Business, Construction and Building, Free News Articles, Reports and Studies

Experts weigh in on the second Rystad Study, indicating that proppant type is the likely answer for accelerated shale well productivity declines

EAU CLAIRE, Wis. -- The Rystad Study, by Rystad Energy, one of North America's most respected energy research firms, focuses on the proppant type used in approximately 900 shale wells in the Permian basin in West Texas. The study compares wells completed using in-basin sand (IBS) with wells completed with northern white sand (NWS), says the Wisconsin Industrial Sand Association (WISA).

Although In-Basin Sand proppants dominate the Permian Market, the study's results indicate that in both the long and short term, most wells would deliver higher productivity using Northern White Sand proppant.

This Rystad Study is the second to examine productivity vs proppant type. It analyses three years of historical data from approximately 900 West Texas Permian Basin shale wells. This latest Rystad Study shows that in 85% of the cases, the short-term cost benefits of completing wells with IBS were lost within the first year when productivity began diverging significantly each year.

Penny Aschenbrenner of Material Spec Labs, which specializes in sand testing, said, "The physical properties of IBS and NWS proppants provide a logical explanation for the difference in production." Material Spec Labs uses API (American Petroleum Institute) testing methods to test frac sand for its customers. "Our job is to test the sand for the physical properties the customer is paying for," said Aschenbrenner. "The idea isn't new. It's sometimes difficult to conceptualize proppant properties and their functionality due to the foreign nature of micro measurements. But if we relate the problem to something we are familiar with, the answer is obvious." she said.

She was not surprised by the negative impact of IBS on wells and questioned whether any technically capable engineer would be either, "The science is pretty simple," she said, "the sand is exposed to extreme pressures and conditions in a well. It is easy to see that the lower-strength sand will crush and clog a well much sooner than a higher-quality proppant. That's what you see in the lab, and it's most likely happening downhole."

NWS became the proppant of choice when the shale revolution began because of its high strength and purity. NWS is a very round, very hard silica sand used to prop open the fractures induced by hydraulic fracturing. Hydraulic fracturing uses water, sand, and chemicals to fracture shale rock deep beneath the earth's surface. When the fracturing is finished, the liquids are returned to the surface, and the sand remains in place to keep the fractures "propped" open, which is why the sand is called a "proppant."

The Rystad study calls the industry's most recent choices into question. By adopting IBS, It's possible that executives did the right thing at the time for their stakeholders. When oil and gas prices plummeted, producers had already spent significant cash on growing production, with many outspending their cash flow by completing more wells than needed. This ultimately led to overproduction and caused prices to crash heading into the pandemic. By the time Covid hit and prices crashed, producers were running out of cash and perhaps considering bankruptcy. Their only option was reducing costs; IBS was an obvious, short-term solution.

So while IBS may have been a company-saving strategy, its use carried an unforeseen expense. As illustrated in the Rystad study findings, those companies, shareholders, mineral rights holders, and U.S. energy security, in general, are now experiencing decreased well productivity and longevity. Despite the early belief that production would stay the same, according to the production data in the Rystad Study, wells completed with IBS now reveal accelerated economic losses in the hundreds of thousands of dollars per well after only a few short years compared to wells completed with NWS. Those losses grow more significant as oil and gas prices increase.

The Rystad Study supports the observation that switching to IBS correlates with accelerating decline rates. It suggests serious consideration of the science and reconsidering of the proppant decision choices. Higher energy prices and demand, the ongoing interest in energy independence, and safety and environmental considerations mandate that oil and gas wells run optimally. Mineral rights holders, energy investors, landowners, and energy workers have significant vested economic interests.

More Information:

The Rystad Study can be found at:

https://drive.google.com/file/d/1DJCbS1a-tWviaoS1pnZQSD8ONoFGdajR/view

Material Spec Labs can be reached at:

https://materialspeclabs.com/

About WISA:

Based in Eau Claire, WI, The Wisconsin Industrial Sand Association is an organization formed to promote safe and environmentally responsible sand mining standards, promote a fact-based discussion, and create a positive dialogue among the industry, citizens, and government officials. https://wisconsinsand.org/

IMAGE FOR MEDIA: https://wisconsinsand.org/wp-content/uploads/sites/77/2023/03/NWS-IBS-BeforeAfter.jpg

Related link: https://wisconsinsand.org/

This news story was published by the Neotrope® News Network - all rights reserved. ID:NEO2022

Business, Construction and Building, Free News Articles, Manufacturing, Reports and Studies

Energy Industry Experts Weigh in On Latest Rystad Energy shale well study indicating potential answer for accelerated productivity declines

EAU CLAIRE, Wis. -- Rystad Energy, one of North America's most respected energy research firms, recently completed a second study of nearly 900 shale wells in the Permian basin in West Texas. The study compares wells completed using in-basin sand (IBS) with wells completed with northern white sand (NWS), says the Wisconsin Industrial Sand Association (WISA).

Although In-Basin Sand dominates the Permian Market, the study's results suggest that even in the short term, the majority of wells would deliver higher productivity using Northern White Sand.

The study, the second in a series, examines three years of historical data obtained from nearly 900 West Texas Permian Basin shale wells. The latest Rystad Study shows that in 85% of the cases studied, the short-term cash benefits of completing wells with IBS were negated within the first year or two, with the productivity divergence growing yearly.

Penny Aschenbrenner of Material Spec Labs, which specializes in sand testing, said, "The physical properties of IBS and NWS proppants provide a logical explanation for the difference in production."

Material Spec Labs uses API (American Petroleum Institute) testing methods to test frac sand for its customers.

"Our job is to test the sand for the physical properties the customer is paying for," says Aschenbrenner. She states, "The concept isn't new. It's sometimes difficult to conceptualize proppant properties and their functionality due to the foreign nature of micro measurements. But if we relate the problem to something we are familiar with, the answer is obvious."

Ashenbrenner was not surprised by the negative impact of IBS on the wells and questioned whether any technically capable engineer would be either, "The science is pretty simple," Ashenbrenner states, "the sand is exposed to extreme pressures and conditions in a well. It is easy to see that the lower-strength sand will crush and possibly clog a well much sooner than a higher-quality proppant. That's what you see in the lab, and it's highly probable that it's happening downhole."

NWS became widely used when the shale revolution began because of its high strength, high purity, and very round silica sand was used to prop open the fractures induced by the hydraulic fracturing process. Hydraulic fracturing uses water, sand, and chemicals to fracture shale rock deep beneath the earth's surface. Once the fracturing has occurred, the fluids are returned to the surface, and the sand remains to keep the fractures "propped" open, which is why the industry terms the sand: "proppant."

The Rystad study challenges the industry's most recent choices. Executives probably did the right thing at the right time for their stakeholders by adapting IBS. When oil and gas prices plummeted, producers had already spent their cash on growing production, with many outspending their cash flow by completing more wells than needed. This ultimately led to overproduction and caused prices to crash heading into the pandemic. By the time Covid hit, and prices crashed, many producers were running out of cash, perhaps staring down bankruptcy. Their only option was to reduce costs, and using IBS was an obvious, short-term solution.

IBS may have been a company-saving strategy, but its use carried an unforeseen long-term expense. As illustrated in the Rystad findings, decreased well productivity and longevity are now being felt by those companies, their shareholders, the mineral rights holders, and possibly, U.S. energy security in general. Despite the early indication that production would stay the same, according to the production data studied by Rystad, wells completed with IBS now reveal accelerated economic losses in the hundreds of thousands of dollars per well after only a few short years compared to wells completed with NWS. That spread only grows more significant as oil and gas prices increase.

Other explanations abound. Some industry CEO's are now blaming the rock quality itself for accelerating declines in the past few years. Others fall back on well proximity, sometimes called the "Parent/Child" effect. The Rystad Study supports the observation that switching to IBS is highly correlated with accelerating decline rates.

The Rystad study suggests serious consideration of the science, and a revisit to the proppant decision choices. Higher energy prices and demand, the ongoing interest in energy independence, and safety and environmental considerations mandate that oil and gas wells run optimally. Mineral rights holders, energy investors, landowners, and energy workers have significant vested economic interests.

More Information:

The Rystad Study can be found at https://wisconsinsand.org/wp-content/uploads/sites/77/2023/03/20220907-Rystad-Energy-WISA-Final-Report-Anonymous.pdf

Material Spec Labs can be reached at https://www.materialspeclabs.com/

About WISA:

Based in Eau Claire, Wis., The Wisconsin Industrial Sand Association is an organization formed to promote safe and environmentally responsible sand mining standards, promote a fact-based discussion, and create a positive dialogue among the industry, citizens, and government officials. Learn more: https://wisconsinsand.org/.

Image 72DPI: https://wisconsinsand.org/wp-content/uploads/sites/77/2023/03/NWS-IBS-BeforeAfter.jpg

Related link: https://wisconsinsand.org/

This news story was published by the Neotrope® News Network - all rights reserved. ID:NEO2022

Business, Construction and Building, Free News Articles, Reports and Studies

Northern White Sand Consortium: Rystad Energy Study Links Sand Proppant Type to Decreased Oil and Gas Production and Profitability

HOUSTON, Texas -- The Northern White Sand Consortium (NWSC), a subgroup of industry participants, formed under the Wisconsin Industrial Sand Association, announced today that a report by Rystad Energy examining 800 Shale Oil wells completed using in-basin sand, across 7 operators in the Permian basin, indicates close to 50% have seen a negative economic impact compared to wells completed using Northern White Sand (NWS).

Up to 85% are nearing negative impact in less than 1 year of production. Upfront savings doesn't appear to offset the impact in just the first year of the well's life.

The impact is not limited to investors, continued short-term economic thinking will affect long-term energy independence, American jobs, and billions of dollars for investors & mineral rights holders.

Accelerating decline rates in shale wells have drawn attention. Many theories have been posed such as well spacing, reservoir pressure drawdowns etc., but one clear potential cause has been virtually ignored since the hydraulic fracturing revolution began, Proppant Type.

Over the past several years, industry observers have recognized well production decline rates are accelerating at a higher rate than ever. The quickening decline rates have occurred simultaneously with the migration away from higher quality proppants. (A Proppant is a granular solid material, typically sand, intended to keep well fractures open.)

The incentive for the switch is understandable since proppant sand cost usually makes up 10% of the completion costs of a horizontal well. High quality Northern White Sand (NWS) is often railed or barged to the play. By avoiding these shipping costs, operators can save $300-$500k per well initially, (around 3-5% inclusive of drilling costs).

According to findings in the Rystad Energy study, what looked like a good business decision may have ended up causing significant negative impact on outcomes, should well productivity rates continue to rapidly decline. NWSC believes this indicates that the fundamental impact that proppants have on hydrocarbon flow and production are the single most significant factor.

Additional information: https://wisconsinsand.org/

Article and Rystad Energy report here: https://nwsinfo.s3-us-west-2.amazonaws.com/A+Return+to+Quality.pdf

*IMAGE link for media: https://www.Send2Press.com/300dpi/20-0629s2p-nwsc-permian-300dpi.jpg
*Image Caption: Permian vs NWS Before and after test.

This news story was published by the Neotrope® News Network - all rights reserved.