety.
An advantage comes from the collation of all these
information sources (e.g., anecdotes, experience, data
and algorithms) that empowers operators and asset
owners and enables them to share information. In
addition, role-based dashboards ensure that it is not
just data that are liberated; people are freed from orga-
nizational silos that previously have hindered attempts
to improve asset performance.
Confidence, collaboration and commerce
Distinguishing between these platforms can be difficult,
particularly as vendors often promote the same features.
However, looking deeper at the total cost of ownership
gives a better indication of budgetary implications and
effectiveness. Tools that cannot adapt to the organi-
zation will undoubtedly cost more. This is particularly
true when it comes to adjusting risk models in line with
changes in asset profiles.
There is a third layer to digital platforms to be con-
sidered: the expertise and experience of the develop-
ers and providers. This third layer creates significant
additional advantages and is a crucial factor in plat-
form selection.
Dependence on third-party tools implies dependence
on its provider—a risky proposition where the user’s
risk management strategies are, in part, reliant on the
capabilities of an outside party. This can create a confi-
dence gap, whereby operators are reluctant to use the
platform to its full extent, thus compromising function-
ality and their investment. Alternatively, the platform
can create a false sense of security where risk is not fully
understood or mitigated. Neither position advances
asset performance or commercial success.
Confidence and assurance are the watchwords of risk
management and should be the guiding principles of
platform selection. For a digital tool to truly deliver, it
has to offer Surety of Insight. This is the security and con-
viction that comes from deploying an asset-performance
HartEnergy.com | E&P | January 2020
operator solutions
COST & RISK MANAGEMENT
management platform that is developed and delivered by
experts who can draw on decades of knowledge and expe-
rience. With such a platform, surety comes baked in.
In practice, this means working in close partnership
with a developer that is immersed in risk management
for hazardous industries as well as in oil and gas. It
means finding a platform provider that can turn broad
risk management principles into detailed, customized
tactics. It means working with experts who can share
insights from other hazardous industries. It also means
working with the developer to bring in the most appro-
priate building blocks of captured expertise and associ-
ated models for the owner’s or operator’s requirements.
Understanding competition
Critically, it also means working with a provider that
understands where risk management delivers competi-
tive advantage and where it is best served by collabora-
tion and cooperation.
As E&P assets become more complex amalgamations
of physical engineering, automation and data, identify-
ing dependent actions and calculating the consequent
risks become equally more complicated. The role of
risk management in improving performance can be
considered a legitimate area for competition. There
is certainly a commercial advantage to be had from
improved maintenance schedules, extending asset life
cycles and safely enhancing production output.
However, the role of risk management in maintain-
ing HSE standards and minimizing threats to life is an
area that is greatly improved by a more cooperative
approach. A breach or a blowout damages a well oper-
ator’s people, finances and reputation as well as hurts
the industry, dragging down partners and suppliers in
its wake. No one wins.
There is an ethical dimension to risk management
that goes beyond the immediate concerns of an indi-
vidual business. The choice of platform and provider
should not be dictated by technical nuts and bolts alone
but through wider consideration of the provider, its
capabilities and its contribution to the industry.
A platform developer that pools expertise, shares the
lessons learned from each implementation and continu-
ally applies those lessons to every iteration of its plat-
form can provide that ethical dimension without com-
promising commercial concerns. Any business that
takes risk management seriously has to demonstrate
that to its people, its shareholders, its regulators and its
industry peers. It has to prove that it has Surety of
Insight—not just today or on the day of inspection but
in every single hour of operation.
89
 shale
SOLUTIONS
Driving drilling performance to lower
operating costs
New-generation downhole motor delivers increased horsepower, torque and durability to
drill the curve and lateral in one run and drill extended-lateral sections.
David Schnell and Thomas Jaeger, Baker Hughes
S ince 1859 when the first drilling rig was success-
fully used to drill the 69-ft-deep Drake oil well, the
drilling industry has demanded and driven continuous
improvement. Technology developments enabled ever-
deeper drilling into reservoirs with myriad formations,
temperature and technical challenges before the uncon-
ventional boom in the early 2010s turned the spotlight
on horizontal drilling.
With the technology framework for developing an
unconventional play established, the focus quickly
shifted to reducing costs. Steep production decline
curves necessitated replacement wells to replace lost
production on an unprecedented scale. The need for
cost reduction to make a play economic was exacer-
bated by the steep decline in oil prices in 2015.
Because unconventional wells are always direction-
ally drilled horizontal wells, the downhole motor has
a large impact on the ultimate performance when
drilling the well. This is true for both conventional and
rotary steerable applications. In conventional applica-
tions, the downhole motor is both the deflection device
LATERAL SECTION DAYS vs. DEPTH
10,000
12,000
Measured Depth (ft)
14,000
16,000
18,000
20,000
DuraMax D100-5130P
22,000
24,000
0 1 2 3
Days
The Navi-Drill DuraMax motor reduced drilling time by 40% for an operator in the Williston
Basin. (Source: Baker Hughes)
92
and the power provider to the bit. As lateral sections
have become increasingly longer, the motor-powered
rotary steerable bottomhole assembly (BHA) is the best
methodology to achieve the length as well as to deliver
the performance.
Positive-displacement downhole motors and their
fundamental principles have changed little since their
introduction in the 1970s. The rotor-stator configura-
tions have evolved some to provide a range of torque,
horsepower and rpm.
The push for increased motor performance has largely
centered on the configuration of the power section.
High rotor-stator configurations combined with longer
power sections can deliver very high torque and horse-
power ratings. The downside is reduced reliability due to
failure of other components, often beyond the motor.
The high power also generates high vibration that
can limit bit performance but, more importantly,
cause premature failures of MWD tools. Therefore,
even if the motor could continue, the BHA needs to
be pulled because of MWD failure. The result is that
performance gains and cost reduction are mitigated by
inconsistent execution.
Baker Hughes’ Navi-Drill Ultra and Navi-Drill X-treme
series downhole motors have contin-
ued to push the performance bound-
ary since their introduction in 1995
and 2002, respectively. But taking
the next step in motor performance
would require a complete redesign
from the ground up.
Building a better motor
Baker Hughes began the motor
redesign by conducting a detailed
application study and review of
Rig average unconventional wells drilled in the
previous five years with the legacy
4 fleet of motors. It also conducted
operator interviews, which concluded
that the drive for faster drilling would
continue and that rig contractors
January 2020 | E&P | HartEnergy.com

The Navi-Drill DuraMax motor is designed to provide increased horsepower,
torque and durability in unconventional applications. (Source: Baker Hughes) lateral drilling time on this rig. This equated to
were continuing to upgrade top drives and mud pumps
to generate more hydraulic horsepower.
Based on these data, Baker Hughes constructed the
operational envelope, motor configurations and tech-
nical capabilities required for the next generation of
motors. The resulting Navi-Drill DuraMax high-per-
formance downhole motor is specifically designed for
unconventional applications by providing increased
horsepower, torque and durability.
Baker Hughes tested the Navi-Drill DuraMax motor at
its Baker Hughes Experimental Test Area (BETA) near
Tulsa, Okla., prior to going into the field-test stage. Key
learnings from the BETA test proved that the design
was able to withstand the desired operational envelope
and the conceptual design performed as expected.
After the BETA test, Baker Hughes ran almost 40 field
tests to confirm that the motor would provide not
only the performance but also the durability that was
expected. The team made a few enhancements to bol-
ster the ability to drill ahead “straight” in rotary mode
for longer intervals without the need to slide for correc-
tions as frequently. It also made minor adjustments to
assembly procedures and minor design improvements
to increase life expectancy of components.
Baker Hughes commercialized the Navi-Drill DuraMax
motor in early 2019, consistently outperforming drilling
rates in offset wells with major penetration rate improve-
ments of 30% or more.
A key factor in the performance gains has been the
directional response. The short bit-to-bend distance for
the adjustable kickoff of the motor delivers a more con-
sistent buildup rate. The directional response in the lat-
eral is immediate and less footage is required to slide to
get back to the target line. The immediate and precise
directional response means the motor can achieve the
dogleg severity required and still deliver good penetra-
tion rates, often a trade-off with other motors.
HartEnergy.com | E&P | January 2020
shale
SOLUTIONS
Case studies
An operator in North Dakota’s Williston Basin
was looking for ways to improve drilling effi-
ciency. This operator had been using motors
from a competitor along with a few runs using
motors from Baker Hughes. Baker Hughes
proposed to the operator a trial of its new Navi-
Drill DuraMax high-performance motor.
The 51⁄8-in. Navi-Drill DuraMax motor deliv-
ered a record-breaking performance on the first
run. The lateral was drilled in 1.94 days (from
drillout to total depth), which was the fastest
a 40% time savings and an increase of 35% in
ROP, compared to the average well drilled on this rig.
In all, Baker Hughes completed three runs with an
average run time of just over two days each, delivering
“mile-a-day” drilling performance and saving more than
five drilling days total for this operator. Impressed with
the performance of the Navi-Drill DuraMax motor, the
operator requested that Baker Hughes use it 100% of
the time on three of its rigs.
In another instance, an operator in the Permian
Basin contacted Baker Hughes to provide a solution
that would reduce the amount of time spent in drilling
curve and lateral hole sections. The wells in this area
of West Texas typically require a steerable motor with
a high adjustable kickoff setting to achieve the buildup
rate necessary to drill the curve section. However, a
high adjustable kickoff setting can compromise the
ROP in the lateral section.
The Baker Hughes team recommended the Navi-
Drill DuraMax motor to improve performance and
reduce the number of trips made for new motors
and bits through the curve and lateral sections. The
shorter bit-to-bend distance for adjustable kickoff
of the motor successfully drilled the high buildup
rate curve section. The rugged motor design also
enabled the operator to rotate the drillstring at a
higher rpm and a high weight on bit, compared to
offset runs, and delivered optimized performance in
the lateral section.
The 51⁄8-in. Navi-Drill DuraMax motor drilled the
6¾-in. curve and lateral section in the Wolfcamp A
Formation. The motor drilled 7,652 ft in 80 drilling
hours and maintained an average ROP of 114 ft/hr.
The motor delivered a consistent buildup rate in the
curve, exceeding expectations.
By drilling 3,127 ft laterally in one day, Baker Hughes
provided a 30% improvement in overall ROP, which
saved the customer three days in rig time.
93
 shale
SOLUTIONS
Combining drilling power and
operational flexibility
Downhole adjustable motor addresses directional drilling challenges.
Rohan D’Souza, Paul Neil and Stephen Forrester, NOV
T he drilling market is continuously evolving, but one
thing that has been made clear in recent months is
that capital efficiency and constraint within the drilling
industry will be a focus for the foreseeable future.
Operators must turn to new solutions to reduce
spend and achieve greater profitability in well pro-
grams. National Oilwell Varco (NOV) has released
the Vector Series 50 SelectShift downhole adjustable
NOV’s SelectShift downhole adjustable motor has the capability to shift between
the straight and bent position downhole. (Source: NOV)
94
motor to its portfolio of downhole tools and tech-
nologies. The low-risk, all-mechanical drilling tool
addresses the economic and performance-related
needs of this changing market.
Technology
The SelectShift downhole adjustable motor provides
operators with the flexibility to shift between the straight
and bent position downhole. This capability, combined
with the motor’s higher torque output and 100% flow
to the drillbit, allows the SelectShift to outperform
traditional motors, eliminate trips and improve
drilling efficiencies. The SelectShift downhole
adjustable motor combines the power and
reliability of a drilling motor with greater oper-
ational flexibility. This all-mechanical design
offers bend setting options similar to those of
traditional motors.
The driller shifts the bend angle of the motor
downhole between a high-bend or straight/
low-bend position within a couple of minutes
via adjustment to flow rate and rotary rpm. A
permanent standpipe pressure signal difference,
ranging from 150 psi to 250 psi, is seen on the
surface indicating the position for bend setting
confirmation. There is no restriction on the
number of downhole shifts between the high-
bend and straight/low-bend positions and vice
versa that the driller can make.
Internally, the universal joints include torque-
transferring faces versus the traditional ball and
socket arrangement. This feature enables the
motor to provide exceptional torque capability
and reliability. In addition, the SelectShift down-
hole adjustable motor incorporates the latest
oil-lubricated bearing assembly technology, which
maintains a similar bit-to-bend length as a conven-
tional drilling motor even with the added technol-
ogy of the bend angle shifting mechanism.
Field trials
Field-testing was initiated in 2018 as part of a
comprehensive technology validation program.
January 2020 | E&P | HartEnergy.com

The earliest testing was coordinated at NOV’s live test
rig in Navasota, Texas, and at the Catoosa Test Facility
in Jennings, Okla. Thereafter, field trials with operators
in the Bakken, Permian, Eagle Ford and Midcontinent
were undertaken with vertical/tangent/nudge sections
a primary focus. Several runs in curve, curve/lateral and
lateral sections also were initiated. Through these trials,
several key objectives were set and accomplished:
• Successfully shifted bend angle downhole, proved
tool function and permanent standpipe pressure sig-
nal difference on surface;
• Successfully optimized shifting procedure to reduce
nonproductive time;
• Reduced motor stab outer diameter to mitigate sur-
face torque; and
• Determined compatibility of tool and MWD
operations.
To date, more than 130,000 ft have been drilled with
the SelectShift downhole adjustable motor, with more
than 370 straight or low-bend shifts downhole. Though
most runs were in the vertical/tangent section, the
SelectShift most recently drilled a 12,985-ft lateral in
the Permian Basin.
Case histories
An operator in the Permian Basin needed to drill an
entire 8¾-in. vertical/tangent section to the kickoff
point (KOP) while effectively holding inclination and
improving bit life. The section consisted of a challeng-
ing lithology of sandstones, siltstones and limestones,
and harsh downhole conditions had previously been
encountered. On offset wells, the operator had to pull
the bit due to bit damage before reaching the KOP. On
this run, ensuring that the bit reached total depth with
an optimal bit dull was of critical importance.
The Vector Series 50 SelectShift downhole adjust-
able motor was chosen by the operator to address the
challenge of multirun trips to the KOP. The motor was
configured with an 8½-in. stabilizer and a 7-in. 7⁄8 lobe,
5.7-stage even rubber thickness power section and was
paired with a seven-blade, 19-mm cutter PDC drillbit.
The SelectShift downhole adjustable motor was con-
figured to operate between 1.83 degrees and 0 degree
bend settings. The system successfully reached the
KOP in one run, drilling 2,719 ft with the SelectShift
in the 0-degree setting. In addition, hole inclination
was easier to hold with the tool in straight mode, which
reduced the number of slides by 57% versus the offset
well. The bit was deemed repairable, and with a bit dull
of 1-3-BT-S-X-I-CT-KOP, it was in significantly better
condition than the previous bit.
HartEnergy.com | E&P | January 2020
shale
SOLUTIONS
Other projects have displayed additional benefits
from using the SelectShift downhole adjustable motor,
with drilling optimization as a potential area for greater
development. In one instance, using the SelectShift
tool resulted in an increase in rotary rpm by 40% with
a decrease in surface torque by 20% and weight on bit
by 8%. As torque decreased, a concurrent increase in
ROP was observed with improvements up to 54% when
compared to being in bent position versus the straight
position on back-to-back stands.
Another area where the SelectShift tool is demonstrat-
ing its potential is in reducing slide percentages. The
key in this functional domain is that operators using the
technology gain experience operating the tool in the field,
which will lead to achieving the maximum performance
benefit. In one project, an operator started out drilling 9.9
sliding hours, a total of 30% across a 6,238-ft interval. By
the time it had reached the third well and gained more
experience using the tool, sliding hours had been reduced
to 3.8 hours, a total of only 12% across a similar 6,175-ft
interval. Continued use of the SelectShift enabled this gain
in drilling efficiency in the vertical/tangent section.
Moving forward
NOV’s approach to accelerating development of the
SelectShift technology and performance evaluation has
been by a combination of internal tests and customer
field trials. After initially focusing on validating the con-
cept, the company moved to minimize shift times and
shift procedure optimization downhole. Now, the pri-
mary focus is on optimizing drilling parameters, enhanc-
ing ROP and eliminating trips.
The current state of drilling, particularly in North
America, will lead to increased technology adoption.
Pad drilling with batch wells is a perfect example of an
application where the iterative cycle of learning with
the SelectShift can benefit the operating company,
especially in the vertical/tangent section. On the first
run, drillers can get a feel for running a new tool, accli-
mating themselves to the shifting mechanism. On the
second run, parameters can be adjusted to improve
downhole drilling dynamics as familiarity with the tool
increases. By the third run, the driller can focus on
improving ROP and eliminating trips, thereby reducing
drilling costs. This cycle is part of a process of scaling
the technology across rig fleets.
New drilling technologies will continue to be import-
ant as oil and gas companies seek efficiency gains and
better returns on capital deployed. When choosing
their solution, companies would be wise to find an
answer that balances cost with proven performance.
95
 UNCONVENTIONAL REPORT:
MIDCONTINENT
A pumpjack operates near Woodward, Okla.
(Source: Bob Pool/Shutterstock.com)
Oklahoma’s bumpy shale ride
The Scoop and Stack plays are still in the money but only with improved well spacing and
effective management of frac-driven interactions.
Jennifer Presley, Executive Editor
T he last few years have been a bit of a roller coaster
ride for Oklahoma’s oil and gas industry—from the
rise in 2012 of the Granite Wash and Mississippi Lime
plays to their fall in 2014, followed by another rise two
years later of the Stack and Scoop. In 2019 the signs con-
tinued to point down for the central Oklahoma plays.
While activity in the two plays had been hot since
2016, times have changed, according to Sarp Ozkan,
director of energy analysis for Enverus. In his presen-
tation at Hart Energy’s recent DUG Midcontinent
Conference and Exhibition, Ozkan shared his views on
the state’s shale trajectory and the factors contributing
to its bumpiness.
“Although the Scoop and Stack were hot plays to
be in in 2016, we’ve since seen a drop in rig count,
especially recently, and that drop can be attributed to
96
several factors,” Ozkan said. “Two of which are at the
forefront. One was the degradation of productivity
due to poor spacing as well as parent/child well inter-
actions and activity that is moving farther away from
the core.”
The other is a reason that the industry has come to
learn all too well—free cashflow.
“Operators are actually moving elsewhere in their
portfolio, especially at a time when free cash flow gen-
eration is king and limited capex is constricting how
much rig activity they can actually have,” he said.
With the initial round of downspacing wells return-
ing largely unsuccessful results, the response going
the opposite direction has been positive, according to
Ozkan. The timing of that response has been less so.
“Upspacing from the initial development plans has
led to great results and the economics still rival the
best,” he said. “The activity element was nonetheless
impacted due to the fact that the paradigm shift on
January 2020 | E&P | HartEnergy.com
 UNCONVENTIONAL REPORT:
MIDCONTINENT

Wall Street now pushes operators to focus on free cash curve productivity gains from high proppant loads did
flow generation and delivering returns to shareholders. not continue over time, according to Enverus.
However, the economics in the core of the Scoop and “Over time from 2014 to 2019, we’ve seen proppant
Stack plays mean that both are still very much in the intensity in the Stack increase from a low of 1,000 lb/
money, especially if the spacing is well-planned, and ft up to 2,500 lb/ft levels,” he said. “The modernization
parent and child interactions are managed, he added. of completions and higher proppant intensities really
“Spacing moving forward needs to be approached as unlocked the potential of the Stack. We’ve seen some
a science rather than a trial-and-error exercise so that degradation of those results in 2017, 2018 and 2019
the vast resource of Stack and Scoop can be brought to that is largely due to spacing and stepping outside of
the forefront,” Ozkan said. the core.”
The migration of some operators to opportunities The same trend was seen in the Scoop as higher prop-
outside of Oklahoma created opportunities for those pant intensity completions initially delivered an increase
left behind. in productivity, he said, adding that those productivity
“The Stack and Scoop are still very hot in terms of gains have since scaled down to 2015 levels due to drill-
permitting, in relation to a lot of the other plays in ing outside of the sweet spots, poor downspacing results
the country. Meaning that there is still interest here in and parent/child well relationships.
terms of planning for the future for a lot of the opera- Concerns surrounding aggressive downspacing neg-
tors,” he said. atively impacting well productivity also have increased,
In 2018 more than 1,100 permits were issued for the he noted.
Stack and more than 600 for the Scoop. As of mid- “If you take a very simplistic look at wells per drilling
November, there had been 672 permits and 446 permits spacing unit [DSU] in the Stack and Scoop area, what
issued, respectively, according to Enverus. you see are the number of wells per DSU over time has
In regard to the rig count, the dropping of rigs by roughly been six to eight,” he said. “However, the depth
operators has been significant. was really in the details. The average is coming out to
“The drop in rig counts has been marked,” he said. about seven wells per section, because we’re drilling a
“A large part of that drop was due to a lot of rigs leav- lot of wells per section within the core and we’re drill-
ing the Scoop, Stack and Merge area. For example, ing very few standalone wells outside of the core.”
Marathon has gone from seven to five rigs,
Exxon from eight to four and Encana from 10
to five.”
However, Ozkan noted that fewer rigs do
not translate one-to-one to fewer wells or
reduced production.
“Efficiency gains in drilling and comple-
tions, especially in 2017 moving forward, have
meant that we can do more with fewer rigs,”
he said.
In 2015 the number of days from spud to
rig release for the Stack was 26 and 37 days
in the Scoop. In 2019 that number was down
to 18 days for the Stack and 24 in the Scoop,
according to Enverus.
“We’re getting better at what we do with
fewer rigs, and doing more with less definitely
helps from a cost perspective. It maintains
breakevens at levels that keep parts of the
Scoop and Stack attractive,” Ozkan said.
On the completions side of the coin, high Sarp Ozkan, director of energy analysis for Enverus, spoke on the Oklahoma
proppant intensities helped unlock the poten- trajectory at Hart Energy’s recent DUG Midcontinent Conference and Exhibition
tial of the Stack and Scoop. However, the type in Oklahoma City. (Source: Mary Holcomb, Hart Energy)

98 January 2020 | E&P | HartEnergy.com98

 tech
WATCH
Safety optimization for
cable-deployed ESPs
A new downhole safety valve will create an improved well control tool for cable-deployed
ESPs retrofitted to production wells.
Contributed by Pragma Well Technology
A s oil and gas operators strive to optimize produc-
tion in mature and marginal fields, innovative
technology is essential to enhance recovery and deliver
improved economic benefits.
Electric submersible pumps (ESPs) are increasingly
used as an efficient and reliable method for artifi-
cially lifting high volumes of fluids from wellbores.
Traditional ESP systems need to run as part of the
tubing or on coiled tubing, with the motor located at
the bottom of the borehole assembly. The pumps can
be configured to suit the individual production and
wellbore characteristics of the reservoir to control and
enhance the uplift of oil.
More recently, slimline cable-deployed ESPs have
been developed that provide cost- and time-efficient
Advanced engineering can deliver valuable safety and efficiency gains for the However, these options are limited to wells
industry. (Source: Pragma Well Technology)
100
retrofittable solutions. By eliminating the requirement
for a rig, opex is drastically reduced, particularly off-
shore. However, these retrofittable solutions often
mean the existing subsurface safety valve (SSSV) within
the well is rendered inoperable, so an alternative solu-
tion is required.
Pragma Well Technology is developing an advanced
downhole safety valve to create an improved well
control tool for cable-deployed ESPs retrofitted to
production wells. This new ESP safety valve enables
onshore and offshore installations to meet all safety
regulations while simplifying deployment and
retrieval operations.
New challenges
In many regions, an API 14A qualified SSSV is a legal
requirement for producing wells. These safety devices
are installed in the upper wellbore to provide con-
tainment of well fluids in the event of an
emergency. These valves generally use a flap-
per-style mechanism and are incorporated in
the production tubing during completion.
Traditional rig-deployed ESPs are run
in-hole along with the production tubing.
Their control lines run outside the tubing
in the annulus, so a safety valve can be
placed above the device to provide an unim-
peded seal within the tubing.
However, when an ESP is retrofitted to a
well, without the use of a rig and without
replacing the production tubing, the ESP
control lines and conveyance cable must
run through the inside of the tubing. This
obstructs the existing flapper-style SSSV,
therefore creating the requirement for an
additional safety valve.
Currently, operators can resolve this by
installing a modified valve into the pro-
file of the existing one, with the old SSSV
control line used to actuate the new valve.
with wireline retrievable safety valve nipple
January 2020 | E&P | HartEnergy.com
 tech
WATCH

profiles with associated control The ESP safety valve is in development.

lines and as such are not with- (Source: Pragma Well Technology)
out drawbacks.
The new valve must be
dropped precisely into the insert
profile and requires additional surface
equipment for installation. It generally requires
several time-consuming processes to ensure effective
deployment and relies on the integrity of the existing seal
profile and valve control lines, which may have been in
situ for more than 10 years. Pitting or corrosion is fairly The standard
common, which can reduce the reliability of the seal and model has a tem-
overall safety. perature rating
of 120 C, and a high-tem-
Flexible and cost-saving design perature version rated to 170 C for
Pragma’s advanced ESP safety valve has been designed harsher environments is being developed.
specifically for retrofitted ESPs and sits below the pump. As an added assurance to the operator, the valve
It removes any reliance on the existing SSSV, its seals or can be tested in-hole via an inflow test to confirm that
control lines, delivering a fit-for-purpose safety tool. it holds pressure when shut. Additionally, the valve can
Providing greater flexibility for operators, the valve be configured to allow a pressure test from above once
can be deployed in varying configurations to suit the installed but also facilitates pump-through capability.
existing well setup. It can be run as an integrated part Created using new and enhanced materials and meth-
of the lower ESP assembly to ods, including additive manu-
be deployed and retrieved facturing, the ESP safety valve
in the same run through the is available in size variants for
production tubing, thereby As the oil and gas both 3.5-in. and 4.5-in. pro-
reducing installation time. duction tubing, providing a
Alternatively, it can be industry continues to seek compact, cost-effective solution.
installed separately between new technologies The design and small wellsite
running the seal bore packer footprint provide greater safety
and the borehole ESP assem-
to enhance existing and reliability assurances to the
bly, depending on the opera- equipment, it is vital that operator as well as lowers instal-
tor’s preference. the supply chain lation, operation and retrieval
costs. The ESP safety valve
Novel technology continues to adapt. technology has been developed
Unlike other safety valves, in-house with a number of tests
instead of electric or hydraulic already conducted and will be
control lines, this device uses a API 14A qualified.
novel method of differential pressure (fluid lift) to open
and close it. This pressure differential is created when the Adapting to change
ESP is operational and is lifting fluid through the well- As the oil and gas industry continues to seek new tech-
bore. Therefore, the valve opens when the ESP is pump- nologies to enhance existing equipment, it is vital that
ing and closes when it stops. the supply chain continues to adapt. By investing in crit-
As it requires no pressurized chambers, hydraulic ical R&D, there are significant opportunities to reduce
control lines or electrical power, this design safeguards costs and optimize production.
reliability. It has a fail-safe closing mechanism when
the ESP is switched off and can be opened and closed Have a story idea for Tech Watch? This feature highlights
as many times as required. The retrievable technology leading-edge technology that has the potential to
also can be applied to other artificial lift systems includ- eventually address real-life upstream challenges. Submit
ing capillary strings, gas-lift velocity strings, progressive your story ideas to Executive Editor Jennifer Presley at
jpresley@hartenergy.com.
cavity pump and jet pump systems.

102 January 2020 | E&P | HartEnergy.com

 tech
TRENDS

New technology to cut carbon emissions undergo a polymerization reaction that results in a par-
BP has announced that it will deploy continuous mea- tially inorganic, glass-like coating that keeps the materi-
surement of methane emissions in its future BP- als from adhering to pipe surfaces. swri.org
operated oil and gas processing projects as part of its
program to detect, measure and reduce methane emis-
sions, a press release stated. Continuous measurement,
including instruments such as gas cloud imaging, will
be rolled out to all new major projects worldwide. The
technology has been tested and installed in existing
facilities such as at BP’s Khazzan Field in Oman. It is
a key part of BP’s wider and longer-term strategy to
deploy a suite of complementary methane-detecting
techniques across new and existing facilities. The data
generated will help BP identify the largest opportuni-
ties to tackle methane emissions, drive efficiency and
develop best practice, and it is ultimately aimed at deliv-
ering and improving BP’s methane intensity target of
0.2% from its upstream operations. bp.com Southwest Research Institute applies the LotusFlo
superhydrophobic coating, which prevents materials from
Superhydrophobic coating for offshore occluding the flow of oil, to a series of offshore drilling pipes.
drilling pipes (Source: Southwest Research Institute)
Southwest Research Institute has developed Lotus-
Flo, a superhydrophobic coating designed to keep New caliper tool for geothermal well operations
offshore drilling pipes from being clogged by various Probe has released the UHT Dimension XY Caliper,
substances, a press release stated. Pipes are frequently which is designed to operate in ultrahigh-temperature
clogged by substances like asphaltenes, paraffins and environments, a press release stated. This new devel-
inorganic scales, which can slow or even halt the flow opment expands upon the Kuster geothermal logging
of oil. Current options involve pouring costly chemi- tool portfolio used in the global geothermal industry.
cals, which pollute the surrounding ocean, down pipes Designed to operate in hostile environments of up to
to unclog them. LotusFlo can repel the liquids and 617 F, the UHT Dimension tool provides two contin-
materials that often clog drilling pipes. The coating, uous independent perpendicular measurements (X
which is applied to the pipes under vacuum condi- and Y) of the internal diameter of the casing. The tool
tions, contains silicon, oxygen, carbon and fluorine. also produces a high-resolution temperature profile of
Despite the harsh conditions of the drilling environ- the well via an external fast-response resistance tem-
ment, the coating can last for years and is not harmful perature detector. Featuring Kuster high-temperature
to the surrounding environment. technology, it is the latest addition to Probe’s range
The LotusFlo coating process involves linking several of Kuster pressure-temperature (PT) sensors, pres-
40-ft sections of pipe together in very low atmospheric sure-temperature-spinner (PTS) sensors and Protherma.
pressures. The interiors essentially act as a vacuum The UHT Dimension tool can be run as a standalone
chamber, with an end unit on either side of the pipe or combined with other Kuster geothermal PT and
providing the vacuum source. An electrode is strung
through the pipe from one end to the other and sus-
pended in the middle of the pipe. Volatile molecules
are then introduced into the evacuated pipe to ignite
highly ionized gas molecules, or plasma, inside the
entire length of the pipe structure. The plasma, once
ignited, emits light and fragments in a special way to
allow control over the chemical precursor molecules to
form other ions in the plasma, which are then acceler-
ated very rapidly onto the internal surface of the pipe. The UHT Dimension XY Caliper tool measures the internal
When the ions collide on the interior surface, they diameter of the well. (Source: Probe)

104 January 2020 | E&P | HartEnergy.com

 tech
TRENDS
PTS tools. Its mechanical design features single roller
arms that conform easily to most wellbore conditions.
However, if there is a need to run over slotted sleeves or
sandscreens, an optional triple roller arm is available for
increased run efficiency. probe1.com
New risk management tool combines
artificial and human intelligence
InEight Basis is InEight’s planning, scheduling and risk
management tool that employs artificial intelligence
(AI) and machine learning, along with risk intelligence
capabilities, to establish more realistic plans and sched-
ules for upstream oil and gas projects, according to the
company. These are fully risk-adjusted plans and sched-
ules that can be delivered earlier in the process and
with fewer iterations. Drawing from a knowledge library
containing historical data from an organization’s past
projects, the tool’s AI-powered inference engine gener-
ates scenarios that are most likely to occur. Once these
are reviewed and scored by team experts for increased
accuracy, the data can be fed back into its knowledge
library for use on future projects. This combination of
AI and human intelligence ensures more predictable
outcomes and saves time in the planning process. This
results in project planners spending up to 40% less
time building schedules as well as reducing the amount
of time used in gathering team member feedback by
75%. ineight.com
New machine learning technology for
reservoir characterization
GeoSoftware, part of CGG’s Geoscience division,
has announced that machine learning technology
in Python ecosystems will be available in upcoming
releases of its HampsonRussell and Jason reservoir
characterization tools, according to a press release.
Python ecosystems in HampsonRussell and Jason
will allow experts and data scientists to completely
customize machine learning and reservoir character-
ization workflows by using Python machine learning
libraries and also their own proprietary code. Python
ecosystems allow users to efficiently research and
test various machine learning workflows for proof-of-
concept or commercial projects. Scripts and workflows
directly access well, horizon and seismic data for use
in machine learning, deep learning, visualization and
numerical analysis. HampsonRussell and Jason users
can benefit from complete control over input data
and analysis output. With Python ecosystems, users
can process data with prebuilt or client-proprietary
Python scripts or Jupyter notebooks, and store input
106
and output data in either a HampsonRussell or Jason
project database or a shared directory. Python eco-
system functionality will integrate with the applica-
tion’s data stores and viewers, eliminating the need to
export, reformat and reload data. cgg.com
New software for faster commissioning of
motor control centers
Rockwell Automation has released the new version of
the IntelliCENTER software to enable industrial pro-
ducers to commission Allen-Bradley CENTERLINE
motor control centers (MCCs) quickly and easily,
according to a company product announcement. The
updated IntelliCENTER software can be helpful for oil
producers as it more quickly and easily commissions
MCCs. With the new software release, MCCs can be
assembled, configured and validated across similar end
devices—all before they arrive at a user’s site. This can
give the user a head start designing their control system
without having to wait for the MCCs to arrive on site.
Logical connections and configurations are provided to
users with the delivery of the MCCs, including ether-
net/IP support. This allows the MCCs to be configured
automatically. The user also receives validated integra-
tion datasets. With so many devices in an MCC with
technical and system complexity or if third-party config-
uration is required, the updated software can still save
commissioning time and ease startup. In addition to
faster commissioning, the IntelliCENTER software gives
production workers real-time access to diagnostics and
MCC documentation. This can help them maximize
the performance of their MCCs and related equipment.
In addition, by allowing workers to remotely monitor,
configure and troubleshoot MCCs, the software can
help reduce worker exposure to hazardous energy lev-
els. rockwellautomation.com
Please submit your company’s updates related to new
technology products and services to Ariana Hurtado at
ahurtado@hartenergy.com.
January 2020 | E&P | HartEnergy.com
 international
HIGHLIGHTS
1 US
Chesapeake Operating Inc. com-
pleted two wildcat Marcellus wells at
a pad in Section 8, Auburn Center
7.5 Quad, Meshoppen Township in
Wyoming County, Pa. The AMCOR
#2HC was drilled to 1,097 ft (7,333
ft true vertical depth). It was tested
flowing 84.269 MMcf/d of gas, with
no reported water, after 90-stage
fracturing between 7,587 ft and
20,957 ft. About 50 ft to the west,
AMCOR #3HC was drilled to 20,553
ft (7,286 ft true vertical depth). It
was tested flowing 64.305 MMcf/d
of gas after 53-stage fracturing from
perforations at 7,442 ft to 20,415 ft.
2 Argentina
Echo Energy is planning to drill the
first well, CLM x-1, in a four-well
exploration program in Argentina’s
Tapi Aike Block in the Santa Cruz
Austral Basin. The location is in
Chiripia Oeste in the eastern part of
the Tapi Aike 3-D survey area, which
CGG recently surveyed. The well will
be targeting a stratigraphic trap in
Magallanes. A secondary horizon will
be in Anita (D3). A shallower sec-
ondary interval (Magallanes 60) also
will be tested. The well will be drilled
in two vertical sections and has a
planned depth of about 2,600 m.
Cores will be cut and collected over
the primary target, and well logs will
be run over all intervals of interest.
3 Mauritania
Kosmos Energy has announced a
gas discovery in the offshore Mau-
ritania-BirAllah area at the Orca-1
exploration well. The 5,266-m well
targeted a previously untested
Albian play and encountered 36 m
of net gas pay in excellent quality
reservoirs. The well also extended
the Cenomanian play fairway and
108
confirmed 11 m of net gas pay in
a down-structure position relative
to the discovery well, Marsouin-1,
which was drilled on the crest of
the anticline. According to the com-
pany, the Orca-1 and Marsouin-1
wells have de-risked up to 50 Tcf of
gas in place from the Cenomanian
and Albian plays in the BirAllah
area. In addition, a deeper but
untested Aptian play also has been
identified within the area and sur-
rounding structures.
4 Norway
Equinor completed a Fram Field
exploration well, 35/11-23 Echino
South, in the North Sea. Recov-
erable resources are estimated at
38 MMboe to 100 MMboe. It was
drilled to 2,947 m and area water
depth is 350 m. The well is about 3
km southwest of the field, and the
primary exploration target was to
prove petroleum in the Upper Juras-
sic reservoir in Sognefjord. The sec-
ondary exploration target in the well
was to prove petroleum rocks of the
Middle Jurassic period. Hydrocar-
bons were proven in both explora-
tion targets. Sidetrack well 35/11-23
A is being drilled to delineate the
discovery in Sognefjord.
5 Norway
OMV Norge, operator of production
license 644, has completed appraisal
well 6506/11-11 S on the 6506/11-
10 (Iris) gas/condensate discovery.
The well encountered a 70-m gas
column in Garn with about 50 m of
sandstone with reservoir properties
varying from poor to good with no
gas/water contact. Multiple sand-
stone layers totaling about 55 m were
encountered with moderate-to-good
reservoir quality. The primary objec-
tive was to delineate the gas/conden-
sate discovery in Garn toward the
southwest and determine if there
is petroleum in reservoir rocks in
the underlying Middle Jurassic Ile.
During the Garn test, the well had
a maximum flow rate of 1.6 MMcm
of gas and 883 cu. m of condensate.
Preliminary estimates indicate that
Garn holds 4 MMcm to 12 MMcm
of recoverable oil equivalents. The
appraisal well was drilled to 4,433
m and was terminated in Ror in the
Lower to Middle Jurassic.
6 Gabon
Vaalco Energy announced results
of an offshore oil discovery at the
Etame 9P appraisal well in Gabon’s
Etame Field. The venture was target-
ing the sub-cropped Dentale reser-
voir. The well was drilled to 3,127 m
and encountered both Gamba and
Dentale oil sands. The shallower sec-
tion will be plugged back to drill the
Etame 9H horizontal development
well section in the Gamba reservoir.
The completion verifies the presence
of a Dentale oil column, and it hit
about 35 ft of good quality Dentale
oil sands with 27% porosity and 3,000
mD of permeability. The gross recov-
erable oil resources are estimated at
2.5 MMbbl to 10.5 MMbbl of oil.
7 Egypt
Eni reported the discovery of new
resources in the Abu Rudeis Sidri
Concession in the Egyptian sector
of the Gulf of Suez. The Sidri 36
appraisal well was drilled to assess
the field continuity westward and
encountered a 200-m hydrocarbon
column in the clastic sequences of
Nubia. It was tested flowing about
5,000 bbl/d of oil and will be com-
pleted and put into production. The
Sidri South discovery is estimated to
contain about 200 MMbbl of oil in
place, and the field will be reassessed
following these new results.
January 2020 | E&P | HartEnergy.com

1
8 Mongolia
Petro Matad announced the results
of well testing operations at the
Heron-1 oil discovery in the north
of Block XX in the Tamsag Basin in
Mongolia. During a drillstem test,
the well initially flowed 821 bbl of
46-degree-gravity oil, an unreported
amount of gas and no water per
day from a 12-m interval at 2,834
m in the upper portion of Lower
Tsagaantsav. It was tested on a 19/64-
in. choke. The well has been shut in.
The predrill resource estimated for
the Heron structure is 165 MMbbl of
oil in place, with 25 MMbbl (P50) of
recoverable resource.
9 Australia
Strike Energy reported results from a
flow test at the West Erregulla-2 well
in EP469 in Western Australia. The
well flowed 69 MMcf/d of gas from
HartEnergy.com | E&P | January 2020
Kingia Sandstone. The test program
for the Perth Basin venture was to
determine well deliverability from
the reservoir in West Erregulla Field.
Three 48-m intervals were tested
between 4,799 m and 4,851 m. It was
tested on a 2-in. choke, and the well-
head pressure was 700 psi. Data from
the flow test will be analyzed and
used to update models to determine
the contingent resources.
10 Australia
Beach Energy has announced a 10-well
appraisal program by the petroleum
exploration license 92 joint venture in
the South Australia portion of the
Cooper Basin. The first well in the pro-
gram has been spud at the Cal-
lawonga-22 well, and it is the first of
four appraisal wells to be drilled in the
Callawonga oil field. The Cal-
lawonga-22 well is about 500 m north
of a previous discovery, Callawonga-3,
international
HIGHLIGHTS
8
10
9
and it will test a possible field exten-
sion to the north. The planned depth
is 1,497 m. The other wells in the pro-
gram are Callawonga-19 (planned
depth of 1,381 m); Callawonga-20 (no
planned depth reported); Cal-
lawonga-4 (planned depth of 1,540 m)
and Callawonga-21 (planned depth of
1,476 m). The Callawonga wells will be
deviated from two surface locations
and will be targeting Namur Sand-
stone. The overlying McKinlay Sands
are a secondary objective. Four addi-
tional wells are planned in Butlers oil
field, and two are planned in the Rin-
con oil field.
By Larry Prado, Activity Editor, Digital
News Group, Hart Energy
For additional information on these projects
and other global developments, visit the
activity highlights database at
109
 on the
MOVE

PEOPLE ventional oil and gas, based in the JDR has appointed Jon Vail
group’s headquarters in The Hague. as strategy director and
The board of BHP a member of the board
appointed Mike Henry TDI-Brooks International of directors.
(left) CEO and executive has welcomed Richard
director, effective Jan. 1, Byno III as director of GTI reelected Adrian P. Chapman,
replacing Andrew Mackenzie, who marine operations. Arthur C. Corbin, Marc J. Florette,
retired as CEO on Dec. 31, 2019. Nickolas Stavropoulos and Kim-
Wellpro Group has welcomed berly S. Greene as board of direc-
Lilis Energy Inc. named Joseph C. Mark Fraser and Martin Webster as tors for three-year terms. Michael
Daches CEO. regional managers of the Middle E. Webber was newly elected to
East and Asia, respectively. a two-year term. In addition, the
Strategic Oil & Gas Ltd. has board reelected David C. Carroll,
appointed William Lancaster WAGO has James F. Ingold, Ronald N. Snedic,
president and CEO, and Amanda appointed Drew Paula A. Gant, Michael A. Rut-
Reitenbach has been promoted to Amos (right) kowski and Quinton B. Ford for
COO. In addition, the company has regional sales man- another term.
announced the resignations of James ager for southern California and
Riddell from the board of directors also welcomed Barry Nelson (left) as COMPANIES
and Tony Berthelet as CEO. public relations coordinator.
Microsoft is expected to open its AI
CNOOC Ltd. has appointed Xu Neodrill has appointed Tim Dallas Centre of Excellence for Energy
Keqiang CEO. to the newly created role of business in the United Arab Emirates in
development manager for Australia early 2020.
Weatherford International Plc and New Zealand.
selected Christian Garcia as execu- Baker Hughes has broken ground
tive vice president and CFO, effec- Flowline Specialists COO Graeme on its first chemicals manufacturing
tive Jan. 6. Chalmers was welcomed as a mem- facility in Saudi Arabia. The facility
ber of GlobalScot, Scotland’s inter- is expected to open by 2022.
Kyle McClure has been national business network.
appointed CFO of Airswift. CGG has established a regional
RMEC has appointed industry Geoscience Center in Abu Dhabi to
veteran Vic Allan to help oversee deliver geophysical, geological and
McDermott International Inc. has its operations. reservoir technology and support to
appointed Chris Krummel executive clients across the Middle East.
vice president and CFO. Julia Szlakowski has joined
EIV Capital as director of Gator Technologies, a provider of
David Hendry has submitted his res- communications and inves- downhole tools, has expanded its
ignation as CFO of Obsidian Energy tor relations. operations in Midland, Texas, and
to pursue other opportunities. Broussard, La. The new facilities will
Dr. Govert van Ek has stepped down provide purpose-built space to sup-
Max Williams has elected to step as director of Tap Oil Ltd. port Gator’s bottomhole assembly
down from his position as CFO and tool rental, repair and manufactur-
director of Aminex after serving Martin Greenslade has been appointed ing capabilities.
more than 25 years with the company as a member of the audit committee
in various financial roles. John Arthur and nonexecutive director of Tullow Sulzer has opened a new service
will assume the position of CFO but Oil, replacing Steve Lucas, who will center in Pasadena, Texas, which
will not have a position on the board. step down from the board in 2020. includes a large pump repair
shop that is equipped with lift
Royal Dutch Shell has promoted Zoe Santos has appointed Janine J. capacity to handle large machines
Yujnovich, its current Australia chief, McArdle as an independent non- along with repair technologies
to executive vice president for con- executive director. and equipment.

110 January 2020 | E&P | HartEnergy.com


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HartEnergy.com E&P| | January
January 2020
2020
on the
MOVE
Total has announced plans to open a Ithaca Energy Ltd. has completed the
Digital Factory in Paris in early 2020 $2 billion acquisition of Chevron North
that will bring together up to 300 Sea Ltd.
developers, data scientists and other
experts to accelerate the group’s digi- Eni has joined forces with CDP, Fin-
tal transformation. cantieri and Terna to establish a new
company for the development and
Van Beest, a manufacturer and supplier manufacturing of wave energy power
of accessories for lifting chain and steel plants. The agreement will launch the
wire rope, has moved to a new office first phase of a joint project to convert
and distribution center in Houston. the Inertial Sea Wave Energy Converter
pilot project, a system that transforms
Shawcor has opened a new facility in energy generated by waves into elec-
Abu Dhabi, United Arab Emirates. tricity, into an industrial scale power
station, making its application and use
SitePro has acquired Integrated Con- immediately available.
trol Solutions. The acquisition brings
together two oilfield automation provid- Worley has acquired 3sun Group, the
ers that will provide upstream and mid- U.K.-based installation, inspection and
stream operators with an automation maintenance specialist in the offshore
software platform and service. wind sector.
ADVERTISER INDEX
AAPG Annual Convention & IPAA . . . . . . . . . . . . . . . . . . . . . . . . . 63
Exhibition . . . . . . . . . . . . . . . . . . . 105 Meritorious Awards for
AFGlobal . . . . . . . . . . . . . . . . . . . . . 53 Engineering . . . . . . . . . . . . . . . . 90-91
Aggreko . . . . . . . . . . . . . . . . . . . . . . 16 Meyer . . . . . . . . . . . . . . . . . . . . . . . . 37
Bedrock Automation . . . . . . . . . . . . 59 Mohawk Energy . . . . . . . . . . . . . . . . 21
Beyond Limits . . . . . . . . . . . . . . . . . . 11 NatureWorks . . . . . . . . . . . . . . . . . . . 9
De Nora Water NCS Multistage . . . . . . . . . . . . . . . . . 6
Technologies Texas LLC . . . . . . . . . 29
Nine Energy Service . . . . . . . . . . . . 41
DistributionNOW . . . . . . . . . . . . . . . 45
North American Artificial
DiverterPlus . . . . . . . . . . . . . . . . . . . 31
Lift 2020 . . . . . . . . . . . . . . . . . . . . . 107
DUG Bakken And Rockies Conference
Offshore Technology
& Exhibition . . . . . . . . . Tip-On, 82-83
Conference 2020 . . . . . . . . . . . . . . . . 4
EDF Trading . . . . . . . . . . . . . . . . . . . 14
OSP Microcheck . . . . . . . . . . . . . . . . 23
Energy Innovators . . . . . . . . . . . . . . 65
Pilot Chemical Co . . . . . . . . . . . . . . . 25
E&P . . . . . . . . . . . . . . . . . . . . . . . 5, 103
Propell . . . . . . . . . . . . . . . . . . . . . . . 97
Endurance Lift Solutions . . . . . . . . . 57
Select Energy Services . . . . . . . . . . 27
Enventure Global Technology . . . IFC
Flotek Industries . . . . . . . . . . . . . . . 33 Siemens . . . . . . . . . . . . . . . . . . . . . . 13
Freemyer Industrial Pressure LP . IBC SNF Oil & Gas . . . . . . . . . . . . . . . . . . 35
FTS International . . . . . . . . . . . . . . . 49 TechnipFMC . . . . . . . . . . . . . . . . . . . 79
Hart Energy Conferences . . . . . . . . 99 TETRA Technologies . . . . . . . . . . . . 77
Thru Tubing Solutions . . . . . . . . . . 2-3
Helmerich & Payne Inc . . . . . . . . OBC
Hi-Crush Inc . . . . . . . . . . . . . . . . . . . 47 Universal Pressure Pumping Inc . . 43
GEODynamics . . . . . . . . . . . . . . 50-51 Weatherford . . . . . . . . . . . . . . . . . . . 61
Hydrozonix . . . . . . . . . . . . . . . . . . . . 39 Women In Energy . . . . . . . . . . . . . 101
111
 last
WORD

Sharing data and best practice

advice between operators
While radical in its nature, an operator’s commitment to data sharing is the key to huge
savings across the industry.

customers think sharing anonymized data would com-

Andy Powrie, Arnlea Systems promise the integrity of their business.
Modern tech applications all specialize in a single

F or software as a solution (SaaS) providers like Arn-

lea, the discussion has to center on allowing custom-
ers to let the SaaS provider host its software systems so
function; there is no longer a one-stop shop for every-
thing. Arnlea also partners with other tech compa-
nies, sharing best practice and serving shared clients
those customers can begin to collate anonymized indus- together in a much better way than being separate
try data to share with all participants for mutual benefit. isolated providers. Integrating partners, services and
This bold vision would see all major oil and gas oper- products gives the end client a far superior service
ators hosted on the same application to enable discrete and better value for money. Combining data and
data packages collated from a single source to facilitate clients together is fundamentally desirable, but the
greater intelligence about parts and product. mindset has to change. Other industries, such as auto-
Like many other smaller specialist SaaS providers, motive and aerospace, are much further down the
Arnlea’s software can integrate line with this than the oil and
with enterprise resource pro- gas industry.
grams, such as SAP, and it works Crucially, the creation of
most effectively for clients when predictive failure analysis, best
it does. This means Arnlea’s
Fresh thinking is value suppliers, most reliable
external software has to be on urgently needed to supply sources and identifying
the same landscape and in the see the true digital surplus available product or
same environment as the client’s product absence would be possi-
own internal SAP program. That transformation across ble by combining all inspection
is the first challenge, as this is a the industry. It will bring and maintenance data and
massive barrier to data sharing. then providing that information
Procurement and project teams
about a powerful shift back to clients as intelligent,
may be open to this concept, but in client operational critical information.
IT teams are often risk-averse The dream scenario is a client
and concerned this could expose
decision-making. that has invested in and is willing
their corporate data. This atti- to use software entirely as it was
tude is preventing the oil and intended. A uniform digital land-
gas industry from taking signifi- scape across all their own territo-
cant strides forward in the way it handles, manages and ries would be required so that their total physical busi-
profits from its data. ness was already working together, sharing data with
The real irony is that every business, large and small, itself easily and naturally. The client would be able to
believes the way it manages its data and data security is use data from across the whole business and share best
unique and that its systems are bespoke, distinctive and practice across the entire organization. It would trans-
provide a powerful commercial advantage. The reality form many operators and improve capex and opex.
is all businesses are using the same systems, so there are Fresh thinking to see true digital transformation on
enough significant similarities between companies to this level across this industry is urgently needed. It will
derive considerable capex and opex advantages from bring about a powerful shift in client operational deci-
data sharing across the industry. Companies share kit, sion-making; sharing best practice and buying power is
fields and people to mutual advantage, but somehow just the tip of the data-sharing iceberg.

112 January 2020 | E&P | HartEnergy.com

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