quote:
It’s not just that. There are leases, exploration, permits to drill, production infrastructure, completions, production, refining, and distribution. It’s a long chain of events to get that drop of gas in your car or the PVC pellets to the plant that makes the vinyl siding or pipe.

Correct, it is a long chain. So why use all the metrics when one will do? The vast majority of companies are requesting permits because they have those other pieces in place. Why get a drill permit when you don’t have a lease, land that can produce from more drilling, the infrastructure to pull it, a refinery to refine it and the distribution network to sell it? Permits are a measure of orgs that have the chain in place and have the market incentive to do it.

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Posted by AndyCBR

Baton Rouge, LA

Member since Nov 2012

7568 posts

Posted on 3/9/22 at 8:20 pm to bungalow233b

quote:
Correct, it is a long chain. So why use all the metrics when one will do? The vast majority of companies are requesting permits because they have those other pieces in place. Why get a drill permit when you don’t have a lease, land that can produce from more drilling, the infrastructure to pull it, a refinery to refine it and the distribution network to sell it? Permits are a measure of orgs that have the chain in place and have the market incentive to do it.

I don't even understand the point of your post.

My point was picking any one metric of a multi-step process as the defining measure of the whole is stupid.

I gather you feel the opposite way.

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