SPE Oslo April 2020 – Distinguished Lecturer Event
Date and time: 23.04.2020 from kl.1730
Speaker: Mary Van Domelen, Well Data Labs
Topic: Thriving in a Lower for Longer Environment
Kl.1730: Welcome and ice breaker
Kl.1800: Presentation and Q&A
Kl. 1900 to close: Dinner, drinks and networking
When the price of oil plunged in 2014, industry analysts predicted that shale plays would be shut down as they would no longer be economical. The North America shale industry did not just survive, it thrived. How?
The most successful companies responded by exercising capital discipline and effectively managing their resources. As a result, break even prices for the key unconventional plays were decreased by 40-60%. Reduction of service pricing alone cannot account for the improvement in profitability relative to oil price. What other factors contributed?
This presentation captures the key lessons learned. The organizational, operational, and technological advancements which allowed the shale industry to continue to thrive in a “lower for longer” price environment are illustrated through case histories. Geologists worked to identify each play’s core, while companies evolved from delineation to full field development. The synergistic effect of combining new technology with operational efficiency is illustrated by the ability to drill longer laterals with significant decreases in drill days. Completion optimization, fueled by the use of big data analytics, resulted in drastic increases in EUR allowing expansion of the core in many plays. Improvements in artificial lift technologies accelerated early time production, significantly increasing the net present value of capital employed. Throughout all of these processes, cooperative relationships between the service sector and E&P companies was imperative to the continued success of the industry.
Can the lessons learned by the shale industry be applied in the global setting? Absolutely.
Mary Van Domelen, PE, SPEC, is the Senior Completions Advisor at Well Data Labs. Mary has been an active member of the petroleum industry for more than 37 years. Mary started her career with Halliburton, with engineering duties of increasing responsibility in the USA, Europe, Africa, and Middle East. She has held senior advisor and management roles with innovative E&P companies such as Maersk Oil, Chesapeake, and Continental Resources. Her experience includes horizontal drilling and completion operations in multiple basins and she is a globally recognized subject matter expert in the area of carbonate stimulation. Mary has authored over 30 external publications on a broad range of topics, holds several patents, and is a regular speaker at conferences. She is a 2-time SPE Distinguished Lecturer (2015-16 and 2019-20), received the 2016 SPE Mid-Continent North America Regional Completions Optimization and Technology Award, and SPE Distinguished Membership in 2019.