The multiple formations at different depths makes the Permian Basin a rich resource for oil
This is the summary of arguments made in the piece. If you consider the various layers under the Permian Basin, the efficiency of using one well to access them all is one reason why the costs of production have come down.
- “Array fracking” has arrived: operators increasingly use a full-volume approach to stimulating thick or stacked shale formations.
- With dozens of wells typically drilled and completed off the same pad simultaneously, operational efficiencies are powerful.
- The elimination of “over-capitalization” – drilling less wells to recover the same amount of oil – is the next big saving the industry is likely to realize in full development.