Might be time to buy a little more COP.
They pay a 4%+ dividend too. Can’t get that at the bank, that’s for sure.
“Declines are much steeper in the big new U.S. fields like the Bakken and Eagle Ford, where a well might come on line at 1,200 bpd, but lose half of that within four months.”
What these guys fail to see is that this tight oil, albeit at relatively low oil volumes, has very, very low decline rates after the wells are mature.
The tighter the oil, the more modest the decline. Only INITIAL declines are steep.
Think of it this way: in a few years, there will be 12,000 wells producing 50 bopd with less than a 5% decline to use as a base production for the next 50 years.
That is an annuity that is nice to have.