Operators

Asset Development

byEnverus

Asset Development

Asset development refers to the full lifecycle of bringing hydrocarbon resources from discovery to production, including exploration, appraisal, planning, drilling, operation, completion and production optimization. Each phase requires strategic decision-making, capital investment and technical expertise. Successful asset development maximizes resource recovery while minimizing cost and risk. Oil and gas asset development is at the heart of upstream strategy.
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Frequently Asked Questions

What factors influence the economics of asset development?

Key factors that influence decisions along the value chain of asset development include reservoir quality, drilling and completion costs, commodity prices, infrastructure availability, regulatory environment and technology used. Optimizing these can significantly impact return on investment and project viability.

Why is understanding the full scope of asset development important in the market?

As global energy demand continues to rise and North American shale matures, operators are under pressure to do more with less. Investors are rewarding capital efficiency and inventory depth, while operators must navigate a shrinking pool of high-quality drilling locations. Understanding how to evaluate, develop and optimize assets is essential for staying competitive in a market that increasingly values precision, speed and foresight.

How do companies prioritize which assets to develop first?

Prioritization is based on metrics like breakeven price, net present value (NPV), production potential, proximity to infrastructure, and strategic alignment. Companies often use scenario modeling and portfolio analysis to rank assets by impact and risk.

What is the difference between conventional and unconventional development?

Conventional development typically involves vertical wells targeting reservoirs with natural pressure and permeability. Unconventional development relies on horizontal drilling and hydraulic fracturing to unlock hydrocarbons from tight formations like shale. The rise of unconventional plays has transformed the industry, driven by extensive production in areas like West texas, Gulf Coast and North Dakota. Unconventional development has also introduced new challenges in full pad well planning, drilling execution and production decline management.

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