Operators are learning the hard way that parent-child well interaction is damaging to both their field developments…and their bottom lines.
(Source: Tom Fox)
Oil and Gas Investor
The idea of a successful oilfield development program has not changed over the 150-plus years of hydrocarbon exploration, but the tools used and the knowledge required that provide the means to the end continue to evolve. The goal remains to drain the highest percentage of oil and gas with the least amount of capital investment. Striking a balance between financial outlay and recoverable resource is an ongoing battle. Spend too little and you’re likely to catch criticism for leaving oil in the ground. Spend too much and investors will question your efficiency. The emergence of the development phase in many U.S. unconventional plays has operators still searching for the sweet spot.
In the Permian Basin, operators are challenging the complex geology of West Texas and southeastern New Mexico with aggressive drilling programs designed to find the balance between dollars and volumes—pushing the well spacing envelope in the name of enhanced ultimate recovery and its favorable impact on the bottom line.
Blake Wright joined Hart Energy in 2019 as senior editor for Oil and Gas Investor Magazine. Prior to joining Hart, Blake spent over 16 years at Upstream Newspaper, ten of those as Bureau Chief in Houston. He was also editor of the Gulf of Mexico Newsletter — an Offshore Data Services publication — from 1993 to1997. He holds a BS in Journalism from Texas A&M University.