American Oil and Gas Reporter - PBIOS 2016 Official Program Guide - 104
Activity Is Heating
In Permian Basin
Resource Plays
By Al Pickett
Special Correspondent
All eyes are on the Permian Basin.
The vast Permian Basin has produced more than 30 billion barrels of oil
over the past 90 years, primarily with vertical drilling in conventional
reservoirs. While that action is still in play, the 102,000-square-mile region of
West Texas and southeastern New Mexico is enjoying a resurgence of another
dimension: horizontal resource plays, thanks to the prolific stacked pay zones
the industry continues to delineate, along with ongoing technical
advancements in unconventional drilling and completion technologies.
By all accounts, the Permian is heating again.
On Aug. 12, the Baker Hughes rig count showed a bump of 17 rigs, and
12 of those rigs were turning to the right in the Permian! As of late September,
the U.S. land rig count had jumped more than 100 rigs since June 1, with half
of that total increase occurring in the fabled Permian Basin, driven by a steady
uptick in unconventional plays in the Midland and Delaware sub-basins.
Meanwhile, the U.S. Energy Information Administration was forecasting
that Permian production would increase by 3,000 barrels a day in September
to 1.977 million bbl/d, effectively doubling the basin's total oil production
over the past five years.
104 THE AMERICAN OIL & GAS REPORTER
American Oil and Gas Reporter - PBIOS 2016 Official Program Guide
Table of Contents for the Digital Edition of American Oil and Gas Reporter - PBIOS 2016 Official Program Guide
Table Of Contents
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