Novi just reported EOG had 27,000 miles of lateral left to drill in tight oil basins it has acreage in, based on $50 break evens and two-year payouts, discounted 25%. A reader writes in that equates to 9,000 three-mile laterals, or 13 years of drilling at current EOG rig counts.

I am not going to get into the economics of $50 break evens, and 2 year pay outs, save to say it is half cycle dung heap.

Here is EOG's only (primary) neighborhood in Loving County, in the Delaware, in the guts of the Delaware core for five different benches, including the Bone Springs, Wolfcamp A and Wolfcamp XY:

There are Oxy wells in this mess too, but EOG is hugging the State Line to the north and it has 10,000-foot wells crammed into its block like stacked cord wood.

It is truly a nightmare, Conway. Thank you.

Nobody cares as long as it's not in their back yard.

What I am about to say will piss some people off. So be it.

Everyone lauds the tight oil and tight gas phenomena as the greatest thing since sliced bread. The don't care that it was born and raised on debt that will never be paid back. Shale forever changed the dynamics of the worldwide oil situation and, in my opinion, sucked all the capital out the rest of the domestic oil and gas industry in America and helped destroy it. It set back development of resources in the GOM 10 years. Tight oil in the US, in fact, reduced investment in exploration across the entire world.

In 2007 conventional dry natural gas production was rising. Look at what happened in 2008-2009 with the onslaught of unconventional shale gas. The same…

Nothing to see here, only the headline and a reminder that the mighty U.S. tight oil and gas sector at some point in the not-so-distant future has to pay all its debt back and clean up all its shit up. What you can see above ground and what you can't below ground. Dig it out of the ground and dispose of it. Legally.

If it's got Radium in it, and is subject to Federal NORM standards, which a lot of the Permian Basin has, it's going to cost billions.

Regardless of whether you own a chicken plucking company, or a tight oil company, in spite of all the dividends, investor presentations and air time on CNBC...you have NOT turned a profit, are not profitable, until you have paid your debt back and covered all plugging and decommissioning costs. That's part of doing business in America.

Or are you OK with…

I saw discussion on the SPR recently. People have thrown around a statement from Amos Hochstein, Biden's senior advisor for energy security, who speculated in this video: https://www.youtube.com/watch?v=hKq0ruVlewY at 7:15 that at 300, the SPR's caverns will damage, and the rate of extraction may slow. Does anyone have additional insight into the SPR?