Economics and Well Spacing in Texas
- William E. Hubbard (Humble Oil and Refining Co.)
- Document ID
- Society of Petroleum Engineers
- Transactions of the AIME
- Publication Date
- December 1937
- Document Type
- Journal Paper
- 163 - 171
- 1937. Original copyright American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. Copyright has expired.
- 5.1.2 Faults and Fracture Characterisation, 1.6 Drilling Operations
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During the last decade the known reserves of petroleum in the United Stateshave increased from about five billion to over thirteen billion barrels. Fromthe standpoint of public welfare the existence of these known reserves presentsan undeniably favorable picture, but viewed from the position of many aharassed operator the blessing has not always been considered an unmixedone.
Along with this increase in excess reserves, curtailment of production has comeinto being as a matter of necessity and the principle of proration as a matterof equity. As a practical matter it has been considered necessary to curtailthe production of old wells as well as that of new wells in a pool. The rightof new pools to produce has been recognized, and the allowable for them hascome partly from increased market demand and largely from the allowablesalready enjoyed by the developed pools. The natural result-a downward trend indaily per-well allowables-has been especially felt by Texas operators. Thistrend may be illustrated by Table 1, which comprises the five active areas inTexas, and from which may be noted the following:
1. The average daily allowable per well has decreased about 53 per cent inthree years.
2. Of the 184,000-bbl. increase in total allowable for the five areas, 29,000bbl. came from the increase in state demand and 165,000 from the combinedallowables of the remaining pools in the state.
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