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  Quote Stuff 

“Bottom line is that it is always better as a nation to have your own oil,” said Amy Myers Jaffe, a professor at NYU.

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This graphic ought to knock your socks off. 

3,400,000,000 barrels of produced water per day by year end 2024 in the Delaware Basin. Unless you've operated and paid OPEX you have no idea how difficult it is to make money with wells that make this much water. WOR ratios in the Delaware are now approaching 75% (WoodMac). A Wolfcamp A well that makes 24,350 BOPM after IP also then makes 73,050  BW the same month and likely costs $2.50 per BW

to get rid of,  including disposal fees, particularly if you are in a SRA.

That equates to $7.50 per BO, OPEX, just for water. With electricity, chemicals, surface and downhole maintenance OPEX is $12-14 per BO, before G&A, interest expense on debt, severance and property taxes.

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I do this blog stuff for fun, not to make money. I am not trying to sell you anything.  

The materials provided on this site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.  I may make data related mistakes  occasionally; if you use my opinions about oil reserves or shale well economics for financial purposes, to buy or sell stocks, your nuts. Don't do that. If I have used a photograph incorrectly it was for educational purposes and I have done my best of to give credit where credit is due. My stories are all true, slightly embellished, perhaps, but true; I don't change names to protect the guilty. I am as accurate as possible about history and historical facts; I work very hard at that.All rights are reserved, whatever that means.  Don't blame me,  I didn't do it.   

                                                                                                                                                     Mike Shellman 
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