Updates
June 30, 2014: Disregard all information in original post suggesting that OXY USA might be selling some of their North Dakota assets. The reader who originally sent me that information says he called the private buyer but was told they were buying assets in a basin other than the Williston Basin.
Original Post
For now, I will leave it at that. A couple of years ago, OXY USA corporate presentations suggested that OXY USA was looking to divest its Bakken assets, but then nothing ever came of it. Maybe, finally, some movement.
In OXY USA's two most recent presentations, May 21, 2014, and May 30, 2014, the Bakken is barely mentioned. It's pretty much all about California and the Permian.
Some data points from the recent presentations --
CAPEX, 2013
- Permian: 20%
- California: 17%
- Willisont: 6%
- Permian: 22%
- California: 18%
- Williston: 5%
- Even on the one slide that mentions "other" assets, the Bakken is not mentioned, though the state of North Dakota is identified as one of several states where OXY has assets
In fact, looking at the presentation, OXY USA could easily change its name to OXY PERMIAN; it seems the "new" OXY is going to be all about the Permian.
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5% CAPEX
After posting the above, and then receiving a couple of comments, and then recalling the two OXY USA presentations, this is the big takeaway: in 2013, OXY USA CAPEX in the Bakken represented 6% of the company's total CAPEX; in 2014, it will decrease slightly to 5%. That data point (those two data points) speaks volumes.
Do not base success on ips as we all know they are basically rubbish not all company's in the Bakken have great acreage in my opinion it is good business to liquidate poor acreage. Cut them slack
ReplyDelete1. The "IP" story has been discussed at length over the past few years. As Mark Twain said, "All things being equal, I would prefer my well to have an IP of 5,000 bopd, rather than zero."
Delete2. I'm not sure what this particular post has to do with "cutting OXY USA some slack." Not one thing was said in this post about OXY USA as a company, except where it was now focused: the Permian. However, the writer is correct: I've not said many good things about OXY USA wells in the past. They do have some good wells in the Bakken.
3. Nothing was said about the acreage being liquidated was good or bad. I assume the buyers expect to make the acreage profitable.
Disclaimer: this is all predicated on the information that OXY USA may be selling some Bakken assets. There is no confirmation that any of this is happening.
Bruce for two years have had your post on my favorite list the constant Oxy slams are getting old other oil company's are not on your slam list. Hello Bakken discussion group.
ReplyDeleteThis post was about as neutral as it could possibly be. All that was said was that OXY USA might be selling some of its Bakken assets. The OXY USA story in the Bakken, like Chesapeake's story, provide an important insight into drilling unconventional oil. It also provides an important insight into similar prospects in California.
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