Is there much re-fracking of older oil wells going on in the Permian Basin? I have mineral interests in Reeves, Pecos and Reagan county TX and Lea County, NM. As production declines in the horizontal wells, are the operators going to abandon the wells or re-frack them? What’s the trend now in 2023 going forward?
There have been some interesting articles on fracking on Oilprice.com during the last year:
ExxonMobil: New Fracking Technology Can Double Oil Output
By Alex Kimani - Jun 04, 2023
U.S. shale producers have been struggling to ramp up production in 2023.
Oil major ExxonMobil bets that through technological advances, shale producers can manage to double crude output from their existing wells. While refracturing has never really gone mainstream, the technique is seeing higher adoption as drilling technology improves, aging oilfields erode output, and companies try to do more with less.
U.S. Shale Drillers Begin Re-Fracking Existing Wells
By Irina Slav - Jun 27, 2022
Oil well re-fracking is on the rise in the United States.
Re-fracking of existing shale wells can cost up to 40 percent less than drilling a new well.
Time will tell on the re-frac situation. The convention talks I have been to recently have mentioned pilot programs in certain formations that are economic to do so. It will depend upon the operator, their technological expertise, the demand (or not) for more oil and gas, etc. It is a pressure question as well as a frac question. If there is not enough pressure left in the reservoir, then it may not happen. If the pressure is good enough, then it may be worth the effort.
Thank you M_Barnes for your insightful comments. Did you see the Exxon re-frac article on OIlprice.com? I was amazed by the results and cost savings they claim they’re getting. My wells in Reeves, Lea and Stephens county are getting old and the royalties are dropping significantly. I hope they’ll re-frac these wells while the world still has a demand for oil. Do you sense that time is running out for the oil industry and the planet? I do.
As a geologist, I can say that we are not running out of oil and gas. There is plenty left to discover and produce. We are only limited by technology and economics and geopolitics. As to the time question, it is relative. Supply and demand will be part of the equation. Should we be good stewards in our use of all forms of energy-yes. Each has their own costs and risks.