Learning curve economies

From Wikimarcellus

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 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.