Learning curve economies

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-	'''Learning curve economies''' refer to the general effect that the more times a process is repeated, the less labor time that is involved.	+	'''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.		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.		At the same time tools and capital goods that are required in the process are optimized producing additional economies.

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Revision as of 00:52, 27 January 2011

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.