The need for low-cost drilling inventory is fueling a record run of Permian consolidation. But a small group of Permian operators are exploring zones deeper underground for future drilling runway.
Oil and gas producers most commonly target the Spraberry and Wolfcamp intervals in the Midland Basin. In the more western Delaware Basin, the Bone Spring and Wolfcamp formations are the common targets.
But a Hart Energy analysis of Texas Railroad Commission (RRC) records shows that activity targeting the region’s deeper formations, like the Barnett Shale, Woodford, Strawn and Devonian intervals, has increased notably in recent years as producers search for new drilling locations.