Thank you all for your great feedback this week.
When we spoke with our resident frac expert, Harold Brannon, he had a lot to say about the issue. His number one issue facing frac in the next year was poor recovery rates from fractured, unconventional wells. According to Brannon, it’s shocking that operators are content with producing less than 10% OOIP, especially with steep production declines in these wells (more than 60%) in year one when the technology exists to improve both.
He went on to say that because of these well-completion strategies, there is a glut of stranded production, and it is currently challenging to pursue secondary recovery economically. Furthermore, the ongoing demand for operators to increase cash flow and returns while reducing costs often outweighs improved recovery efforts.
The challenge becomes clear—frac optimization will be critical to the ongoing economic success of unconventional wells in the years to come.
What do you think? Is Harold on point?
Please leave your comments below, or better yet, contact SUN today, and let’s chat about it in person.