Refracturing might account for 12% of the overall market in the future
IHS acquisition PacWest is developing a new research report on refracturing, as industry leaders see the potential for refracturing to boost production without the need to drill new wells improving capital efficiency as required in the lower oil price environment. Wells located in sweet spots and originally fractured with sub-optimal technology and techniques appear to be the best candidates for refracturing. IHS hosted an opening call on Wednesday, May 20th to discuss elements of the report including: feasibility, economics and current and future market for refracturing including techniques, costs, impact on production, play potential, and current and future trends and market sizes. Hundreds of people joined the call and provided feedback.
Overall fracturing activity in 2015 is expected to be down from 2014, dropping from 37,000 wells to 22,000 wells. Refracturing is a very small (<1% of total fracturing activity), but represents a growing share of the fracturing market. Factors that affect adoption of refracturing are: refracturing tests and results, well completion technology and logging improvements, higher oil and gas prices, presence of drilled uncompleted wells and in the distant future competition with enhanced oil recovery techniques.
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This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.