Technological issues in shale oil development using horizontal wells in Ordos Basin, China

Abstract

The PetroChina Changqing Oilfield Company has successfully achieved large-scale economical development of continental low-pressure freshwater lake interlayer shale oil in the Ordos Basin, China, targeting the gravity-flow sandstone thin interlayers in the organically rich mud shale formation of the seventh member of Yanchang Formation (Chang 7 Member) of Triassic,. Their significant discovery of the 1-billion-ton-level Qingcheng shale oil field, with a proven reserve of 1.052 × 10⁹ t, has marked the establishment of China's first million-ton shale oil development zone. However, the extensive growth in production and construction has brought attention to notable challenges, including geological variances, low initial production, rapid decline, low recovery rates, and high development costs. Based on extensive field experience, this paper identifies several technological issues in shale oil development and offers comprehensive recommendations through systematic analysis. The encounter rate of horizontal shale oil wells, crucial for enhancing individual well productivity, can be improved both vertically and horizontally by prioritizing the extension direction of high-quality reservoirs during the deployment of horizontal wells. The contribution of fracturing fluid elasticity to the recovery rate is relatively low. Reservoir modification should not overemphasize large sand volume, fluid volume, or discharge. Additionally, optimizing parameters such as well spacing, vertical interlayer distribution, and fracture development is essential for maximizing the efficiency of fracturing scale, operation discharge, and other parameters. Variability in hydrocarbon source rock quality and the strength of diagenesis significantly impact oil saturation in sand bodies, affecting the selection of favorable areas and the distribution of high-quality reservoirs. Furthermore, the utilization of pre-fracturing with CO₂ proves to be an effective approach in reducing viscosity and increasing the ultimate recovery rate. To ensure the efficient development of shale oil in the Changqing Oilfield, this paper emphasizes the necessity of deepening integrated geological studies, clarifying the main controlling factors of shale oil heterogeneous accumulation, and meticulously depicting three-dimensional sweet spots while exploring more effective development methodologies.