Posted on 06/09/2014 5:29:20 PM PDT by ckilmer
There was a recent vote in the California legislature regarding fracking. Oil companies gave money to Democrats AND Republicans to DEFEAT IT!
Getting due for a new ride........want a truck......but told myself this weekend, them dang gas prices ain't never coming down.
Can anyone say Honda ?
hmmmmmmmmm
If you look closely at the chart you posted, you will see that all the formations peaked in October 2013 or so. Chances are, this was a decision from board rooms, rather than a natural slowing of production.
Perhaps the more important measure would be recoverable oil reserves. From an Alberta perspective, the recoverable reserves in the Athabasca oil sands grows each year as new technology pushes that figure upwards. In addition, some of the older plays are extended by enhanced recovery methods like SAGD, CO2 injection (Weyburn Field), etc.
Because of where EOG came from (Enron Oil and Gas), and having met the former President of EOG Canada in 2000, I take anything said by the ‘brass’ at EOG with more than a grain of salt. The moment I heard that man speak in 2000, I took a distinct dislike to him. Arrogant, hyperactive blarney, with little substance, cut from the same cloth as Skilling. First impressions are lasting!
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.
PXD. That’s your big player in the Midland Basin. The Delaware has many playas. They all need more water and sand.
I keep waiting to be correct. It will happen. Booms never last long.
The recent dip in EF and Bakken production is due to temporary industry changes such as reduced spacing, not reservoir depletion. Thomas circled it as an predictor of future declines, which I take as an effort to discourage competition.
Thomas also said that prolonged oil prices under $90WTI will shut down most horizontal drilling. He wants over 100% ROIs. I think he's playing up his advantages of strong land positions, technology and data to cool his competitor's hype.
Global demand is up, not down.
Oil is a globally priced, fungible commodity.
Go back to previous postings I have made here.
The Bakken is unique, and the Eagleford has only a relatively tiny window of commercial activity along its liquids maturity belt.
No one has found the widespread commercial accumulation as these two have.
Chances are no one will.
Physics dictates liquids does not move very well through such tite rock
That is the plan.
Since the price of oil has come back from it's nadit in the early 90's, they have been doing a lot of horizontal drilling in the old oil fields in the Permian Basin. A lot of the drilling around Glasscock County have been horizontal wells, especially around Garden City. Most of the property owners in Garden City are getting royalty checks from wells drilled horizontally under their lots.
Going back in the old established fields and re-drilling/fracking the old wells makes sense for doing secondary and tertiary recovery projects. The original wells probably got less than 20% of the avialable oil out of the pay zones.
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