Storage, Production, and Shut-in Strategy Development

Sifting through the Challenges is Daunting, but Doable.

As oil and gas activity has sharply declined due to the overwhelming surplus of crude oil, operators are forced to either shut-in wells to reduce production or have their output hauled away—both are costly decisions.

On one hand, shut-in wells often must be re frac’ed upon reopening and may be subject to diminished future oil recovery, and on the other, operators may face exorbitant and  punitive take-away fees to simply transport and store oil.

Further, many operators are required to continue producing due to existing contracts. In early 2020, analysts feared that the oversupply of crude would inundate the world’s storage tanks and that the US crude hub in Cushing, OK would hit maximum capacity. Although crude oil traders believe the worst is behind us and that prices should stabilize, 2020 oil price volatility, recovery from a public health crisis, and uncertain demand profiles continue to fuel the flames of  market uncertainty.  Identifying novel and cost-effective storage optionality can help mitigate price volatility impacts, and enhance negotiating positions in turbulent markets.

And that’s where EnergyMakers can help.

Our expert geoscientists and financial analysts can quickly help you determine your company’s options, which might include:

• Identification/Acquisition/lease of surface and offshore storage containment
  • An oversupply of oilfield service equipment improves financial feasibility

• Characterization and Geologic Profiling of Salt Cavern Storage Options
  • Hydrogeologic profiling
  • Pore volume analytics
  • GIS characterization
  • Injection and Production strategies

• Planning and Costing
  • Asset financial due diligence and feasibility analysis
  • Technical services for salt cavern and porosity oil and gas storage
  • Planning and design services to expand existing reserve capacity

• Permitting and Regulatory Compliance
  • Preparation and submission of permits
  • Well logging analysis to determine optimal injection/storage zones; reservoir screening
  • Complete geologic characterization
  • Reservoir evaluation
  • Area of Review evaluations
  • Fluid Containment evaluation
  • Well and Casing Design
  • Exemption applicability
  • Capacity Planning
  • UIC Well Conversions
  • Permitting GeoKits – Cross sections, isopacs, GIS maps supporting permit applications

• Monitoring and Safety
  • Pressure testing, analysis and reporting
  • Modeling services to determine operational life of a system
  • Environmental Life Cycle Planning
  • Risk management
  • Environmental Social and Governance compliance