Learning curve economies
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| - | '''Learning curve economies''' refers to the general effect that the more times a process is repeated, the less labor time that is involved. | + | '''Learning curve economies''' refer 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. | 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. | ||
Revision as of 00:51, 27 January 2011
Learning curve economies refer 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.
