Technology has always played a vital role in moving the oil and gas sector forward. The shift from cable tool drilling to rotary rigs, or the introduction of seismic technology, has led to dramatic advances for industry.
Today, the use of horizontal drilling and multistage completions is creating another paradigm shift. Producers are increasingly using this technology combo to open up emerging oil and liquids-rich plays and to revisit tighter portions of “vintage” reservoirs that previously were uneconomic to produce using vertical wells. Moreover, the market capitalizations of companies that are becoming skilled at deploying these technologies to develop resource plays are growing significantly. The market caps of Penn West Petroleum Ltd. and Crescent Point Energy Corp., to cite only two examples, now exceed $10 billion and are challenging more established large caps.
This document is published by PwC as part of our Energy Visions program, a series of publications and events that provide context around issues affecting the oil and gas sector.