Comeby! said:

---

I read the article. It's speaking to drilling times and how quickly and cheaply they can be knocked out, accelerating the development timing and moving PV up. They aren't talking about type curves.

---

Yeah, also in the article was a quote from Woods saying that XOM could show that they actually exceeded the drilling performance that the whistle blower was forced to fluff. Who knows if that is true or not. Guess we'll find out soon enough.

dallasag12 said:

---

They were running 50+ rigs at one point, so I'm sure a few wells here and there went as perfect as one could hope for, so that probably isn't a false statement. But presenting the 95th percentile as "average" and using that to project future performance is obviously misleading which seems like what the whistleblower is claiming.

---

Yup. They've probably got a handful of wells that they killed it from rig up to rig down. Pay no attention to the other rigs floundering with broken equipment, bad mud and a slight fishing expedition.

The thing that's gets me is, this is hill you die on as a whistleblower? I think whistleblowers serve a great purpose, but make no mistake this person traded their career in for this.

You better be up all night worried sick about the lives at risk before you put your family through being a whistleblower. The world doesn't treat them fairly.

Aka as every investor and A&D deck on earth

If you're mad enough or dumb enough.

DAPL will be next

Interesting point...does this move appease both envirowhacks and domestic producers?

Ag CPA said:

---

Good, less competition for Permian and Eagle Ford barrels. Never understood why people are so passionate about supporting Canadian and Bakken production when Texas production is under so much economic pressure.

---

True.

Ag CPA said:

---

Good, less competition for Permian and Eagle Ford barrels. Never understood why people are so passionate about supporting Canadian and Bakken production when Texas production is under so much economic pressure.

---

Very good point, I just think most people see it as an assault on the industry in general, so are opposed to it.

But it would seem right that this would only help Texas producers.

Does D&C'ing a well in the Bakken in this price environment make any money?

Comeby! said:

---

Does D&C'ing a well in the Bakken in this price environment make any money?

---

Depends on the well, but yes there are still very attractive returns to be had if you have good rock, just like anywhere else.

Anyone work in commodities trading? Have a masters in petroleum engineering and finishing up my masters in finance and would like to learn more about breaking into that industry.

Someone needs to go over to F16 and throw some water on some people, gettin a little heated over the pipeline news.

It kind of feels like the market for the Keystone XL pipeline doesn't exist anymore. It was a big deal before the shale boom really kicked off, but DAPL is the much bigger deal at this point.

Agree, keystone isn't that huge. DAPL is a very big deal

I think DAPL is going to be in serious trouble. If they had paid off the Indian tribe from the start, none of this would be an issue. Now they have an in service pipeline underneath lake Oahe with a questionable environmental study and an incoming administration looking for a reason to stroke themselves.

Its starting to sound like the price of oil will increase at least in the near future due to cheap methods of transportation being axed. So as far as new drilling activity, how will that be affected under the Biden admin? I'm not familiar with he permitting process or really anything as far as paperwork to give a rig the green light. Hell it almost seems like anyone who is sitting on DU or existing production could get a reprieve, as long as the cost of transportation doesnt skyrocket.

CaptTex said:

---

Its starting to sound like the price of oil will increase at least in the near future due to cheap methods of transportation being axed. So as far as new drilling activity, how will that be affected under the Biden admin? I'm not familiar with he permitting process or really anything as far as paperwork to give a rig the green light. Hell it almost seems like anyone who is sitting on DU or existing production could get a reprieve, as long as the cost of transportation doesnt skyrocket.

---

New drilling activity on federal lands has the most exposure to the incoming policies of the Biden administration. Even if permitting for new drilling is granted, a frack ban on federal land will (probably) strand several assets in those areas.

CaptTex said:

---

Its starting to sound like the price of oil will increase at least in the near future due to cheap methods of transportation being axed. So as far as new drilling activity, how will that be affected under the Biden admin? I'm not familiar with he permitting process or really anything as far as paperwork to give a rig the green light. Hell it almost seems like anyone who is sitting on DU or existing production could get a reprieve, as long as the cost of transportation doesnt skyrocket.

---

Increases in oil price due to the cost of transportation don't help the producer, it helps the midstream companies who can buy a cheaper barrel in Midland or Cushing and sell it for more at East Houston.

That will be cool to see them once they are converted. I imagine once they are done with them the only thing remaining from the original semisub will be the deck and columns

DAPL is toast.

Biden also going to put the screws to SE New Mexico in the near future.

jayelbee said:

---

I'm not sure. It's tough to predict what might be usable or retrofittable, but if you take off the drilling glasses for a second it makes a lot of sense and even looks like a launchpad.

They'll still need a crane, so likely at least one of the cranes stays on. They'll still need a helipad. Can the Derrick be retrofitted to be a launch support? Is there any future purpose for the moon pool? Will they still use DP2 or will it be moored? Fuel, water storage are still needed, and will be converted or modified to fit purpose. Ballast is an interesting one. I expect it's going to have drastically different needs.


If they're going to be staged in open water rather than at port most of the time, it would be really cool to go out fishing at "the rigs" once converted.

---

I envision the rocket flames going through the moonpool with it retrofitted with acoustic suppression system to keep the sound waves from ripping everything apart. This would require the derrick to be removed and a new launch support strucker fitted to the deck.

I would think they keep it in port at Brownsville so they can just load the rocket on there and then take the rig out to open sea. I'm sure the Keppel guys will be itching to get that work.

AustinAg008 said:

---

DAPL is toast.

Biden also going to put the screws to SE New Mexico in the near future.

---

What does this mean for the Delaware basin development drilling plans? BLM will shut it down? There are several companies operating in that region.

I think that is going to prove much harder than the pipeline permit.

I think you could see this more pointed at future leases. Going back on prior permits will be hard and most people have been stockpiling permits for 2021/1H 2022.

http://www.pgjonline.com/news/2021/january/biden-formally-revokes-necessary-keystone-xl-permit-ottawa-disappointed

So it begins...