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Hey Oil Barons.......


936horn

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6 hours ago, Dr. Beeper said:

I’m not being critical of you here, but I find business journalism terrible with the exception of WSJ, Forbes and Fortune. Even though in Houston, I’d never take seriously any local newspaper Business section writer. Industry rags like the O&G Investor are typically pitiful too. 

Chron.com Fuel Fix has a very strong industry following. 
 

 

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19 hours ago, billfromlaketravis said:

How might one go about moonlighting at a refinery? Explain it to me like I’m 5. 

 

19 hours ago, tx 3 putt said:

1. Learn spanish

2. scaffold builder 

Or, how would you feel about administering safety training and tests?

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7 hours ago, Dr. Beeper said:

I’m not being critical of you here, but I find business journalism terrible with the exception of WSJ, Forbes and Fortune. Even though in Houston, I’d never take seriously any local newspaper Business section writer. Industry rags like the O&G Investor are typically pitiful too. 

Forbes?

 

FORBES?!?!

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So I’ve invested in some working interest on a secondary recovery (water flood) project over the last couple years. The project is in Madison county.  My previous experience with working interest is that the tax benefits are great, but you usually get operated to death.

 Recovery seems to be going up and the operator is telling me that we are “turning the corner” and the field is almost saturated.  Anyone have any experience with water flood projects?  Just curious if it’s worth throwing some more money at this year or not. 

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So I’ve invested in some working interest on a secondary recovery (water flood) project over the last couple years. The project is in Madison county.  My previous experience with working interest is that the tax benefits are great, but you usually get operated to death.
 Recovery seems to be going up and the operator is telling me that we are “turning the corner” and the field is almost saturated.  Anyone have any experience with water flood projects?  Just curious if it’s worth throwing some more money at this year or not. 
Has there been waterflood response yet? Just a 2 min look at the rrc website looks like they drilled a well in 17 and production has declined since.

Just me but their website screams run away.
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13 minutes ago, Dr. Beeper said:

Ahhh, the toll free phone number and “accredited investor opportunities”. Always great. 

@4HE they might have something. But I’d be very cautious that they’re not a group that makes their money on your promote, and aren’t incentivized properly to make the water flood work. 

Waterfloods scare me.  No real rationality to the notion. South Louisiana and women with big thighs scare me too. 

Same.  Having Cano Petroleum as a former client may have permanently tainted my view of waterfloods.  I always thought they really needed $75/bbl+ prices to really work, but that's probably an outdated notion as well.

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Thanks for the input guys. I’m particularly interested to hear that y’all haven’t had good experiences with water flood projects. Interestingly enough they are touting that it’s cheaper than primary production and thus can be profitable even when oil prices are in the tank. 
 

I think I’ll stick to Ameros for 2021. 

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6 hours ago, DCA_HORN said:

Has there been waterflood response yet? Just a 2 min look at the rrc website looks like they drilled a well in 17 and production has declined since.

Just me but their website screams run away.

There has been an uptick on production. That has been especially true on the 2 wells where they have recently done an acid clean out. I think I’ll stand pat and let them take me to Missouri before I even consider investing anymore with them. 

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I’ve never really fully understood post BK companies. I guess the purpose of giving it another go is the quality of their assets plus employment for their people. But the world does not need another American public E&P. Especially one that has any CHK staff remaining. 
There were loads of smart people at Enron. I steer clear of anyone from CHK. 


Employment for management mainly. And don't worry they laid off a few hundred last week.
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3 hours ago, Trey3216 said:

I see Chesapeake is exiting Ch 11 and will start trading again tomorrow.  Let's see how it works this time!!!!  lol

Boy, what a wonderful ownership expeirence it has been so far.  Just a walk through a big daisy field I tell ya!

 

Image 2-9-21 at 8.00 PM.jpeg

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2 hours ago, Dr. Beeper said:

I’ve never really fully understood post BK companies. I guess the purpose of giving it another go is the quality of their assets plus employment for their people. But the world does not need another American public E&P. Especially one that has any CHK staff remaining. 

There were loads of smart people at Enron. I steer clear of anyone from CHK. 

I spent some time with CHK geoscientists and I know a few of their landmen well. Good people with terrible managers. It starts at middle management and goes all the way to the C-suites.  

CHK landman is a black mark on their resumes. Most of the guys I knew got out early and latched on at one of the other OKC companies or got out late and are relators now. Pretty limited career options after CHK. 

Edited by billfromlaketravis
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9 minutes ago, Dr. Beeper said:

Those other OKC companies other than RKI were all terrible too. 

It's a pretty incestuous town and I'm not talking about the run-of-the-mill Oklahoma cousin screwing. A confidentially agreement means absolutely nothing to those people.  

Edited by billfromlaketravis
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RRC commissioners making some noise about getting stricter on flaring applications.

Texas’s energy regulator is taking an uncharacteristically critical approach toward burning off excess natural gas, a sign that growing pressure from environmentalists and investors to curb the controversial practice is paying off.

The Texas Railroad Commission on Tuesday deferred a series of applications belonging to oil companies including Ovintiv Inc. One request by SN Operating LLC sought to flare more than $1 million worth of gas because it would be too expensive to build a pipeline to haul the fuel to markets, a claim the agency’s newest member said warranted “further investigation.”

“Flaring is a necessary last resort during an upset, and we have work to do internally at the commission to ensure that we are not approving requests that go beyond that,” Jim Wright, one of three Republican commissioners, said in a statement following the meeting.

The commission is at the center of criticism over the industry’s prolific flaring given the panel’s record of approving virtually every permit that comes before it. During Tuesday’s meeting, both Wright and fellow Commissioner Wayne Christian spoke about routine flaring -- industry jargon for burning that isn’t necessitated by pipeline malfunctions or other short-term events.

“Getting an exception for our flaring rules should not be easy,” Christian said Tuesday. “Staff should ask tougher questions, follow-up questions and generally just dig deeper.”

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Figured we needed a natty update. Record high prices today for the weekend. Oklahoma led the way with prices up to $600 mmbtu. Houston Ship & Katy were around $150. All driven by the record cold. NYMEX didn’t care too much as it was up only a couple cents.


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On 2/10/2021 at 1:34 PM, Storm the Field said:

RRC commissioners making some noise about getting stricter on flaring applications.

Texas’s energy regulator is taking an uncharacteristically critical approach toward burning off excess natural gas, a sign that growing pressure from environmentalists and investors to curb the controversial practice is paying off.

The Texas Railroad Commission on Tuesday deferred a series of applications belonging to oil companies including Ovintiv Inc. One request by SN Operating LLC sought to flare more than $1 million worth of gas because it would be too expensive to build a pipeline to haul the fuel to markets, a claim the agency’s newest member said warranted “further investigation.”

“Flaring is a necessary last resort during an upset, and we have work to do internally at the commission to ensure that we are not approving requests that go beyond that,” Jim Wright, one of three Republican commissioners, said in a statement following the meeting.

The commission is at the center of criticism over the industry’s prolific flaring given the panel’s record of approving virtually every permit that comes before it. During Tuesday’s meeting, both Wright and fellow Commissioner Wayne Christian spoke about routine flaring -- industry jargon for burning that isn’t necessitated by pipeline malfunctions or other short-term events.

“Getting an exception for our flaring rules should not be easy,” Christian said Tuesday. “Staff should ask tougher questions, follow-up questions and generally just dig deeper.”

Some things never change in the oilfield. Stepping over a dime to save a nickel. 

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15 hours ago, Horns99 said:

Figured we needed a natty update. Record high prices today for the weekend. Oklahoma led the way with prices up to $600 mmbtu. Houston Ship & Katy were around $150. All driven by the record cold. NYMEX didn’t care too much as it was up only a couple cents.


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From a trading / investing side, this week's events will backrupt numerous firms causing some more havoc. No way to backstop short positions that just 32,000% in an instant.

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From a trading / investing side, this week's events will backrupt numerous firms causing some more havoc. No way to backstop short positions that just 32,000% in an instant.

Yep, know of shops that made their 21 budget this week, news will be slower to leak out on those that went bankrupt. I know of someone that got a email from their power company offering them $100 if they Switched to a new power company by Monday. Ercot prices are maxed out at the 9k cap right now


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From a trading / investing side, this week's events will backrupt numerous firms causing some more havoc. No way to backstop short positions that just 32,000% in an instant.

Where can you find short interest on various natural gas equities? ETFs? The big nat gas stocks I’ve looked at seem to have non excessive short interest
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7 hours ago, bluto said:


Where can you find short interest on various natural gas equities? ETFs? The big nat gas stocks I’ve looked at seem to have non excessive short interest

Yeah, don't know to be honest where to find that. I can say though that it is too late for this storm. There is no way to really "buy" any right now as there is none for sale. The wells started freezing off which is causing this mess, so no gas is moving in many pipelines. Combined with wind turbines freezing off as well and you better hope your power grid has ample coal plants or you're in for trouble.   All will be back to normal in a week, but this week will be rough.

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you better hope your power grid has ample coal plants or you're in for trouble.
The Culture doesn't like your tone!

Except for...you know....natural gas fired plants being much more efficient, modern, and effective. Plants that can be quick start, and begin generating in an hour (can capitalize on high power prices).

There’s definitely still a place for fossil fuel in the electric generation world. But that place belongs to gas, not coal.

Now, how we modernize and create incentives for having enough generation to meet peak demand...that’s a much more complicated deal. But the mix of resources should be very, very light on coal. Especially in Texas. Why ship trainloads (the greatest cost) of coal from Wyoming when we’ve got NG right here, which is cheaper and cleaner, and allows for more efficient generation?
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Damn Brisket, glad you got that off your chest, but the Culture I'm talking about would vehemently disagree with your write-up and put you on a list.
Sorry for partying.

Oh, I know about the “no fossil fuel ever” crowd. And I actually think that eventually (and sooner than many think), we won’t be using fossil fuel for much generation or transportation (maybe 30-40 years), but for the time being, we can’t have a functioning grid without some fossil fuel generation.

I’m a forward thinking pragmatist. The “drill baby drill” crowd hates my thinking, as does the patchouli-scented greenie crowd, which tells me I’m probably on the right track.
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18 minutes ago, Brisketexan said:


Oh, I know about the “no fossil fuel ever” crowd. And I actually think that eventually (and sooner than many think), we won’t be using fossil fuel for much generation or transportation (maybe 30-40 years), but for the time being, we can’t have a functioning grid without some fossil fuel generation.

I’m a forward thinking pragmatist. The “drill baby drill” crowd hates my thinking, as does the patchouli-scented greenie crowd, which tells me I’m probably on the right track.

What about feedstocks for plastics? 

The greenies seem to like their Teslas and solar panels, but they lost their damned minds when Starbucks considered phasing out plastic straws. 

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Some? Like there have been some years over the past 12 years where our football has grossly underperformed.

“For the time being” means the next 20 years or so (the general near term planning horizon for generation investment). And if you look at the trend lines on generation mix, you have seen and will continue to see a significant decline in the percentage of fossil fuel. Today, renewables account for around 17% of our generation, and fossil fuel is down to 63%. Compare that to even ten years ago, and the trend is stark. I suspect that for the remainder of my life, we’ll still have a significant fossil fuel presence in our generation portfolio, but by the end of my kids’ lives, it will be mostly as an emergency/backup/vestigial part of the mix.

We aren’t there yet, we aren’t going to get there tomorrow. But by 2050, bet on fossil fuel generation being one of the smaller portions of our generation mix. I’m not exactly going out on a limb with that prediction; the big players in the market are banking on it as well.
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What about feedstocks for plastics? 
The greenies seem to like their Teslas and solar panels, but they lost their damned minds when Starbucks considered phasing out plastic straws. 

Again, cool your jets. Nowhere in any of my posts did I suggest or predict an end to petroleum production and use. I spoke mostly to electric generation, and also to transportation.

We’re going to see the percentage of generation dependent on fossil fuel continue to decline. We’re going to see the percentage of transportation miles dependent on fossil fuel continue to decline. In 50 years, we’ll still have some fossil fuel generation, and some fossil fuel transportation....but they’ll be a much smaller profile. But of course, those aren’t the only things petroleum is used for. Plastics, needle coke, etc. will still be an end use for petroleum. The oil industry won’t go away. But it WILL get smaller, and leaner. Like it already is doing.
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26 minutes ago, DCA_HORN said:

If the world really does transition to electric vehicles they delta in electricity production will be made up almost entirely on natural gas an coal since we've seemed to cap nuclear production.

Wind and solar will contribute the largest. The EV switch is helping further the utility level battery storage needed to make these really useful.

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If the world really does transition to electric vehicles they delta in electricity production will be made up almost entirely on natural gas an coal since we've seemed to cap nuclear production.

It would under the current generation mix approach, sure. You assume that we won’t be able to add to available solar and wind, or tap offshore hydro, or even decide to step back into nuclear power. You assume that battery life and energy storage won’t take great leaps forward. Those are iffy assumptions at best.

The trend lines don’t lie.

Again, I’m not proclaiming - and the smart prognosticators in the market aren’t - the death of petroleum. We’re simply seeing a greatly reduced role of it in the energy sector in the coming decades. We’re not exactly wizards.
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1 hour ago, billfromlaketravis said:

What about feedstocks for plastics? 

The greenies seem to like their Teslas and solar panels, but they lost their damned minds when Starbucks considered phasing out plastic straws. 

paper-based straws are the goddamn worst things invented by man

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