$12 Billion CAPEX in Permian Basin's Wolfcamp planned in '14 | Russell T. Rudy Energy LLC
According to an article in “Rigzone”, consulting firm Wood Mackenzie predicts capital expenditures (CAPEX) in the Permian Basin’s Wolfcamp play will exceed $12 billion in 2014, and reach $13.9 billion next year. CAPEX in the Wolfcamp is already about 80% of Bakken shale investment. Wolfcamp CAPEX could surpass the Bakken as early as 2017, making it second only to the Eagle Ford shale in South Texas in terms of capital investment.
The Wolfcamp will produce about 200,000 barrels of oil per day (bopd) in 2014, and Wood Mackenzie predicts 700,000 bopd by the end of the decade. The Wolfcamp consists of two major basins, the Midland and the Delaware. With multiple pay zones in the Midland Wolfcamp, 40,000 future well locations are anticipated. With this kind of potential, current operators are increasing their capital outlays, and new players are entering the game as well.
The Wolfcamp is one of six formations in the Permian Basin region of West Texas and Southeast New Mexico which have driven a 60% increase in oil production since 2007. As a result of the success of the Bakken, Eagle Ford and the Permian Basin’s Wolfcamp and Bone Spring plays, Wood Mackenzie projects tight oil production in the U. S. will exceed 6 million bopd by 2020.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=134298&utm .
