WoldWide Drilling Resource

www.starironworks.com SERVINGTHECONSTRUCTION INDUSTRY Serving the Drilling Industry 257 Caroline Street Punxsutawney, PA 15767 800-927-0560 • 814-427-2555 Fax: 814-427-5164 52 JULY 2019 WorldWide Drilling Resource ® New Kind of Oklahoma Land Rush Adapted from Information by IHS Markit The Greater Anadarko Basin has been a prolific source of conven- tional U.S. gas and oil production since the 1950s. According to new en- ergy research from IHS Markit, a leader in critical information, analytics, and solutions, the basin holds an estimated 16 billion barrels of oil and more than 200 trillion cubic feet of gas in unrisked, technically recover- able resources in unconventional reservoirs. “The Anadarko Basin has long been a major contributor to U.S. produc- tion, but it is just getting started in terms of delivering on its unconventional production potential,” said John Roberts, executive director, global subsurface operations and coauthor of the IHS Markit Anadarko Basin research. “We are now witnessing a new kind of Oklahoma land rush. But unlike what happened in 1889 when lands were opened to settlement, this time the competition is for access to the energy resources that lie below the surface.” The analysis shows the basin is pushing toward new all-time pro- duction highs long after conventional gas and oil production peaked in the 1970s and 1980s. Since 2008, horizontal drilling in the Anadarko Basin has increased sharply, and annual basin production volumes have already set new peak records. The IHS Markit Complete Play Analysis of the Greater Anadarko Basin, Texas, Oklahoma, and Kansas is the first phase of a comprehensive, 18-month-long project to model and interpret the basin’s key geologic characteristics, including 3-D geo- logic models of 41 plays to better estimate its remaining hydrocarbon potential. Among the most surprising results was the vast potential of the Simpson Shale Formation, which IHS Markit now believes could be one of the biggest yet-to-be-developed shale plays in the U.S. “The Simpson has long been among the largest historical producers of vertical production in the Anadarko Basin,” Roberts said. “But our new analysis shows that there is also significant Simpson potential as a major driver for horizontal shale production.” Overall, the new results underscore Anadarko Basin’s renewed attractiveness. It has 41 stacked plays, which overlap in many parts of the basin. For operators, this means multiple targets can be accessed from one well pad. “As it stands now, only about 20% of the Anadarko Basin’s STACK [Sooner Trend oil field, Anadarko basin, Canadian and Kingfisher counties] sweet-spot locations have been drilled or developed,” Roberts said. “The play is still in its early stages of unconventional development. We can easily envision an additional 4000 to 5000 horizontal wells drilled.” G&O Map showing boundaries of the Anadarko Basin Province, courtesy of U.S Geological Survey.