10 Mar 2014
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Oil Drilling in the US Just Getting Warmed Up
posted by Unknown @ 14:01 0 Comments
Last week the surge came from the Permian Basin in West Texas. Even though the region has been in production since 1921, still according to most experts its best days are yet to come.
Major players like Concho
Resources and Pioneer Natural Resources
are only just beginning to ramp up production in the Permian through the use of
horizontal drilling. The rig count in the
region has now increased by 10 to 265.
That’s the highest total since 2011.
Pioneer Natural Resources and the Spraberry/Wolfcamp formations
Of all the companies now drilling in the Permian
Basin Texas , but as
far as horizontal drilling goes, it’s just getting its legs in these new
formations.
Think about this: so far the company has drilled 7000
vertical wells. While that is
impressive, it sees itself drilling more than 20,000 horizontal wells in the
years to come. Horizontal drilling can
get to resources not so easily accessible by traditional vertical drilling.
Pioneer says it expects to increase its total number of
horizontal rigs from 5 in 2013 to 16 by the end of the first quarter 2014. That’s a huge increase in a very short period
of time.
Concho Resources also ramping-up operations
Not to be left behind, Concho Resources has also begun
ramping up production in the region as well.
So far the company says it has identified more than 22,000 horizontal
drilling locations. That’s double the amount estimated back in 2012. The company believes it can double its output
by the end of 2016.
Other players in the basin
Pioneer and Concho are not the only major players in the
basin. Both Devon Energy and Apache say that the Permian is a big part
of their futures as well. While both
companies are well situated outside the region, still it will play a major role
in new developments moving forward.
For Devon , production in the Permian
Basin
Apache sees the Permian as a major vehicle for growth as
well. Apache is already one of the top
players in the region, seeing its rig count growing from 6 to 39 since
2010. The company already has a 1.7
million acre position in the basin and estimates net resource potential at 4.8
bboe.
As oil exports from the US
continue to rise, it only helps America
in its quest for energy independence.
While the numbers are staggering already, most experts believe it is
just the beginning.
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by Philip Loyd, Brown Editor
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by Philip Loyd, Brown Editor
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