[rockdoc123]

$this->bbcode_second_pass_quote('', 'O')ne thing I'm wondering about in Argentina is the Supreme Court's stepping in to prohibit what was going to be a price hike for NG to something like $7.50/MMBTU. This was last week, and I believe it's the first time the Court has done such a thing. I'm looking to see if they're looking at oil as well.

[tita]

$this->bbcode_second_pass_quote('rockdoc123', 'n')ot very successful? Not sure what planet you are living on but oil and gas companies got into the shale business to make money, not create production. They are hardly "not for profit" organizations. As an example Cheseapeake Energy (exclusively unconventional production) had an operating net profit after tax and royalties of about $5 B in 2014.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'W')ell... I said actually. Of course, the idea is to make money. But, as I understood, it is actually quite difficult for some of them, as they are losing money. BTW, Cheseapeake sold assets for around 5B in 2014, which may explain this net profit. Different story for their profit in 2015.

[ROCKMAN]

The STACK trend is becoming more interesting. But it will be even more difficult to estimate individual well URR then it was in the early days for the Eagle Ford. Two reasons: high NG to oil ratio and, in particular, it's "geopressred". IOW for its depth the reservoir pressure is much higher then expected. Thus gives much higher initial glow rates but given the apparent limited drainage radius it may decline much faster. Additionally as the pressure drops there's can be a tendency tot the reservoir to actually start crushing itself and destroying flow capability. But the high initial rates will lend themselves a quicker payout and better ROR:

Devon STACK spacing test flows 1,400 boe/d/well
HOUSTON, July 19
07/19/2016
ByOGJ editors

Devon Energy Corp.’s Alma spacing pilot in the overpressured oil window of the Oklahoma STACK play tested five wells per section across a single interval in the Mississippian Upper Meramec, delivering 30-day production rates averaging 1,400 boe/d/well, of which 60% was light oil.

In addition to the strong initial production rates, early flow-back results from the Alma pilot indicate minimal interference between wells, suggesting potential for tighter spacing in the overpressured oil window, Devon says.
The Alma wells were drilled with 5,000-ft laterals. They were brought online on 12/64-in. chokes, gradually increased to 20/64-in. In the overpressured oil window in southwest Kingfisher County, the Pony Express 27-1H well, drilled with a 5,000-ft lateral, recorded a 30-day average rate of 2,100 boe/d, 70% oil.

Devon says oil productivity from the Pony Express is the highest of any Meramec well drilled to date in the play on a per-lateral-foot basis.
After the Alma test, Devon says it has two successful spacing pilots in the core of the Meramec oil window. Production from the two-well Born Free pilot continues to perform well, achieving a 90-day average rate of 1,500 boe/d/well, of which 60% is oil. The Born Free pilot wells were 400 ft apart and landed in two intervals in the Upper Meramec.

Devon’s next pilot is the Pump House test in southwest Kingfisher County. The Pump House is testing seven wells per section in a single interval in the Upper Meramec. Initial flow rates are expected in the third quarter.
To determine the optimal approach for developing stacked-pay intervals in the Meramec, the firm is participating in several additional spacing pilots during the remainder of the year.

The spacing pilots are focused in the overpressured oil window, testing up to eight wells per section in a single Meramec interval and evaluating the joint development of multiple stacked-pay intervals through staggered well pilots.
The firm expects to start full-field development in 2017.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'T')he STACK trend is becoming more interesting.

[StarvingLion]

$this->bbcode_second_pass_quote('', 'A')nd when a governement pays to extract its own unconventional oil

[tita]

rockdoc - sorry for my frenglish. I was confusing 'currently' with 'actually'.

$this->bbcode_second_pass_quote('', 'T')he shale companies are largely not doing well at this moment in time due to their success at bringing on so much oil and gas over the past few years. That is what resulted in the supply overhang and the subsequent fall in prices. They were victims of their own success. At the current price of $45/bbl there are a number of places that are still quite economic including parts of the Eagleford and Permian basin.

[AdamB]

$this->bbcode_second_pass_quote('rockdoc123', '
')$this->bbcode_second_pass_quote('', 'A')dditionally as the pressure drops there's can be a tendency tot the reservoir to actually start crushing itself and destroying flow capability.

[AdamB]

$this->bbcode_second_pass_quote('tita', ' ')The illusion is to believe that actual prices are going to stay for long while the production grow as usual, feeding the global economy.

[kublikhan]

$this->bbcode_second_pass_quote('tita', 'W')e can also argue that they were victims of a lack of demand for 100$ oil. I'm not talking about a peak oil demand here. But the high prices from the last 10 years induced some changes in the consumers behaviour. The car park in the US is more efficient. People use some alternative to heat their houses. In Europe, there is a trend in the young people to not own a car, or not get their driving license and only rely on public transports. And the global economy is in a very strange dynamic, with some kind of continuous crisis healed with debt and money injection. They were victims of trying to sell something that could not be afford.

[kublikhan]

$this->bbcode_second_pass_quote('pstarr', 'O')il demand in countries all over the world (including Europe) is in decline.

[AdamB]

$this->bbcode_second_pass_quote('pstarr', '
')Where did you cull that from Adam?

[AdamB]

$this->bbcode_second_pass_quote('pstarr', 'H')ere in the US we spent the last of our economy, rusting infrastructure and heavy industry on making tight-shale pipe strings. Our roads cities bridges and culture continues its long decline. Oil demand in countries all over the world (including Europe) is in decline.

[ennui2]

PStarr can't abide EVs not because he's anti-environment but because it would prop up the happy motoring lifestyle, which he abhorrs. That narrative was easy to hold onto back in the "Who Killed the Electric Car" days because you could say it's the "End of Suburbia" AND sling tinfoil about the car companies being anti-EV. Now that EVs are here it's necessary to FUD them the same way paid oil-industry shills do. As they say, common enemies make for strange bedfellows.



If he can't convince people to voluntarily leave suburbia and usher in a "World Made by Hand" then maybe he can body-english doom to compel people to give that lifestyle up against their will. But bitterness over other people's lifestyle is the fuel that drives his rhetoric, day in and day out.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'h')ere in the US we spent the last of our economy, rusting infrastructure and heavy industry on making tight-shale pipe strings.

[AdamB]

$this->bbcode_second_pass_quote('ennui2', 'P')Starr can't abide EVs not because he's anti-environment but because it would prop up the happy motoring lifestyle, which he abhorrs.