The search for the best distance between wells is pushing some operators to wider spacing to avoid interaction between parent and child wells in cube developments, which could impact production and ultimately returns in the Permian Basin.

Several operators spoke on the topic this week during Barclay’s 2019 CEO Energy-Power Conference. Their insight and experiences were shared amid continued shareholder pressure to deliver returns while maintaining capital discipline and efficiency.

“Well spacing and density are one of the great balancing equations of the shale revolution,” Tim Leach, board chairman and CEO of Concho Resources Inc., told conference attendees. “The balance is between rate of return and recovery. So clearly, the higher the density the more molecules we would ultimately recover.”

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