• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 42 mins Maybe 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on funding terrorism, wars, suppressing dissidents * Too late now
  • 8 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 6 hours Will Uncle Sam Step Up and Cut Production
  • 12 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 21 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 21 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 21 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 15 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 1 day NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 2 days Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 1 day Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 1 day Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

EIA Lowers World Oil Demand Forecast Again

The US Energy Information Administration…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

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




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play