Implications of aggregating and smoothing daily production data on estimates of the transition time between flow regimes in horizontal hydraulically fractured Bakken oil wells

The level to which data are aggregated or smoothed can impact analytical and predictive modeling results. This paper discusses findings regarding such impacts on estimating change points in production flow regimes of horizontal hydraulically fractured shale oil wells producing from the middle member of the Bakken Formation. Change points that signal transitions in flow regimes are important because they subsequently affect estimates of ultimate recovery from wells producing from shale plays. Extending our earlier work, we employ two different statistical approaches, Bacon–Watts Bayesian regression and nonlinear constrained least squares regression, and a designed computational experiment to estimate the time of transition from the transient to the boundary-dominated flow regime for 14 different wells using daily production data rather than aggregated monthly data, as previously considered. The daily data were also smoothed to reduce noise. Computational experiments suggest that both statistical approaches can lead to plausible estimates of the transition point under different data aggregation or smoothing regimes, but that daily data are likely too granular to produce credible estimates. Although the expected value of transition points using smoothed daily data and monthly disaggregated data are generally comparable, the confidence intervals bounding the estimates based on smoothed daily data are generally wider. Our results not only inform the operational practices of oil producers engaged in economic evaluation of their shale resources and additional play development activities, but also the activities of petroleum research groups, government agencies, and financial organizations seeking to improve the trustworthiness of resource projections.