Question of Well Spacing in Eagle Ford Shale

Eagle Ford ShaleAs more and more operators and oil and gas companies try to get into the Eagle Ford Shale, the issue of how much space should exist between wells is becoming more and more of an issue.

A look at the numbers can give you a good idea of just how this is becoming an issue.  In 2010, about 500 new wells were being drilled.  Between 2011 and 2012, 2,350 new wells were being drilled.  That translates to 7 million acres being appraised for drilling.  How much space is to be left between those wells can have a major impact on how much oil and gas is produced.

Many complex factors go into well spacing, such as seismic attributes, depth, pressure, and well-execution.  Well spacing can have a real impact on how much oil and gas is produced, which in turns affects production revenue.

On average, 300 to 600 feet seems to be a healthy average between wells.  This would yield approximately $291 billion in production revenue.  If that distance is increased to 400 to 700 feet, production revenue would drop to $231 billion.  If the distance is decreased to 200 to 500, production revenue would increase to $400 billion.

How wells are spaced also affects performance; operators are trying to find a sweet spot.  How far can they down-space before it will have a negative impact?

The massive increase in activity in the Eagle Ford Shale has had a serious impact on the formerly quiet towns in more ways that one.  The increased activity has been great for the economy, but there have been negative side effects as well.  There has been a major increase in motor vehicle accidents as a result of the trucks and other vehicles on the road, and the environmental impact of the drilling hasn’t been negligible either.

If you have been affected by the Eagle Ford Shale, the attorneys at Kirkendall Dwyer LLP can help.  Our attorneys can provide you the immediate answers that you are looking for.  Contact us today for your free case review.


Sources:  Bloomberg BusinessWeek, “The Shrinking Space Between Eagle Ford Shale Wells”, and World Oil Online, “Challenge of Eagle Ford well spacing remains a moving target”

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