Archive | Aschere Energy RSS for this section

Refracturing presents an economic alternative to drilling new wells.

wo0615-kashikar-sf-well-compl-tech-fig-00

Refracturing presents an economic alternative to drilling new wells.
There is, it seems, a constant refrain, in this post-oil-price-rout environment, about the survival of shale operators and, by extension, their suppliers. The immediate need is to cut costs across the board. Yet, even more important is the need to maintain—and even increase—production from existing assets. The decline curve in unconventional reservoirs is steep, a trend typically countered by the drilling and completion of new wells, which is both costly and time-consuming. At current oil and gas prices, in many cases, completing new wells does not provide the requisite Internal Rate of Return (IRR) to pass economic muster.

Enter refracturing. A few years after coming onstream, most horizontal shale wells produce at a fraction of their initial rates, leaving large volumes of unrecovered oil and gas in the rock. These bypassed reserves could be accessed through refracturing. While this is not a new technique, it is one that is being used more and more, because of the oil price decline. Vertical wells have been refractured since the mid-1990s, but with mixed results, earning it the nickname “pump and pray.” However, the industry’s understanding of fracturing and horizontal completions evolved during the shale boom to such an extent, that the techniques and technologies now available certainly can play a key role in the efficient application of refracturing in horizontal wells. In fact, according to conservative estimates as many as 75,000 wells in the U.S. could be candidates for a second wave of fracturing.

Refracturing provides a simpler, more logical and lower-cost alternative to drilling new wells. If output is declining in an oil or natural gas well, and fracturing the well provided sizeable production, then repeating the process, on the same well, should provide another boost to production and ultimate recovery. The likelihood of enhancing recovery is supported even further by the fact that many of the first- and second-generation unconventional wells were drilled with fewer stages, and with less proppant, than is commonplace today. With a higher density of perforation clusters and larger volumes of proppant used for refracturing, it is conceivable that these older wells would see a significant boost in production, at a much lower investment.

However, stimulating new rock by refracturing is not without its challenges, particularly for today’s long horizontal wells with multi-stage completions. Most refractures today are done without mechanical isolation, opening all stages and perforation clusters to fluid flow, thus posing several questions:

Which part, or parts, of the old well will benefit from refracturing?
Did the refracturing open new fractures, or just reopen existing, depleted fractures?
How can selected stages be isolated, and only those stages be refractured? What tools/techniques are available for mechanical isolation?
In the absence of mechanical isolation, are diverters working to isolate and move the refracturing down the well? Is the entire wellbore being restimulated or just portions of it?
How does the new stimulated rock volume (SRV) differ from the SRV achieved in the first stimulation? Does it really add to the original estimated ultimate recovery, or only provide a temporary boost in production?
These questions are fundamental to the decision to refracture. Refracturing opportunities range from remedial work—which fixes stages that were not completed properly or where proppant flowed back into the well—to enhancing recovery through the reenergizing of the fracture network, creating a new network for delivery of production-enhancing chemicals. In all cases, the success of the refracture will first need to be modeled, within the context of the specific project, and diagnosed, through the use of measurement techniques, such as microseismic monitoring. Successful implementation of just such refracturing programs will help us, as an industry, beat the decline.

REFRACTURING CHALLENGES
The Barnett, Eagle Ford, Haynesville and Bakken are among the oldest of the shale plays, with large inventories of wells that have been on production for several years. Pilot refracturing programs have been underway in these plays; with operators becoming more adept at identifying high-quality refracturing candidate wells, and applying smart operating practices to enable successful refracturing. It is expected that wells in these plays will benefit the most from refracturing, since the oldest wells present opportunities to apply knowledge that came later in a play’s life, such as cluster spacing, impact of fluid type and proppant volumes. While refracturing, generally, results in increased production, one question remains unanswered: Is the refracturing creating new fractures, or is it reactivating old depleted fractures?

Microseismic data from original frac and subsequent refracturing.
Fig. 1. Microseismic data from original frac and subsequent refracturing.
To gain an understanding of where new rock is being stimulated, we need to look at an example, where surface microseismic data have been acquired during the original frac, as well as when the well was refractured, after several years of production. The two time-lapse data sets (Fig. 1) are very consistent, with similar spatial bias and uncertainty in the event positioning, allowing for direct, accurate comparison of the microseismic data from the two acquisitions.

The microseismic data acquired during the refracture determine several trends that correlate with the original microseismic data, suggesting re-activation of depleted fractures. Microseismic activity is also apparent in regions that did not demonstrate any such activity during the original frac, indicating the creation of new fractures. The results also indicate that, generally, the refracture azimuth is the same as the original frac, with limited evidence of fracture re-orientation during the refracturing. While studies suggest a possibility of fracture re-orientation during refracturing, it is typically a function of the time elapsed between the original fracturing and the refracture. It has also been observed that the longer the duration between the original fracture and refracture, the lower the possibility of fracture re-orientation. This is an important consideration when selecting candidates for refracturing. Changes in stress orientation can significantly alter the results and success of the refracture.

The case study represented in Fig. 1 had the advantage of the original hydraulic fracturing results to compare against. Hence, in addition to understanding the spatial and temporal distribution of the overall refracturing program, the microseismic information and associated completion evaluation provided real-time information about the portions of the program that contributed to the stimulation of new drainage areas. In most cases, however, microseismic technology was not used in the initial fracture stimulation for time-lapse determination, so those data are not available. Microseismic events that relate to stimulating new rock during a refracturing program can be differentiated by integrating the results with treatment pressure analysis, particularly net pressure and initial shut-in pressure (ISIP).

ISIP and microseismic events during the refracturing.
Fig. 2. ISIP and microseismic events during the refracturing.
Figure 2 shows a plot of the ISIP and microseismic events during the refracture. The x-axis shows the stage number during the refracture. The primary vertical axis on the left shows the ISIP computed for every stage. The solid red line shows the ISIP recorded during the original frac job, representing the virgin rock stress. The secondary vertical axis, on the right, shows the cumulative microseismic event count.

It takes several pumping cycles (stages) before we see any significant microseismic activity, Fig. 2. For these initial stages, the recorded ISIP is less than the ISIP recorded during the original frac. This indicates that the fluid and proppant volumes being pumped are working to overcome the depletion caused by production. Once the ISIP reaches or exceeds the ISIP of new rock, a significant increase in microseismic activity is apparent. Microseismic events recorded beyond this point most likely belong to new fractures being created. The information above is used to create a map of the depleted zones, using the location of microseismic events recorded while the ISIP is less than that of new rock.

To validate this observation, MicroSeismic, Inc. conducted a geomechanical analysis of the refracture, utilizing Istasca’s FLAC3D geotechnical modeling code. A geomechanical model was created to model a hydraulically fractured well with depleted fractures. An implicit discrete fracture network was described in the volume, based on regional knowledge and microseismic observations from nearby wells.

Geomechanical properties and rock failure criteria were established from offset well logs, the world stress map, microseismic focal mechanisms, DFIT and ISIP.

A refracture schedule ran for 50 hr, while pumping at a rate

SUMMARY
Based on early success stories, as well as the sheer number of wells that would benefit from refracturing, it is expected that shale well refracturing activity in North America will increase steadily as companies optimize the process. There are, of course, risk factors that need to be taken into account, especially when refracturing older wells that may have completions that have been compromised over time. Also, not every well will respond to refracturing. Understanding the performance, and the critical factors that will ensure success, is key.

Advertisements

Texas Now Produces More Natural Gas Than All of OPEC !

texas1

Everything is bigger in Texas, especially natural gas production. The Lone Star State alone produces more natural gas than every country in the world, except Russia, and that includes every member state of OPEC.

The American Petroleum Institute has released a graphic showing that Texas produces 18.81 billion cubic feet of natural gas per day, well above any member of OPEC. The graphic is meant to show how hydraulic fracturing and horizontal drilling into shale formations has made the U.S. the world’s liquid fuels producer.

“This is what energy security looks like, Thanks to innovations in hydraulic fracturing and horizontal drilling, Texas  now outpaces all OPEC nations in natural gas production.” Tracee Bentley,  Petroleum Council,

Individual U.S. states now produce so much natural gas, they outrank whole countries when it comes to daily production. Iran, the largest OPEC gas producer, only produces 15.43 billion cubic feet of natural gas per day. Qatar, OPEC’s number two gas producer, produces 15.09 billion barrels per day.

Louisiana and Pennsylvania also rank among the world’s top 15 natural gas producers. Louisiana produces more gas major producing countries like the Netherlands and Indonesia, while Pennsylvania beats out Mexico and the United Arab Emirates.

READ FULL ARTICLE HERE

Aschere Energy is Currently drilling in “a World Class Producing Region” , Click here to receive information on our Latest Project.

SAFE HARBOR STATEMENTS:
Certain statements in this blog post may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release and other potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement.

MEMORIAL DAY TRAVEL MORE AFFORDABLE THANKS TO U.S. ENERGY RENAISSANCE !

Memorial Day travelers and the businesses that cater to them are reaping the benefits of increased U.S. oil and natural gas production, said API Chief Economist John Felmy.

“As we head into the Memorial Day weekend, motorists are getting some welcome relief at the pump,” said Felmy on a press conference call today. “Thanks to hydraulic fracturing and horizontal drilling, the U.S. is experiencing a renaissance in domestic oil and natural gas production. The benefits for U.S. consumers – as well as manufacturers, the travel and tourism industry and frankly our entire economy – are hard to overstate.”

The national average price of gasoline is about $1 per gallon less than it was at this time last year, according to AAA.

“Government policymakers should not take these things for granted,In order to maintain a robust supply of domestic oil, it is essential that the industry be allowed to explore for and develop new resources.” – John Felmy

“That means companies must be able to lease acreage and obtain permits in a timely fashion. It also means the federal and state governments should avoid punitive tax regimes that would cause energy companies to look elsewhere for the best opportunities.
“Geopolitical turmoil that takes foreign oil supplies offline can be difficult to predict or control, but the U.S. will always have control over how much energy we produce here at home. With the right policies, our energy renaissance can endure for decades and help even more families afford to take a vacation on Memorial Day weekend.”

API represents all segments of America’s oil and natural gas industry. Its more than 625 members produce, process, and distribute most of the nation’s energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.

SAFE HARBOR STATEMENTS:
Certain statements in this blog post may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release and other potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement.

OIL Set for biggest monthly gain since 2009!

original

(Reuters) – Oil headed for the biggest monthly advance since May 2009 as U.S. crude production growth slowed and inventories declined at the nation’s largest storage hub.
Oil has rebounded from a six-year low in March as drillers cut the rig count to the fewest since 2010, adding to signs that the surplus glut of U.S. crude stockpiles is declining.

West Texas Intermediate for June delivery was at $59.70 a barrel in electronic trading on the New York Mercantile Exchange, up 7 cents, at 11:51 a.m. Sydney time. The contract gained $1.05 to $59.63 on Thursday. The volume of all futures traded was about 70 percent below the 100-day average. Prices are up 12 percent this year.

U.S. Stockpiles

Brent for June settlement was 9 cents lower at $66.69 a barrel on the London-based ICE Futures Europe exchange. The contract rose 21 percent in April, also the most since May 2009. The European benchmark crude was at a premium of $6.99 to WTI, compared with $8.13 on April 24.

READ FULL ARTICLE HERE

Aschere Energy is Currently drilling in “a World Class Producing Region” , Click here to receive information on our Latest Project.

SAFE HARBOR STATEMENTS:
Certain statements in this blog post may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release and other potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement.

Oil Hits 7-Week High

 1

(Market Watch) – Oil futures rebounded sharply Monday, with the U.S. benchmark closing at its highest level in seven weeks on signs of strengthening Asian demand and expectations a preliminary agreement to curb Iran’s nuclear program won’t see the market immediately swamped with more crude.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in May CLK5, +5.70% jumped $3, or 6.1%, to close at $52.14 a barrel. That marked the highest close for a most-active futures contract since Feb. 17.

“The gap between supply and demand is not as wide as people thought it was,” said Paul Crovo, a Philadelphia-based oil analyst at PNC Capital Advisors

US refineries used 15.9 million barrels a day of crude in the week ended March 27, the highest seasonal level in Energy Information Administration data going back to 1989.

Iran and world powers reached a preliminary accord April 2 over its nuclear program. The US and European Union would lift economic sanctions if the International Atomic Energy Agency verifies Iran’s compliance with curbs on its nuclear program

“In the second half of 2015,the trend is more up than down. You’ll start to see more of a demand response to lower oil prices.” – Paul Crovo

People realised that we aren’t going to see a big influx of Iranian oil in the market for at least the next three to six months. The risk reward is poised on the upside,The Saudis raised their prices to Asia and it’s kind of supportive.”

Aschere Energy – Oil and Gas Industry

Headquartered in Texas at Dallas, Aschere energy is known to be a leader in the oil and gas industry. The company has a team of very qualified and competent professionals in their employ who have immensely contributed towards making the company play a significant role in the energy revolution that is sweeping through North America, especially the United States. This set of experienced professionals has been able to focus on research and development in all the relevant existing fields.  The company continues to participate in a number of fast growing industry trends in the country, prominent among which is the Eagle Ford Shale.

Aschere energy is well known to take a unique approach to the market scenario, by preferring to put most of its resources into regions that have already proven to be doing exceptionally well in the past. They ensure that they employ a number of strategies, making sure that they meet all the challenge, along the way ahead. The company has many partners for different projects with whom they have agreements depending on the requirements and also cost sharing, which is also very important. This helps them deliver the projects they undertake, on time at affordable costs.

Aschere energy however has ensured that they limit the scope the partner commitments but using participation agreements. This clearly sets out strict cost constraints for the well drilling and completion of the other phases of the projects. The company tends to act as an interest partner and take on the responsibility for a considerable share of all the operational expenses. They also maintain good and steady relationship with reputed service companies that help with seismic mapping, drilling, thus enabling many projects to be initiated.

As compared to the competitors in the industry, Aschere energy has been able to produce greater results. This has been made possible by the above mentioned long term standing contractual agreements they have with service companies that provide well and drilling services.  By working cohesively in a planned manner with these companies, it has become easier for them to guarantee that every single project is completed to the satisfaction of the client without any delay.

The United States government has also ensured that their policies are altered to support this energy resurgence in the country. These industry friendly policies combined with the sound infrastructure will definitely help the country, to stay ahead of competition in the shale and tight oil industry. It is expected that companies such as Aschere energy will use the various investments made in the infrastructure and technology sectors, to develop further and become key players in the global energy market. They can also increase production, add new professionals and make considerable contributions to the local, state and the national economies.

Besides focusing on successful drilling projects Aschere energy also provides a very positive atmosphere for its employees to grow in their careers along with the company. The company also has internal network of knowledge aimed at this purpose. They offer world class training, professional mentoring and also other relevant educational services. It is no wonder that trained professionals opt to work for this company as they are assured to get the incentive to grow personally and professionally too.

Aschere Energy

Aschere energy is based out of Texas and it is known to lease out to existing oil and gas fields. These fields offer high production success rates. The company employs state of art drilling technologies and is therefore able to drill and finish the wells, at very affordable and cost effective prices. Their charges are considerably lower than that of their competitors’.  Aschere energy basically takes up drilling offset wells that are positioned in close proximity to the existing oil or gas producing sites. These prospects are located well within the reservoirs that are already mapped out.

Energy is known to be a very volatile industry in the world today. The need for additional sources of both gas and oil has never been greater than today, as the consumption grows and the demand consequently increases.  Till a few years ago North America and especially United States largely depended on the supplies from foreign lands, especially for their oil and gas requirements. But in the last several years there has been a great change of scene. This has been a kind of renaissance which is now showing the potential for a resurgent US industrial recovery largely based on the production of cheaper local based energy.  Thus companies like Aschere Energy are playing a very important role in the energy revolution. There has been a huge increase in tight oil and shale-gas extraction in the recent times, which has added an impetus to this revolution.

Consequently the government policies have also become very industry friendly. This combined with the better access to drilling sites, various market incentives, stabilization of property rights etc, has helped  the companies such as Aschere Energy are able to contribute significantly in the field of oil and gas extraction in the United States.  These companies are poised to once again strike it big in the field.  All the above point have been welcome incentives and the engineers have been successful in using their skills and the latest in the technology field, to help the country inch very close to being self sufficient and more than being able to meet the energy requirements of the country.

The United States might well surpass Saudi Arabia in the daily oil output in the next few years. The driving force is the non-OPEC production which in the next decade will be responsible for the growth in the global supply. Thus the energy revolution in North America appears definitely unstoppable. As the United States also undergoes energy regeneration, you can be sure that companies such as Aschere Energy will have a large role to play in it.  This company is poised to be one of the major players in tight oil production in the United States.

Aschere Energy has many partners with whom they have participation agreements. These agreements set out very stringent cost parameters relating to the well drilling and completion phases of all the live projects The company is renowned for maintaining longstanding relationship with well established service providers, who undertake drilling and seismic mapping.  This kind of organized planning enables the company to initiate various projects and successfully finish them within the planned time frame.