Shale watch… Lucky or smart?

” I have spent my whole professional life as an international economist thinking and writing about economic geography, without being aware of it”

Paul Krugman

From a great article in Businessweek:

today the Permian is so important to Chevron’s fortunes that saving 10 seconds each time drill pipes are linked can translate into millions of dollars in cost savings across Chevron’s huge operations there…

“We were ready to let others spend their money and work through those 5,000 ways how not to make a light bulb before the opportunity to make money really presented itself,” he says. “The decision to hold the Permian Basin was very deliberate.”

On a day in which the EIA upped its well productivity numbers for US shale:


It’s all about productivity. Which is why, without an industrial cluster, I can’t see this Saudi dream working for many years…

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