The many sides of cube drilling development

The word 'cube' invokes images of consistency and regularity. In the Permian, cube drilling techniques are becoming more common. Consistent with the adjective, they do reduce variability in how wells are designed, drilled, and completed. Unfortunately, though, achieving consistent production performance isn’t always guaranteed. Look no further than Encana and Concho's Q2 2019 cube updates to understand this more. What's the benefit of this extremely capitally-intensive drilling pattern then? By our analysis, it's a cost reduction story for each well. But companies have to achieve meaningful efficiencies to have the risk vs. reward trade-off swing in their favor. What cost reduction do we believe is the inflection point in savings where cubes have to be part of every company's drilling program?