Wolfcamp Delaware Promising | Russell T. Rudy Energy LLC
A recent article in “World Oil” cites a study by consulting group IHS projecting significant upside in the Permian Basin’s Wolfcamp Delaware play. In fact, the report states that the structure has the potential to sustain operators through the current period of depressed prices. However, in order to maintain profitability operators are currently “retreating to the core” until prices resume and delineation and expansion drilling resume.
Unlike its counterparts, the Bakken shale in North Dakota and the Eagle Ford shale in South Texas, the West Texas and New Mexico play has yet to be considered mature. Further delineation, development and study are needed before its true potential can be determined. However, thus far normalized peak production rates are averaging 120 barrels of oil equivalent per day, among the best for new onshore wells. While core areas have been identified, the true “sweet spots” in the reservoir are yet to be defined.
Currently there are 3,200 wells producing in the Wolfcamp Delaware, and many have been drilled in the last year and a half. There is a great deal of work yet to be done. There are 150 operators in the play as opposed to 90 in the Eagle Ford. Concho Resources in the Southern Liquids sub-play, and Cimarex Energy in the Central Gas sub-play are the dominant players. Clayton Williams and Occidental are also quite active, and the latter seems especially bullish.
Steven L. Chazen, President and CEO of Occidental, sees the Permian Basin ultimately producing 10-20 billion barrels in the future. He recently stated that “The potential of the Permian is enormous. I think we’re on the edge of a major revolution in production in the Permian, and 25 years from now, I think the Permian will still be the premier basin.”
To read the article in its entirety, please go to http://www.worldoil.com/news/2015/6/25/still-an-adolescent-permian-s-wolfcamp-delaware-offers-promising-adulthood-as-ep-operators-expand-development-ihs-says .
