Expandables revitalize mature assets
Around the world, mature oil fields are a huge source of production as roughly 70 percent of oil production today comes from wells that are more than 30 years old.
Despite many years of production, a significant amount of this oil in these mature fields remains unproduced. A 2000 study by the U.S. Geological Survey estimates only about a third of recoverable oil has been produced. Two barrels left behind in the ground for every one produced leaves an elephant of considerable dimensions in the industry’s midst.
These left-behind assets are in the center of an existing and already capitalized infrastructure, with wells, production systems and gathering lines in place. The economic incentive to improve and extend production from these fields is enormous.
Armed with expandable tubulars and other technologies, operators are taking a new look at old assets. Workovers, in the past viewed as a management problem and an expense, are today seen as an opportunity. Marginal and plugged wells are being revived as significant producers and as a means to reaching additional reserves.
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Saturday, May 31, 2008