IHS Markit, an information services company, completed in-depth research on the 75,000 square mile Permian Basin in Western Texas and southeastern New Mexico, to accurately model and interpret the key geologic traits of the basin and to better estimate the remaining resources. The researchers looked at historical well and production data of over 440,000 Permian Basin wells. Using a new software tool, they used interpreted formation ‘tops’ data to identify accurate formations for completion intervals of wells, which provided a more accurate understanding of the Basin’s potential. Over 60 geologists were involved in the study, who worked to create a 3D model of the Basin. Results of the study indicate there is 60 to 70 billion barrels of technically recoverable resources in this mature Basin.
The Permian basin has produced over 39 billion barrels of oil since initial production in the 1920’s. The Basin peaked in productions in 1973, and was on a decline – until unconventional drilling and completion technology came into play. The Permian will soon pass its previous peak.
In a press release, Prithiraj Chungkham, director of unconventional resources at IHS Markit and co-author of the report, stated, “The Permian Basin is America’s super basin in terms of its oil and gas production history, and for operators, it presents a significant variety of stacked targets that are profitable at today’s oil prices.”
The report, “The Permian Basin Interpreted in 3D: The HIS Markit Permian Basin Unconventionals Kingdom Geology Project”, models and interprets over 70 formations in the Permian Basin. More information on the HIS Markit website