re: The Permian Basin is going through an unprecedented bust never seen before in modern times

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shale oil is a non starter below $55-$60 a barrel.

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What's the price point for deepwater offshore? Seems like it must be pretty high, too, with all the robots, dynamic positioning boats, etc.

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About to be a lot of F-150 for sale out there

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They said on the Texas Monthly podcast that in the 80s bust people would abandon their luxury cars at the airport when they flew out of there.

What's the price point for deepwater offshore? Seems like it must be pretty high, too, with all the robots, dynamic positioning boats, etc


different animal....shale.tight formation..coal bed methane is like mining for the hydrocarbon...set depth and amount of recoverable product per acre determined...
so basic economics

offshore....how deep water.how deep reservoir. reservoir pressure,product type and quality....

bottom line....size of the trapping structure....
but price of course impacts that
need twice the reserves at half the product price

we were deepwater drilling at 20-50-80 etc per bbl...shale is mining a set product.... deepwater is finding a big trap with hopefully stacked pay and good porosity and permeability to drain it with a few as wells as possible ...


risk is the big key... shale is a determined reservoir with no risk... thus finance guys like it cause just economics

deepwater is 10 -20 percent success so you just spent 100 million for a paperweight if wrong

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risk is the big key... shale is a determined reservoir with no risk... thus finance guys like it cause just economics

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That’s how it was sold but unfortunately the risk is mechanical as well as more geological than many players want to admit. Not a lot of great wells outside the cores which shockingly isn’t that different from the conventional plays. Instead of drilling dry holes the industry has drilled a bunch of “producing dry holes” which won’t ever pay out. That’s arguably worse.