Petrobras has cancelled a process to contract five new ultra deep-water drilling rigs, due to the pre-salt’s strong resource quality, which means fewer wells are required. The company cited higher well productivity in the pre-salt Santos basin as a reason for the cancellation. Higher well productivity will require fewer wells overall. The rigs, which were […]
Onshore Permits All major states require the filing of a drilling permit before the drilling of a well. The filing for the permit is usually one of the last steps taken before drilling. Before the permit is filed for, companies incur significant expenses, including land costs, legal fees, and geological expenses, and, at that time, […]
Bernstein note 10-12 The mechanics of onshore production are fundamentally different from offshore production. The largest 25 fields off Norway today were developed with 110 total wells per field on average; the largest 25 fields in the Gulf of Mexico were developed with 30 wells on average; while typical Russian fields of the same size (in kbpd) required […]
However, when pressure pumping capacity can’t keep up with the rig count, as was generally the case in 2010, there exists a lag between drilling and completions. This lag is usually around a quarter, simply due to logistical issues of moving both the rig and completion equipment. However, in the Haynesville, the backlog expanded to […]