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Archer

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Posts posted by Archer

  1. 14 minutes ago, Mighty fine said:

    I'm tracking with you on that. And yeah, the development density is critical recycle operations to be feasible economically. Regulatory headwinds still pose a challenge to recycle in some areas; funny enough, I don't believe University Lands allowed large scale produced water recycle/ reuse on their leases until 2017 or 2018.
     

    Article on RRC recycling in Marcellus. I remembered seeing it in a feed a while back and dug it up. They claim to have been using recycling for a decade but are still having to supplement with fresh. Specifically point out the differences in TX and PA SWDs

    https://www.hartenergy.com/exclusives/early-adoption-water-recycling-186064

     

    • Like 1
  2. 12 minutes ago, Mighty fine said:

    But at what percentage within their operation?

    Upstream E&P life cycle water management has really grown in the last decade; the produced water managment subsection has really taken off since 2013-2014 or so. The stuff that PXD, DVN, SWN, etc, have been doing on the water side is pretty damn cool and innovative. But let's not pretend that every major player isn't poking new water wells to support growing ops, either.

    That’s a fair question, what I am seeing is nearly 100% is using produced water, but I can admit that I may have some blinders on. 
     

    I’ve been in a couple data rooms in the past year and even the PE backed sellers are designing their infrastructure and putting in recycle pits to enable produced water reuse. In full transparency they were using water wells to prove their acreage but they weren’t and probably won’t be to a development level that supports actually reusing water. They are using it as a carot for the buyers who do care about it. 

  3. 22 minutes ago, Mighty fine said:

    He may have been referring to the quantities of relatively fresh water being consumed as opposed to water quality/ pollution potential

    Almost every major player is reusing produced water for fracs either 100% produced or blended with some fresh water. It’s a green/green solution 

  4. 1 hour ago, sunset87 said:

    I would think the percentage of production that is profitable at $20 to $25/bbl can't be too high. 

    It depends on how you look at it, by well count you're correct that most wells are not going to be profitable at $20. On a production basis I bet a lot more is profitable than thought with the decline rates of the big shale rates and how much they produce early time. 
     

    At $20 40%+ of my wells are losing but 98% of my production is profitable. Mix of strippers and horizontals 

  5. 1 hour ago, Hate said:

    Why wouldn't we fill it while prices are unbelievably low.  Seems stupid.

    Politics. Gotta stick it to big oil...
     

    Senate Minority Leader Chuck Schumer said in a letter to senators Wednesday Democrats had eliminated from the legislation a, “$3 billion bailout for big oil.”

  6. 22 minutes ago, Dr. Beeper said:

    But can they even get the crude out of the basin?  

    Simple question but how good are their oil purchasing/transport contracts? Is it on pipe or truck? I see a lot more trucking shut down with pipes still flowing. That could change as more production has to come off line.

     

    A buddy just had all of his oil purchasing contracts canceled so his crude isn’t moving.  We have a X bbl purchase commitment with one of our pipelines so we’re still flowing, of course they could claim Force Majeure and cancel all of the commitments tomorrow. 

  7. 1 hour ago, Dr. Beeper said:

    Y’all help me understand something I should know the answer to - if a company has WTI hedges and a Mid-Cush basis swap of +1, but they have physical difficulty getting their volumes out of the Permian, what do they do?

    On one hand this is a basic question but on the other it’s multi-faceted. In this particular instance, they have 4 wells recently (mostly) drilled and a completion decision will come later in May when prices become more apparent. It’d make a lot of sense in a vacuum to NOT complete these wells, as curtailment could cause shut-ins and as you can guess these are large hz wells where you can’t predict how they’ll come back on when they do. However, in this instance they have a very high NRI and these wells are economic at a much lower price than anyone would think. 

    I think I’m tracking the question but if not sorry. 
     

    I was recently informed we do not have to actually produce the volumes we have hedged to receive the hedged amounts. I’ve never gotten deep into hedges so this was news to me. 
     

    If their hedges are set up the same way they could DUC the wells and still receive the net benefit of the hedges. 
     

    Unfortunately that is about all I know on the topic 

  8. 1 hour ago, NotActuallyALonghorn said:

    The barrel costs more than the oil. The oil is just the cheapest thing to put in the barrel to keep anybody from stealing your valuable barrel.

    I told my wife I wasn’t drinking today, you assholes keep making jokes like this and I’m going to have to renege on my word. 

    • Haha 1
  9. 32 minutes ago, Trey3216 said:

    Not much right now.  Lol.   And that was more of a “that would be our shit ass  luck” type of comment.  

    Our shit ass luck is gas goes to $4.00 over the summer, the public hates Trump even more because of gas prices, Biden has a medical issue and is replaced by Bernie, Bernie wins in a landslide and thinks it’s a referendum on him and the first thing he does is ban fracing and drilling on Fed land just as the industry starts to recover. That would be our luck. 
     

    Not to get too CR 

  10. 11 minutes ago, Dr. Beeper said:

    We live off my salary, and all bonus/stock/side hustle goes to tax, life insurance, trips, etc. My goal is to grow the side hustle larger than everything else. I’m gonna do it now. 

    We are fairly similar but don’t use quite my full salary. Major downer is not only O&G in the dumpster but I have a hospitality side hustle investment that could very well go tits up too with all of the SiP orders.  

  11. 58 minutes ago, fattyflattie said:

    So I'm in the position of finally making the type of money to enjoy life in an entirely new way, but having to save it all 

    I regularly tell my wife that we can not live the lifestyle that my income would normally allow because there is no stability in it. If I was a doctor or something that didn’t live in fear of a crash every day sure we could buy that new house or take the big trips but we should probably live like I make ⅓-½ of what I really do. We still live a great life but nowhere near what someone would expect at our AGI. 

  12. 26 minutes ago, Dr Fear said:

    Any recent BLM Lease has a 10 year term, so they can just sit this out depending on the makeup on their drilling units. I just looked at a few older BLM leases that are in the secondary term and none of them provided for shut in except for re-work, maintenance etc.  The BLM owns the vast majority of Wolfcamp interests in southern Eddy and Lea County, NM.  

    That’s what I was thinking on the SI. There are lots of old strippers holding BLM leases all over SENM. I think state of NM leases have a 60 day production cessation clause unless there are takeaway issues, maybe the refineries scaling back would fulfill that clause. 

  13. 37 minutes ago, CHIEF said:

    I was chased out of the business in 2014-15, and went into Real Estate. As a landman, however, I can't remember ever writing up a contract that didn't allow you to pay a shut-in fee to the Lessors. It usually wasn't very significant. The idea being that the cheapest storage was to just leave the reserves in the ground.I would assume most contracts give this ability to the Operators. Does anyone know of any producers that don't have this clause?

     

    CHIEF

    I  not sure if all BLM and state leases provide for SI payment clauses. 

  14. 6 minutes ago, Hate said:

    As of today, I am officially out of the oil field. Good luck to all of you Barons. I hope oil returns to $100 a barrel and you all have jacked up F250s and bay boats in your future.

    Well shit this thread is going to turn into LinkedIn for me where I stay away to avoid all of the lay-off notices. 
     

    Sorry to hear hopefully your are as prepped as @Eastwood

  15. 16 minutes ago, PappyVanVinceYoung said:

    Cash prices getting crushed right now. Going to be massive shut ins over the next two months. Talking negative prices in Wyoming. Close to that for all of the Bakken Canada. Midland realized pricing falling below $10 right now. 

    Will be interesting to see how the SIs affect the rebound once we get back to some sort of normal after Corona. Will the reduced supply speed up price increases? I know refineries are taking capacity offline so some operators will be forced to SI. 

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