I would caution anyone who reads the reference comments from the "consultant" in this article to not believe that this is happening on all wells in a widespread manner across the Permian Basin. Wells with these rates can be completed in the better parts of the basin IF the wells are properly drilled and completed in the right landing zones. And I would almost guarantee that these wells are NOT sidetracks from abandoned wells but instead are new drill horizontals. "Abandoned" wells have too small a casing to support efficient sidetrack / horizontal drilled and frac stimulation.
Again we have a very typical comment that misrepresents the true events that are happening n the Permian Basin (IMO)
Nice discovery - no water contact means this could get to a larger number.
The heavier oil (28-30 API) is a negative - harder to flow since it is a lot thicker more ideal oils. Mention of "some associated gas" probably means lower reservoir energy.
Number cited is in place - recovery factor?????
My gut is telling me 15% to 25% for primary recovery.
Although the link is to a political columnist, halfway down the article is excerpted a Facebook post by Mark Zuckerberg (Facebook's creator) about a visit to Williston ND. Very revealing...
"Even in the most aggressive scenario, where policies really work at their best, where technology really makes a lot of strides in the near future, oil isn't going to peak before the late (2020s) or early 2030s, and when it does peak it's not going to go out of fashion overnight," he said...
"Supply will shrink faster than demand can shrink, and therefore, working on oil and gas projects will remain relevant for many decades to come," he added.
Methane - the simplest form of dry gas - is commonly found in associated with water. The term "fizz gas" is noted for many wells that encounter a gas show only to realize that it is just gas in solution and not worth much of anything.
Thanks, rockman. for the practical understanding of the paper. I am not sure why the paper was published unless someone wanted to determine the calculation for the sake of industry.
The graph is from Art Berman's July 2017 "Permian Reserves Are Grossly Exaggerated". And his presentation "Permian Tight Oil And The Long Term Debt Cycle" this month to the Houston Geological Society is very interesting viewing, imo. On a side note, the lady's investment strategy of plowing profits back into inventory mentioned in the Bloomberg article is puzzling to me.
I wonder if Mr. Berman has taken one important fact into consideration when putting this graph together, i.e. the Bakken and Eagle Ford are essentially single formation plays (although in some areas there are upper and lower benches that are being exploited) while the Permian Basin is actually two major basins (Midland and Delaware) plus a lesser one (Central Basin Platform "Basin") with multiple formations in each area.
Middle Spraberry, Lower Spraberry, Avalon, 1st / 2nd / 3rd Bone Spring, Wolfcamp A / B. C / D with some of these intervals have dual landing zone areas.
In addition, the Bakken and Eagle Ford are also more limited in areal extent versus the Permian Basin complex (75,000+ square miles).
Considering these facts, it is not surprising that the Permian is still ramping upward.
