How Source Rock Analysis Solution Helped Oil and Gas Industry Client to Determine the Adequate Site for Digging Oil Wells?

Aug 26, 2022

Highlights of the Case Study: 

Particulars Description 
Client A leading oil and gas player was struggling with replenishing its oil reserves. 
Business Challenge Our client wanted to determine a suitable site for digging wells, decrease oil exploration costs, and replenish oil reserves. 
Impact Quantzig offered the client an AI-driven sub-surface source rock analysis solution that helped the client determine the drilling site by identifying rocks with high potential for hydrocarbon accumulation.  

Game-Changing Solutions for the Oil and Gas Industry   

If you’re in the oil and gas industry then you already know the importance of source rock analysis. Determining various rock formations in a reservoir is crucial for oil and gas exploration and production, as it helps in reservoir categorization and predicts oil or gas accumulation sites. Lithologies are rock characteristics such as chemical composition, porosity, and permeability. Core geological data is used to determine the surface rock types directly, but it requires expensive and advanced tech to determine the characteristics of the rock beneath the surface. Source rocks have the capacity to generate oil and gas and are essential in developing oil and natural gas fields. Hence, the identification of characteristics of source rocks is vital in accurately evaluating the drilling site.

Quantzig’s AI solutions can use wireline log data and geological data to build a statistical model that can predict resistance activity, chemical composition, and the amount of organic matter that needs to be navigated to access the hydrocarbon accumulation in the rock. The adoption of AI for the accurate analysis of data is one of the technological innovations gaining prominence in the oil and gas industry. 

The Challenges of the Client 

Among the most prominent publicly traded oil and gas industry players, our client wanted to determine a good site for digging wells. The client struggled with high exploration costs, a crippled supplier base, and the inability to handle the massive amount of subsurface rock data. It needed petroleum system modeling analytics solutions to identify the best drilling location.   

The client approached Quantzig for a tailor-made source rock analytics solution capable of replacing and replenishing its existing oil reserves. The client also wanted to analyze subsurface rock data and decrease drilling and exploration costs. 

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Quantzig’s Source Rock Analytics Solution for the Oil and Gas Industry 

Quantzig experts deployed an AI-driven source rock analytics solution based on three parameters, namely, the amount of organic matter, quality of organic matter, and thermal maturity. The samples of shale rock, sedimentary rocks, outcrop rocks, and well cuttings were analyzed using Quantzig’s analytical instruments to perform elemental analysis, Rock-Eval analysis, and vitrinite reflectance study. The AI system used the data generated for basin modeling, hydrocarbon accumulation analysis, and migration to help determine the drilling site for exploration and production. The client was thus able to differentiate between hydrocarbon-bearing and water zones with the help of the vitrinite reflectance study.  

Impact Analysis of Quantzig’s Source Rock Analytics in the Oil and Gas Industry  

The solution offered by Quantzig helped the client to determine an adequate site for drilling. Besides these benefits, Quantzig’s solution impacted the client’s business in the following ways: 

  • Enable accurate understanding of the drilling site by determining the rocks with greater potential for hydrocarbon accumulation 
  • Accurately forecast recoverable reserve volumes 
  • Create a wireline log database to conduct surface and subsurface rocks analysis 
  • Analyze exploration and reservoir data 
  • Accurate programming and mapping of geological data 
  • Decrease exploration failure risks resulting in control over investments risks 

Key Outcomes 

Quantzig’s source rock analytics solution helped the client determine a good site for digging oil wells. We offered source rock analytics solutions that helped the client decrease exploration and drilling costs and replenish their oil reserves. Our solution enabled the handling of a massive amount of subsurface rock data. We were able to help the client differentiate hydrocarbon-bearing zones from water zones by determining rocks with oil and gas accumulation with the help of our vitrinite reflectance analysis. All these efforts enabled the client to replenish its oil reserves after having failed to do so twice in the past two decades. Our intervention enabled the client to build a lifetime oil well production model based on effective forecasting models.  

A Broad Perspective on the role of Source Rock Analytics Solutions in the Oil and Gas Sector: 

Over the last five years, the use of source rock analysis has grown significantly in the oil and gas industry due to the rise in the number of oil and gas exploration companies struggling with identifying good sites for digging wells. Determining drilling location is essential in the oil and gas industry as several oil and gas exploration companies fail to replenish their reserves, making it necessary for the E&P companies to opt for source rock analytics.  

The utilization of AI in source rock analysis has become indispensable owing to the increasing global energy demand. AI enables oil and gas exploration companies to locate, evaluate, and categorize drilling sites according to the geological conditions of the area and supply an investment risk analysis. In addition, it helps to optimize midstream operations to reduce costs and maximize margins. Therefore, oil and gas exploration companies have started implementing accurate source rock analysis, thus optimizing production and decreasing exploration and drilling costs. 

Key Takeaways 

  • Determine an adequate site for digging wells 
  • Improve understanding of drilling sites 
  • Accurate forecast of reserve volumes 
  • Analyze exploration and reservoir data 
  • Reduce the risk of exploration failures 
  • Develop oil well production and effective forecasting models 
  • Decrease exploration and drilling costs 
  • Help in replenishing oil reserves faster 

From finding optimum digging sites to refilling oil reserves, Quantzig can help you catapult your organization ahead of the competition!

Related Articles: 

How Advanced Analytics in the Oil and Gas Industry Helped the Client Identify New Locations for Drilling? 

Data Intelligence Solutions Helped a Major Oil and Gas Industry Player Estimate Reservoir Volume by Analyzing Seismic Data 

Quantzig’s Oil Demand Forecasting Enabled Better Insights into the Sales Cycle 

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