SPE Member


Beyond the ongoing major structural changes and cost savings resulting from the industry focus on increasing operational efficiencies, better technology holds the key to future reductions in the production cost of oil and gas. Achieving optimum productivity is a major component of this technology.

In the past most of the technical and operational aspects of production enhancement were keyed towards making reservoirs economically viable. This limited the application of such operations mostly to low permeability reservoirs, or when there was a drastic reduction in production rates. With the real price of oil steadily declining this need is continually extending towards higher permeabilities.

With focus on getting best return on investment it is no more enough to just be profitable. Optimum well productivity will enhance the economic value of any reservoir!! This paper will examine the economic impact of damage removal and production enhancement on reservoirs generally viewed to be high permeability.


Results of stimulation treatments are usually calculated in terms of the ratio of production after fracturing to that before. This technical approach shows that as the formation permeability increases it becomes more and more difficult to create a fracture with sufficient permeability to yield high folds of production increase. Furthermore, theoretically, stimulating high permeability reservoirs does not change the total production by a significant amount. As a result some operators have been reluctant to stimulate high permeability formations. Another cause for this reluctance has been the absence of a financial need to stimulate a high permeability well which is already producing at a profitable level. Some operators have viewed such action as being risky.

The approach of this paper is to view stimulation results in terms of their financial value and the associated cost/return possibilities. This approach is chosen based on the economic realities of the oil industry; the need for universal optimization of the efficiency of all operations. The obvious options for reducing cost per barrel of produced oil are either to reduce the cost of operations, and/or, increase the production; the latter of which is the focus of this paper.

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