Abstract

The Permian Basin is Lower 48’s hottest region as the industry is enamoured with the sheer potential of this oil soaked basin. The prospect of stacked pays coupled with promising results have pushed the Permian back to the forefront of the North American upstream sector. Over ten potential oil horizons are currently being tested around the Permian and the once forgotten region is now attracting significant investment. Oil production from the basin has surged to exceed 950,000 b/d, while annual capital spending is set to eclipse US$26 billion by 2018.

Although the application of horizontal drilling and completions is responsible for bringing the Permian back, the key to unlocking the ultimate resource prize entails more than evolving technology. Sustainable success hinges on the industry’s willingness and ability to forgo development long enough to fully grasp the resource potential. Long-sighted corporate strategy will be an integral determinant in the longevity of the Permian revival. Successful operators will navigate the hazards of unconventional development with a proactive approach to harvesting the resource.

In this presentation we will take a comprehensive look at how operators moved back into the Permian Basin by turning it on its side. The challenge is integrating unconventional techniques into a region where conventional development still provides consistent returns. Complex and heterogeneous geology, which changes decidedly within plays, further complicates the equation. As the industry grapples with the emergence of stacked formations and multi-producing intervals we will look at some of the top operators’ strategies to maximise the ultimate resource prize.