[ckilmer]

I don't know how you make that jump from lower production increases with increased rigs and more horizontals.

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This graph shows a flattening of the curve upward for production increases--especially after 2013

These two graphs show rising number of drilling rigs and rising number of horizontal drilling rigs.

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so you would think that with the rising number of drilling rigs and the rising number of horizontal wells -- that oil production in the permian should be rising faster -- showing an ever steepening slope rather than the flattening slope of production increases of the last two years.

It looks like Pioneer Resources expect ever higher growth over the next 24 months.

Its unknown as to whether the other drillers in the Permian also expect much faster production rates over the next 24 months. For this year anyway, EOG looks to be putting most of their capital into the Eagle Ford. And they don't seem all that excited about the permian basin.

[thackney]

Again, they have already started using more rigs and more horizontals but with smaller increases. What do you see changing the results of the same activities?

[bestintxas]

I agree with Thackney.
From a technical standpoint, horizontals have been drilled for some time in the Permian, just not as common as verticals.

Key will be whether the geology will react to horizontals like other areas.

I have my doubts. the lack of continuity in the carbonate pods are elusive and one cannot frac the shales with success.