The gifts don’t stop giving! – Is it good?

David Middleton’s “Most Productive” Guest

SEPTEMBER 30, 2022
Advances in technology lead to record new well yields in the Permian basin in 2021

The Permian Basin in western Texas and eastern New Mexico is one of the most prolific in the world abnormal oil and natural gas producing regions. The Permian Basin has become more productive due to technological advances in drilling and finishing techniques, allowing operators to economically extract hydrocarbons from low levels. seep reservoirs.

The stacked reservoirs of Permian Basinand Delaware and Midlands sub-tubs within it, of varying thickness and depth. Improved understanding of geology, known as subsurface delineation, helps operators place wells to optimize well spacing in areas of the highest yield.

The Permian Basin has produced oil and companion natural gas from a well that stood for decades. Since 2010, advances in hydraulic fracturing and horizontal drilling led to rapid production growth. New quantity horizontal well increased to 4,524 in 2021, from 350 in 2010. In June 2022, the Permian basin accounted for approximately 43% of US crude oil production and 17% of US natural gas production (measured in total withdrawal amount).

The length of a well’s cross-section, or side profile, is an important factor in a well’s productivity. In the Permian basin, the average horizontal length of wells increased to more than 10,000 feet in the first nine months of 2022, compared with less than 4,000 feet in 2010.

Compared to other U.S. basins, the Permian basin benefits from lower operating costs, better access to oilfield services, and proximity to refineries and export facilities. on the US Gulf Coast.

Average yield of new wells in Permian Basin has grown for 12 consecutive years. Core areas of the Permian Basin, and Delaware and Midlands baby pots, containing many stacked shale formations. By 2021, each new well drilled in the Permian Basin has produced an average of 960 barrels of oil equivalent per day. Ours Short-term energy outlook Permian production forecasts will continue to drive growth in total U.S. crude oil and natural gas production.

Main Contributors: Olga Popova, Gary Long

Card: nature Air, Texas, liquid fuel, oil, Statuses, New Mexico, map

EIA

A great decade

Data for EIA maps and charts come from a Enverus (formerly Drilling Info). Permian Basin described as “nearly infinite resource” in 2017 Forbes interview about Allen Gilmer, founder of Drilling Info. At the time it was written, the Permian basin was producing 2.5 million barrels of oil per day (bbl/d), up from 1 million bbl/d in 2011. As of September 2022, it produces over 5 ,3 million bbl/d. Most of the “explosive output growth” occurred after Mr. Gilmer described the Permian basin as a “virtually limitless resource”… because it is.

“We should see the Permian basin as a permanent resource,” he said, “The Permian is seen as a virtually limitless resource – we will never produce the last economic drop of oil from the basin. this area”.

Forbes

Based on EIA estimateThe Permian Basin is currently producing more than 2.5 million barrels of oil per day (see top chart), which is an annual rate of nearly 1 billion barrels of oil. If Gilmer’s estimate is correct that the Permian basin contains an additional half a trillion barrels of recoverable oil, that would be a 500-year supply of oil at current production levels, and at 2 trillion barrels, i.e. 2,000 year supply! And if that is an accurate prediction of the Permian basin’s reserves, Gilmer’s description of the Permian basin as a “permanent, near-infinite resource” makes complete sense because the probability is quite close to zero that we will use fossil fuels even 100 years from now. , much less 500 years or 2,000 years in the future.

Mark Perry, AEI

The main plays of the Permian basin are “stacked”. Search stacked pay like getting a pony for Christmas. Detect Stacked plays like getting a herd of Unicorn ponies for Christmas.

Malthus, Ehrlich and now… The Permian Peak