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Folks think a couple of hours on the internet makes them oily experts. I grew up in the oilfield 74 years ago, operated for 54 years, drilled over 340 wells and STILL don't have it all sorted out. Not even close.
Quote Stuff
“Everyone, keep oil prices down,” Trump said in an all-caps post, writing “I’m watching! You’re playing right into the hands of the enemy. Don’t do it!”
Here is a Novi chart for HZ tight oil wells in Culberson County in the Delaware Basin over 10:1 initial GOR, therefore classified as "gas wells." There are a lot of gas wells in the N.E portion of Culberson County; the basin is shallower there and lower Bone Springs wells in Ford Field are very gassy. Actually, the productive limits of the country are limited to the extreme
Northeast and east part.
In the chart lateral lengths are normalized. As you can clearly see 2024 and 2025 wells are not as gas
productive as previous years.
Lots of pundits, like the author of the PBOGM article, above, would suggest wells are being curtailed, either shut in or choked way back because of poor natural prices and no takeaway. Indeed, Apache says its net price in the Permian is something akin to 70 cents an MCF.
But operators know what to expect when drilling gas wells in Culberson County, they know its gassy. So why spend $11 MM to drill a gas well and then limit its flow because of price? I don't think that's the well the shale biz works. Those boys need money!
So I am inclined to believe this cumm. gas vs. time chart, normalized is not a function of takeaway,
but of falling well productivity.
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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.
