Increasing Pad Density in Eagle Ford

Increasing Pad Density in Eagle Ford

Operators regularly report that they are gaining efficiencies and saving CAPEX by increasing the number of wells per pad. This impacts all areas of the supply chain and further decouples the notion of “one sale, one well” for oilfield service companies.

The following charts illustrate the increase in the well density per pad by the year the wells are permitted.

Key highlights include the following:

  • Shift in 2-well pads making up almost 50% of the multi-well pads in 2011 to below 25% in 2015
  • 3-well and 4-well make up 50% of Eagle Ford pad designs starting in 2013 and trend continuing through 2015
  • 2-well pads losing share to much larger 5+-well pad designs

energent-eagle-ford-pad-trends

 

energent-eagle-ford-wells-by-pad-sizeImpacts to Supply Chain and Sales

As the number of wells per pad increases, the cost per well descreases, the total time per well descreases (rig move in to rig move out and frac cycle time), total drilling program time decreases, logistics complexity increases, and the sales process becomes more strategic.

Drilling Contractors Focus on Different Metrics

Rig capabilities become more important for drilling contractors. The general rig type (AC, SCR, etc) is no longer a key identifier. Operators need “pad-capable” rigs that are walking/multi-directional with horsepower greater than 1200 offering bi-fuel for fuel cost reductions. Days to TD continues to be a critical drilling contractor metric but with less rig moves, pad-capable rigs become a safer alternative.

Pressure Pumpers Optimize Cycle Time

Top Eagle Ford pressure pumpers like Schlumberger, Halliburton, and FTSI know the importance of frac cycle time. Zipper fracs operations reduce the cycle time further when a pressure pumper fracs wells on a pad in a sequence to optimize reservoir exposure and production. Furthermore, Schlumberger and Halliburton have both gained market share in 2015.

Frac Sand Suppliers Prepare Larger Deliveries

On a per well basis, frac sand has increased 27% in 2015 compared to 2014. With pad size increasing at the same time, well site logistics requires further integration of operations between pressure pumpers, sand haulers, and frac sand companies. These seperate companies must ensure a high level of service quality and delivery in order to meet an operator’s supplier requirements.

 

Find out how Energent Group’s Pad Trend analysis can help you target strategic accounts to stay ahead of your competition. Contact us to get more information and samples.

 

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