Permian Basin shale oil industry recovering

Interesting article on shale production in the Permian Basin....

Significant cost-cutting measures and the ability to quickly erect new rigs has enabled Texas shale oil producers to “compete with anything Saudi Arabia has,” a report said.
Scott Sheffield, the outgoing chief of Pioneer Natural Resources, told Bloomberg that pre-tax production costs in the massive Permian Basin of West Texas have fallen to $2.25 a barrel.

Pioneer Natural Resources rig in the Permian Basin. /Sands Weems photo
“Definitely we can compete with anything that Saudi Arabia has. We have the best rock,” he said, adding that improvements in drilling technology and data analytics have “changed the cost calculus faster than almost anybody thought possible.”
The Permian is said to have the capacity to expand from 2 million to 5 million barrels per day “even if the price never rises above $55,” and is comparable to the giant Ghawar field in Saudi Arabia, Sheffield said.
Sheffield said Pioneer can have a new rig up and running in 135 days, while deep-water mega-projects can take seven to 10 years.
New technology has enabled Pioneer to cut production costs by 26 percent over the last year and is adding five new rigs despite oil prices remaining in the low $40s.
“Multi-pad drilling means that three wells are now routinely drilled from the same rig, and sometimes six or more. Average well productivity has risen five-fold in the Permian since early 2012,” Bloomberg reported.

Very similar to what AKK is looking to achieve.

Funny that.