Mid-size firms to revitalize Permian shale production with new drilling innovations

April 24, 2024

(WO) – According to Reuters, technological advancements are revitalizing U.S. shale oil and gas production, despite challenges.

While production is at record levels, productivity per well in the Permian basin has declined 15% since 2020, due to factors like interference with underground pressure from extensive drilling.

However, innovations like longer lateral wells and simultaneous fracking (simul-frac) are improving efficiency and lowering costs.

Still, the need to drill multiple wells upfront presents financial challenges for smaller companies. Despite this, analysts expect the adoption of new technologies to accelerate, supporting record production levels.

While mid-sized firms are leading in embracing these advancements, larger companies like ExxonMobil and Chevron are expected to follow suit, albeit their focus on shareholder returns has affected drilling expansion.

ExxonMobil anticipates significant output increases through new fracking technologies, while Chevron aims to boost shale oil production in the Permian using simul-fracs and other innovative methods.

This story was originally reported by Reuters.

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