US production of crude oil has risen dramatically over the past several years, surpassing that of even Russia and Saudi Arabia, making the US the largest global producer according to the EIA. The surge in production has been driven by fracking — more specifically, the combination of hydraulic fracturing and horizontal drilling — allowing US producers to unlock resources that were not previously accessible. Innovation in the shale patch continues to this day as operators continue to increase the productivity of their wells. The two main levers available to producers are increasing lateral lengths and increasing frac intensity. By pulling these levers, the quantity of oil that each well produces has continually increased. The chart to the below is from Drillinginfo’s DPR, DI’s take on the EIA’s Drilling Productivity Report. The purpose of the DPR is to give a short-term (three-month) outlook for oil and gas production from key unconventional plays around the country. The selected chart shows how the production from the average Permian Basin crude well has risen over time. As is clear in the chart, well productivity has continuously grown over the past several years. But as shale plays have continued to be developed and operators begin… continue reading
Continue reading Wall Street Journal Article on Encana’s Cube: Parent-Child Interaction in the World’s Hottest Shale Play. This article appeared first on CTRM Center.
Source: CTRM Center