Royal Dutch Shell Plc made one of its biggest commitments to the North Sea in 30 years, with plans to redevelop the Penguins oil and gas field.
The Anglo-Dutch oil major will build a floating production, storage and offloading vessel -- its first new manned installation in almost three decades -- to take output from eight wells it plans to drill. Peak production will be the equivalent of 45,000 barrels a day, with a break-even price of less than $40 a barrel, Shell said on Monday.
By the way, there's a story out there today -- I forgot to capture / link it, but Saudi's budget is still based on $80 oil. So when one sees a break-even price of less than $40/bbl it has to be concerning. And the reason that the Penguins is break-even at $40? All the infrastructure is in place.Penguins, a joint venture between Shell and Exxon Mobil Corp., is already operational after first being developed in 2002. Oil from the field -- about 150 miles (240 kilometers) northeast of the Shetland Islands -- will be transported by tanker to refineries, while the gas will be sent by a pipeline to the St. Fergus terminal in Scotland.
Sort of like the Bakken. All the infrastructure is in place.
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Closing Out Two Polls
The first poll.
We won't know until the November and December, 2017, data comes out in February/March, 2018, but I was curious whether readers thought the national drawdown in US crude oil reserves (being reported on a weekly basis) was due to weather-related events in the Bakken. According to the poll:
- yes: 13%
- no: 84%
- other: 3%
The second poll.
A reader was also curious if and when we might see drilling -- at least four new wells -- in the Tyler formation in North Dakota:
- this year (2018) regardless of the price of WTI: 15%
- this year (2018) only if WTI remains solidly above $60: 19%
- slim to no chance this year unless WTI well above $75: 33%
- no sooner than next year (2019), regardless of price: 10%
- no sooner than 2020, regardless of price: 10%
- no sooner than 2022, regardless of price: 14%
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And Folks Complain About A Small Refinery Or A Single Oil Well
From arstechnica:
This land will never be used for anything else. Gone forever.
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