Evaluation of the tight oil resources economic benefit under the low oil price

Applying volumetric fracturing of horizontal wells in factory-like mode, the US tight oil resources realized industrial development. Tight oil development in China is still in preparation stage as a whole. In the core technology of tight oil development, volumetric fracturing in horizontal wells is to be powerful tool to increase production which means more expensive single well investment compared with conventional oil. The production and operation of oil and gas field development enterprises are in trouble under the low oil prices. Economic evaluation of tight oil development is particularly critical under cost constraints while optimal design of the horizontal section of fractured horizontal wells is especially crucial. Single well production is yielded from the full life circle productivity prediction model of fractured horizontal well in tight oil reservoirs. Utilizing discounted cash flow method to evaluate how horizontal length and the number of fractures effect economic benefit of tight oil. There is a relatively optimal value of the horizontal length and the number of fractures range to achieve the most excellent economic benefit of single well. The preparation of horizontal development program should consider the factors of output, investment, cost and benefit of single well and optimal development plan should be prepared.