Outside-in assessment of well performance including production, drilling time, and completion design.
The Well Performance Benchmark provides clients with an outside-in assessment of well performance versus peer wells (i.e., wells within 5-10 mile radius). The assessment includes well productivity (peak production, decline rates), drilling time (normalize by lateral length), and completion design (e.g., proppant use, fluid selection) to identify gaps to best practices and areas for improvement.
An independent operator in the Delaware Basin was looking for opportunities to cut well costs in an effort to keep their acreage economic under low oil prices. The client wanted to very quickly assess relative performance of their wells compared to peers to identify cost reduction and performance improvement opportunities.
Through Energy Insights’ Well Performance Benchmark service, the client had a clear assessment of multiple well design metrics against peer wells. Comparable peers were identified based on proximity to the client’s location in the basin and well characteristics. Metrics benchmarked included:
- Operational performance: drilling time
- Completion design: well lateral length, volume of fluid used, and proppant loading and type
- Productivity: initial and peak oil and gas production and estimated EUR (total well production), normalized for lateral length
The Well Performance Benchmark was able to identify several areas where the client lagged peers. In particular, client could have analytical proof that the use of ceramics (a more expensive proppant) was not providing the expected uplift on well productivity. Using this knowledge the organization was able to transition to cheaper completion designs in line with leading peers in the sub-basin, saving tens of thousands of dollars per well.