• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 4 hours WTI @ $75.75, headed for $64 - 67
  • 9 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 1 min The Dirt on Clean Electric Cars
  • 13 hours OPEC's No. 2 Producer Wants to Know How Buyers Use Its Oil
  • 2 hours Uber IPO Proposals Value Company at $120 Billion
  • 38 mins Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 3 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 9 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 6 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 13 hours China Thirsty for Canadian Crude
  • 5 hours Nopec Sherman act legislation
  • 8 hours EU to Splash Billions on Battery Factories
  • 12 hours Who's Ready For The Next Contest?
Alt Text

Libya And Nigeria Lead OPEC Production Boost

OPEC ramped up crude oil…

Alt Text

Will The U.S.-Saudi Spat Upend Oil Markets?

Saudi Arabia appeared to threaten…

Alt Text

The No.1 Pitfall For Oil Prices

There are a plethora of…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Horizontal Drilling Picks up Pace in Permian Basin

Horizontal Drilling Picks up Pace in Permian Basin

Texas’ Permian Basin remains the biggest oil producer in the US, and though its production has grown more modestly than other new plays this may be about to change with new planned investment in horizontal drilling expected for next year.

Some 70% of current operating wells in the Permian Basin are vertical, but with old wells maturing, more expensive horizontal drilling can potentially tap into deeper layers to raise production to almost 2 million barrels per day by 2018, analysts have predicted.

Occidental Petroleum Inc. (OXY), the largest producer in the basin, is planning to invest $500 million next year, while Apache Corp. (APA), the second-largest producer in the Permian, has also announced plans to increase investment now that its production there has grown a record 18% and it has extra cash thanks to a divestment of assets in Canada and Egypt.

"I think the Permian is going to have years of surprises in it and most of them are going to be good," the Wall Street Journal quoted Apache CEO Steven Farris as saying in a conference call with analysts earlier this month.

Related article: The Next Shale Revolution—Probably Russia

The number of new horizontal and vertical wells now being drilled in the basin are almost equal, Texas Railroad Commissioner Christi Craddick told the Permian Basin Petroleum Association’s 51st Annual Meeting in late October.  Producers have reported 19,000 well completions so far this year, up from 15,000 in 2012.

According to Wall Street Journal figures, horizontal oil wells have risen 23% to 800 wells this year, while horizontal wells targeting both oil and gas have risen 82% to 850.

Craddick noted that the Permian Basin was now producing 916,000 barrels of oil per day, which represents more than 50% of the 1.8 million barrels produced daily across Texas.

While horizontal wells cost up to four times more than vertical wells, they tend to produce more oil per day on average and more oil over the life of the well. The average production per day with a horizontal well is 500-1,000 barrels, compared to 100 to 150 barrels per day for the average vertical well, according to Steve Pruett, chairman of the Permian Basin Petroleum Association.

By. Charles Kennedy of Oilprice.com


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News