Learning curve economies

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Learning curve economies refer to the general effect noticed that the more times a process is repeated, the less labor time that is involved. It corresponds to the learning effect wherein procedures and processes are assimilated and carried out in a more efficient manner. At the same time tools and capital goods that are required in the process are optimized producing additional economies.

Some areas in which E & P companies operating in the Marcellus shale and other horizons in the Appalachian Basin typically enjoy economies with experience are in:

  • reducing drilling times
  • building-out water management infrastructure
  • using multi-well pad drilling
  • single sourcing suppliers

Intuitively, we say the companies get better at these tasks with experience.

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