The rise of hydraulic fracture stimulation from Montana to Texas has changed the way exploration and producing companies operate. Onshore shale oil production in the U.S. is totally unlike drilling in any other part of the global market.
Most conventional wells produce over extremely long periods of time. Unlike conventional projects, horizontal shale wells that are fracture stimulated deliver production much faster. But production also declines much faster.
To keep shale oil production from declining quickly or to grow production significantly, producers must constantly drill new wells. Drilling and fracture stimulating shale oil wells is very systematic and becomes repetitive. It resembles a manufacturing process where the manufacturing company continues to produce the same item over and over.
Four Horizontal Rigs in the West Texas Permian Basin «Manufacturing» Oil
Source: Pioneer Natural Resources
About the Author:
Frank Hopkins joined Pioneer Natural Resources in 2005 as Senior Vice President, Investor Relations. He communicates Pioneer’s strategies, business plans and performance to the investment community.
Earlier in his career, Frank was with Exxon Mobil Corporation where he served as General Manager, Strategic Planning for the Global Services Company and previously as Deputy Manager, Investor Relations. With predecessor Mobil Corporation, he served in various capacities including Manager, Investor Relations and Assistant Controller.
He earned his Bachelor of Science in Business Administration from Penn State University.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.