Here is another good chart showing the frailty of associated gas as a feed stock to the $72 B LNG boom, this for 2016 Permian Basin wells in the Delaware Basin...where there will be so many AI centers built in the next 10 years, you'll be able to walk from one to another without ever having to leave air conditioning. Remember, they're doing that out there because of the abundance of natural gas.

When pundits say that tight oil wells in the Delaware Basin are getting gassier people seem to believe that is a good thing now and the basis for decades and decades of natural gas supply. But, as you can see, associated gas in solution gas drive tight mudstone depletes too, and not that much behind liquids decline. I showed you a chart a few weeks ago whereby a data set of wells drilled from 2010 to 2015…

And thank you for reading...

Here is a recent Rystad graphic showing type decline for Midland Basin HZ tight oil wells to 3 years. In gas depletion, oil expansion driven mudstones (shale) everything poops out eventually. It depletes, even associated gas from oil wells. See above.

I had C+C declining at the rate of 83-85% in the first 32 months of production, Rystad says 90% in three years. Try and get your head wrapped around that.

Longer laterals are hiding pressure depletion...don't be fooled by that. It cannot last much longer and when it doesn't, U.S. production will fall fast.

EUR's have fallen in the Midland Basin to 385-400K BO and 2.1-2.4 BCF gas.

I've been waiting for this. The price of natural gas is now $4.56/MCF, up 53% from last year. All of these LNG plants are going to drain America of gas and drive up the price. The world price is something like $10/MCF, so as long as demand stays strong overseas, that price will hold up. Maybe some of that money will trickle down into the Permian. My fear is that heating and electric bills will skyrocket.