American Oil and Gas Reporter - January 2017 - 49

Outlook 2017
lessons have you learned in applying seismic technologies to optimize the performance of unconventional reservoirs, and what
tools or methods do you see as critical to the economic development of those assets?
BRIGHAM: In some ways, geophysics has moved from "finding the reservoir" to "defining the reservoir." Using microseismic
techniques to monitor the reservoir has become an important tool
in understanding future reservoir development and well spacing.
Microseismic will become increasingly important as these large
multilayered fields are developed.
Also from the geosciences perspective, many things have
changed as oil and gas exploration has moved from producing a
reservoir to producing a source rock. Understanding the parameters of the resource rock is tantamount to success in exploration.
However, some of the tried-and-true methods have not
changed, such as looking at all the data, developing models, testing the models, obtaining new data, continuing to refine the model, etc. All of that will never change.
The types of data collected and evaluated have changed, however, and now include geochemical parameters. The specific application of geophysical interpretation techniques continues to be
necessary in steering horizontal wellbores-particularly in structurally complex terrain-in order to mitigate geologic hazards. In
addition, companies are using extensive 3-D datasets to identify
and map various attributes of source rocks to maximize estimated ultimate recoveries. Much hard work and interdisciplinary collaboration is necessary to discover and exploit resource plays.
Geophysics aside, what operational skill sets and technological proficiencies will be most important to success for
independent companies going forward? What types of drilling,
completion and production best practices will enable the next productivity gains and cost reductions? Do you see any new technologies or applications that could move the needle on development economics and reserves recovery?

BRIGHAM: In many ways, the tight reservoir revolution has
turned the fundamental business upside down relative to 20 years
ago. To put it in simple perspective, instead of drilling for highporosity and high-permeability reservoirs on structural highs, we
are targeting tight reservoirs and source rocks in basin-centered
lows. Instead of mobilizing a rig to move 20 miles to drill a 1020 percent probability exploration well, and subsequently move
it again 20 or so miles to a new location, we essentially are mov-

ing rigs a matter of feet to drill very high-probability development
wells. In these giant unconventional oil fields, the technologies
and equipment needs are drastically different than in the world
of conventional reservoirs, and they are evolving very rapidly.
Our experience has demonstrated that increases in proppant
and fluids pumped in stimulation treatments are powerful levers
for increasing production. Not long ago, 3,000 pounds of proppant per lateral foot was unheard of, and now operators are pushing toward densities of 5,000 pounds per lateral foot. At some point,
especially in a lower-price environment, there will be diminishing returns, but we are not there yet.
We are also big proponents of pad drilling. However, like others in West Texas, our early priority is to drill our leasehold to
hold it by production. In time, pad drilling, such as we conducted in the Bakken Shale play, will enable us to further drive down
drilling and completion costs to further enhance margins.
Last, multilateral drilling and refracturing will have very important and positive roles to play. Again, we are in the early innings. The best is yet to come!
Market conditions since late 2014 obviously have been try-

Q: ing for the entire industry, but you have managed business-

es successfully through both up and down cycles. What advice
would you offer executives responsible for navigating smaller companies through the current downturn? What can independents do
to ensure they will be prepared for an eventual recovery, particularly in regard to personnel, property, and capital preservation?
BRIGHAM: I think it is apparent that we are in the early stages
of a recovery. But the world has changed. Thanks to the U.S. shale
renaissance, we largely have disrupted the cartels, and over time,
the United States increasingly will be the more efficient and agile "swing producer." Outside of extreme disruptions, I expect the
amplitude of price cycles to be less pronounced, to some degree
similar to our experience with natural gas subsequent to the tight
gas renaissance earlier this century.
We are making oil markets more liquid and efficient, to the
benefit of the United States in so many ways. Despite less volatility, our business still carries substantial risks, thus limiting debt
leverage to conservative levels is always wise.
In terms of driving success, there is nothing more important than
people and giving them the freedom to be successful in an environment that encourages innovation and intelligent, measured risk
taking. Our people, and our environment, drove the success of
Brigham Exploration, and the outstanding employees of Brigham
Resources and Brigham Minerals are driving our success today.

JANUARY 2017 49

American Oil and Gas Reporter - January 2017

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