finally an answer that makes some sense. Thanks
To further explain:
The high prices help justify enhanced recovery methods that would not be economic at lower prices.
The Permian Basin, Past and Present
New Life for Old Plays and Depleted Wells
According to the Bureau of Economic Geology in Texas, the use of enhanced recovery practices could mean greater success for U.S. oil production. Reserves thought unproductive in the past are producing today, thanks to new technology like the one described in Doug Walsers article.
Joseph Lee, region technical manager, Cudd Energy Services, says his company has had success with new technologies. Delayed hydration gel plugs have been used for diversion in horizontal acidizing applications. Coaster Fracs, where slick water and low proppant concentrations are used to stimulate existing producing intervals to return production to previous levels, have also been successful for Cudd.
Other technologies in use extensively in the Permian Basin are hydraulic fracturing, cryogenic applications, water flooding and CO2 injection. All these techniques are critical in producing previously unattainable oil reserves.