Advances in refracturing and restimulation is creating new opportunities for participants in the oil and gas industry. The volatility of oil prices is driving an increasing need for decreasing production cost, fueling technological advances to propel the growth of refracturing and stimulation procedures.
As operators and equipment providers foray into the digital landscape, service providers are anticipated to not stay far behind. Growing opportunities for refracturing and restimulation have considerable influence on the general gas and oil industry. While there are a couple of challenges and pain factors widespread in this space, technological investments by all market participants (operators, equipment manufacturers, service providers, as well as contractors) are expected to tackle most of the present concerns.
The current evolution of IIoT-based solutions leverages historical production data that assists in precise determination of the ideal wellbore. This, coupled with effective isolation and diversions technology, represents significant opportunities for refracturing and stimulation actions. With invention driving operational efficiencies, initial capital investment is a major concern for market participants. Several operators, equipment makers, and service providers tend to be deterred by the high initial cost of investment and market uncertainties because of fluctuating crude oil rates.
Operators including Pioneer Natural Resources, Chesapeake Energy, and ExxonMobil and service and equipment providers like Schlumberger, Halliburton, and Weatherford are positioned as innovators from the refracturing and restimulation market primarily because of their continuing investments in effective and economical technologies. These investments summarize their strategies for expansion in the general oil and gas market.
Oil prices are witnessing substantial volatility and trending in new highs, mainly driven by inconsistencies in oil production in both OPEC and non-OPEC nations. It has increased the strain on petroleum operators and equipment service providers to reduce the entire cost of manufacturing. Because of this, operators as well as equipment and service suppliers are focusing on the refracturing and restimulation of old wellbores. It is thus crucial for operators, equipment makers, and service providers to track and assess technological innovations and new refactoring and restimulation methodologies, which will help in specifying the ideal wellbores and the appropriate methodologies to their refracturing and stimulation to improve operational efficiencies.
Eagle Ford has also revealed potential with considerable production increase (30% to 70%) throughout 2015–2017. Innovations in data analysis, isolation, proppant tracers, diverting technology (mechanical and chemical), and real-time reservoir observation will propel the execution of refactoring solutions. Economic considerations (50% to 70% lower than drilling and completing a brand new well) and technological feasibility (percent of prospective EUR produced/remaining ( offset attributes , pressure depletion) are also key drivers in the refracturing and restimulation market in the next few years.
