Abstract

During boom times, petroleum industry activity is driven by product prices. During down periods, when prices are relatively low, activity is largely contingent on cost controls and application of technology. In mature petroleum provinces, such as the Permian Basin, technological advances are critical to continued exploration and exploitation.

History of technology development shows that, often, such development is more evolutionary than revolutionary. In other words, upon examination and reflection, what appear to be “overnight successes” in technology are revealed actually to have developed slowly over a number of years. A good example is the area of stimulation techniques which have been gradually improved over several decades and without which many wells today could not be commercially completed. Similarly, rotary drilling technology has progressed in small steps with dramatically improved results - but over a long period of time.

Currently, a number of diverse area of technology are in use in the Permian basin. Some are truly “high tech” in nature while others are more mundane. It seems reasonable to assume that future technological advances will develop. To the extent this happens, drilling and production activities in the Permian basin should continue well into the 21st century. It is intriguing to speculate about how things may be done in the petroleum industry in a few decades.

On the question of access to technology by the independent, the short answer is - it’s the same as for major and intermediate size companies, but usually via a scaled - down approach. This requires some innovative thinking in terms of joint ventures, alliances, size and cost of projects, service company incentives, etc.