Finally, some good news.
New wells can be drilled in as little as a week, he said. A few years ago, it could take up to a month.
The next phase of shale output growth depends on techniques to squeeze more oil from each well. Companies are now putting sensors on drill bits to more precisely access oil deposits, using artificial intelligence and remote operators to get the most out of equipment and trained engineers.
As expanded investments push more producers to add wells in less productive regions, technology will help make those plays more profitable, said Kate Richard, chief executive of Warwick Energy Group, which owns interests in more than 5,000 US wells.
In an interview, she estimated about a third of the money from private equity investments in shale will be used to wring more oil from overlooked regions.
Higher prices – up about $10 a barrel in the last two months – also may encourage the industry to work through a backlog of some 7,300 drilled-but-uncompleted shale wells that have built up because of crew and equipment shortages.
Companies are now offering signing bonuses to attract workers to West Texas. One oil company flies workers to Midland from Houston weekly to fill a local labour void, he said. “It was an employer’s market,” he said. “Now it’s more of a job seeker’s market.”