Damn...more enormous oil finds in Texas

[CosmicCowboy]

http://lubbockonline.com/business/2012-11-28/exploration-continues-fuel-expectations-cline-shale-oil-boom#.ULindoc0V8E

Two years ago, no one had ever heard of the potential of the Cline Shale oil play.

Now, the 140-mile-long and 70-mile-wide oil shale is anticipated to be one of the largest oil plays in American history.

Projections for the Cline Shale contribute to the expectation for the U.S. to become the world leader in oil production by 2017.

As the result of exploration by oil companies Devon Energy and Chesapeake Energy, the Cline Shale is quickly emerging as the richest oil play known. Other development companies with interests include Firewheel Energy, Laredo Petroleum, Exco, and Callon Petroleum, among others.

Devon Energy President John Richels gave a “type curve” for a Cline Shale well — a guess at how much a well would produce over time.

He said he expects a total production of 570,000 barrels of oil equivalent, and 85 percent of that would be oil and liquid gas rich.

“We are very excited about the Cline,” said Andy Coolidge, Devon Energy's vice president for the Permian Basin. “We expect to deliver highly economic and robust production growth.”

Snyder is in the the Cline pocket, which includes parts of Scurry, Borden, Mitchell, Fisher, Nolan, Sterling and Glasscock counties

“It’s like Christmas morning. We are all waiting to see how this unfolds,” said Bill Lavers, CEO of Develop Snyder.

Test wells on the Cline show the shale contains 3.6 million barrels of recoverable oil per square mile, about 300 billion barrels of recoverable oil for the entire shale.

Until recently, the Eagle Ford Shale was considered to be the richest shale play in Texas. The Eagle Ford Shale covers Webb, Dimmit, Lavaca, McMullen, Karnes, DeWitt and Gonzales counties in the southern portion of the state.

Recent advances in horizontal drilling have opened up the possibility of drilling in areas like the Cline.

The Cline’s depth is equivalent to 10 Eagle Ford Shales stacked on top of each other.

Pete Stark, an independent analyst from Englewood, Co., and regarded by the industry as an expert on global oil and gas resources, said, “We haven’t seen billion-barrel numbers onshore since Prudhoe Bay, Alaska, in the ’70s.”

While the buzz surrounding the Cline Shale brings excitement and economic hope, it also presents some challenges to the communities located there.

For weeks, local officials have held public meetings to discuss the effects of the increasing drilling activity.

The shortage of housing in the Cline Shale area continues to be a main concern, according to Lavers.

“Everybody in the entire area is working together more than they ever have. There are no guarantees that anything is going to happen, but when you look at all the growth that has already occurred, it is obvious that something big is going on here,” he said.

Abel Deloera, Snyder councilman and owner of Deloera Realty, said he is busier than he has ever been.

“November and December are usually really slow months in real estate,” said Deloera, “This is the busiest I have been in six years.”

Deloera, who gets 10 to 15 phone calls every day from people looking for housing, said he started trying to address the Snyder housing shortage in October 2008.

“I saw this coming, but no one would listen,” said Deloera, “now we are a good 18 months to two years behind.”

Snyder lacks between 400 and 500 housing units, according to Deloera, and there has been a major increase in land value as a result of recent activity.

“I have people literally calling in tears saying they need a place for their families to live,” he said, “and I can’t help them. From here to Midland, in the entire area, there is virtually nothing available.”

According to Lavers, 35 housing lots were developed for sale and sold within 20 days of completion to a single developer.

Another project expected to close in March, according to Deloera, will develop about 100 single-family housing units.

Deloera said that development is moving too slowly, a fact he attributes to the risk involved. “Developers will have to risk millions of dollars in anticipation of what is about to happen; people are hesitant because of the risk.”

[TDMVPDPOY]

why is the american govt in a rush to dig out everything to use up...?

[CosmicCowboy]

why is the american govt in a rush to dig out everything to use up...?

It's not the government. It's all private property/money. Obama is doing everything he can to fuck with the oil industry.

[boutons_deux]

the oil industry is doing everything it can to fuck over the planet.

[CosmicCowboy]

Just kill yourself, boo.

[boutons_deux]

CC thinks domestic oil will be cheaper oil products for US consumers.

[CosmicCowboy]

CC thinks domestic oil will be cheaper oil products for US consumers.

Boo is so stupid he thinks I believe that.

[CosmicCowboy]

I'm for increased oil production because it is awesome for our economy. It may suck in Detroit but it's great to be in Texas.

[boutons_deux]

"awesome for our economy"

bullshit. It's awesome for the oilcos and their investors, iow, the 1%. The 99% will benefit very little, while their land, water, air, bodies are polluted and sickened.

[CosmicCowboy]

"awesome for our economy"

bullshit. It's awesome for the oilcos and their investors, iow, the 1%. The 99% will benefit very little, while their land, water, air, bodies are polluted and sickened.




Just kill yourself, boo.

[TeyshaBlue]

"awesome for our economy"

bullshit. It's awesome for the oilcos and their investors, iow, the 1%. The 99% will benefit very little, while their land, water, air, bodies are polluted and sickened.





You've made it abundantly clear that you have not the slightest understanding of the oil and gas business other than what your rss overlords tell you to think. Just stop with the nonsense and do some original research.

My hometown sits right in the middle of this formation. It's mentioned in this article. The city and county will benefit mightily from further exploration....jobs, housing, retail, schools. These are the playgrounds of the 99% that you seem to know so little about.

[TeyshaBlue]

The timing couldn't be better for my parents. They're bout to sell their house and move.

[CosmicCowboy]

The timing couldn't be better for my parents. They're bout to sell their house and move.

Good for them. Hopefully they hit a home run on the sale of their house.

[cantthinkofanything]

"awesome for our economy"

bullshit. It's awesome for the oilcos and their investors, iow, the 1%. The 99% will benefit very little, while their land, water, air, bodies are polluted and sickened.




LOL. You just went too far. That was so stupid that I'm only now realizing how good a troll you've been.

[Drachen]

The timing couldn't be better for my parents. They're bout to sell their house and move.

is it on any land? see if they can separate the mineral rights from the land. LOL

[TeyshaBlue]

Good for them. Hopefully they hit a home run on the sale of their house.

Virtually gurranteed. The realtor mentioned in the article lives 3 houses down from my folks. :lol

[cantthinkofanything]

But I'll also add that most of the time, these shale plays never turn out to be as good as first reported. Usually the area of economically producing wells is cut by more than 50% from the initial maps.

[coyotes_geek]

is it on any land? see if they can separate the mineral rights from the land. LOL

:tu

Exactly what my in-laws did. Sold the house but kept the mineral rights.

[boutons_deux]

much of the land being fracked/fucking is losing resale value.

[Th'Pusher]

"awesome for our economy"

bullshit. It's awesome for the oilcos and their investors, iow, the 1%. The 99% will benefit very little, while their land, water, air, bodies are polluted and sickened.



B, evironmental cost aside, you really can't deny the Eagle Ford Shale has not been a boon to the south Texas economy.

[TeyshaBlue]

is it on any land? see if they can separate the mineral rights from the land. LOL

We already have about a zillion acres (I really don't know how many, it was an old family farm) that produces decent royalties from small, stripper wells. Pretty sure that's gonna get pumped up once the shale is in full play.

[TeyshaBlue]

much of the land being fracked/fucking is losing resale value.

cite?

[TeyshaBlue]

But I'll also add that most of the time, these shale plays never turn out to be as good as first reported. Usually the area of economically producing wells is cut by more than 50% from the initial maps.

yeah, shale development is pretty complex. But, this is a huge field. Gotta yield.

[TeyshaBlue]

much of the land being fracked/fucking is losing resale value.

lol goal post move.

"You've made it abundantly clear that you have not the slightest understanding of the oil and gas business other than what your rss overlords tell you to think. Just stop with the nonsense and do some original research.

My hometown sits right in the middle of this formation. It's mentioned in this article. The city and county will benefit mightily from further exploration....jobs, housing, retail, schools. These are the playgrounds of the 99% that you seem to know so little about."

[coyotes_geek]

We already have about a zillion acres (I really don't know how many, it was an old family farm) that produces decent royalties from small, stripper wells. Pretty sure that's gonna get pumped up once the shale is in full play.

:tu

Gotta love pumping strippers.

[TeyshaBlue]

Big party back in the 70's when the SACROC field pumped it's 1 billionth barrel of oil. We painted a pumpjack gold. :lol

[TeyshaBlue]

:tu

Gotta love pumping strippers.

Those fuckers pump forever. :lol

[cantthinkofanything]

yeah, shale development is pretty complex. But, this is a huge field. Gotta yield.

Seems like it. I think my point was that in many cases, the majors use these fields as a way to pump up reserves and stock prices and the recoverable reserves are rarely as big as first projected.
But whatever. The more holes that can put in the ground, the better for the U.S. energy situation. But it does make it tougher for the small independents to raise money to develop "traditional" plays.

[CosmicCowboy]

We already have about a zillion acres (I really don't know how many, it was an old family farm) that produces decent royalties from small, stripper wells. Pretty sure that's gonna get pumped up once the shale is in full play.

Holy shit! TB is about to be a 1%er!

[Th'Pusher]

Holy shit! TB is about to be a 1%er!
Need to bump that estate tax up to about 90% to ensure he doesn't see too much of it. :lol republicans are the party of self reliance right? TB needs to be self reliant, not live off the spoils of his parents good fortune.

[Drachen]

Holy shit! TB is about to be a 1%er!

Hey TeyshaBlue, I know that we have generally had a mutual respect for each other, but please let me be the first to give you a preemptive "FUCK YOU ASSHOLE" upon hearing this news.

[RandomGuy]

It's not the government. It's all private property/money. Obama is doing everything he can to fuck with the oil industry.

More than a bit of an exaggeration.

Not cozy, but certainly not extremely obstructive.

[LnGrrrR]

I just wonder, when do we "go dry", or at least go close enough to dry that normal folks can't afford oil? 2080? 2180? Just curious.

[Das Texan]

Good. Maybe it will attract some of the fucking morons in the industry and they will all go there, leaving me to deal with a more competent class of human being in the Eagle Ford, then the usual dumbshits I have to deal with on a regular basis.

[boutons_deux]

lol goal post move.

"You've made it abundantly clear that you have not the slightest understanding of the oil and gas business other than what your rss overlords tell you to think. Just stop with the nonsense and do some original research.

My hometown sits right in the middle of this formation. It's mentioned in this article. The city and county will benefit mightily from further exploration....jobs, housing, retail, schools. These are the playgrounds of the 99% that you seem to know so little about."

There are stories about land owners taking the money and moving away since the 24x7 rape of their land renders it unlivable, plus the nearby landowners who don't have drilling see their property values drop. Then there there is huge tax burden on low-population rural counties having to rebuild destroyed roads, and some govt's are wary of the home/rental building boom knowing the boom will end and the buildings will be worthless and eye sores. They've seen it all before.

[RandomGuy]

The timing couldn't be better for my parents. They're bout to sell their house and move.

Don't sell. Rent it out. If the shortage is as acute as they are saying, the rental demand will be more than enough to pay any new mortgage they acquire.

I very, very, very strongly recommend this.

If they want to sell at some point in the future, and it is developing as the article says, they can always kick any tenant out and sell it to lock in value, but renting it would provide a huge boost to cash flows.

Don't take my word for it, spend a bit of money to talk to a financial adviser and outline the issues to them.

PM if you want to know more, or ask questions. Wife was apartment manager, and I did the books for about a decade or so, so I am pretty familiar with the topic.

[Sportcamper]

Anyone here work on an oil rig or know the process to get hired...

[cantthinkofanything]

Don't sell. Rent it out. If the shortage is as acute as they are saying, the rental demand will be more than enough to pay any new mortgage they acquire.

I very, very, very strongly recommend this.

If they want to sell at some point in the future, and it is developing as the article says, they can always kick any tenant out and sell it to lock in value, but renting it would provide a huge boost to cash flows.

Don't take my word for it, spend a bit of money to talk to a financial adviser and outline the issues to them.

PM if you want to know more, or ask questions. Wife was apartment manager, and I did the books for about a decade or so, so I am pretty familiar with the topic.

I don't know about this. You're gambling that the play is as good as they say and housing demand will continue to be strong. If the money is right, they should take it and run IMO. There are plenty of stories about landowners holding out for more money only to have all offers pulled off the table when the play doesn't pan out.

[CosmicCowboy]

Anyone here work on an oil rig or know the process to get hired...

My nephew works for a frac outfit making stupid money and he is dumb as a fucking brick.

[TeyshaBlue]

Need to bump that estate tax up to about 90% to ensure he doesn't see too much of it. :lol republicans are the party of self reliance right? TB needs to be self reliant, not live off the spoils of his parents good fortune.

I've already lost more than I've made. I suck at self-reliance. :lol

[TeyshaBlue]

There are stories about land owners taking the money and moving away since the 24x7 rape of their land renders it unlivable, plus the nearby landowners who don't have drilling see their property values drop. Then there there is huge tax burden on low-population rural counties having to rebuild destroyed roads, and some govt's are wary of the home/rental building boom knowing the boom will end and the buildings will be worthless and eye sores. They've seen it all before.

Ok, so you have nothing. Stories.
I've got stories of oil companies rebuilding roads and via taxes, schools. Humble oil built an entire community of homes and schools in my neck of the woods.
The boom/bust cycle is nothing new to West Texas....we've seen it before and we'll see it again. On balance, it works.

[cantthinkofanything]

Anyone here work on an oil rig or know the process to get hired...


My nephew works for a frac outfit making stupid money and he is dumb as a fucking brick.

so all we know now is that the apple doesn't fall far from the family tree. what was the point CC?

[TeyshaBlue]

Don't sell. Rent it out. If the shortage is as acute as they are saying, the rental demand will be more than enough to pay any new mortgage they acquire.

I very, very, very strongly recommend this.

If they want to sell at some point in the future, and it is developing as the article says, they can always kick any tenant out and sell it to lock in value, but renting it would provide a huge boost to cash flows.

Don't take my word for it, spend a bit of money to talk to a financial adviser and outline the issues to them.

PM if you want to know more, or ask questions. Wife was apartment manager, and I did the books for about a decade or so, so I am pretty familiar with the topic.

I own rental properties now. The last thing I want to do is be a long distance land-lord!

[cantthinkofanything]

I own rental properties now. The last thing I want to do is be a long distance land-lord!

especially for oilfield trash that will tear up shit and leave poop in the gutters and chimney

[TeyshaBlue]

Hey TeyshaBlue, I know that we have generally had a mutual respect for each other, but please let me be the first to give you a preemptive "FUCK YOU ASSHOLE" upon hearing this news.

lol...I aint gonna make a penny off this short term. It will be the basis of my retirement, hopefully.

[cantthinkofanything]

lol...I aint gonna make a penny off this short term. It will be the basis of my retirement, hopefully.

not if Obama has his way with you

[Sportcamper]

My nephew works for a frac outfit making stupid money and he is dumb as a fn brick.

THATS WHAT I AM TALKING ABOUT! How did he get his start? I am told that in North Dakota you drive up there, sleep in your car & apply for any outfit...

[RandomGuy]

especially for oilfield trash that will tear up shit and leave poop in the gutters and chimney

Cost of doing business to take that risk. Price accordingly, and ask for substantial damage deposits.

If it gets really bad, that is what insurance is for. Let their lawyers get recovery from the previous tenant.

Case closed.

[CosmicCowboy]

THATS WHAT I AM TALKING ABOUT! How did he get his start? I am told that in North Dakota you drive up there, sleep in your car & apply for any outfit...

just answered an ad in the newspaper. He had no prior experience. They paid him for a couple of months while they trained him.

[TeyshaBlue]

Anyone here work on an oil rig or know the process to get hired...

http://careers.enterpriseproducts.com/job/Snyder-Technician%2C-Pipeline-%28Crude%29-Snyder%2C-TX-Job-TX-79549/2284551/?feedId=4&utm_source=Indeed&src=JB-10044


http://www.indeed.com/jobs?q=&l=Snyder%2C+TX

[Sportcamper]

TeyshaBlue- Thank you...Very Cool...

[TeyshaBlue]

TeyshaBlue- Thank you...Very Cool...

Hit that second link and enter Big Spring, Andrews, Lamesa, and just for grins maybe, Midland. Ought to give you about a zillion to look at. :lol

[tlongII]

I hope this comes to fruition. It could save our economy.

[baseline bum]

Great news that shale extraction has come so far these last few years. Any idea what the extraction+production costs are per barrel nowadays? Years ago I remember it being prohibitively expensive even with high gas prices.

[baseline bum]

Need to bump that estate tax up to about 90% to ensure he doesn't see too much of it. :lol republicans are the party of self reliance right? TB needs to be self reliant, not live off the spoils of his parents good fortune.

:lol TB gfy

Srs, now you can go on the kayak trips with sharks hunting you like CC

[TeyshaBlue]

:lol TB gfy

Srs, now you can go on the kayak trips with sharks hunting you like CC

I'll be hunting sharks with a solid gold harpoon. /grey poupon

[baseline bum]

I'll be hunting sharks with a solid gold harpoon. /grey poupon

If I was you I'd fly to Alaska to shoot wolves from my chopper with a gold-plated M16

[LnGrrrR]

I'll be paying someone to hunt sharks with a solid gold harpoon. /grey poupon

fify

[baseline bum]

TB man, I could feed you the belt like Mandrake

http://www.gonemovies.com/www/drama/drama/StrangeloveRipper3.jpg

:cry Can't do the shooting since I lost the string in my leg :cry

[TeyshaBlue]

TB man, I could feed you the belt like Mandrake

http://www.gonemovies.com/www/drama/drama/StrangeloveRipper3.jpg

:cry Can't do the shooting since I lost the string in my leg :cry

I fucking love it when a plan comes together. Let's sight that thing in on LnGrrrR. I don't like the way he looks.


Then we can relax with a goblet of chilled blood of peasant children.

Good times!

[baseline bum]

I fucking love it when a plan comes together. Let's sight that thing in on LnGrrrR. I don't like the way he looks.


Then we can relax with a goblet of chilled blood of peasant children.

Good times!

Nah man, Clovis is probably worse than anything that machine gun can do to him tbh.

[CosmicCowboy]

:lmao

[LnGrrrR]

I hate all of you. :toast

[TeyshaBlue]

I hate all of you. :toast
:lmao

[baseline bum]

I hate all of you. :toast

:cry Sorry about sending Brian all that info on you. :cry

[LnGrrrR]

:cry Sorry about sending Brian all that info on you. :cry

Now he knows where I live! *gasp* Thankfully if he has me cornered, I can just expose myself, and the sight of my circumcised dong will surely send him into a state of near catatonia, cringing on the floor in the fetal position.

[CosmicCowboy]

You and M>S should start a class action lawsuit.

[FuzzyLumpkins]

I'm for increased oil production because it is awesome for our economy. It may suck in Detroit but it's great to be in Texas.

And it's stuff like this that makes me think you're an asshole. We got ours so fuck them and the future, right?

[Latarian Milton]

dig it out while its still there imho. the crusts are moving all the time and your not sure where shit's gonna end up being next decade, especially when its fucking fluid that can flow anywhere

[SpursIndonesia]

I think it's in USA best interest to join OPEC and working as a cartel, to make sure every barrel of oil worth $$ and won't be cheap & benefitting its competitor for world leadership, PR of China (which was deprived of this particular natural resource). And it will be the benefit for all if the price of gasoline is expensive enough to give strong incentive for more economical, engine efficient car R&D + the development of alternative energy source, which was renewable. My .02 $. :)

[Latarian Milton]

high gas $ will give abundant fund to terrorist countries as well since there're all kinda rich in this shit, and americans consume more petrolium then any other country which means it'll do nothing but worsening the economic hardship americans have been enduring and making more americans impoverished as a result. and it wouldn't make no impact on the chinks unfortunately, they'll always drain your wealth outta your pockets as long as you don't stop shopping at walmart, and they don't need oil as much as americans do. they'd simply come back to bicycles if gas price rises to such an extent where they cant afford it, but in america you can't go nowhere w/o a car

[Halberto]

God bless horizontal drilling, it just might end up saving our country from economic collapse.

[CosmicCowboy]

God bless horizontal drilling, it just might end up saving our country from economic collapse.

X2

[CosmicCowboy]

At least for the states that have private property and production opportunities. It's gonna get ugly for a lot of the country. Texas is looking awesome.

[Drachen]

At least for the states that have private property and production opportunities. It's gonna get ugly for a lot of the country. Texas is looking awesome.

TEXACA FUCK YEAH

[CosmicCowboy]

FUCK DEM YANKEES. LET DEM FREEZE IN THE DARK...:lol

[Das Texan]

Keeps my mortgage paid.


thanks!

[CuckingFunt]

God bless horizontal drilling, it just might end up saving our country from economic collapse.

http://img827.imageshack.us/img827/5963/slantdrilling.jpg

[baseline bum]

Haven't noticed TB around lately. I think with his oil money his 1% ass got upgraded to the richer internet where Megaupload is still alive and the RIAA sends YOU music.

[TeyshaBlue]

Haven't noticed TB around lately. I think with his oil money his 1% ass got upgraded to the richer internet where Megaupload is still alive and the RIAA sends YOU music.

http://i3.photobucket.com/albums/y64/teyshablue/If-SOPA-passes-Bender-has-a-plan.jpg

lol....I've been shut in a studio for three days. But you'll be happy to know that I had a special set of drums flown for the session that were made from the bones of peasants!

[Drachen]

I am thinking about taking the Masters that I will get in two weeks and using it to turn a wrench in eagle ford. No one will hire me anyway in the field in which I want to work and a buddy of mine just started with Rockwater 5 weeks ago and is making 10k+ each month. My biggest problem is that I like my family and the "shifts" are 5 weeks on and a couple of days off.

[Wild Cobra]

I suggest you take the job, and schedule interviews for your week off.

It will be easier to get a job in the field you studied if you are already employed, in any job.

[CosmicCowboy]

I am thinking about taking the Masters that I will get in two weeks and using it to turn a wrench in eagle ford. No one will hire me anyway in the field in which I want to work and a buddy of mine just started with Rockwater 5 weeks ago and is making 10k+ each month. My biggest problem is that I like my family and the "shifts" are 5 weeks on and a couple of days off.

At least you will have a few months before it gets REALLY hot down there.

[TeyshaBlue]

I am thinking about taking the Masters that I will get in two weeks and using it to turn a wrench in eagle ford. No one will hire me anyway in the field in which I want to work and a buddy of mine just started with Rockwater 5 weeks ago and is making 10k+ each month. My biggest problem is that I like my family and the "shifts" are 5 weeks on and a couple of days off.

Dude...do it for a few months and rack back some cash. There's gonna be more than one of these jobs open.

[Drachen]

I suggest you take the job, and schedule interviews for your week off.

It will be easier to get a job in the field you studied if you are already employed, in any job.

.never mind.

[Drachen]

.never mind.

[CosmicCowboy]

sorry for being a big fuckin whiny bitch, but that post started out with me telling WC that I know HOW to get a job and went too far.

It really sucks when employers hold old shit like that against people. Hope you don't give up and find a good one.

[TeyshaBlue]

.never mind.

Probably not a bad idea.

btw, there are solution sets out there for a particular set of challenges. I know something about them.

[CosmicCowboy]

Last edited by Drachen; 10 Minutes Ago at 01:54 PM. Reason: erasing evidence of being a whiny bitch


fucking criminal! :lol

[Wild Cobra]

I hope the experience gets passed on to others so they don't make similar mistakes.

[baseline bum]

I am thinking about taking the Masters that I will get in two weeks and using it to turn a wrench in eagle ford. No one will hire me anyway in the field in which I want to work and a buddy of mine just started with Rockwater 5 weeks ago and is making 10k+ each month. My biggest problem is that I like my family and the "shifts" are 5 weeks on and a couple of days off.

That's why they import hookers to those boom towns though. You gotta look on the bright side of life.

[Drachen]

fucking criminal! :lol

Hey, some things never change, am I right?

[Drachen]

That's why they import hookers to those boom towns though. You gotta look on the bright side of life.

Yeah, but I would have to go first, I couldn't stand to go after a bunch of other guys. What do you take me for, a Celtics fan??

[baseline bum]

Yeah, but I would have to go first, I couldn't stand to go after a bunch of other guys. What do you take me for, a Celtics fan??

:lol

qUQsozpZUSw

[LnGrrrR]

Yeah, but I would have to go first, I couldn't stand to go after a bunch of other guys. What do you take me for, a Celtics fan??

:wow

:nope

:flipoff

:cuss

:ihit

[Drachen]

:wow

:nope

:flipoff

:cuss

:ihit

I'm sorry man, I honestly never even saw the thread that people reference, but the joke was right there. I had to take a swing. :lol

[LnGrrrR]

I'm sorry man, I honestly never even saw the thread that people reference, but the joke was right there. I had to take a swing. :lol

Eh, it's all good. Just as long as you stay out of the Clovis jokes... :lol

Speaking of which, I should be finding out where I'm going any day now... *whistles nonchalantly*

[TeyshaBlue]

Base Housing: Clovis.
http://2.bp.blogspot.com/_eex_HaVuz6A/SjlJSom4K6I/AAAAAAAAArI/--PCPcNpBiI/s400/nm+clouds.jpg

[CosmicCowboy]

Shopping Mall: Clovis

http://history8pm.weebly.com/uploads/3/1/3/4/3134981/9940009_orig.jpg

[Drachen]

Base Shared NCO/Officer's club: Clovis
http://2.bp.blogspot.com/_eex_HaVuz6A/SjlJSom4K6I/AAAAAAAAArI/--PCPcNpBiI/s400/nm+clouds.jpg

[TeyshaBlue]

https://static.prtst.net/asset-proxy/f924c6e72648ef7a3d1a37c22d6c2b9e6f2f3c09/687474703a2f2f6d6f6465726e76657370612e636f6d2f7069 782f75706c6f6164732f695f6c696b655f77686572655f7468 69735f7468726561645f69735f676f696e675f736869705f68 656164696e675f696e746f5f657069635f73746f726d5f3133 332e6a7067/http://modernvespa.com/pix/uploads/i_like_where_this_thread_is_going_ship_heading_int o_epic_storm_133.jpg

[Drachen]

Base Civilian Welcoming Committee: Clovis
http://kfda.images.worldnow.com/images/7244726_BG1.jpg

Base Civilian Aloha Committee: Hawaii
http://famoustourisms.com/wp-content/uploads/2011/06/hawaiian-hula-girl.jpg

ok that's all (especially since I am just making committees and stuff up now).

[TeyshaBlue]

:lmao:lmao:lmao

[LnGrrrR]

I hate all of you. So, so much. :lmao

[baseline bum]

Promise to send me one?

http://www.careyspostcards.com/3828-5266-large/clovis-nm-large-letter.jpg

[baseline bum]

I heard the deer dump is a great Clovis tradition

http://www.wildlife.state.nm.us/enforcement/images/DeerdumpedatClovisFarminDecember2004_000.jpg

[baseline bum]

Only $179,000 to own a piece of the American Dream in sunny Clovis

http://i.imgur.com/ehXGE.jpg

[baseline bum]

http://clovisnm.org/images/photos/relocate.png

We're happy that you chose Clovis to live, work and play! Clovis is an outstanding community with a heart as big as our skies. Welcome to Clovis and enjoy your stay!

[baseline bum]

Hi Tom,

I spent a few days with my sister in Clovis earlier this month. While I didn't make it to Portales this trip, I can tell you that Clovis seems to be doing very well. There are several new housing developments either under construction or just completed, on the northeast side of town. The commercial district continues to expand north on Prince Street, now stretching out beyond Llano Estacado. Any new hotels being built in Clovis are now on the north side along Prince instead of on the southeast side along Mabry (US 60/84). And you're right, the new lease on life at Cannon AFB :toast means good things for the Clovis economy.

Prince Street was being resurfaced during my visit, and the entire commercial district had a "fresh and clean" look to it.

My sister lived in Portales back in the 60's, but I haven't visited there much since then. I wish I could give you a report on it, but cannot. I do know that the Clovis-Portales area is now home to several commercial dairy operations, which relocated from California for one reason or another. At times I could catch a whiff but it wasn't so strong to be annoying. I didn't notice the ethanol "fragrance" during my visit.

If your travels take you back to Clovis/Portales, I think you'll be pleased with what you find. While Clovis hasn't grown into another Lubbock, it certainly hasn't dried up and blown away in the high plains winds, either!

[baseline bum]

Clovs' most famous residents

http://upload.wikimedia.org/wikipedia/en/f/fe/Seven_clovis_escapees.jpg

[LnGrrrR]

Having a good time BB? :lmao

[baseline bum]

Having a good time BB? :lmao

Don't feel bad son; there's lots of cheating military wives you can score with tbh

http://sittercity.cachefly.net/static/img/userphoto/28/04/70/7_m.png

[Wild Cobra]

Damn. I had it wrong all along. I thought this was the NCO club at Clovis:

http://www.raystownprimitives.com/outhouse2.jpg

[mingus]

My dad is invested in this South Texas oil shit years ago and is now making around 150,00 - 200,000 monthy from it. Crazy.

[DMC]

Save the oil so we will have something to smolder once the nuclear holocaust starts.

[DMC]

I heard the deer dump is a great Clovis tradition

http://www.wildlife.state.nm.us/enforcement/images/DeerdumpedatClovisFarminDecember2004_000.jpg
They had a bit too much to drink last night. They will sleep it off. Nothing else to do.

[Winehole23]

Chesapeake Energy’s (CHK (http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=CHK)) Serenity 1-3H well near Oklahoma City came in as a gusher in 2009, pumping more than 1,200 barrels of oil a day and kicking off a rush to drill that extended into Kansas. Now the well produces less than 100 barrels a day, state records show. Serenity’s swift decline sheds light on a dirty secret of the oil boom: It may not last. Shale wells start strong and fade fast, and producers are drilling at a breakneck pace to hold output steady. In the fields, this incessant need to drill is known as the Red Queen, after the character in Through the Looking-Glass who tells Alice, “It takes all the running you can do, to keep in the same place.”


The U.S. is producing 7.8 million barrels of oil a day, more than it has in a quarter-century. Crude from shale formations has cut reliance on imports and put the U.S. closer to energy independence than it’s been since 1989. The International Energy Agency predicted last year that the U.S. would overtake Saudi Arabia by 2020 as the world’s largest producer.


Whether current production can hold up is the subject of debate. David Hughes, a geoscientist and president of Global Sustainability Research, has examined the life span of shale wells. “The Red Queen syndrome just gets worse and worse and worse,” he says. “The higher production goes, the more wells you need to offset the decline.”


The U.S. Energy Information Administration estimates that about 29 percent of U.S. oil production today comes from so-called tight oil formations. These dense layers of rock and shale are cracked open by blasting water, sand, and chemicals deep underground, creating fissures that allow the oil to flow into horizontal pipes, some of them thousands of feet long. Production from wells bored into these formations declines by 60 percent to 70 percent in the first year alone, says Allen Gilmer, chairman and chief executive officer of Drillinginfo, which tracks the performance of U.S. wells. Traditional wells take two years to slide 50 percent to 55 percent, and they can keep pumping for 20 years or more.

http://www.businessweek.com/articles/2013-10-10/u-dot-s-dot-shale-oil-boom-may-not-last-as-fracking-wells-lack-staying-power

[boutons_deux]

So they drill a well, make a lot of money for a little while, then stick the tax payers with "depletion allowance"? :lol

http://en.wikipedia.org/wiki/Depletion_(accounting)

[TeyshaBlue]

So they drill a well and pump millions of dollars into the local tax base and create jobs. Then SOME of the wells are capped when production falls, often reopened later, and the remainder may qualify for a depletion allowance, depending upon how the lease was structured. Yeah, thats a real problem.:lol
OTOH, My family owns land covered with little stripper wells that have been producing for 40+ years with an expected life of another 30 or 40. No depletion allowances there.:lmao

[TeyshaBlue]

In Texas, the RRC places fairly strict production limits on leases....primarily to extend the life of the formation. When I was in the oil and gas business, we hit plenty of wells capable of producing 250-300+ bbls/day. We were never allowed to open them up to those levels tho. It'll be interesting to see how the shorter lifespan of some of these tight formations affect RRC allowables in Tx.

[baseline bum]

This thread was way more fun back when we thought Lngrrr was going to the Land of the Blue Sky tbh

[TeyshaBlue]

Troof.

[Halberto]

In Texas, the RRC places fairly strict production limits on leases....primarily to extend the life of the formation.

I always had a problem with this... Shouldn't there be a little bit of communication between wells (as long as they're wells from the same company)? It's basically lowering the EUR and also pushing operators to frac even more.

[CosmicCowboy]

http://www.businessweek.com/articles/2013-10-10/u-dot-s-dot-shale-oil-boom-may-not-last-as-fracking-wells-lack-staying-power

ONLY 100 barrels a day? 3.65 million a year? Pffft that's just beer money.

[boutons_deux]

IIRC, before this fracking boom, the avg for a US oil well was 5 barrels/day.

[TeyshaBlue]

Cite?

Certainly not the pre fracking avg for Tx. Im also curious as to the date fracking became a factor in your stats.

[TeyshaBlue]

Halberto.....It's formation specific as I recall. Doesnt matter who's drilling.....the aggregate production for the entire field =xx bbls/month. I have been out of the industry for awhile tho. You're probably better connected wirth more relevant info.

[Trill Clinton]

i have a question to the oil experts in this thread: is a $500 per month offer from an oil company to let them run pipe through your land a fair offer or nah? besides getting a lawyer, what else is there to be done?

[TeyshaBlue]

's not bad depends on how long a run and if there's any frontage language. .Halberto will have a better feel for this....

[TeyshaBlue]

Cite?

Certainly not the pre fracking avg for Tx. Im also curious as to the date fracking became a factor in your stats.

Yeah....'s what I thought.

[CosmicCowboy]

i have a question to the oil experts in this thread: is a $500 per month offer from an oil company to let them run pipe through your land a fair offer or nah? besides getting a lawyer, what else is there to be done?

Is this a temporary water pipe for a drilling site?

[boutons_deux]

Yeah....'s what I thought.

google only bring up all the recent stuff from fracking, but I was amazed to read that 50000 wells in USA averaged 5 b/d.

for Texas: http://www.rrc.state.tx.us/data/production/oilwellcounts.php

it's certainly plausibe if you take the worst 50K wells in USA,

[boutons_deux]

Bakken is hugely productive?

The number of operating wells in the US has been increasing rapidly while the corresponding productivity (considering all the wells in the US) has declined. There are about 9,000 wells in North Dakota (analyst expect the number to go up to 50,000 by 2030). The state produced more than 800,000 barrels of oil a day in May, a new record. This averages to 89 b/d from each well in North Dakota, hence the need to constantly add new wells in order to maintain a sustainable level of output.

http://www.oil-price.net/en/articles/shale-high-depletion-rates-in-bakken.php

[CosmicCowboy]

I'm not sure what your point is, boo bird. I do know that the last sentence in the clip you posted is not logical. I see no causation between an 89 barrel a day average and "hence the need to constantly add new wells in order to maintain a sustainable level of output."

[boutons_deux]

I'm not sure what your point is, boo bird. I do know that the last sentence in the clip you posted is not logical. I see no causation between an 89 barrel a day average and "hence the need to constantly add new wells in order to maintain a sustainable level of output."

straw man, Cosmic Crotch Rot

I didn't write the article. The need to drill 50K wells by 2030 comes from the objective of high total levels of output from the aggregate of wells that average a piddling 89 b/d.

[CosmicCowboy]

A "piddling 89 b/d?"

:lmao

If I had just one piddling well on my property like that I would be one happy sumbitch. Landowner royalty would be $800,000 a year.

[Th'Pusher]

http://www.rrc.state.tx.us/data/production/oilwellcounts.php

[Trill Clinton]

Is this a temporary water pipe for a drilling site?

i'm not sure right now. but what if it was?

[CosmicCowboy]

i'm not sure right now. but what if it was?

Well, if it's an underground oil/gas line they can't just pay monthly rent. They have to get it permitted and buy deeded easement. If it's a water line that's only going to be there on the surface for a couple of months it's just a matter of what you can negotiate. You can try to ask more than they offered but they also have the option of going around you on your neighbors property if you ask too much.

[TeyshaBlue]

google only bring up all the recent stuff from fracking, but I was amazed to read that 50000 wells in USA averaged 5 b/d.

for Texas: http://www.rrc.state.tx.us/data/production/oilwellcounts.php

it's certainly plausibe if you take the worst 50K wells in USA,

You are aware that the are other recovery methods besides fracking, right?
Because, if you arent, you probably need to research that a little before you start pegging production numbers to fracking. Additionally you might want to establish a fracking time line.

IOW, get a clue.

[TeyshaBlue]

Well, if it's an underground oil/gas line they can't just pay monthly rent. They have to get it permitted and buy deeded easement. If it's a water line that's only going to be there on the surface for a couple of months it's just a matter of what you can negotiate. You can try to ask more than they offered but they also have the option of going around you on your neighbors property if you ask too much.

CC with the goods.:toast

[CosmicCowboy]

Pipeline easements are a big deal and you should hire a professional. NEVER sign the deal they bring to the table first. It's not the price, it's all the other stuff. Rule of thumb on price is take the size of pipeline in inches and multiply that by feet. Example: If it's a 12" pipeline and it crosses 1000' of your property the easement should cost about $12,000 plus cost of remediation after pipeline is installed. You want to make the easement for ONE pipeline and the easement dies when the pipeline quits flowing hydrocarbons. If they want to add pipelines later that's a new negotiation.

[Trill Clinton]

thanks, cc

[Das Texan]

i have a question to the oil experts in this thread: is a $500 per month offer from an oil company to let them run pipe through your land a fair offer or nah? besides getting a lawyer, what else is there to be done?



too many variables to gives a blanket answer.

[cantthinkofanything]

ONLY 100 barrels a day? 3.65 million a year? Pffft that's just beer money.

I didn't read the article and I'm not disputing profitability but when you take out royalty, ORRI, tax, transportation, and expenses, you're a long way off. Plus you rely on being able to drill consistently good wells. Not to mention the crazy bonus and brokerage $. And the mechanical risk and risk of having some high motherfucker of charge if million dollar decisions. And these plays are always smaller that first anticipated. Maybe I missed your point but it's not that fucking easy.

[cantthinkofanything]

So they drill a well, make a lot of money for a little while, then stick the tax payers with "depletion allowance"? :lol

http://en.wikipedia.org/wiki/Depletion_(accounting)

Lol. You're right. Obamacare sux.

[boutons_deux]

Lol. You're right. Obamacare sux.

ACA doesn't suck, it will be a huge hit, a huge step forward for America's humanitarianism towards its own citizens.

Proof? HOW viciously the Repugs, duped assholes on ST, Fox Repug networks, etc, etc are lying about it and sabotaging it, esp in red states.

The Repugs know ACA success along with demographics favoring Dems pushes them out of power nationally for a long time. The Repugs will have their shitty little polluted, right-to-work-for-less states with high proportions of uninsured, undereducated, un/underemployed, impoverished, but not much else. Feds have to find a way to stop reimbursing non-ACA states for their crazy ER expenses.

[TeyshaBlue]

ACA in an oil tlhread.:lol
boutons, you're so easy.:lmao

[boutons_deux]

ACA in an oil tlhread.:lol
boutons, you're so easy.:lmao
TB :lol I didn't bring up, your suck-buddy CTOA did.

[TeyshaBlue]

Yet you felt copelled to throw out three prargraphs of your moronic talking points.
Remember, the first step to recovery is admitting you have a problem.

[Winehole23]

appreciate the informative replies from Halberto, TB and CC. :tu

[CosmicCowboy]

Just read an article...Texas has almost 25% of the oil rigs in the WORLD turning right now.


Texas has 848 drilling rigs hunting oil and gas – 47.7 percent of U.S. rigs, 24.6 percent of all rigs worldwide, according to the latest Baker Hughes rig count.

The Permian Basin in West Texas has the biggest share – by a bunch – of the state’s drilling rigs, with 386.

The Eagle Ford Shale in South Texas has 237 rigs, the Granite Wash in the Panhandle has 48 rigs, the Barnett Shale in North Texas has 30 rigs and the Haynesville/Bossier Shale in East Texas has 21 rigs. (The rest of the Texas rigs are scattered about the state working in “other” formations, according to Baker Hughes).

[Halberto]

^I believe it and I expect that number to climb, too. Competition for leases in East Texas is near cutthroat. I've tried developing prospects only to find out the area was grabbed by 2 companies (I will not name) before I can get a half decent evaluation... I wish I had mineral rights in East Texas, those people are getting rich.

[ElNono]

oil related:

North Dakota pipeline spill raises questions amid state's oil boom (http://www.latimes.com/nation/la-na-oil-spill-20131023,0,6531493.story#axzz2icUEZ5US)

[TDMVPDPOY]

if texas has 25% of the worlds oil rigs, why the rush for you clowns to dig up and used up whatever reserves you have?

[boutons_deux]

if texas has 25% of the worlds oil rigs, why the rush for you clowns to dig up and used up whatever reserves you have?

BigOil takes as much money now as they can, while bringing forward the point when oil wil be scarce and VERY expensive and BigOil will extract even more $Ts.

[xmas1997]

We sold the land too but kept the mineral rights. I'm sure glad of that.

[Halberto]

BigOil takes as much money now as they can, while bringing forward the point when oil wil be scarce and VERY expensive and BigOil will extract even more $Ts.

You betcha, those evil scumbags are diabolically plotting for this to happen AFTER they're dead.

TDMVPDPOY (http://www.spurstalk.com/forums/showthread.php?p=6896338#post6896338), hothe honest answer you're looking for is that the supply is getting larger by the day with discoveries in just about every state. And of course, they'd like as much money as they can get.

[TeyshaBlue]

Cline Shale update.....Got a letter from a production company. They offered $750,000 for current and future production. Called the phone # in the letter to see where their head was. After about 15 minutes of shop talk I asked them if that 750k figure was monthly or annual. :lol

They thought that was funny too.

[CosmicCowboy]

Cline Shale update.....Got a letter from a production company. They offered $750,000 for current and future production. Called the phone # in the letter to see where their head was. After about 15 minutes of shop talk I asked them if that 750k figure was monthly or annual. :lol

They thought that was funny too.

How many acres and what percentage of minerals?

[Winehole23]

After last week’s moderate drop in rig count, the amount of horizontal oil rigs seems to implode this week.



The U.S. land rig count was down 37 this week and the land horizontal rig count was down 30.


Is this capitulation? Hard to say but it's the biggest drop since March 2015. And, the Fayetteville Shale play officially bit the dust this week with zero rigs for the first time since the play began in 2005.
The tight oil horizontal rig count was down by 20 and the key Bakken-Eagle Ford-Permian HRZ rig count was down by 14. The Bakken lost 3 rigs, the Eagle Ford, 4, and the Permian, 7.


Shale gas lost 8 HRZ rigs. The Haynesville lost 2, the Marcellus, 6, the Utica 1, the Fayetteville, 1. The Woodford and Barnett each gained 1 rig.

http://oilprice.com/Energy/Crude-Oil/Rig-Count-Capitulation.html

[Wild Cobra]

Maybe they have to reduce the supply to increase the selling price.

[Winehole23]

more likely to stop the bleeding. shale oil is relatively capital intensive to produce.

[boutons_deux]

more likely to stop the bleeding. shale oil is relatively capital intensive to produce.

Red Queen, decline is so rapid, you have to drill $$$ more wells to keep production stable

"Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!"

A headline from last January

North Dakota Admits Half Its Shale Regions Below Breakeven
http://www.zerohedge.com/news/2015-01-10/north-dakota-mineral-resources-dept-admits-half-its-shale-regions-below-breakeven

[Winehole23]

http://www.ritholtz.com/blog/wp-content/uploads/2015/12/breakeven.png (http://www.ritholtz.com/blog/wp-content/uploads/2015/12/breakeven.png)
Source: The Guardian (http://www.theguardian.com/business/2015/dec/30/oil-iran-saudi-arabia-russia-venezuela-nigeria-libya)

[SpursforSix]

http://www.ritholtz.com/blog/wp-content/uploads/2015/12/breakeven.png (http://www.ritholtz.com/blog/wp-content/uploads/2015/12/breakeven.png)
Source: The Guardian (http://www.theguardian.com/business/2015/dec/30/oil-iran-saudi-arabia-russia-venezuela-nigeria-libya)

Break even point for what? A country's budget?

[SpursforSix]

Sorry...just clicked the link. Not sure that will determine what OPEC does. They put themselves in a tough spot. As well as many US producers. But I suspect that many of the US producers that are facing financial ruin are going to be producing as much as they can just to service their debt. Maybe the same with the OPEC countries that are seeing their upside down budgets.

[boutons_deux]

http://www.bloomberg.com/image/iXaVTKmyvJfo.jpg

http://www.bloomberg.com/news/2014-10-17/oil-is-cheap-but-not-so-cheap-that-americans-won-t-profit-from-it.html

[Winehole23]

permabear Stockman throws cold water on buying the dip:


The US oil patch is heading for a debt conflagration like never before with more than one-third of industry facing bankruptcy, according to a recent Wall Street Journal survey.


Crude-oil prices plunged more than 5% on Monday to trade near $30 a barrel, making the specter of bankruptcy ever more likely for a significant chunk of the U.S. oil industry.


Three major investment banks— Morgan Stanley (http://quotes.wsj.com/MS), Goldman Sachs Group Inc. andCitigroup (http://quotes.wsj.com/C) Inc.—now expect the price of oil to crash through the $30 threshold and into $20 territory in short order as a result of China’s slowdown, the U.S. dollar’s appreciation and the fact that drillers from Houston to Riyadh won’t quit pumping despite the oil glut.


As many as a third of American oil-and-gas producers could tip toward bankruptcy and restructuring by mid-2017, according to Wolfe Research…..


More than 30 small companies that collectively owe in excess of $13 billion have already filed for bankruptcy protection so far during this downturn, according to law firm Haynes & Boone.


Morgan Stanley issued a report this week describing an environment “worse than 1986” for energy prices and producers, referring to the last big oil bust that lasted for years. The current downturn is now deeper and longer than each of the five oil price crashes since 1970, said Martijn Rats, an analyst at the bank.
Needless to say, the reason that this could be the worst oil industry crash since 1970 is that the bubble which preceded had no precedent, either. The central bank driven scramble for yield resulted in what amounted to an insane inflow of debt into an industry that is inherently risky and subject to massive cyclical swings in commodity prices.


Indeed, the juxtaposition of the 20004-2009 oil price chart with the staggering $150 billion debt increase in the North American E&P industry alone says it all. After the thundering $100 per barrel oil price collapse between July 2008 and early 2009, no honest and properly priced debt market would have ever advanced that much debt to shale and tar sands producers in a world where the marginal barrel from Saudi Arabia has a lifting cost of less than $15 per barrel.http://davidstockmanscontracorner.com/billary-buddy-marc-lasrys-last-rodeo-the-jig-is-up-on-25-years-of-bottom-fisher-bailouts/

[Winehole23]

alarms flashing red at RBS: "sell everything but high quality bonds"


RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel.


The bank’s credit team said markets are flashing stress alerts akin to the turbulent months before the Lehman crisis in 2008 (http://www.telegraph.co.uk/finance/recession/3917584/Lehman-Brothers-collapse-How-the-worst-economic-crisis-in-living-memory-began.html). “Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small,” it said in a client note.



Andrew Roberts, the bank’s research chief for European economics and rates, said that global trade and loans are contracting, a nasty cocktail for corporate balance sheets and equity earnings. This is particularly ominous given that global debt ratios have reached record highs.



“China has set off a major correction and it is going to snowball (http://www.telegraph.co.uk/finance/china-business/11854084/China-leading-world-towards-global-economic-recession-warns-Citi.html). Equities and credit have become very dangerous, and we have hardly even begun to retrace the ‘Goldlocks love-in’ of the last two years,” he said.

http://davidstockmanscontracorner.com/narrow-door-crowded-hall-rbs-says-sell-it-all/

[CosmicCowboy]

yeah it's gonna be a great year to go shopping. cash will be king.

[Winehole23]

yeah it's gonna be a great year to go shopping. cash will be king.sure, if you've got the cash. Stockman thinks the downturn could be as bad or worse than 08-09.

[Winehole23]

Red Queen, decline is so rapid, you have to drill $$$ more wells to keep production stable

"Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!"

A headline from last January

North Dakota Admits Half Its Shale Regions Below Breakeven
http://www.zerohedge.com/news/2015-01-10/north-dakota-mineral-resources-dept-admits-half-its-shale-regions-below-breakeven


market share doesn't mean shit if you can't service your debt. If the rate of return keeps falling, a lot of companies are too leveraged to stay in business.

[Nbadan]

Going with High quality bonds will minimize the blow...fairly good advice until this China problem blows over....

[boutons_deux]

Oil drillers face $102 billion cash shortfall in 2016


http://fuelfix.com/blog/2016/01/13/oil-drillers-face-102-billion-cash-shortfall-in-2016/#36696101=0

[CosmicCowboy]

Compelling case for Saudi Arabia’s oil sale

One of the more intriguing developments in these earliest moments of 2016 has been last week’s disclosure by Saudi Arabia’s deputy crown prince that the kingdom is considering an initial public offering of shares in its state-owned Aramco, the world’s biggest and most influential oil exporter.

Crown prince Mohammed bin Salman told The Economist last week that a sale of shares in Aramco was being reviewed and was something he was personally enthusiastic about.
“I believe it is in the interests of the Saudi market, and it is in the interest of Aramco, and it is in the interests of more transparency and to counter corruption, if any, that may be circling around Aramco,” he said.
Those comments have generated enormous excitement within the investment banking community, scrambling to get access to what would, if it happened and if Aramco was listed in its entirety, a massive and league ladder-distorting event even if only a fraction of Aramco’s ownership were on offer. Valuations of the sprawling group range from $US1 trillion to $US10 trillion.
There are sceptics of the notion that the Saudis would allow external ownership of an entity that is the key to the kingdom’s wealth, which is enmeshed into all sections of the kingdom’s economy and society and fundamental to its fragile political stability and whose strategies and reserves are regarded as state secrets.
There also those who believe an IPO of all of Aramco would be too much, too complicated and carry far too many governance issues because of its entanglement in Saudi Arabia’s domestic economic and political strategies. A float of its downstream assets — its refineries and petrochemical complexes — would be more digestible and executable.

The most interesting question posed by the prince’s confirmation that an IPO of Aramco is even being considered is: why now?

With an oil price of $US31.55 a barrel overnight and some respectable forecasts of a price between $US20 and $US25 a barrel, why would the Saudis contemplate cashing out an asset, or at least a slice of it, that generated 85 per cent to 90 per cent of its revenues? An offering when the oil price was above $US100 a barrel would have made more sense.

A possible explanation might be because it needs the money.
It was the Saudi-led OPEC that punctured the price by expanding production into an oversupplied market it what has been regarded as an attempt to undermine the economics of the US shale oil and gas sector, a strategy that is taking longer and costing more than anyone might have anticipated.
US shale not only represented a threat to OPEC’s dominance of the market for oil but the prospect of US oil self-sufficiency had, from the Saudi perspective, adverse geopolitical implications. It now looks as though the Saudis are preparing for the long haul, which wouldn’t auger well for the prospect of a near-term recovery in oil prices.
The oil price has been decimated by continuing oversupply, as have Saudi revenues and reserves.
The Saudis’ massive reserves fell by about $US85 billion last year and the rate of decline has been accelerating as the oil price continues to fall.
While the kingdom does still have about $US650bn of reserves, its recent budget deficit of 15 per cent of GDP and the measures it has taken to address the shortfall — higher petrol prices, reduced spending, the introduction of a value-added tax on non-essential items and the foreshadowed privatisations or sales of airports and other state assets — signals the level of concern about the country’s deteriorating finances.
Oil and the largesse it has enabled Saudi rulers to distribute has been a critical factor to the stability of a ruling family that has been in power for more than 80 years.
It is improbable that concerns about corruption would lead to a decision to offer outsiders shares in Aramco, or that transparency would necessarily be seen as a virtue for an organisation whose detail the kingdom has deliberately kept opaque.
There does, however, appear to be a desire within the new leadership that emerged last year after the death of King Abdullah to intensify the existing efforts to create a more diversified economy. That could fit with Aramco’s own ambition of vastly expanding its downstream business and diversifying its geographical base.
It makes sense for the Saudis to be less reliant on oil exports and less exposed to fluctuations in the oil price, particularly if they see the combat with US shale and other non-OPEC oil producers as a long-term fight rather than the swift knockout they might originally have envisaged.
Shale oil has proved far more resilient at low oil prices than anyone might have anticipated and any bounce back in the price would inevitably see US onshore oil production rise quite quickly.
An obvious conclusion from the Saudis’ musing about a float of Aramco, and not a positive one for higher-cost oil and gas producers anywhere, is that they want a war chest to maintain the effort to drive out competitive production.
A more intriguing explanation, or strand to what is probably a more complex set of motivations, is that the Saudis have looked at the size of Aramco’s reserves, thought to be about 260 billion barrels of proven reserves, and thought about their value in the long term.
The most recent OPEC analysis of the outlook for the oil industry envisaged a long-term recovery in prices against the backdrop of demand for energy that could grow at about 1.5 per cent a year.
While it expected fossil fuels to continue to dominate global energy out to 2040, with a 78 per cent market share, oil’s share of the market was seen to fall from more than 30 per cent today to about 25 per cent.
Gas and renewables would experience growing market shares.
Current world oil consumption is around 35 billion barrels a year, with the Saudis accounting for about 10 per cent of that. Aramco’s proven reserves would, at that rate, last about 75 years and it would seem reasonable to assume that it has potential reserves beyond that.
The Bank of England’s Mark Carney gave a speech last year in which he said one of the biggest risks for financial markets was the possibility that much of the world’s energy assets could end up being worthless, with policy action to promote a transition towards a low-carbon economy having the potential to cause a fundamental reassessment of oil companies’ assets.
While that might be a long way off, even if OPEC’s expectations of continued fossil fuel dominance in 2040 prove prescient, if you’re sitting on 75 to 100 years of oil reserves and watching the painful and so-far less-than-successful process towards a global agreement of limiting carbon emissions — and the disinvestment starting to occur within the coal sector — starting the process of reducing the risk created by such an overwhelming dependence on oil might be seen as prudent.
Thus there are some short-term pressures and some longer-term scenario planning that might be motivating the Saudis to consider selling a slice, probably a small one, of their best asset near the bottom of the market.
The immediate financial impact of low oil prices on Saudi Arabia’s economy at a time of political threat, a desire to modernise and diversify that economy and the possibility of taking out some insurance against the long-term threat of policy responses to concerns about carbon emissions at least make the outlines of a case for starting to monetise Aramco.

The Australian
January 12, 2016

[boutons_deux]

Anybody have a detailed xray of Aramco's finances, balance sheet, history? From what I read, NOBODY really knows much about Aramco.

[CosmicCowboy]

Anybody have a detailed xray of Aramco's finances, balance sheet, history? From what I read, NOBODY really knows much about Aramco.

Well, if they want to cash out on an IPO they are gonna have to disclose.

[boutons_deux]

Well, if they want to cash out on an IPO they are gonna have to disclose.

Hillary is a liar, but you'll believe the Arabs.

[CosmicCowboy]

Hillary is a liar and you are fucking dumb as a brick.

[Winehole23]

Energy executives and their bankers are bracing for a prolonged downturn that could remake the energy industry in a way not seen since the turmoil of the late 1990s gave rise to mega-mergers like Exxon Mobil.

If prices hold at such low levels — oil traded near $28 on Tuesday — as many as 150 oil and gas companies could file for bankruptcy, according to IHS, an energy research firm.

While that represents a relatively small slice of the overall industry, there are hundreds of other companies that had piled on debt to grow from tiny start-ups into significant players in the nation’s shale oil boom. Now they are likely to be acquired or their assets sold off. As much as a third of the oil industry could be consolidated as a result of the downturn, according to one estimate.


“Today our goal is to survive,” Danny Campbell, chairman of the Permian Basin Petroleum Association, began his welcoming remarks at a dinner here for oil executives last month. “Keep your name in the phone book and your debt low.”

http://www.nytimes.com/2016/02/10/business/dealbook/as-oil-prices-plummet-mounting-debt-catches-up-with-us-producers.html

[TeyshaBlue]

This particular bust has been devastating in my neck of the woods. Layoffs, service companies shuttered, businesses gone. Its surreal in its speed and severity. Most know to prepare for the inevitable bust that follows the boom but that cycle used to take years...not months. Nobody was prepared for the Saudis to glut the market. Now Iran gets to open its spigots. Not going to be pretty.

[boutons_deux]

it's not only companies going bust, but weren't many of them heavily junk leveraged? so the investors are also getting screwed.

I remember when housing was so tight in Eagle Ford that the hotel outfits didn't want to build because they knew a bust was coming sooner or later, and then they'd be stuck with hotels, motels with no occupants.

[TeyshaBlue]

The debt being piled up isn't just the oilco's. New hotels, apt complexes, restaurants, grocery stores...all these were built to accommodate the Influx of workers and families....the same families that are being crushed by the bust.

[TeyshaBlue]

I didn't really have a feel for whether or not the local oilco's were buying junk bonds or not.
The Cline Shale find was enormous....bigger than the notable Caprock and Sacroc operations combined. The new construction was playing to the enormity of opportunity until the opportunity got yanked out from under them.
The resultant downgrade of debt swells the ranks of junk now.

[MultiTroll]

So what up in Nov 2016?
Why is the media hyping up this Wolfcamp field as "new". I thought that was discovered in 2011?

Articles claiming Trump is gonna ban Saudi oil, thus the Wolfcamp and other fields will boom and everyone from Midland to Odessa to the Mexican border will be singing Kumbaya and hiring people to wheelbarrow their money into piles.

Teysha Blue and others right on the scene, what is really gonna happen?

[CosmicCowboy]

True. Media just got on it. They have been producing the wolf camp for a few years now.

[CosmicCowboy]

:lol trump never said he was going to ban foreign oil. Where did you get that? Reading Burqa-boos RSS feeds?

[TeyshaBlue]

Wolfcamp is a known field. What was recently determined was the capacity and extent of it.

Its about 10x larger than initially predicted.

[TeyshaBlue]

You can't ban Saudi oil. The key word is fungible.

[TeyshaBlue]

But, west Texas is gonna make a bundle...again. Yay boom/bust.

[CosmicCowboy]

Wolfcamp is a known field. What was recently determined was the capacity and extent of it.

Its about 10x larger than initially predicted.

Yeah, supposed to be a mile deep in places!

[boutons_deux]

Cost per barrel at wellhead? $50+ ?

[MultiTroll]

:lol trump never said he was going to ban foreign oil. Where did you get that? Reading Burqa-boos RSS feeds?
FWIW
http://yournewswire.com/trump-bans-saudi-oil/

[MultiTroll]

But, west Texas is gonna make a bundle...again. Yay boom/bust.
Have Wolfcamp vicinity houses already started up?

[TeyshaBlue]

Cost per barrel at wellhead? $50+ ?

Best is $45. Worst well at $177. Avg is $61.

[TeyshaBlue]

Have Wolfcamp vicinity houses already started up?

There is no current boom, so no.

[DMC]

It's a good thing for the owners, bad thing short term for American middle class. Some odd occurrence will force the price of oil back up to over 60 a barrel, and Texas oil will only then begin to flow. It's like finding gold, you can sit on it until it hits the right price.

[Fabbs]

There is no current boom, so no.
At this point in time, where do you think the best house flipping potential exists?

[TeyshaBlue]

Good question. Real estate rehabs are not exactly my wheelhouse. The obvious answer would be anywhere in the Permian Basin area, but I really don't know the state of Midland/Odessa anymore. Smaller towns like Andrews, seminole, Lamesa, Post..... and the hundreds of little towns between Odessa/Lubbock might make a good hunting ground, but I would wait a bit until we see some consistent upward movement in petro pricing before I made a move at snapping up properties. Hard line to call...wait too long and owners will start pricing up in anticipation...too soon and your flip will sit waiting for the market to rise.

[SpursforSix]

Best is $45. Worst well at $177. Avg is $61. The best is closer to $30.

[TeyshaBlue]

The best is closer to $30.

My bad. I was reading June's reports which seems to be the most current I can find right now.

[Drachen]

I will add this re: housing. If you can find someone to go to Pecos and build housing, they will make a bundle. There has been a shortage of housing for awhile. This discovery plus the Apache fields that butt against the ft. Davis mountains will be explored from companies which will base out of Pecos. There is no housing, and no warehousing, so there is opportunity... If you want to base out of Pecos which many don't.

[Drachen]

I will add this re: housing. If you can find someone to go to Pecos and build housing, they will make a bundle. There has been a shortage of housing for awhile. This discovery plus the Apache fields that butt against the ft. Davis mountains will be explored from companies which will base out of Pecos. There is no housing, and no warehousing, so there is opportunity... If you want to base out of Pecos which many don't.

Oh fyi, low oil prices haven't negatively changes the city's outlook since they are building a pipeline there. All sorts of activity there, it's just that no one wants to live in Pecos

[MultiTroll]

Good question. Real estate rehabs are not exactly my wheelhouse. The obvious answer would be anywhere in the Permian Basin area, but I really don't know the state of Midland/Odessa anymore. Smaller towns like Andrews, seminole, Lamesa, Post..... and the hundreds of little towns between Odessa/Lubbock might make a good hunting ground, but I would wait a bit until we see some consistent upward movement in petro pricing before I made a move at snapping up properties. Hard line to call...wait too long and owners will start pricing up in anticipation...too soon and your flip will sit waiting for the market to rise.
TeyshaBlue update March 2017 por favor.

[MultiTroll]

Oh fyi, low oil prices haven't negatively changes the city's outlook since they are building a pipeline there. All sorts of activity there, it's just that no one wants to live in Pecos
Drachen update March 2017 por favor.

[TeyshaBlue]

TeyshaBlue update March 2017 por favor.

It's pretty sad right now. There's virtually no movement after a frantic build out of hotels and man camps in some of the outlying towns. They sit mostly empty waiting for the pricing to re energize the market and create the hoped for influx of workers. Real estate pricing did rise and while it has dropped, it's not quite back to previous levels. Potential is still pretty strong but the timetable is a crap shoot. It's definitely a longer play IMO.

[boutons_deux]

hotels are going bankrupt and defaulting? just like the lenders feared, knew they would.

[TeyshaBlue]

Not yet. Don't know how they structured their debt. Cant be good tho.

[Fabbs]

It's pretty sad right now. There's virtually no movement after a frantic build out of hotels and man camps in some of the outlying towns. They sit mostly empty waiting for the pricing to re energize the market and create the hoped for influx of workers. Real estate pricing did rise and while it has dropped, it's not quite back to previous levels. Potential is still pretty strong but the timetable is a crap shoot. It's definitely a longer play IMO.
update Sept 2018?

[Fabbs]

I will add this re: housing. If you can find someone to go to Pecos and build housing, they will make a bundle. There has been a shortage of housing for awhile. This discovery plus the Apache fields that butt against the ft. Davis mountains will be explored from companies which will base out of Pecos. There is no housing, and no warehousing, so there is opportunity... If you want to base out of Pecos which many don't.
What came down the last two years?
What do you forsee coming down the next two?

Economy in Pecos, Texas
Pecos has an unemployment rate of 6.2%. The US average is 5.2%.
Pecos has seen the job market decrease by -2.9% over the last year. Future job growth over the next ten years is predicted to be 28.1%, which is lower than the US average of 38.0%.

[MultiTroll]

http://lubbockonline.com/business/2012-11-28/exploration-continues-fuel-expectations-cline-shale-oil-boom#.ULindoc0V8E

Two years ago, no one had ever heard of the potential of the Cline Shale oil play.

Now, the 140-mile-long and 70-mile-wide oil shale is anticipated to be one of the largest oil plays in American history.

Projections for the Cline Shale contribute to the expectation for the U.S. to become the world leader in oil production by 2017.

As the result of exploration by oil companies Devon Energy and Chesapeake Energy, the Cline Shale is quickly emerging as the richest oil play known. Other development companies with interests include Firewheel Energy, Laredo Petroleum, Exco, and Callon Petroleum, among others.
Deloera said that development is moving too slowly, a fact he attributes to the risk involved. “Developers will have to risk millions of dollars in anticipation of what is about to happen; people are hesitant because of the risk.”
CC is this still stuck in Hurry Up and Wait mode?

[MultiTroll]

Update Oct 2021?

Oil at 70 a barrel.

[Winehole23]

Update Oct 2021?

Oil at 70 a barrel.according to Deloitte, fracking never turned a profit and investors lost billions

http://priceofoil.org/2020/06/26/with-u-s-shale-peaking-having-never-made-money-investors-lose-billions/

[RandomGuy]

according to Deloitte, fracking never turned a profit and investors lost billions

http://priceofoil.org/2020/06/26/with-u-s-shale-peaking-having-never-made-money-investors-lose-billions/

At some point it may become economically viable.

it is race between electric vehicle development and exhaustion of the saudi fields...

[SnakeBoy]

https://charts.stocktwits.com/production/original_383237236.png

[pgardn]

https://charts.stocktwits.com/production/original_383237236.png

Im sure Abbott is terrified.
He may have to join Ted in Cancun.
He is going to purchase a wheelchair that runs off of methane, so he will be more likely to explode; this is a good thing.

[SnakeBoy]

Goldman's new forecast will make the midterms interesting if they're correct

https://charts.stocktwits.com/production/original_384823406.png

[MultiTroll]

http://lubbockonline.com/business/2012-11-28/exploration-continues-fuel-expectations-cline-shale-oil-boom#.ULindoc0V8E

Two years ago, no one had ever heard of the potential of the Cline Shale oil play.

Now, the 140-mile-long and 70-mile-wide oil shale is anticipated to be one of the largest oil plays in American history.

Projections for the Cline Shale contribute to the expectation for the U.S. to become the world leader in oil production by 2017.



Test wells on the Cline show the shale contains 3.6 million barrels of recoverable oil per square mile, about 300 billion barrels of recoverable oil for the entire shale.

Until recently, the Eagle Ford Shale was considered to be the richest shale play in Texas. The Eagle Ford Shale covers Webb, Dimmit, Lavaca, McMullen, Karnes, DeWitt and Gonzales counties in the southern portion of the state.

Recent advances in horizontal drilling have opened up the possibility of drilling in areas like the Cline.

The Cline’s depth is equivalent to 10 Eagle Ford Shales stacked on top of each other.

Pete Stark, an independent analyst from Englewood, Co., and regarded by the industry as an expert on global oil and gas resources, said, “We haven’t seen billion-barrel numbers onshore since Prudhoe Bay, Alaska, in the ’70s.”

While the buzz surrounding the Cline Shale brings excitement and economic hope, it also presents some challenges to the communities located there.

For weeks, local officials have held public meetings to discuss the effects of the increasing drilling activity.

The shortage of housing in the Cline Shale area continues to be a main concern, according to Lavers.

“Everybody in the entire area is working together more than they ever have. There are no guarantees that anything is going to happen, but when you look at all the growth that has already occurred, it is obvious that something big is going on here,” he said.

Abel Deloera, Snyder councilman and owner of Deloera Realty, said he is busier than he has ever been.



Deloera, who gets 10 to 15 phone calls every day from people looking for housing, said he started trying to address the Snyder housing shortage in October 2008.

“I saw this coming, but no one would listen,” said Deloera, “now we are a good 18 months to two years behind.”

Snyder lacks between 400 and 500 housing units, according to Deloera, and there has been a major increase in land value as a result of recent activity.
”


Not yet. Don't know how they structured their debt. Cant be good tho.
CC and TeyshaBlue,
Did any of this development ever happen /
Anyone getting a stiffy now in these oil field parts now that oils is skyrocketing?

[CosmicCowboy]

CC and TeyshaBlue,
Did any of this development ever happen /
Anyone getting a stiffy now in these oil field parts now that oils is skyrocketing?

I haven't read much about it. I have been to colorado 5 times this year and drive through that area on the way to Lubbock and can only remember seeing a couple wells being drilled. Going skiing next week so will look to see if any new activity

[CosmicCowboy]

Went through there Saturday on the way to spring break skiing. All the old wells are pumping but no new rigs in sight.

[SpursforSix]

Went through there Saturday on the way to spring break skiing. All the old wells are pumping but no new rigs in sight.

Colorado has significantly added more regulations that makes it tough to get horizontal permits.

[MultiTroll]

Colorado has significantly added more regulations that makes it tough to get horizontal permits.
Haven't some Bobert blowjobs fixed that?

[MultiTroll]

Went through there Saturday on the way to spring break skiing. All the old wells are pumping but no new rigs in sight.
Back to Permian Basin, sounds like some activity is ramping up.

Permian Basin poised for 'surge' in oil and gas production (currentargus.com) (https://www.currentargus.com/story/news/2022/04/19/permian-basin-poised-surge-oil-and-gas-production-russia-ukraine-fossil-fuel-new-mexico-texas/7306788001/)

I'm interested in flipping properties in areas of US that are going to blow up.

[MultiTroll]

Fact check: Texas oil deposits would not fuel America for 200 years (usatoday.com) (https://www.usatoday.com/story/news/factcheck/2022/07/21/fact-check-texas-permian-basin-oil-supply-would-not-power-fuel-america-200-years/10071870002/)

Even if the 66 billion figure – the highest estimate of continuous oil in the Midland and Delaware Basins – were accurate and accessible, it would only be enough to meet Americans' current oil consumption for about nine years.

[Winehole23]

Fact check: Texas oil deposits would not fuel America for 200 years (usatoday.com) (https://www.usatoday.com/story/news/factcheck/2022/07/21/fact-check-texas-permian-basin-oil-supply-would-not-power-fuel-america-200-years/10071870002/)

Even if the 66 billion figure – the highest estimate of continuous oil in the Midland and Delaware Basins – were accurate and accessible, it would only be enough to meet Americans' current oil consumption for about nine years.


drill baby drill...

[SnakeBoy]

Fact check: Texas oil deposits would not fuel America for 200 years (usatoday.com) (https://www.usatoday.com/story/news/factcheck/2022/07/21/fact-check-texas-permian-basin-oil-supply-would-not-power-fuel-america-200-years/10071870002/)

Even if the 66 billion figure – the highest estimate of continuous oil in the Midland and Delaware Basins – were accurate and accessible, it would only be enough to meet Americans' current oil consumption for about nine years.




USA Today fact checking facebook posts :lol

Todays msm

[GAustex]

Fact check: Texas oil deposits would not fuel America for 200 years (usatoday.com) (https://www.usatoday.com/story/news/factcheck/2022/07/21/fact-check-texas-permian-basin-oil-supply-would-not-power-fuel-america-200-years/10071870002/)

Even if the 66 billion figure – the highest estimate of continuous oil in the Midland and Delaware Basins – were accurate and accessible, it would only be enough to meet Americans' current oil consumption for about nine years.



LOL USATODAY

[MultiTroll]

USA Today fact checking facebook posts :lol

Todays msm


LOL USATODAY
:jack

[ChumpDumper]

USA Today fact checking facebook posts :lol

Todays msm

Right, they should be checking your main source of news: texags.com

[MultiTroll]

The U.S. Energy Information Administration expected an increase in oil production next year. American oil producers Exxon and Chevron have said they will push up production in the huge Permian Basin in west Texas.