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 Stuff  To Think About 
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“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 chart on the left is remarkable. It shows clearly the effect of longer laterals and increased proppant loading in the Delaware Basin. This chart represents all HZ wells drilled in 2023 in the basin

by Oxy.

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Oxy's well designs offer it some of the highest IP's in the entire basin...and some of the steepest

decline rates known to mankind.

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82% in just 10 months.

They are gutting their wells. 

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I think these sort of 15,000 foot, 500,000 pound wells cost $12MM, easily.

At $80 oil prices

and zero natural gas prices these wells require 325-350K BO to reach payout,

likely in <2 years. 

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I contend, however, these wells will struggle to make a 50-60% return on investment over 12 years. 

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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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