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Monday, September 10, 2018

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.

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