Except for the projections, yes, I knew all of that. A huge problem with their projections. They based their projections on $50/bbl which isn’t even close to what we see today as it is at $80/bbl. That’s a 60% increase. How accurate do you think their projections are when their basis is off by 60%?
As to your comment on new vs old wells in the Permian. You are correct, but DUC wells are new wells and they still have inventory. Those wells each would have maximum production for 1-2 years before they start to decline.
The Permian is all about drilling new wells as other wells decline. Nothing is stopping oil companies from drilling today except themselves.Oil companies still have plenty of acreage on private land. Yes, some lands in NM were effected by the pause in permits in federal land but that represents far less prospects than the private land in Texas.
Do you not understand that government policies and regulations affect how companies operate? Do you not understand that how companies anticipate future policies and regulations affect how they operate? When the president makes a promise that there will be no fossil fuels under his administration, do you think fossil fuel companies are just going to ignore that promise and continue business as normal?
Keystone isn’t the only pipeline affected by what Biden is doing either. Then of course there’s the Democrat created labor shortage that is contributing greatly to rising prices….
The only upside to what is happening is that millions of low information, brain dead morons who voted for the senile clown are going to blame him anyway and sweep Republicans back into power in 22 and 24!
LETS GO BRANDON!!!
You couldn’t possibly be worse. For that matter, I’d vote for you as POTUS if you choose to run against Biden.
ZANTAX IN 24!!
Snow96
104
Not without doing SOMETHING to encourage more drilling and more production. It’s like taxing the rich. Take from the oil reserve now, then again in a few weeks, then a few months after that. What happens when it’s gone?
e7alr
105
Except Biden’s federal land restrictions and the recovery potential of old wells are not changed by prices. A refusal to allow drilling on federal land is a refusal. The recover level of an old well, with current tech, is what the tech allows to be recovered. Price changes neither of these things.
Add to the the next wave of regulation meant to increase production costs. The old, capped wells, you say can be so easily transitioned to, will require significant upgrade, including gas pipeline connection to existing natural gas sales lines, for methane capture. Of course that means new segments of pipelines and installation of significant new tech at each well site. Current Brandon policy is to deny approval of new pipeline as environmentally unsound. Which means any well not compliant with the new requirements will not be permitted for production and if currently producing will be shut down.
What regulations has Biden introduced? Yes, companies anticipate the future and their outlook is influenced by what they see and hear. What is stopping the oil companies from contracting more rigs right now?
Tom_Ch
107
Picking winner and losers.
zantax
108
If only it was easy to get on the Presidential ballot as it is for a truck driver in NJ.
2 Likes
So you have been working in the oil fields for 14 years, doing what?
But the Dallas Fed’s forecast on oil company activity IS based on price so is no valid as their basis is so far off. Do we agree their projections are likely way off?
And we have already shown that the majority of land is on private land and not subject to this refusal, right? Only in NM is it a concern less than half the land there even. Vast majority of Permian oil is in Texas on private land.
Sure, but as I already mentioned, there are the DUC wells and nothing is stopping the companies from drilling on their acreage today.
No, they are not old, just never completed. Every well needs pipeline connection, DUC or newly drilled.
Yes, tighter methane regulations will require technology incurring cost. Likely very small in comparisons to well cost.
I specifically asked if you worked in the oil fields, not just working for an oil company. I worked for one for 2 years before covid hit and they laid off or early “retired” those that had been there long enough enough to have a retirement package.
I noticed you cut off that piece of my post, only left the part that asked in the oil fields, the claimed 14 years. When asked again, you said not in the field.
So which is it?
Either you work is directly tied to the oil fields ie “in the oil fields”, or some other role within the company. Only one gives validity to your earlier claims concerning old vs new wells, etc. Notice that I didn’t claim to know how things work with Wells just because I worked for an oil company. I was simply a network asset manager. My world was network equipment, and making sure I knew where each router or switch was located. I HAVE been out to some oil fields in Utah to track down equipment, but I have zero clue on what they do, or how they do it.
Here is what you said,
“how many years have you worked in the oil fields, or been involved with the planning of well drilling?”
I’ve worked 14 years in drilling. Well planning has been part of my job. I misinterpreted your question as actually working in the field, on-site.
tnt
115
Why would oil companies want to take steps that result in lower oil prices?
They have been suffering though low priced oil for 18 - 24 months. They are thrilled to finally see high priced oil and will only ramp up production slowly if they feel they won’t send prices falling.
There you have hit the nail on the head.
tnt
117
People love capitalism until it raises their gas prices. then they want the government to save them.
Ok, then in this case you actually have knowledge first hand.
Sorry but when you have “internet experts” it is hard to take anything seriously.
No worries, worded kind of vague.
No worries. Everyone’s an expert on everything here. 
no they dont
they want the govt to leave things the hell alone.
