If you have spent time on the internet the last couple of months, trying to sort out the US Shale oil situation, and how it might affect the EagleFord, you may have seen this Pre Ukraine Invasion Summary.
It is one of the best I have found ( kudos to author Irina Slav), but it also indicates to me that caution rules the day for E / P Companies. The focus is much more on Production than Exploration for the major Players.
We are all waiting to see what direction the Post Ukraine Invasion energy market will lead the E/P s,
What are you thoughts???
Why Isn’t U.S. Shale Production Soaring?
By Irina Slav for Oilprice.com
..."It is a most unfortunate convergence of factors. Prices of WTI above $90 per barrel would have normally made everyone rush to drill. But even if they wanted, drillers can’t rush to drill, at least not as fast—or as cheap—as they used to. But it seems that investor concern remains the top priority for public companies.
“We have to do what Wall Street wants . . . or else your stock craters,” Continental Resources’ Harold Hamm told the FT."...
Thank you, Aggie. Excellent article by Irina Slav. I've been following the recent statements by Sheffield of Pioneer, Muncrief, EOG, et al., about cash return to shareholders.
I guess it's the usual combination of fear and greed. At some point in pricing (and with some stability in pricing), greed and FOMO will take over again. Plus ça change, plus c'est la même chose.
One of Irina's points was that E&P companies' inventories of drilling sites in prolific areas are now far less. However, I have seen some (what are in my seat-of-the-pants estimates) pretty good wells drilled in what was formerly regarded as a pretty poor area, near my own acreage. I speak of some of the wells having been drilled by Recoil Resources in the updip area of Wilson County, NW of the Wilson-Karnes county line. And, further SE into Karnes, where the rock is admittedly better, lots of activity by Validus Aquilas NRG, et al.
We can always hope for EF shale to contribute to supply growth. It is embarrassing to think that the US would go, hat in hand, to the likes of Venezuela, Iran, and Saudi Arabia.
My Family has some holdings that bridge the W - K Lines between Falls City and where the SA river crosses.
They report a rig work in that area right now, no id signs were up at the property gate ( RCC violation?)
Any idea who that is?
When I place my cursor on the producing wells in that area on the TXRRC website map, I see the following operators:
EOG, Matador, 1776 Energy Operators, Recoil, and a little south of there, Magnolia (including AC).
Knowing if the drilling pad is in Wilson or Karnes might help ID the actual site and operator..