Talking points for explaining the Permian

By Staff | April 26, 2017

The amount of information available to our team that would be suitable for a story comparing North America’s shale plays is never ending. At times, we do inject that information into stories that seem to flirt with a comparative feel, but, it is difficult to make apples to apples comparison of one play to another, at least under the basic premise or question of this: why would an entity choose to invest time, money or resources into on play over another?

There is a multitude of reasons why a service firm, investor, entrepreneur or operator CEO would choose to invest into a shale play. While there is available data that can offer a glimpse into production per lateral foot on a play-by-play basis, even that comparative analysis doesn’t do justice to the greater equation. In most cases, if we run a piece on the Permian, or the Bakken or the Eagle Ford, we will eventually receive emailed comments or hear in-person from people on the reasons why certain plays are better or better-off than others.

Having said all of that, we do have some great information from recent stories and conversations that help to explain why the Permian is so hot right now. Per U.S. Energy Information Administration data from today, the Permian’s oil production and resource assessments will continue to increase. For those wondering why, here are four talking points to remember.

-The Permian has multiple stacked pay zones that allow operators and investors to put money into a single well pad that will eventually house wells that could be targeting four different zones. They call it the Permian Cubic Mile.

-Portions of the Permian, mainly the Delaware, received so much investment because there were acres there that could be acquired and weren’t locked down for eternity by well-established players.

-Infrastructure constraints are not as common. It is much easier to get oil from the ground and to a pipe or refinery in Texas than in other places.

-Fracking the Permian through 2016 and newer methods is just now being understood and deployed.

Have more talking points, let us know by emailing me at lgeiver@bbiinternational.com. (BBI International is the name of the publishing company that puts out our North American Shale Magazine product).