The self-reported prices per bbl by operator are always highly suspect; depends what they include in costs.We all remember how badly OXY's experience in the Bakken was; hopefully OXY does better in the Permian. Maybe with a thicker play the company will be able to keep the wellbore in the target zone.
If OXY says they are getting Permian for $28/bbl, the "new" bbls coming out of the Bakken are much less -- using same method OXY uses to cost-out oil production.
The only thing the Bakken loses to the Permian is on transportation costs.
By the way, the thickness of a play is relevant in conventional plays; totally irrelevant in unconventional plays. (The linked article makes a point about how thick the Permian is.)
The Bakken is 94% oil. The Permian is significantly less, maybe 75% -- it varies across the basin.
Thursday, July 20, 2017
The Energy And Market Page, Part III, T+181 -- July 20, 2017
Long, long article on OXY in Forbes and OXY's experience in the Permian. The reader who sent me the link noted that OXY was producing oil for $28/bbl in the Permian. My quick, unedited, not-ready-for-primetime reply:
Posted by Bruce Oksol at 12:40 PM