Random Note On The Permian; Pioneer Has Announced It Has Found A Buyer For Announced Sale Of Some Permian Acreage -- March 16, 2017

From just a few months ago, October 20, 2016:

Exxon's CEO doesn't see "supply shortage" pushing up oil prices. Says ample production from US shale regions will keep prices subdued for years to come, disagreeing with others in the industry who have warned about a looming shortage.

Other speakers at the conference echoed his views. 

ConocoPhillips CEO Ryan Lance estimates that new wells are viable in the Permian, Eagle Ford and Bakken shale basins at just $40 a barrel. 

Production in the Permian can grow by 300,000 barrels a day for the next 10 years “easy,” said Scott Sheffield, chief executive officer of Pioneer Natural Resources Co., which is adding five drill rigs in the basin. 

“It’s difficult to see a big supply precipice out there,” Tillerson said. “It’s difficult to see a big price blowout. 

”Despite persistent fears of bankruptcies in the U.S. oil patch as banks cut lending to the energy industry, Tillerson said the current boom-and-bust cycle has “confirmed the viability of a very large resource base in North America,” adding that shale would serve as “enormous spare capacity” to meet future demand. 

The comments are likely to reinforce the emerging view at the Oil & Money conference, which every year gathers some of the leading industry voices, that oil prices will remain at around $50 to $60 a barrel for the next few years.

Pioneer sales of Permian acreage:

Pioneer has announced that it has found a buyer for some of its Permian acreage for $266 million.

From Oil & Gas Investor:

Pioneer said an undisclosed buyer will acquire the acreage with an average production of about 1,500 barrels of oil equivalent per day for $266 million. The amount of acreage was not disclosed but the company had been evaluating offers for 20,500 net acres in Martin.

The sale of the Martin acreage comes after January agreements to sell 5,600 net acres in Upton and Andrews counties, Texas for $63 million in gross proceeds.

Back-of-the-envelope:

• $266 million / 20,500 = $13,000 / acre
• $63 million / 5,600 =$12,000 / acre

Pioneer completion strategies in the Permian:

From Pioneer's March, 2017, investors' presentation, Pioneer is now moving into "version 3.0" for completion solutions. These are for 9,000-foot laterals. Doing the math suggests upwards of 15 million lbs of sand and 90 stages.

 

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Spicer Drove Me To Do This

This is really quite funny. I've mentioned earlier that the only thing I listen to on the radio now is classical music.

Today after coming home from biking, I turned on the television to see what was happening, and happened to catch a few minutes of America's soap opera, the "Daily Spicer Show," not to be confused with the "Daily Show" which was never near as funny.

I couldn't take it. Most of the press conference was splitting fine hairs between "NSA surveillance" and "Obama wiretapping." Honestly, I could not take it.

So, I did the same thing I did yesterday. I turned to Turner's classic movies. Yesterday it was an incredibly good afternoon movie -- a "whodunit" -- it was so good, I already forgot the name of the movie. That's fine. That's right, it was Angel Face.

But today, a movie - a sequel, apparently to another movie I missed -- with Hedy Lamarr, Lana Turner, and, Judy Garland. Wow. Jimmy Stewart, Jackie Cooper. Another wow.

I have to admit, I really see Liza Minnelli (at same age; Wizard of Oz; accent/voice; looks) in Judy Garland. I had never paid attention before.

And Jimmy Stewart -- it almost seems he was a one-trick pony. But he played it for what it was worth.

I have to laugh. I have "digressed" -- back to classical music and black and white films from the '40s and '50s.

I love it, and I have to thank Spicer and the White House press corps.