Insight
How much can child well economics improve?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Operators are drilling a higher proportion of child wells than ever before. The discourse regarding child well economics over the last couple of years has been almost entirely negative. But as some operators start to highlight advantages unique to child wells, it is important to know what to believe. Ultimately, we think it is unlikely child wells economics improve enough to fall in line with parent wells. But why? And more importantly, why does it matter?
Table of contents
- Executive Summary
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Introduction: getting ahead of the child well world
- Child well refresher
- Operators must focus on costs
- The goalposts – cuts costs by as much or more than well performance degrades
- Non-well infrastructure constitutes 10-15% of the total parent well spend
- How much benefit do optimized completions offer?
- Oil field service rates shoulder the brunt again
- Putting it all together – what does the path to similar economics look like?
- Conclusion
Tables and charts
This report includes the following images and tables:
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Average impact of child well scenarios on Delaware Wolfcamp IRR
What's included
This report contains:
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