The Permian Vs The Bakken -- Side-By-Side -- Mana A Mano -- September 23, 2019

I don't know if folks like to put windows side-by-side. I know it's a pain, sometimes impossible on a mobile device (phone, tablet) but on a laptop or desktop very, very easy.

Bring up this site and place it on the right half of your screen. It's the EIA production report for the Permian for September / October, 2019.

Place the following in the first window on the left side of the screen. Then compare what you see on the right with what you see below (link here):

Several other comments / observations:

• Oasis says it is using free cash flow from the Bakken to pay for its operations in the Permian
• as a basin, the Permian is beating out the Bakken, but they are in the same ballpark: the former is trending toward 5 million bopd (will hit 8 million bopd) and the latter is trending toward 2 million bopd, where it will probably max out
• wells are still more expensive to drill in the Permian compared to the Bakken (by half again as much in some cases)
• rigs
• the Permian with 400+ rigs
• the Bakken with 50 rigs
• income / royalties
• mom-and-pop mineral owners are loving the Bakken
• the mid-size operators who got into the Permian early are loving the Permian, as is COP
• folks late to the Permian game may have overpaid --whether they did or not, they certainly paid a log
• density
• operators in the Bakken seem to have figured out optimum density and optimum completion strategies, though those will continue to improve
• stories are still coming out of the Permian that density is an issue
• due to the way the basins were cut up, the norm for the Bakken is two-mile, 1280-acre spacing; in the Permian spacing, and length of laterals varies considerably
• natural gas production (MMCF) : crude oi production (bopd)
• Bakken: 3,000 : 1,500
• Permian: 15,000 : 5,000