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Refracking Fever
The idea is almost as old as fracking itself. “World Oil” reports that since the 1950’s, operators have been identifying aging wells with diminishing output and blasting them with sand and water to enhance production. What is new is the application of this technique to shale reservoirs. Shale wells are notorious for steep decline curves… Read More
New Big Oil Model
“World Oil” reports that in a recent study by investment bank Morgan Stanley and the Boston Consulting Group, the authors state that the major international oil companies need a new business model to increase shareholder returns in today’s price environment. The study maintains that share prices could be increased 50% if their recommendations are implemented.… Read More
Promise of the Wolfcamp Delaware
A recent article in “World Oil” cites a study by consulting group IHS projecting significant upside in the Permian Basin’s Wolfcamp Delaware play. In fact, the report states that the structure has the potential to sustain operators through the current period of depressed prices. However, in order to maintain profitability operators are currently “retreating to… Read More
Frontier Fracking Face-off
“Rigzone” reports that the U. S. Department of the Interior’s Bureau of Land Management introduced new fracking regulations in March. These would apply to approximately 700 million of acres of mineral rights with more than 100,000 oil and gas wells which produce 11% of the nation’s natural gas and 5% of our oil. Further, much… Read More
Interest Expense Threatens Shale
There is a time honored saying that “Leverage is a two-edged sword; it makes good times look better, and bad times look worse.” According to a recent article in “World Oil”, this has never been truer than in the case of the shale revolution. The very debt financing that enabled many shale operators to develop… Read More
