Learning curve economies
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It corresponds to the learning effect wherein procedures and processes are assimilated and carried out in a more efficient manner. | 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. | At the same time tools and capital goods that are required in the process are optimized producing additional economies. | ||
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+ | Some areas in which E & P companies operating in the [[Marcellus shale]] and other formations 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 | ||
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+ | Intuitively, we say the companies ''get better'' at these tasks with experience. | ||
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[[Category:Drilling practices]] | [[Category:Drilling practices]] |
Revision as of 00:51, 27 January 2011
Learning curve economies refers to the general effect 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 formations 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.