Zachary Toliver | Shale Plays Media
The Permian Basin has climbed its way to America’s top producing shale play in the midst of the energy revolution. But out of the numerous formations that make up the Permian, six formations are responsible for the 60 percent increase in oil output since 2007. According to the U.S. Energy Information Administration (EIA), data released Wednesday shows that these formations helped the Permian increase production from 850,000 barrels per day (bbl/d) in 2007 to 1,350,000 bbl/d in 2013.
The Permian alone accounted for nearly 20 percent of total U.S. crude oil production. The six plays that have driven the increase in the Permian Basin’s horizontal, oil-directed rig activity are the Spraberry, the Wolfcamp, Bone Spring, Glorieta-Yeso and the Delaware formation.
Stretching across the Texas/New Mexico border, the Permian Basin covers around 250 miles in width and is nearly 300 miles long. The application of horizontal drilling and hydraulic fracturing has ignited the ability for these low-permeable shale plays to increase their combined production to well over 50 percent. Spraberry, Wolfcamp and the Bone Spring formations collectively increased their share of Permian oil from 16 percent to 44 percent.
According to a recent Associated Press article found in the Sante Fe New Mexican, the State Land Office says the nearly $817 million in revenues earned during the 2014 fiscal year marks a record for New Mexico. The previous record of $653 million was set in 2012.
Read the EIA report on the six Permian Formations here: “Six formations are responsible for surge in Permian Basin crude oil production”