Jump to content

Hey Oil Barons.......


936horn

Recommended Posts

On 4/9/2024 at 10:34 AM, CycleTex87 said:

Even in the US, the surface owner is in lots of cases not the minerals owner - horizontal severance.  The surface owners are compensated for the use, but not like the mineral owner with his royalty interests.

The surface of my lease in North Dakota is about 50’ underwater. 
(Lake Sakakawea)

This is what it looked like a century or so ago - that’s Great Uncle Frank who built his cabin prior to WW1.

 

 

IMG_2988.jpeg

Link to comment
Share on other sites

14 hours ago, Grimas said:

And US shale plays are dying out. Barnett and Haynsville plays are in steep decline and Utica is headed that way. Looks like Balkken, EF and Permian have probably reached peak production and will probably start their decline in the next few years… All the best wells have been drilled and even with new technology, you’re spending more to get less per well…

Continental Resources just completed some nice producers in McKenzie County, ND.

I hope they don’t peter out too much before I shuffle off.

Link to comment
Share on other sites

3 hours ago, Grimas said:

Never heard of /MCR...  Natty is currently- just under $2/MMCF (million cubic feet of gas volume) and hasn't been above $10 in forever so I'm not sure if we are talking the same acronyms...  $20/MMCF would be a godsend for the industry...

Autocorrect. It’s either mmbtu or mcf. Mmcf is entirely too cheap. The metric is per thousand cubic feet - not million. 

Link to comment
Share on other sites

3 hours ago, Armybrat said:

The surface of my lease in North Dakota is about 50’ underwater. 
(Lake Sakakawea)

This is what it looked like a century or so ago - that’s Great Uncle Frank who built his cabin prior to WW1.

 

 

IMG_2988.jpeg

You sure your uncle wasn't Dick Proenneke?

Link to comment
Share on other sites

1 hour ago, Rex Kramer said:

Autocorrect. It’s either mmbtu or mcf. Mmcf is entirely too cheap. The metric is per thousand cubic feet - not million. 

Duh - my brain fart and you are correct that it's a thousand and not a million.  I'm used to thinking reserve numbers and European conversions to BTU's and not daily rates on the units, just the price...

MCF and MMBTU's..  Close but not the same...

Edited by Grimas
Link to comment
Share on other sites

Replacing reserves seems to be the every slide deck these days, so I guess the industry is going to start spending money on exploration again. 
 

Anybody work PRB? Is it the next big play?  My company surprised many of us by replying with a firm no when asked about selling our Powder business unit. 

I remember Wood Mackenzie was excited about it 2017, but I took another job to work Permian and Delaware. 

Link to comment
Share on other sites

Interesting article about the oil industry using fracking techniques as a method to generate electricity via geothermal process. 

I wonder how this plays out for mineral rights. I would have to think that mineral right holders would be left in the cold. I don't think they own the underground heat but I also wouldn't be surprised if they somehow already carved out laws that would still allow them to benefit.

Link to comment
Share on other sites

21 hours ago, billfromlaketravis said:

Replacing reserves seems to be the every slide deck these days, so I guess the industry is going to start spending money on exploration again. 
 

Anybody work PRB? Is it the next big play?  My company surprised many of us by replying with a firm no when asked about selling our Powder business unit. 

I remember Wood Mackenzie was excited about it 2017, but I took another job to work Permian and Delaware. 

It seems like the Powder is perpetually on the verge.  The Turner seems like the best rock these days, but it's not really unconventional.  It's low porosity sandstones.  You have a lot other of these near shoreface sands up section like the Sussex, Shannon, etc. that have produced conventiknally for decades and now operators are sticking Hz in the fringes. They make good wells, but the areal distribution is limited and you can have pretty serious pressure communication issues making it difficult the scale.

Niobrara is decent, but it's more clay rich vs the silty organics (hybrid) down in the Permian. Mowry is the next bench down but that's more gassy plus we'll cost is higher.  And most of the better source rock is towards the southern end of the basin.

It's a fascinating basin with value for sure, but it's just harder for it to compete if you have Permian positions with stacked prolific benches in a portfolio.  I'm sure there's above ground issues as well. The Permian is truly a geologic, geographic, and economic Goldilocks. 

  • Hook 'Em 2
Link to comment
Share on other sites

13 minutes ago, MadTrapper said:

It seems like the Powder is perpetually on the verge.  The Turner seems like the best rock these days, but it's not really unconventional.  It's low porosity sandstones.  You have a lot other of these near shoreface sands up section like the Sussex, Shannon, etc. that have produced conventiknally for decades and now operators are sticking Hz in the fringes. They make good wells, but the areal distribution is limited and you can have pretty serious pressure communication issues making it difficult the scale.

Niobrara is decent, but it's more clay rich vs the silty organics (hybrid) down in the Permian. Mowry is the next bench down but that's more gassy plus we'll cost is higher.  And most of the better source rock is towards the southern end of the basin.

It's a fascinating basin with value for sure, but it's just harder for it to compete if you have Permian positions with stacked prolific benches in a portfolio.  I'm sure there's above ground issues as well. The Permian is truly a geologic, geographic, and economic Goldilocks. 

Other than geology, what’s the biggest obstacle to get the Powder over the top? 

Link to comment
Share on other sites

5 hours ago, MadTrapper said:

Interesting.  So they just restarted coverage or did they also restart some actual energy investment funds? 

Coverage? Yeah they're all over that. Put it all on bp. 

5 hours ago, billfromlaketravis said:

Other than geology, what’s the biggest obstacle to get the Powder over the top? 

Mormons? Jk

Link to comment
Share on other sites

5 hours ago, billfromlaketravis said:

Other than geology, what’s the biggest obstacle to get the Powder over the top? 

The problem with the powder is its been the next big thing since Diddy diddled beiber. 

Edited by DCA_HORN
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



×
×
  • Create New...