The relatively recent development of resource plays in the Rocky Mountain region

Resource plays are areas of large known hydrocarbon resources in-place and their recognition and development has evolved greatly in just the past few decades. The phrase ‘continuous accumulation’ is used somewhat interchangeably with resource play. Resource plays can be subdivided into those containing coalbed methane, tight gas, tight oil, fractured shale and chalk plays, and shallow biogenic gas reservoirs. These types of plays have mostly replaced convention oil and gas exploration since the 1990s. The production associated with resource plays has now reached more than 50% of the total U.S. production for both oil and gas. Continuous accumulations are technology driven and product price dependent. Technology innovations unlock reserves and drive development costs down making field development more economic. The power of these plays can be seen in company’s stock valuations and also in the merger and acquisition side of the oil and gas business. Top dollars are paid for companies that are in resource plays with undrilled locations, either as step outs or infills. In addition, resource plays have greatly contributed to technology improvements in areas such as drilling, completions, fracture stimulation, mud motors, drill bits, and pad drilling. The production associated with resource plays is so significant that it can impact oil and gas prices.