BlackGoldAg2011 said:
Primarily Eagle Ford
As Permian booms, ConocoPhillips focuses on Eagle Ford
https://m.chron.com/business/energy/article/ConocoPhillips-going-slow-in-Permian-focused-on-12918686.php
BlackGoldAg2011 said:
Primarily Eagle Ford
BlackGoldAg2011 said:
Not who I'm with but the reasoning laid out in that article could have been essentially a transcript from our team meeting last week. I imagine many multi basin players will be doing the same if they have that option.
Gordo14 said:nu awlins ag said:
I'm hearing that the pipelines are running near capacity from a meeting I was in. This could delay a lot of wells being completed since there is no avenue for shipping. I was under the impression that there was plenty of lines in west Texas. It's a double edge sword....
Yes. I've been seeing Midland crude selling at a $11 discount to WTI.
jetch17 said:
Anyone heard any rumbles of Dback eyeballing endeavor? Pure rumor, but caught my ear
Them along with several other operators. Costs are one factor that a camp told me. Look for the Eagleford to get busy again by mid-summer. Actually it is getting busy but more so by July/August.Boat Shoes said:BlackGoldAg2011 said:
Primarily Eagle Ford
As Permian booms, ConocoPhillips focuses on Eagle Ford
https://m.chron.com/business/energy/article/ConocoPhillips-going-slow-in-Permian-focused-on-12918686.php
To back that up, they also said that the cut could be as low as 200,000bbls. This news is somewhat old and just today they revised it to 500,000bbls. a day. They have no clue. IEA came out Wednesday and said demand would drop from 1.5 to 1.4bbls. a day because of higher prices. The US isn't even in driving season yet. The IEA only looks at Europe as a gauge for demand while discounting the rest of the world.SpreadsheetAg said:
Brent over $80
https://oilprice.com/
aggie028 said:
This is true.... but it's why the diff has been -$2 to -$5 historically. Doesn't explain -$13.
Here you go......Before 2011, Brent and WTI crude oil prices tracked closely, with Brent crude oil prices typically trading at a slight discount to WTI crude oil, reflecting delivery costs to transport Brent crude oil and Brent-like crude oil into the U.S. market, where they competed with WTI crude oil. In early 2011, this longstanding relationship began to change, and since then, WTI crude oil has priced at a persistent discount to Brent crude oil. Increased U.S. light sweet crude oil production combined with limited pipeline capacity to move the crude from production fields and storage locations, including Cushing, Oklahoma, the delivery point for the Nymex light sweet crude oil contract, to refining centers put downward pressure on the price of WTI crude oil.SpreadsheetAg said:
Can anyone explain to me the relationship between Brent Crude and WTI Crude? I realize these are different types of commodities traded seperately...
But why is there a $8 gap? Is one product superior? Also, does one going up (like Brent) drag the other up lagging behind it?
Amazingly, I understood all of thatnu awlins ag said:Here you go......Before 2011, Brent and WTI crude oil prices tracked closely, with Brent crude oil prices typically trading at a slight discount to WTI crude oil, reflecting delivery costs to transport Brent crude oil and Brent-like crude oil into the U.S. market, where they competed with WTI crude oil. In early 2011, this longstanding relationship began to change, and since then, WTI crude oil has priced at a persistent discount to Brent crude oil. Increased U.S. light sweet crude oil production combined with limited pipeline capacity to move the crude from production fields and storage locations, including Cushing, Oklahoma, the delivery point for the Nymex light sweet crude oil contract, to refining centers put downward pressure on the price of WTI crude oil.SpreadsheetAg said:
Can anyone explain to me the relationship between Brent Crude and WTI Crude? I realize these are different types of commodities traded seperately...
But why is there a $8 gap? Is one product superior? Also, does one going up (like Brent) drag the other up lagging behind it?
More recently, expansions in U.S. crude oil infrastructure have eased the downward pressure on the price of WTI. Since mid-2012, significant pipeline takeaway capacity has been added at Cushing, enabling crude oil to flow to and from the trading hub more easily. Other pipeline and rail projects have also been completed, making it possible to move barrels from production areas, such as Texas and North Dakota, to refinery centers without passing through the hub. Even U.S. East Coast refineries, which historically have relied on Brent crude oil and Brent-like crudes, can now access U.S. light sweet crude oil. U.S. crude that moves by rail is replacing Brent crude oil and Brent-like crude oil imports into the U.S. East Coast, putting downward pressure on the price of Brent crude oil and narrowing the differential versus WTI crude oil.
The future of the Brent-WTI price spread will be determined, in part, by the balance between future growth in U.S. crude production and the capacity of crude oil infrastructure to move that crude to U.S. refiners. The International Energy Agency (IEA) reported that planned maintenance in the North Sea oil fields this summer will reduce production, adding upward pressure to Brent prices and potentially widening the Brent-WTI spread. In its June 2013 Short-Term Energy Outlook, EIA forecast the Brent-WTI price spread to average $11/bbl in 2013 and decline to an average $8/bbl in 2014. For more information about the Brent-WTI spread, see the June 5, 2013, edition of This Week in Petroleum.
Gig-Em2003 said:
Been hearing rumors of another $5-$10B Permian deal coming soon.
nu awlins ag said:
It was to discuss how the spread works. He wanted to know...
Where and in what capacity were you working for ConocoPhillips? My family has land under lease with them in the Eagle Ford. Those early days with oil over $100 were really nice. I'd love to see some of those prices again, admittedly for selfish reasons. Conoco has been, in general, a good company to be leased with.DDSO said:
I miss working in the Eagle Ford. I did a lot of work for Conoco down there from 2011-2014.
Goose06 said:
Speaking of Devon, rumors are out there that they are selling their Reeves/ward county acreage. It's not a huge position, but I'm curious who might be buying that. Anyone hear any rumors on the buyer?
aggie028 said:
Possible but seems unlikely given the size and that Jefferies is marketing it and hasn't started the data room presentations yet.