Permian Basin Oil - Microthread

[ExtraSlow]

Wanted to separate out a small discussion on the Permian basin. Shell just sold out to Conoco, which must mean they don't see growth prospects, or they fear cost increases, or both.
Mike Shellman is one of the commentators I enjoy reading, he's been going on for a while that the Permian isn't economic and cannot grow without adding debt. Some charts here: https://www.oilystuffblog.com/single...t-it-use-to-be

Shale Profile has some free tools if you want to check mikes work.

Incoming regulations / prohibitions on drilling on federal land (BLM land) could have a big impact on New Mexico. Water shortages are happening in areas.
The Baker Hughes rig count for Sept 17th showed that the Permian accounted for 259 out of a total of 505 USA land rigs. It's been consistently around 50% of the total for years.

So, anyone have predictions for the Permian basin? Predictions for how that will impact other USA basins, and world wide industry?

[dirtsniffer]

Anecdotally, we have been seeing a shift away from super majors and large publics towards small private operators who are very low cost. Some good opportunities for targeted growth, but the days of quadruple meat subs might be behind west texas. Agree with you that the BLM will have a big impact on New Mexico


The story of shell could be indicative of the value in the permian, buy an asset, lose money developing it and then apparently get out while you can. I would say Shell is the exact opposite of a low cost operator, but I don't see cop doing any better. It looks like this secures a bunch of acreage in west texas, which could help move future development away from NM

[killramos]

We live in a post oil world.

Get your head right.

[suntan]

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We live in a post oil world.

Get your head right.

Oil companies should actually be saying this. It'll keep the enviro-weenies off their back.

[pheoxs]

Where's the graph that shows the production of wells based on the year they were drilled and how much faster it's been dropping off the last few years. I always found that one fascinating when someone posts it

[ExtraSlow]

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We live in a post oil world.

Get your head right.

That's probably the message Shell will give to thier shareholders. Makes sense to get out of dead energy sources like oil and reinvest in more forward thinking projects, like . . . . .

[suntan]

Bitcoin!

[Xtrema]

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We live in a post oil world.

Get your head right.

I also thought we are living in a post coal world.....

https://tradingeconomics.com/commodity/coal

[killramos]

Coal is soooooo Obama

We are living in Biden’s world now

[ExtraSlow]

Thought this was the place to put it.
More Mike Shelman thoughts, productivity going down hard?
https://www.oilystuffblog.com/


I always figured that in strategic terms, the "life insurance policy" for Americas oil requirements was located in Canada.

[riander5]

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Wanted to separate out a small discussion on the Permian basin. Shell just sold out to Conoco, which must mean they don't see growth prospects, or they fear cost increases, or both.
Mike Shellman is one of the commentators I enjoy reading, he's been going on for a while that the Permian isn't economic and cannot grow without adding debt. Some charts here: https://www.oilystuffblog.com/single...t-it-use-to-be

Shale Profile has some free tools if you want to check mikes work.

Incoming regulations / prohibitions on drilling on federal land (BLM land) could have a big impact on New Mexico. Water shortages are happening in areas.
The Baker Hughes rig count for Sept 17th showed that the Permian accounted for 259 out of a total of 505 USA land rigs. It's been consistently around 50% of the total for years.

So, anyone have predictions for the Permian basin? Predictions for how that will impact other USA basins, and world wide industry?

Don't take Shell's M&A moves as a measure of potential profitability.

They are being pushed from all sides to green up, no matter the cost.

[mr2mike]

Isn't this enough?

[riander5]

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Isn't this enough?

It's certainly a start!

I guess time will tell whether Shell's early moves to green energy pay off. Im sure at one point people mining ol reliable coal thought all the maniacs drilling for oil were nuts.

[Sentry]

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I always figured that in strategic terms, the "life insurance policy" for Americas oil requirements was located in Canada.

I'm sure if push came to shove pipelines would be built in no time.

[killramos]

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I'm sure if push came to shove pipelines would be built in no time.

Well it’s pretty much already built. It’s just not approved.

[suntan]

Not with Bill C-69 in place.

[ExtraSlow]

If the USA needed it, and the USA administration wanted it, it would be approved by canada in a few weeks.

[Xtrema]

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Isn't this enough?

Man, that almost looks like a Shell/BP merger.

[suntan]

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If the USA needed it, and the USA administration wanted it, it would be approved by canada in a few weeks.

I know this is a common refrain, but fact is Trudeau is bought and paid for by climate activists, so no.

[Xtrema]

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I know this is a common refrain, but fact is Trudeau is bought and paid for by climate activists, so no.

PP will win next election if US want more AB oil. Or they can always fan the flames for AB to separate.