Offshore

18.03.2019 kl 18:41 2238

Me like:

Assertion:
“A few Shale operators can now make money with oil on the $30's.  As US Shale consolidation takes place and all embrace new technology and drilling methods all Shale will be very profitable at $45 to $55 oil (or lower). “

Mr.Tom Kirkman

Would be wonderful if true, but I remain sceptical.  The sweetest patches have already been drilled, and their production is already in decline due to the crazy decline rates of Shale Oil.
Overall production is increasing in Shale oil by more and more wells being added.
But the wells being added are now the Second Stringers, the JV group.  The best wells, the Varsity team, are already retiring.
Expecting the JV second stringers to out-perform the best Varsity team sweet spots in both production and breakeven costs seems pretty darn unlikely to me.
Obviously, I have a minority opinion on this, and my view on this wrankles some people, especially over on LinkedIn.
I may be wrong.  But maybe not. 

https://community.oilprice.com/topic/5244-can-opec-cut-production-forever/

Redigert 18.03.2019 kl 18:51

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