Imagine What Statoil Could Do If The CEO Had A Sense Of Urgency

When the following was reported in Petroleum News it generated a lot of discussion and concern:

Statoil’s business model, according to Bull, is to take a longer-term view of onshore production, an approach he describes as somewhat anathema in the onshore world.

“We’re long-term investors, so we don’t shy away from 10 to 20-year horizons and even more. And we’re used to this with the offshore world. As you know, finding oil and gas in the offshore world takes at least 10 years to actually start getting the production going, and then you expect another 20, 30 maybe 40 years of production after that.

So we think in terms of decades in our investment horizon.”

That was back on April 14, 2013.

Let's look at the last two daily activity reports regarding Statoil.

Thursday, yesterday:

• 21875, 2,047, Statoil, Bratcher 10-3 2H, Ragged Butte, t3/13; cum 5K 3/13;
• 21876, 3,153, Statoil, Lonnie 15-22 1H, Ragged Butte, t4/13; cum --
• 22511, 928, Statoil, Bratcher 10-3 3TFH, Ragged Butte, t3/13; cum 3K 3/13;
• 22807, 3,793, Statoil, Richard 8-5 2H, Banks ,t4/13; cum --
• 22872, 3,091, Statoil, Pyramid 15-22 4H, Todd, t3/13; cum 12K 3/13;
• 22873, 2,835, Statoil, Pyramid 15-22 3H, Todd, t3/13; cum 9K 3/13;
• 22874, 1,884, Statoil, Pyramid 15-22 2TFH, Todd, t3/13; cum 3K 3/13;
• 22875, 2,341, Statoil, Pyramid 15-22 1H, Todd, t3/13; cum 600 3/13;
• 22941, 2,581, Statoil, West Bank 26-23 1H, t3/13; cum --
• 22942, 2,274, Statoil, Sullivan WMA 35-2 1H, t4/13; cum --

Friday, today:

• 22900, 3,660, Statoil, Topaz 20-17 3H, Banks, 4/13; cum --
• 22901, 3,225, Statoil, Samson 29-32 3H, Banks, t4/13; cum --
• 23740, 2,311, Statoil, Jerome Anderson 15-10 6H, Alger, t4/13; cum --
• 21815, 4,680, Statoil, Richard 8-5 1H, Banks, t4/13; cum --
• 22322, 4,630, Statoil, Cheryl 17-20 2TFH, Banks, t4/13; cum --
• 22644, 1,168, Statoil, Jerome Anderson 15-10 2TFH, Alger, t4/13; cum --

Imagine what Statoil could do if they had a sense of urgency. As my daughter would text, LOL.

By the way, how do these IPs stack up with the record IPs in the Bakken? FAQ #9:

Again, the initial production of any well, self-reported by the producer, is becoming less meaningful over time. Having said that, it looks like the record IP for a Bakken well is now 5,200, a Newfield well (July, 2011): 

• 18691, 5,200, NFX, Wisness Federal 152-96-4-2H, Westberg, Bakken.

Two earlier wells: a Whiting well which had an IP of 4,761 boepd: file #17612, 4,761 boepd IP, Whiting, Maki 11-27H, Mountrail County, Sanish field.  This is still current as of February 20, 2010. Since then, BEXP claims to have set a record with the Sorenson 29-32 1-H, #18654, with a 24-hour flowback of 5,133 bopd. However, the NDIC reported an IP of 2,944. BEXP also reported the Jack Cvancara 19-18 #1H in the Ross project area with a 24-hour flowback of 5,035.

 (Note: mixing "boe" and "bbls of oil" also confounds the issue, of course.)

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For more on the Pyramid wells, click here. 
For more on the Cheryl and Richard wells, click here.