Study on Economic Development Limits of Tight Oil

Abstract

At present, tight oil reservoirs account for more than 60% of the remaining un-used reserves in Daqing Oilfield. The development mode is mainly vertical well large-scale fracturing or horizontal well volume fracturing, which is affected by low oil price and has poor economic benefits. In order to reduce the decision-making risk of Oilfield productivity capacity investment, a practical and effective economic evaluation method is needed. Through the analysis of development indexes of large-scale fracturing in vertical wells and volume fracturing in horizontal wells, the changing rules of development indexes are clarified, and the calculation methods of some economic parameters of development effect evaluation are optimized. The economic evaluation methods of productivity projects in tight reservoirs are formed, and the calculation program is compiled. The program is used to evaluate the production investment limits of compact oil blocks under different daily production of single well for large-scale vertical well fracturing and volume fracturing under multi-oil price conditions. Based on the evaluation results, the investment limits of single well and single well daily production under different oil prices are plotted, and the sensitivity of investment limits is analyzed. Under the condition of low oil price, the result of benefit evaluation can be improved by reducing investment, and under the condition of high oil price, the effect of increasing daily production of single well on improving economic benefit of block is greater. This method can effectively predict the risk of capacity investment decision-making, ensure the smooth implementation of tight oil production projects, and release more development potential. The research results can be applied in the submission of proven reserves, the evaluation of unused reserves and the planning and deployment of oilfields.

Copyright 2019, IFEDC Organizing Committee.

This paper was prepared for presentation at the 2019 International Field Exploration and Development Conference in Xi’an, China, 16–18 October, 2019.

This paper was selected for presentation by the IFEDC Committee following review of information contained in an abstract submitted by the author(s). Contents of the paper, as presented, have not been reviewed by the IFEDC Technical Team and are subject to correction by the author(s). The material does not necessarily reflect any position of the IFEDC Technical Committee its members. Papers presented at the Conference are subject to publication review by Professional Team of IFEDC Technical Committee. Electronic reproduction, distribution, or storage of any part of this paper for commercial purposes without the written consent of IFEDC Organizing Committee is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of IFEDC. Contact email: paper@ifedc.org.