Permian Basin Well Productivity Reached Record High in 2021: EIA

The average productivity of new oil and gas wells in the Permian Basin continued to increase for 12 straight years, reaching record highs in 2021, according to a Sept. 30 report from the U.S. Energy Information Administration. In June 2022, the Permian Basin, which spans across western Texas and eastern New Mexico, constituted for around 43 percent of U.S. crude oil production and 17 percent of U.S. gas production. The growth is attributed to technological expansion permitting operators to economically obtain hydrocarbons from low permeability reservoirs.

Enhanced geological knowledge has aided operators in production and allowed them to place wells to enhance well positioning in the highly beneficial areas. This has also enabled operators to tackle the complexities of the stacked reservoirs due to differing thickness and depth of the Permian Basin, Delaware, and Midland subbasins.

The Permian Basin has generated oil and natural gas from vertical wells for a number of decades. Technological growth in drilling and completion techniques has allowed the Permian Basin to become increasingly efficient over the last decade. Since 2010, innovations in hydraulic fracturing and horizontal drilling have contributed to speedy production expansion.

The number of new horizontal wells grew to 4,524 in 2021, in comparison with 350 in 2010. By 2021, each new well drilled in the Permian Basin was producing an average of 960 barrels of oil equivalent per day. Moreover, in 2022 this is projected to increase further and become another new high.

The length of a well’s horizontal section is a vital component in determining its productivity. In the Permian Basin, average well horizontal length increased to over 10,000 feet in the first nine months of this year, compared to less than 4,000 feet in 2010.