Was the Permian, [Jim Cramer] asked, bigger than anyone thought? Was this revitalized field going to blow people away as Pioneer Natural Resources, the king of the Permian, said it would on "Mad Money" the other night?Very interesting, to say the least.
The soft-spoken but clipped Papa answered, "No." The Permian is not going to be as big as I thought. It is not going to turn out to be the biggest new field in North America. It is not going to be the second-largest oil field after Saudi Arabia.
Plus, he said, it is time to curb my enthusiasm about finding oil and producing it in this country, because we may actually be near peak production even after all the new oil has been found and that the revolution, at least in oil and not natural gas, may soon start to become played out.
[Jim Cramer] was taken aback because [Jim] was thinking we are in its infancy and he was thinking that we are more mature.
Saturday, November 9, 2013
EOG's Retiring CEO Suggests US Unconventional Oil Prospects May Not Be As Rosy As Some Suggest
Link here to the Jim Cramer article. From the article:
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This comment was accidentally deleted, sorry. It is being re-posted:
ReplyDeleteGood Morning Bruce, Do you know, based on past operator's past experience, how long wells in the Bakken have produced oil? I am evaluating EOX and am trying to estimate how much more oil reserves they may have using how many wells they plan to drill over their acreage. Thanks.....
I posted a reply this morning:
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The amount of recoverable oil will vary dramatically across the Bakken/Williston Basin. In the very best of the Bakken, EURs are approaching 1 million bbls.
One can do the math: Oasis is looking at drilling up to 21 wells in 640-acre drilling units. It is unlikely they would drill any well with a predicted EUR of less than 300,000 bbls.
Keep in mind this is EOG That would be ENRON Oil and Gas....EOG.
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