Permian Basin drives first-quarter growth in oil-directed horizontal drilling rigs

The Permian Basin, a long time oil- and natural gas-producing region in West Texas and southeastern New Mexico, has seen a significant increase in horizontal oil-directed drilling activity over the past five months. This trend began at the start of 2013, and accelerated from the week ending on December 27, 2013, to the week ending on May 9, 2014. During this time, the number of horizontal, oil-directed rigs in the Permian Basin rose by 63 rigs, 50% of the total increase in the United States. This growth was heavily concentrated in counties in the Permian Basin containing formations with high production potential.Horizontal oil-directed drilling rigs are primarily used to drill wells that produce oil from tight, low-permeability formations. The change in the number of oil-directed horizontal rigs in the Permian Basin does not necessarily mean that it will have a commensurate change in overall oil production. However, it does demonstrate that producers have been drawn to the potential for new production from its tight oil formations, which are stacked in multiple layers.

via Permian Basin drives first-quarter growth in oil-directed horizontal drilling rigs – Today in Energy – U.S. Energy Information Administration EIA.

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