Optimization of the Lateral Length of Shale-Gas Horizontal Wells Based on Geology–Engineering–Economy Integration

Abstract

Horizontal wells with extended lateral lengths and large-scale hydraulic fracturing are a key technology for shale gas development. Lateral length is the key factor in determining the production and economic benefits of horizontal wells. Therefore, based on geology–engineering–economy integration, a method for optimizing the lateral length of shale-gas horizontal wells is established. Through fracture-shape prediction, productivity simulation and input–output analysis, the net present-value model of the technical–economic evaluation of the economic lateral length is established. A comprehensive evaluation of lateral lengths in Changning Block is then conducted. The results show that, under the current geological, engineering, and economic conditions in Changning Block, a horizontal well with a lateral length between 175 m and 3508 m is economically viable, and the optimal economic lateral length is 2000 m. The porosity and thickness of the reservoir matrix, the production time, the drilling investment, and the price of the natural gas wellhead in the first year have a great impact on the economic lateral length. On one hand, we can increase the drilling rate by increasing the technical research and development efforts. On the other hand, we can improve the construction management level to reduce investment and reasonably increase the price subsidy to optimize the lateral length of shale-gas horizontal wells.