Re-Posting -- September 10, 2018

Boom: Permian auction doubles 20008 record, link here;

• near billion-dollar sale
• on the New Mexico side of the Permian Basin
• $95,001 / acre
• federal government auction
• a record high for North America's biggest oil field
• previous record: $40,001
• for newbies: there's a reason the bid ends in a single dollar
• two-day auction: 142 parcels
• raised almost one billion dollalrs
• total was more than the whole of 2017 and double the 2008 record
• Federal Abstract Co, Santa Fe, bids for a number of anonymous investors -- the record bidder -- a near-$400-million for 17 tracts
• the logical buyers: EOG, Devon, Exxon, and Chevron

I'm re-posting this because I want to opine what this story means. I will do that later.

Meanwhile, re-posting this link from Forbes: the Bakken is back! -- May 16, 2018.

• the Bakken is just one of ten "oil fields" globally that yield over 1 million bopd
• third largest in the US, behind the Permian and the Eagle Ford
• the Dallas Fed Energy Survey put the average breakeven price to profitably drill a new well in the Bakken at $50, with the $40-60 range of responses easily the tightest of the group -- March, 2018
• Hess, the number three player in the play, now upping Bakken spend by $900 million this year, or nearly 30%
• the Bakken will remain the most price sensitive of the three big shale oil plays but its incremental potential this year is second, maybe surpassing the 1.3 million b/d mark for total output 

And you can still get into the Bakken for under $100/acre. LOL. Compare to the Permian. LOL.