How have recent mergers and acquisitions reshaped the Midland Basin's landscape?
Dear Subscriber,
In this week’s newsletter, we’re excited to share with you our most recent research report "Midland Mergers & The Balance of Power", Where Brandon Myers takes us through the current landscape in the Midland basin.
We're back with another Weekly Workflow video featuring Scott Iceton! In this episode, Scott demonstrates how to seamlessly pull out Novi's upstream data using Conduit to Spotfire in just 5 minutes!
As URTeC approaches, we're excited to share one of our most requested papers from last year: "The Diminishing Returns of Lateral Length Across Different Basins."
Continuing our theme from previous newsletters, our VP of Product Management, Ted Cross, presents two must-reads: "Efficiency Gains" and "Shale's Slowing Production Growth"
But wait, there's more! We're thrilled to announce that Ted Cross will be speaking at the upcoming SPE Austin May Luncheon. Don't miss out on this insightful event!
[Report] Midland Mergers & The Balance of Power
Recent M&A has created much larger Midland operators. How has the landscape changed? Get a sneak peek into how the dynamics are changing in this basin by reading our latest report "Midland Mergers & The Balance of Power”.
[Weekly Workflow] Seamless Data Integration: Novi's Upstream Data in Spotfire
In this Weekly Workflow video, Scott Iceton demonstrates how you can easily access Novi data into your preferred software using Conduit Resources. From connecting to a SQL server, pulling real-time data, and performing analysis on Oxy's acreage in the southern Delaware basin.
[Blog] The State of AI Adoption in Reservoir Engineering Recap 2024
84% of reservoir engineers face challenges with data quality in the oil and gas industry?
Explore this statistic and more in our latest blog post summarizing key insights from 'The State of AI Adoption in Reservoir Engineering' report.
Efficiency Gains
Operators are drilling with only half the drilling rigs that they did back in 2014. So why isn't production plummeting?
The answer is that drillers have become much more efficient! Individual rigs are able to produce much more lateral miles per month than they used to. When you look at miles drilled, we are only down 21% since the 2014, much less than the 48% drop in active rigs.
What about per-foot productivity? It's up 68% for oil wells and 95% for gas wells. Very impressive.With more efficient rigs, more efficient completions crews, and more productive wells, L48 operators have learned to do more with less.
Shale's Slowing Production Growth
L48 In 2023, Lower 48 unconventional production grew 592,000 barrels a day vs. 2022. How does that compare to previous years?
Here, I'm plotting yearly production growth in barrels (green bars) and percentage (black line). All yearly numbers are calculated in November in order to mitigate winter effects on production.
Despite wild swings in prices, growth in this latest cycle has been very consistent. 2023's 592k bbl/d is slightly less than 2022 and 2021, but not by much.
However, 2023 is the smallest growth year since 2015. Comparing local peaks across cycles shows just how different things have been recently. In 2014, operators added 1.3 million barrels a day, good for 44% growth. In 2018, operators added 1.7 million barrels a day, for 30% growth, but in 2022 the biggest add was 0.7 million barrels a day for 9% growth.
In fact, no year in the most recent cycle broke 10% growth, notable when even 2019 grew 17%. With investors pushing companies towards returns and consolidation yielding more stable development plans, our third cycle has looked very different than those before.
[Paper] The Diminishing Returns of Lateral Length Across Different Basins
E&P operators continue to drill longer lateral to generate performance gains and improve capital efficiency. But how much production are they losing?
We used our machine learning models to forecast production at a range of lateral lengths from 5,000' to 12,500' in the major plays across the US. In the Eagle Ford and the Delaware, we found ~80-90% production efficiency for 12,500' laterals compared to 5ks.
By production efficiency, we mean barrels of oil per foot, and in this case we are looking at forecasted 3-year cumulative production
[Event] SPE Austin - May Luncheon
Join us on May 14th for the SPE Austin May Luncheon featuring our Ted Cross!
Explore the future of unconventional plays, from the Permian to the Vaca Muerta, as we get in deep into emerging basins and zones both in the Lower 48 and abroad.
Register now for an insightful discussion on well performance, design considerations, and more!
Ready to see what’s under the hood and how Novi Labs can help you get valuable insights?
Book your personalized demo with our team: https://novilabs.com/request-for-demo/