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Pushing the Boundaries: Extended Laterals and Drilling Innovations in the Utica Region

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This episode is from our Crue Club Operator Mastermind Roundtable, held in OKC in late January 2025. Jeremy Ensz (VP of Operations Engineering - Ascent Resources) kicked off a roundtable discussion on Extended Laterals: How far could/should we go?

We explore extended laterals benefits in production and efficiency while emphasizing the necessity of communication and technology. Main topics include increased production capabilities, operational efficiencies, technological innovations, the importance of real-time monitoring, and the challenges surrounding safety and sustainability practices.

Speaker 1:

Thanks for watching. Welcome to a new Energy Crew podcast. In this episode we are covering one of the Crew Club Operator Mastermind Roundtables. That's where we bring in all these operators and get a couple of select service companies together around the table to discuss things that are moving and shaking the industry. Companies together around the table to discuss things that are moving and shaking the industry.

Speaker 1:

Last Thursday, I guess on January 30th, in Oklahoma City we held a roundtable on extended laterals. How far should could we go? Jeremy Entz, the VP of Operations, engineering and Ascent Resources, led this fantastic discussion and we're going to dive into what we covered today. So pretty much the scene is this the only gas industry is constantly pushing limits, pushing the boundaries, and extended laterals is no different than pushing the boundaries. I don't know why I keep repeating that, but in essence, we surrounded the table with a lot of operators mainly operating in the Utica, ohio region and we were discussing it seems like three miles laterals is kind of the industry standard. We discussed that some people are going four miles, potentially five, and Jeremy kicked it off and he had this great concept right here. Not a great concept, but a great thought right here. He said listen, go to Google Maps and look at pretty much it's five miles away from you in any direction. That's how far drilling rigs are pushing the limits when it comes to extended laterals and it's crazy to think about. We are going down hole five miles, blindfolded in a small window 10 by 10 window to hit our destination. I just think it's fascinating the fact that this industry can do that. So let's dive into how far we're going, what our limitations are and kind of what are some maybe some setbacks and challenges that we got to look at as an industry when we are doing these extended ladders. So I'm going to read kind of from the notes that I have here, so don't miss anything for you out there. And obviously, first off, I want to thank everyone at the table for being there, for contributing. It was a great group. We had a lot of people from drilling discipline, drilling side, and we also had a lot of people on the completion side and also some geologists in the room. So it's a great roundtable discussion on why we're reaching such limits and how far can we go and also some concerns when it comes to the drilling side going this far. It was a great again, fantastic conversation and we're going to start talking about that now.

Speaker 1:

So pretty much throughout the years, operators have continually to tack on footage when it comes to the extended levels. Five years ago, 17000 feet and now we're actually at the point where 20000 feet is the industry kind of standard in this region. We can get there due to, I guess, the formation, the faults, the land. That's kind of our limitations right now is kind of the land makeup. I guess it's kind of checkered a little bit where I guess you got to get all the land in line to actually go that straight line of three miles. But that seems to be kind of holding us back. All right, 80% of the wells in this region are being drilled to about three miles and it's expected to maximize production capabilities while optimizing well completion strategies.

Speaker 1:

All right, so I ask the stupid question. I always ask the stupid questions when I'm sitting around the table with a bunch of engineers. Okay, so I'm going to play dumb. Why would we go further in our ladders? What is the purpose and what is the benefit? All right, the first benefit that we discussed is the increased production rates of going deeper. All right, the potential for higher production from wells is notable with extended laterals as longer well distances can assess more hydrocarbon reserves within a single drilling operation. Okay, I get that. That makes sense to me.

Speaker 1:

And the other thing is enhanced efficiency. Achieving long laterals can reduce the total number of wells required for a given area, enabling operators to concentrate resources and optimize drilling efforts, which I thought was a very I mean, I understand all that. So, number one to increase production. Number two enhance efficiencies. I think that reduces the number of times you trip out of the hole. I think that reduces the number of times you actually have to make up and go back down. So I think it reduces kind of the number of days that rigs are out there. So again, that just shows the efficiencies we're having as an industry. And this ties into a couple of conversations we had at previous crew club events where we're talking about rig count. Will rig count spike again? And the consensus is probably not. Number one, due to efficiencies. Number two, because companies are now operating more of a cash flow mindset, cash flow basis. So the need and the urgency to pick up rigs whenever there is a swing in commodity prices is not really in our industry right now. I think we're operating a little bit smarter, a little more efficient. So some technological innovations and challenges that we face as an industry when we are talking about extended laterals is the drilling technology. As operators increase the lengths of laterals, the demand for advanced drilling technologies and techniques rises. Innovations are vital for maintaining accuracy and preventing complications during the drilling process, and this is anything from monitoring your, your drill stem, or it's anything from, I guess, a better equipment downhole, whether it's drill bits, whether it's motors, whatever that is.

Speaker 1:

It was very interesting. It sounded like you're really rolling the dice, not rolling the dice, a bunch of smart people in the room, a bunch of smart people marching towards a goal, so we're going to get it done. But it was very interesting to hear, like, once you get past a certain point, like that's kind of it, like everything's on the line. But it was very interesting to hear like, once you get past a certain point, like that's kind of it, like everything's on the line. So it was kind of cool to hear that. And also it's kind of cool to hear the successes. I mean, whenever you're going down here, let's say, uh, one, one of the companies was doing, let's say, an average of 60 wells a year. Okay, they said they only um had uh, you know, train regularly. You know probably two out of those 60 times, which is so impressive. I completely dig that.

Speaker 1:

So, again, technologies seems to be the thing that everyone's focused on to increase efficiencies in our industry. But where does the technology come from? On the drilling side, all right, communication, collaboration was a big part of this. Effective planning and coordination across various teams, such as everyone at the table. We had geologists, we had completions, we had production and some drilling people there. So effective communication, collaboration amongst all the teams is crucial for this because, let's say, you drill a hole and you're trying to beat the record. I mean, that doesn't ensure the quality of the wellbore, right. So, again, going deeper, going extended lateral, but you still have to have that wellbore clear for completions to come in and do their job.

Speaker 1:

So, again, it's all about communication and that's the goal of these Crew Club Operator Mastermind Roundtables is to foster communication, foster knowledge sharing. Hey, you're going three miles down here. How did you accomplish this? Hey, completions team, we're about to do this. What makes sense for you, what's important for you before we take this step? So, again, having communication, clear communication, that's something that I teach as well at, yeah, this side at ExecPro. So communication is key when we are doing this, and that's not emails, that's not text messaging, that's face-to-face, collaborative conversations, all right.

Speaker 1:

So then we discussed the importance of actually monitoring and adaptation downhole. So, with extended laterals, there is an increasing need for real-time monitoring of drilling performance, completion strategies to enhance that operators can adapt to any challenge that arises in the course of drilling. This is, I think this is all the software that you see out there, whether it's Animo, um, um, animo from Astra, or whether it's Corva, uh or pays on these, these, these real time uh drilling, uh metrics to see where you're actually at, what's actually happening down hole. So, again, if Putting technology forefront to see what's going on downhole as we drill down the line, it's exciting. So, again, continuous evaluation and improvement and knowledge sharing among teams will drive improvements in this operational practice. So, again, we have to communicate, we have to talk, and not only that. Operators, and this is kind of, again, the cool part about these conversations at the Crew Club table is that they constantly tack on to each other. So we might be talking about AI at one and then, next thing, you know that kind of bleeds into AI, ai, ai.

Speaker 1:

So again, we're talking about when it comes to extended laterals and technology. Where's technology going to stem from? In the modern oil and gas industry? Historically it's been service companies that put up the money for the R&D and then they pitch that to the operators. However, now, just because of capital being so tight, because of technology kind of where it's at right now, it's really going to take a collaborative approach between the operators and service side of the industry to actually come together to form solutions that actually make sense, not just on the budget but also as we move and push the envelope further in the industry.

Speaker 1:

All right, a couple of concerns around the table when it comes to kind of these extended laterals was kind of the limitations on the completion side of the service sector, whether it's coil, tubing or wire. Can they go that deep down hole, should there be issues? So it seems to me that the only restrictions that we're facing as an industry is the completion side. Candidate tools can keep up. I mean that's kind of something we discuss around the table.

Speaker 1:

So, looking forward to the future of drilling practices, you know, as we, as we navigate the challenges and advantages of extended laterals in our industry, it's essential not to, it's essential to consider not only immediate impacts but also long term sustainability. So will these wells be productive long-term? Do they have the EOR, or whatever it's called, long-term whenever we start our jobs, or are the holes kind of just kind of going fast and the integrity is not really there? So that's kind of a conversation we're having. And then what else? Operators must remain committed to exploring holistic strategies that incorporate the latest technology while prioritizing safety and environmental stewardship. I think that's kind of the slogan of the industry. So let's keep pushing the envelope, let's keep collaborating, thinking about how to move forward more efficiently, safer and less of an environmental impact. Yeah, so listen, it was a great, great conversation. I want to thank everyone at the table. I especially want to thank our sponsors WorkRise, welldrive, lfs Chemistry, kellex, klx Energy Services, detection Technologies and Intelligent Wellhead System.

Speaker 1:

We packed the room. It was a room full of about 21 individuals and it was a great conversation. The majority of the operators operated in ohio and a utica area, so again, it was interesting to hear each operator discuss kind of challenges, what they're experiencing, what they're seeing, how they're getting it done. Um, if you're interested in joining the table at these uh crew club operator mastermind round tables. Um operators, emp operators register on wwwconnectioncrewcom. Backslash crew club, that's C-R-U-E club and if you're an OFS service company, we select. We have about five seats at the table for sponsorship, so reach out, reach out, register and yeah, let's get you at the table.

Speaker 1:

But, again, these conversations are driving the industry forward. I can't thank everyone enough for contributing to these conversations. And yeah, hey, if you have any questions or you want to these conversations. And yeah, hey, if you have any questions or you're pushing the extended laterals, I dig it. Keep it up. Our industry is full of smart, bright, innovative, entrepreneurial spirited people, so I'm digging it. I'm looking forward to the next conversations that we have at the table and I think in February we'll be covering a lot of energy policy and a lot of energy regulation. This is kind of a sneak peek what's upcoming. We have two lobbyists coming to the table from Washington DC to talk about how to navigate the new administration, what to look out for and what to take advantage of. So, again, I'm excited about this and there's seats at the table and we look forward to seeing you soon. And thank you for tuning in to Energy Crew Podcast. If you're enjoying this, please share this comment, like, subscribe all that fun stuff. We look forward to talking to you soon. Take care you.