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Permian Performance: Local Supply for the Next Generation of Longer Laterals

Centek /7th October 2026/ CENTRALIZATION

The Permian Basin continues to set the pace for efficient unconventional development. The focus is no longer simply on drilling more wells, but on recovering more hydrocarbons from every surface location, every casing string and every dollar invested.

Longer laterals are central to that strategy. ConocoPhillips reported in August that all its Permian wells coming online in 2026 were longer than two miles, with several extending three or four miles. The operator also achieved record second-quarter Permian production and a 10% year-on-year increase in underlying output. Meanwhile, in September 2026 the US Energy Information Administration forecasted Permian crude production averaging 6.80 million barrels per day in 2026 and rising to 7.03 million barrels per day in 2027. 

Recent industry coverage also highlighted an approximately 3.5-mile lateral drilled by XTO Energy in the Dean Formation, alongside 3.5- to 4-mile programs being pursued by other Midland Basin operators. The trend shows Permian development moving beyond 18,000 ft of horizontal reach as operators seek greater reservoir contact, better use of existing infrastructure and improved capital efficiency. 

Supporting the Permian since 2012

Centek Inc. was established in Oklahoma City in 2012 to give US operators access to locally manufactured centralizers, stop collars and engineering support.

The OBS single-piece bow-spring centralizer was an important early part of that offering, providing a compact and cost-effective alternative to the premium S2. In 2025, Centek introduced the USA centralizer specifically for the economics and operating requirements of US land wells. Sales have grown significantly since its launch, demonstrating increasing demand for a competitively priced bow-spring centralizer manufactured close to the field.

Today, products can be manufactured, stocked and shipped quickly from Oklahoma City to support Permian drilling schedules. Local production using US steel and labor also reduces transport costs, exposure to import delays and tariff uncertainty.

Looking beyond the lowest unit price

Cost pressure has made solid composite centralizers an established choice in many Permian laterals. Their light weight, fixed geometry and low coefficient of friction can make them attractive where runability and purchase price dominate the initial selection.

However, low friction does not automatically mean the best overall centralization program. Composite performance varies according to the constituent materials and manufacturing process, while a rigid centralizer’s effective standoff is governed by its fixed outside diameter and the actual wellbore geometry.

A properly selected bow-spring centralizer provides active restoring force, flexes through restrictions and recovers as the wellbore diameter changes. Its open profile also provides high flow-by area around the casing. The question should therefore not be whether every solid centralizer should be replaced, but whether a cost-effective bow-spring design could deliver better standoff and cement-displacement support without creating unacceptable drag or hookload.

That decision can be tested through simulation rather than assumption.

A product for each section

For common 4 1/2-in. and 5 1/2-in. production casing and liner programs, the Oklahoma-made USA centralizer provides Centek’s most economical single-piece bow-spring option. The full range accommodates casing from 4 1/2 to 9 5/8-in. and can be paired with the economical 0SO stop collar.

The OBS remains relevant where greater restoring performance or a tailored configuration is required. In a recent Permian project, Centek engineered a bespoke US-built OBS for anti-corrosion-coated casing. The solution protected the coating during installation and casing running and was selected for a 20-well campaign. Permian coated-casing case study

For higher build rates, demanding curves, extended laterals and sections exposed to greater lateral loading, the S2 remains Centek’s premium solution. It can be paired with the higher-performance 00SO stop collar where greater axial retention is required.

The OBH-W offers an economical hinged option for larger surface and intermediate casing. Available in sizes up to 26 in., it can be fitted over casing couplings where a conventional slip-on centralizer cannot be installed. Its corresponding HSN hinged stop collar also provides quick installation for less demanding sections.

Proven in Permian wells

Centek products have already supported casing projects with well paths of up to four miles. This experience, together with proven results from Permian wells, demonstrates why centralizer selection should be based on whole-well performance:

  • In a 16,695-ft Wolfcamp well in Reeves County, 187 S2 centralizers and 374 stop collars were installed across 420 casing joints. The string reached bottom in 16.5 hours, compared with the 30-35 hours normally expected. Although the well predates today's 18,000-ft-plus laterals, it provides relevant regional evidence that effective bow-spring centralization can support both runability and cement-placement objectives. Wolfcamp case study
  • In another highly deviated Permian well, 135 5 1/2 × 6 1/2-in. S2 centralizers and 00SO stop collars were pulled out of hole after an unrelated equipment-placement issue. Every centralizer was inspected, found undamaged and still at gauge, and successfully re-run to total depth. Permian re-run case study
  • In a separate US program, engineered centralizer spacing increased standoff, eliminated visible cement channeling and reduced measured drag from 40,000 to 22,000 lb—showing that adding effective centralization does not necessarily mean increasing overall running resistance. Spacing and drag case study

Preparing for longer and more complex well paths

The next phase of Permian development is likely to bring more three- and four-mile laterals as operators seek more productive reservoir contact from fewer surface locations. Recent coverage of 3.5- to 4-mile programs in the Midland Basin reinforces the direction of travel. 

As horizontal reach increases, so does the potential for cumulative casing contact and the engineering demands associated with torque and drag, hookload, hole cleaning and casing cementing. Maintaining adequate standoff across the planned cemented interval supports mud removal, cement placement and zonal isolation. Correctly selected stop collars are also important in retaining centralizers in their modeled positions during casing installation.

Alongside conventional extended laterals, selective use of horseshoe or U-shaped wells could help operators access constrained and stranded acreage. These well paths place further emphasis on modeled running forces, centralizer durability and reliable stop-collar retention. 

At the same time, produced-water management and corrosion concerns are likely to increase the use of coated casing and other specialized tubular configurations. This will require centralizers that are not only cost-effective, but correctly sized and validated for the casing, coupling, coating and planned hole geometry.

As operators place greater emphasis on production per 1,000 ft and total development cost, centralization programs must also demonstrate whole-well value: reliable casing installation, suitable standoff and cement-placement support without applying premium products where they are not required.

Centek can simulate different products and spacing programs across the full casing string, comparing predicted running forces, hookload and standoff before the casing run. This identifies where the economical USA, OBS or OBH-W can meet the requirement and where higher-performance S2 centralizers and stop collars are justified. It supports section-by-section design aligned with whole-well economics, rather than a one-product-fits-all approach.

Request a free Centek simulation to compare standoff, spacing, drag and predicted hookload before finalizing your next Permian casing program.

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"Due to the tight tolerances and casing specifications, the UROS–CT was modelled. The simulations ran confirmed this was the best solution for the task at hand. Excellent technical support coupled with no downhole issues meant another positive outcome using Centek."

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