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To: ckilmer

It helps, in my opinion, that the Permian basin is a long time area for oil production. Many areas did not require new leases, oil wells with minimal production kept old leases in force. For other areas, oil wells are not new idea and much of the people there are used to the idea. Lots of infrastructure still in place. That, combined with a large areas has made it easier for the number of rigs come in, or back in, for servicing the area.


8 posted on 09/21/2014 1:01:13 PM PDT by thackney (life is fragile, handle with prayer.)
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To: thackney

All good. It looks like the 2013 increase was roughly 200,000 barrels @ day. The increase for 2014 looks like it will come in at roughly 450,000 barrels a day where every month in 2014 sees a higher production increase than the last.

That steepening increased production rate has to show signs of flattening before anyone can predict that the Permian increases will top out or even slow down any time soon.

As it is, this kind of production growth suggests that Permian can produce close to 1 million barrels a day increase in production in 2015 just as eagle ford and the baaken production increases start to slow down.


9 posted on 09/21/2014 6:01:10 PM PDT by ckilmer (q)
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