Sunday, April 10, 2011

Water Wells That Produce Oil -- Spearfish, North Dakota, USA

File number: cumulative oil, cumulative water:

First group of 10:
  • 18055: 134K, 25K
  • 17102: 87K, 20K
  • 19250: 76K, 8K
  • 17263: 680K, 5K (wow)
  • 18209: 237K, 16K
  • 17303: 327K, 23K
  • 17346: 379K, 22K
  • 16954: 610K, 25K (wow)
  • 16885: 554K, 29K
  • 17028: 358K, 19K
  • 16961: 335K, 28K
Second group of 10:
  • 6467: 74K, 621K (no typo) -- 33 years of production
  • 3676: 18K, 86K (abandoned; spudded in 1964, 7 years of production)
  • 3677: 12K, 62K, (abandoned; spudded in 1964, 4 years of production)
  • 18701: 11K, 41K (EOG well, spudded 2010, a recent well)
  • 4103: 57K, 94K (spudded 1966)
  • 15193: 4K, 41K (spudded in 2001; still producing)
  • 10318: 24K, 164K (no typo) -- 28 years of production
  • 12368: 141K, 4.2 million barrels (no typo); 23 years of production (Madison well)
  • 4632: 256K, 481K, producing since 1952; (Madison well)
  • 8135: 100K, 652K, producing since 1981, 30 years of production and still producing (Madison well)
Comments:

1. Note the difference between the two groups of wells. The first group is a list of oil wells producing a bit of water. The second group is a list of water wells producing a bit of oil.

2. The first group, with some exception, have less then three years of production. The second group has 20 - 30 years of production. It was hard to find wells in this group that were still active. Abandoned wells would have made the point even clearer: the second group of wells are water wells producing a bit of oil, and taking 30 years to produce the amount of oil that wells in the first group produce in the first two or three months. Again, the wells in the second group take up to 30 years to produce what the wells in the first group produced in the first two or three months. In some cases, a well in the first group will produce the amount of oil a well in the second group produces in 10 or more years.

3. The wells were selected at "random" -- for the purist, not truly random, but random enough for me.  I went to the GIS map server and simply selected 10 wells for each group. For the first group, I chose 5 wells in the Sanish oil field (mostly/all Whiting) and the second 5 wells in the Parshall oil field (mostly/all EOG). The wells in the first group are all Bakken wells.

4. For the wells in the second group, I went to Bottineau County and selected Spearfish wells. They were somewhat harder to find (many fewer) and thus some Madison wells thrown in. One can argue whether #6467 is a bit of an outsider, but again, I just happened to pick that one randomly; it is a Spearfish, but no matter how you look at it, 620,985 bbls of water is a lot of water to dispose of. Meanwhile the well produced 74,000 bbls of oil since 1978. Bakken wells that can't produce 74,000 barrels of oil in one year are considered somewhat of a disappointment.

I know nothing about water disposal, about the number of trucks needed, where to dispose of the water, whether pipelines are eventually laid to pipe away the water, but it certainly appears that there is an opportunity for a water hauling company to grow if the Spearfish formation is developed in Bottineau County. It is my understanding that the CEO of Continental Resources got his start in life hauling water in Oklahoma.

Again, I know nothing about the water hauling business, so maybe this is a non-issue, but it certainly caught my attention. And it certainly caught my attention how long these wells produce. It will be interesting if new technology increases production significantly. Another thing I noticed was that a number of the Spearfish wells were re-entered and a new well targeting the Madison was drilled.

4 comments:

  1. Maybe Heckmann can help?

    http://heckmanncorp.com/

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  2. Excellent idea. I might have to do a stand-alone post on this company.

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  3. Some of the high water numbers may be producing wells that have been converted to salt water disposal (swd) wells. I haven't checked tho. Basically, the water is piped (or delivered by truck) or a combination then pumped down the swd. Also some of these may be secondary recovery (water flood) ralated.

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  4. That would make a lot of sense. But when I go to the actual production numbers, for example, this is what I get.

    For the first Spearfish well mentioned:
    6467, Erickson F 1, on a pump, for the month of December it showed 71 bbls of oil and 1,620 bbls of water. Back in July, 1978, first year of production, it showed 425 bbls of oil and 1,688 bbls of water. In June, 1985, it showed 223 bbls or oil and 2,115 bbls of water, and it was like that every month.

    Going to the next one:
    3676, Anne Haakenstad 1,now permanently abandoned (it says its status is PNA, not SWD); it's last production month was January, 1971, when it produced 43 bbls of oil, and 315 bbls of water. In March, 1967, as another typical example, it produced 338 bbls of oil, and 2,076 bbls of water.

    So, as noted, I do not understand the water end of the business, but the Spearfish/Madison wells I looked at in Bottineau County all had a similar production history.

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