I think the plateau at the end of the graph will go sharply higher when summer reports come out.
EOG’s take on the Permian is telling. That explains why they’re doing a massive amount of new drilling in the Eagle Ford right now. This means that at least EOG’s leases in the Permian are don’t have a lot of oil but rather a lot of natural gas and NGL’s.
Should EOG’s word that there won’t be anymore eagle ford or bakkens in the USA — be taken as gospel? Or just a very educated opinion right at this moment.
Could it be a back door way of saying that the other reserves are to expensive to develop given the current price?
The Permian will ultimately make more oil. EOG is driven by the higher rates of return in the Eagle Ford and the Bakken. Once that is drilled up within the next decade, they will go to the Delaware And Midland Basin but they have a much smaller acreage position.