Who's Considering Chevron's Non-Core East Texas Assets?

Dear Subscriber,

We're thrilled to share our latest video! Join Scott Iceton, our Director of Solution Consulting, as he uses Insight Engine to analyze activity trends such as permits, formations, productivity, and well spacing. Get insights into the key players eyeing Chevron's assets, especially as Chevron seeks financing for part of the Hess acquisition.

Also, we're thrilled to kick off an exciting initiative;?we are conducting a comprehensive survey on the adoption of artificial intelligence (AI) in the world of reservoir engineering. We're reaching out to you, our valued subscribers, to invite you to participate in this research study by sharing your insights and expertise.

Expanding on the theme from our last newsletter, our VP of Product Management, Ted Cross, has crafted two must-reads: "Analyzing the DJ Basin's Well Productivity" and "What Milei's Win Means for Argentina's Energy Landscape"

[Weekly Workflow Series] Who's Considering Chevron's Non-Core East Texas Assets?

Chevron is seeking to finance part of the Hess acquisition! Who might be interested in acquiring Chevron’s non-core East Texas assets?

In this week’s video, Scott Iceton, Director of Solution Consulting, will be using Insight Engine to analyze activity trends such as permits over time, formations, productivity over time, and well spacing. His focus is on uncovering the key players eyeing Chevron’s assets.

[Survey] Reservoir Engineering Trends Survey

Calling all reservoir engineers! Your expertise is needed.

We’re conducting a quick survey about AI in oil and gas reservoir engineering, and we’d greatly appreciate your input.

Your insights can make a real impact. Plus, you can win a fantastic YETI cooler and gain early access to our research draft before it goes public.

Analyzing the DJ Basin's Well Productivity

Well performance has been strengthening in the DJ even as it is weakening in the Permian, Eagle Ford, and other oil plays. Interestingly, this has been happening while the basin has been consolidating. So, we used machine learning models to analyze what has driven the well productivity gains.

Unlike in the Permian, operators in the Denver-Julesburg basin (where the Niobrara is the main unconventional target) have continued to eke out productivity gains since 2017, thanks in large part to increased fluid intensity. Our models find a lower point of diminishing returns there compared to other basins, and operators have increased the average completions bbl/ft from ~25 in 2019-2020 up to 38 in 2022-2023.

Lateral length has been the other major driver, with average lateral length now over 9500' in the DJ, compared to ~8500' in 2018-2021. Looking at the rock quality trend, it's been relatively flat, but the negative impact of spacing has moderated.

So when we look at the play as a whole, we see an interesting recipe emerging: intense completions, longer laterals, and wider spacing. Whether other basins will adopt this recipe as they consolidate remains to be seen, but it is worth watching especially as the Permian settles into the hands of fewer, larger operators.

On the last Society of Petroleum Engineers (SPE) - Denver Section, I presented an in-depth analysis of the DJ Basin, utilizing machine learning models. You can download the presentation here.

What Milei's Win Means for Argentina's Energy Landscape

With the stunning election of Milei in Argentina, it's worth taking a fresh look at the Vaca Muerta. After years of innovation, recent wells are outperforming the Permian and Bakken by a stunning 33%.

While political and economic factors have overshadowed well performance in the play, operators have been quietly unlocking gains through longer laterals, upsized completions, and improved targeting. The geology is unparalleled, with high pressures helping support a lower decline than North American analogs.

The Vaca Muerta has the full gamut of fluid content, ranging from black oil in the eastern part of the Neuquen to dry gas towards the west. Operators have in recent years been focusing on the more liquids-rich part of the play, but strong potential exists in the gas window.

Milei has suggested a number of changes to the country's energy policy, including privatizing YPF, building LNG export capacity, and removing export taxes on energy. Without a majority in the legislature, it remains to be seen how much change Milei will actually enact.

Operators in the play also have to deal with a smaller domestic OFS industry and currency challenges. But with wells that look like this and a gigantic footprint, the potential is certainly there for the next great shale play.

[Event] Wrapping up NAPE 2024

Reflecting on an incredible week at NAPE!

It was inspiring to meet so many industry leaders and innovators.

Here's to new connections, valuable insights, and exciting opportunities ahead!

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/