Theoretical and Empirical Problems with the Holistic Permeability Correlation for DFIT Interpretation

In this post, I focus on a particular correlation that is sometimes used in the industry to estimate permeability from a shale DFIT: the ‘holistic permeability correlation.’ I show that this correlation can greatly overestimate permeability. When applied to optimize frac design, well spacing, and cluster spacing, overestimated permeability leads to significant loss of economic value.