Our friend, Anne, the midstream expert in this oilystuff.com chicken shit outfit (not Anne), sent me this today. Please read...

South Texas producers have big plans to develop the region's 'mini Haynesville' | S&P Global

My answer is this...

The shale gas phenomenon is 20 years old, the shale oil "revolution" is approaching 16 years old.

Old men like me that lived and worked in the conventional oil and natural gas industry for a half century have retired, save a very few; what is left is mostly children who know only shale.

Shale is very specialized, as one would expect in mass manufacturing marginally profitable wells. Everybody has their specific job, does not understand well economics, or geology; the drilling department is told to drill wells as fast as possible and then the completion has to work with deviated wells, drilled out of zone. Frac engineer's frac, production engineers watch production. I don't think even CEO's can manage every facet of drilling, completions and production. It's a very compartmentalized sector. Everybody is told to keep their mouth shut and not share information. I know that for a fact.

Many people have latched on pretending to be ANALysts, are dividend takers, pundits, and journalists who just a few years ago did not care, nor knew shit about oil and natural gas. They ALL, every one of them, needs to keep the party going as long as possible. They feed on the shale phenomenon.

So, they promote it.

Up-dip Eagle Ford wells in the dead to green oil legs do not make more than 1 BCF of associated gas in their marginally profitable lifetimes. Wells in the liquid rich gas leg of the Eagle Ford make 2 BCF EURs. Dry gas wells, down dip, below the liquids rich leg, make 4 BCF dry gas with no liquids up-lift to enhance economics. (realized data from welldatabase.com).

Above, for all the horse shit about the Austin Chalk and Austin Chalk to lower Eagle Ford facies section, they type out at 5.5 BCF over twenty years in Webb County, Texas. See above.

This is NOT an area of multiple stacked benches; there is the Chalk and the upper Eagle Ford and that is it. Most wells in the area target the transition facies. There are several big blank areas in the densely drilled areas that are big ranches that will never be drilled. Drilling chalk wells on less than 1,200-foot spacing is the kiss of death. We tried that in the Pearsall play and it was a financial disaster.

EOG's Dorado prospect is just a big fish story...

The type EURs shown above in the chart are GROSS gas production to the 100% over the life of the well. These wells are deep and likely cost $7-9MM. At $3 Henry Hub, $1.50 net to the WI...do the math. These down-dip gas wells in the Eagle Ford shale play will struggle to make 25% ROI over 20 years.

S&P Global is not telling the full truth. They just want to stay in business as long as possible, anyway they can.