Monday, November 21, 2016

Delaware (Permian) Acreage For $25,000/Acre; New England: An Energy Island -- November 21, 2016

Concho to acquire 16,400 net acres in the northern Delaware basin. Data points:
  • $430 million
  • Red Hills area 
  • undisclosed  seller
  • Concho now has 47,000 net acres in the Delaware
  • 69% oil (compare with 95% oil in the Bakken) 
  • will increase number of rigs to 8 in 2017
  • back-of-the-envelope: $430 million / 16,400 net acres = $25,000 / acre
New England could end up a bit like Hawaii, or California: an energy island. From recent energy conference in Boston:
The New England region needs more natural gas pipelines and power transmission lines, speakers at a conference on regional energy policies said last week.
The region has grown increasingly reliant upon natural gas for electricity generation, but pipeline development hasn’t kept pace, some said.
As things stand, New England’s reliance on coal or oil for power generation when natural gas isn’t available could mean high prices both financially and environmentally, executives said.
“In the winter days it’s tough — there’s just simply not enough gas,” said Marcy Reed, president of National Grid in Massachusetts, a gas and electricity company. The slated retirements of generators such as the Pilgrim Nuclear Power Station in Plymouth, Massachusetts, will only exacerbate the problem, she said.

The Broadway Theater Page

The father of the electoral college: Alexander Hamilton.

I can't make this stuff up.


  1. The "plan" in New England in the past was to pay big industrial natural gas users to shut down in a cold spell so the gas could heat homes. The industrial users would actually get paid to shut down.

    Now of course many of those factories are gone, replaced by residential users, and lots of new gas-fired power plants. The result is no cushion in the gas supply, with surrounding states stopping new pipelines.

  2. I did not know that (industrial users paid to shut down) -- and, of course, the workers losing a day's pay...truly amazing....