990WBOB
  • WBOB Radio
  • Crush Cancer
  • Past Casts
  • Weather
  • Contact
  • About
    • WBOB Press Releases
    • Join Our Team!
    • CHARITY GALA

Texas Drillers Unfazed by Slide in Oil Prices

11/5/2014

Comments

 
Picture
Oil prices have dropped 25% as production continues to rise and demand slumps, prompting some analysts to forecast decline in US shale activity, but these arm-chair pundits are getting ahead of themselves: American oil and gas producers have been through down times before and they know how to dig in.
Energy Information Administration (EIA) data shows a steady and consistent improvement in drilling productivity.

An oil rig in the Eagle Ford basin that was producing 396 barrels per day from an average new well in October last year, is now producing 34% moredespite slumping oil prices.

The Permian, which is now producing more oil than any other US basin, has seen an even higher jump. In October last year, a rig produced 79 barrels per day on average from a new well. Twelve months later, we have seen an increase of over 50%, with the average new well now producing 172 barrels per day.

More oil produced per rig allows companies to reduce costs, insulating them from falling oil prices.

The Permian is now producing over 1.7 million barrels per day and the rapid rise largely comes from the Wolfcamp and Sprayberry formations, the new hot-spot venue for oil rigs.

Dallas-based Crude Energy -a small independent exploration company with strong holdings in the Permian-has announced plans for another well here.

Crude's Blue Wolf #1 project is expected to be drilled beginning onDecember 15, and will primarily target the Wolfcamp, with a secondary focus on the Cisco, Canyon, Cline, Strawn, Mississippian, Fusselman, Montoya, and Ellenburger formations. Drilling should take a little over a month.

As Crude Energy President Parker Hallam noted in a statement: "The Wolfcamp continues to impress, but with multiple pay zones along the way, the potential payback looks that much better."

It's all about improving technology and flow rates, which allow companies to keep costs down and dig in when oil prices slump, such as through downspacing and drilling multiple wells from the same rig, as large producers such as ConocoPhillips (NYSE:COP), Continental Resources (NYSE:CLR) and Anadarko Petroleum (NYSE:APC) are doing.

For now, Crude Energy's focus is on shrewdly drilling vertical wells to bring production online near-term, while identifying the most promising acreage for horizontal drilling.

More WBOB Reads

  • Sharon Gamba Plans To Introduce Women and Family  Protection Bills
  • All You Need To Know About RI's 2014 Ballot Questions
  • Students in URI’s R.N.-to-B.S. program renovate clinic at Providence Rescue Mission
  • RIPTA's Vision For Improved Transit in RI
  • Dee DeQuattro: Pulse on Politics - Fortunate Son
Comments

    WBOB
    Original
    ​Reads

    Picture

    Unbiased, Unfiltered. WBOB's Original Reads feature our brightest and boldest personalities, offering their two-cents on the goings on of news, sports, politics, entertainment, and business. -- Are our opinions always PC? Nope. Are they always perfect? Nah. But, are they always 100% authentic? Absolutely!


    LISTEN
    ​TO WBOB ORIGINAL PODCASTS

    Picture
    Listen to
    ​Past BOBCasts

    WBOB 
    Best Reads
    Brought To You By
    TripAdvisor.com

    Picture

    Celebrating David Clyde: A Wild Passionate Friend To All


    Picture

    Search 
    The Archives


    Reads From Our Friends

    Picture

    The Best Game Development Tools: How to Make Your Own Game


    Contact Us
    [email protected]


    Archives

    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012

Search For Your Favorite WBOB Author,
​or BobCast

990WBOB 
An Independent Media Outlet.

The views opinions and thoughts expressed do not  reflect those of 990WBOB, its management or its staff. All Rights Reserved 990WBOB.com 2007-2020
​
Contact WBOB HERE
Photo from nzhamstar
  • WBOB Radio
  • Crush Cancer
  • Past Casts
  • Weather
  • Contact
  • About
    • WBOB Press Releases
    • Join Our Team!
    • CHARITY GALA