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Stuff To Think About
Oil men & women understand in the long run oil prices need to be
mid-level & stable to ensure adequate supply.
Video Stuff
Quote Stuff
"True, full cycle, all-in corporate breakeven prices of the U.S. shale oil sector are $90 a barrel. All long term debt must be paid back and the sectors well inventory plugged, abandoned and decomissioned.
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That is the cost of doing business and every barrel of oil produced by that shale sector bares the burden of those costs." ​
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Left, a visualization of U.S. tight oil proven developed producing reserves. Its PDP R/P (reserve to production ratio) has histortically never been more than 3.5, at best, because of decline.
These are the assets U.S. shale oil to pay all of its debt back and all of its future
plugging & decommissioning costs back.
7.8 G BO PDP reserves to pay down $178 B of long term debt.
Permian Basin Produced Water
This is a cool, very current chart from Novi showing water production in the Permian Basin. It includes old vertical wells in the basin
(by well count) but forget that, look at the chart bottom right: produced water from vertical wells is in decline as more and more reach
economic limits and are abandoned. Beginning 2012-2013 HZ shaley carbonate wells from all the typical benches comes into play and produced water marches upward...now 25.6MM BPD. Wow.
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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.