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 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. | It corresponds to the learning effect wherein procedures and processes are assimilated and carried out in a more efficient manner. | ||
- | At the same time tolls 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 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 | ||
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+ | Intuitively, we say the companies ''get better'' at these tasks with experience. | ||
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+ | [[Category:Drilling practices]] |
Current revision
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.