Is Peak Permian Only 3 Years Away?

The world’s hottest shale basin, the Permian, is leading the
second U.S. wave of tight oil production growth and will continue
to do so for years to come, all analysts say.    However,
signs have started to emerge that the relentless intensification of
drilling leads to diminishing returns, Simon Flowers, Chairman and
Chief Analyst at Wood Mackenzie, said in an article this week.
Pumping twice as much sand as usual into Permian wells and drilling
longer laterals doesn’t deliver commensurate volumes of oil,
Flowers notes. “Drilling…

The world’s hottest shale basin, the Permian, is leading the
second U.S. wave of tight oil production growth and will continue
to do so for years to come, all analysts say.    However,
signs have started to emerge that the relentless intensification of
drilling leads to diminishing returns, Simon Flowers, Chairman and
Chief Analyst at Wood Mackenzie, said in an article this week.
Pumping twice as much sand as usual into Permian wells and drilling
longer laterals doesn’t deliver commensurate volumes of oil,
Flowers notes. “Drilling…