Optimal Well Designs and Process Frameworks: Keys to Reducing Well Cost and Winning in any Environment

Abstract

Growing concerns for global energy transition and dwindling demand for crude oil has impacted the revenues and investment portfolios of most oil and gas companies. More than ever, hydrocarbon exploration and production costs require extra scrutiny and prudence. Drilling and Completions costs take a significant proportion of the capital expenditure and savings realized from this would improve development cost per barrel, improve project economics and yield better returns for all stakeholders. To unlock the fiscal values required to win in this economic climate and attract investments to develop oil and gas assets, a paradigm shift is needed on well delivery, well design and execution processes. Cost savings opportunities exist all through the well maturation, but the highest value can be realized in the design stage. This stage involves opportunity identification, alternatives generation, setting of value based well objectives, design, and engineering etc. This paper discusses cost saving initiatives such as advanced casing design to optimize the number of casing strings run, slim well designs, streamlined formation evaluation plan, bottom hole assembly (BHA) optimization, equipment standardization, adoption of agile methodologies to determine minimum function objectives, utilization of data-analytics tools to drive performance, application of state-of-the-art technology, extensive use of peer assists and peer reviews etc. Proper adoption of these initiatives can yield up to 30% reduction in well cost and ultimately enable oil and gas companies to compete and win in any environment.