Shale Value: Machine Learning Based Optimization Of Shale And Tight Oil Asset Values
energycioinsights

Shale Value: Machine Learning Based Optimization Of Shale And Tight Oil Asset Values

Pavana Gadde, CEO, Shale ValuePavana Gadde, CEO Headquartered in Texas, Shale Value enables businesses to optimize shale and tight oil assets through converging machine learning and reservoir engineering principles. The company’s industry-first analysis also allows to accurately value shale assets. “We are helping operators in acquiring acreage, well location selection, facilities and drawdown optimization, and benchmarking well performance. As such, we can support our clients across the entire shale value chain. This is what enables us to stay a notch above the rest,” says Pavana Gadde, CEO, Shale Value.

She goes on to mention that reservoir and production engineers need to optimize the recovery of hydrocarbons by at the least expense to maximize value. Reservoir is a rock-fluid system and for optimizing production, it is essential to understand the complex behavior of reservoir fluids which vary both a really and across each producing bench. That’s where the understanding of fluid PVT plays a vital role. “Although hydro fracking has increased well productivity, the next step change in well productivity will be through understanding of the fluid behavior,” Pavana asserts. Keeping this in mind, Shale Value has designed its cloud-based Fluid Analysis and Composition Estimation Tool (FACET) that leverages its patent-pending algorithms and public domain data to equip clients with initial In Situ fluid composition estimation and fluid properties. As a result, reservoir engineers, production engineers, and operators can have access to important data in order to perform their job more effectively.


By converging machine learning and reservoir engineering,we help operators optimize operations across the shale value chain

To prove the efficacy of the PVT algorithm, the company has run FACET through several blind tests across several shale plays and fluid types, and every time the predictions were more than 95 percent accurate.

Operators have utilized FACET to improve their top-line and bottom-line operations. For instance, one of Shale Value’s clients was planning on traditional fluid analysis that involves field sampling, followed by expensive lab experiments and fluid modeling. Instead, they subscribed to FACET and leveraged the machine learning based models. As a result, the client could eliminate the need for sample collection, which enabled them to efficiently run everyday operations and eliminate unnecessary expenses. They saved almost $300,000 to $500,000 in sampling and lab costs. In addition, the client witnessed an uplift of 3-5 percent oil volume with zero CapEx through separator optimization.

Shale Value has also developed Forecasting through industry-leading Inferred Reservoir Modeling (FIRM) that forecasts well performance through a reservoir engineering-based analysis. The standard methods for forecasting production and valuing shale assets using public well data are too simplistic to incorporate the complexities of shale production.

Consequently, they lead to a plethora of mixed messages and significant inaccuracies in shale asset valuations. As opposed to these simplistic curve-fits, FIRM converges reservoir engineering analytical equations, reservoir simulations and machine learning to forecast well performance. “That’s why we can estimate the impact of rock, frac and fluid on well performance for each well in the play and this paves the way for meaningful engineering analysis,” says Pavana. As a result, clients can have the right information at their fingertips to benchmark and optimize their operations.

Such robust offerings drive Shale Value to open up new avenues for growth. Pavana believes that frac optimization or the comprehensive understanding of the interaction between the fractures and the reservoirs is going to play a significant role in the coming years. Unfortunately, current empirical methods are full of trial and error. To this end, Shale Value has already begun to provide consulting services alongside their products. This enables clients to maximize net present value (NPV) through optimization. Also, the company provides mergers and acquisitions (M&A) support through helping clients with asset screening, value gap analysis, engineering due-diligence, and post-deal technical consulting, including full-field development plans. “We are supporting operators during this pandemic by providing a model that is a true convergence between science and data science. This improves the understanding of subsurface,” Pavana concludes, “We firmly believe that in the coming years our products will help reservoir and production engineers optimize their operations.”

Share this Article:
Top 10 Digital Oil Field Solution Companies - 2020

Company
Shale Value

Headquarters
Houston Area, Texas

Management
Pavana Gadde, CEO

Description
Headquartered in Texas, Shale Value enables businesses to optimize shale and tight oil assets through converging machine learning and reservoir engineering principles. The company’s industry-first analysis also allows to accurately value shale assets. Shale Value has designed its cloud-based Fluid Analysis and Composition Estimation Tool (FACET) that leverages its patent-pending algorithms and public domain data to equip clients with initial In Situ fluid composition estimation and fluid properties. As a result, reservoir engineers, production engineers, and operators can have access to important data in order to perform their job more effectively