Energy Secretary Granholm not ruling out reinstating an export ban.

If that goes down WTI and US production is majorly screwed.

(mentioned at end of article)

https://www.reuters.com/business/energy/us-energy-secretary-tapping-oil-reserve-possible-tool-calm-prices-ft-2021-10-06/

MavsAg said:

---

Cimarex and Cabot are calling the new combined company, Coterra. Why do companies insist on hiring consults to come up with a crappy name like that?

---

Penn Virginia and Lonestar's new name is Ranger Oil Corp., promise you they came up with that in order to use the ticker "ROCC".

Half a trillion!!!

Quote:

---

Oil explorers need to raise drilling budgets by 54% to more than half a trillion dollars to forestall a significant supply deficit in the next few years, according to Moody's Investors Service Inc.

---

How are you spending your piece of the pie?

We are ordering casing 12 months out.

Nm

Comeby! said:

---

Who's got the scoop on Tapstone?

---

Diversified continues its buying spree. 763,000 net acres? Was this where they smashed several scoop companies together?

When Diversified blows up it will be epic.

Cyp0111 said:

---

When Diversified blows up it will be epic.

---

What's the intel? Overleveraged in debt?

when do republican oil property owners or investors start voting for biden?

Cyp0111 said:

---

When Diversified blows up it will be epic.

---

Speaking of epic blowups, how long do you think Epic midstream has? Or are these prices going to fix it for them?

Shell is no longer taking anymore trades/hedges. They haven't all week. Cargill is having an internal meeting about this today.

You traders, wtf is going on?

Maybe they got smoked on the resent volatility and blew their var.

Prices going parabolic this morning.

Cyp0111 said:

---

When Diversified blows up it will be epic.

---

P&A liabilities are massive.

Run down the asset and equity is left with a big P&A liability

Alright EFT did Silverbow just buy Teal? Deal profile fits outside of the Karnes/Atascosa piece…https://t.co/KtTeRPVS3J

— Clint Barnette (@clintbarnette) October 11, 2021

AustinAg008 said:

---

Cyp0111 said:

---

When Diversified blows up it will be epic.

---

P&A liabilities are massive.

---

This has always been and endgame issue with shale. Even if you could overcome the decline curve game and stay ahead of drilling costs, the P&A liabilities just crush any ability to get your depleted field off your books. Nobody will buy them for obvious reasons.

The only options are either get bought out and sell the new companies stock, or declare bankruptcy, hand over your bond to the state, and know that won't be enough to actually P&A a bad field.

I've followed a twitter story of a woman who has lots of old wells from the 1940s-1960s on her land. They're starting to leak. Chevron just spent at least 25 million to kill one well on the field, and there's probably at least 10 more on that property with the same back pressure problem.

Hence the dumb money they raise from England and Germany. House of cards but honestly a long way off before it falls.

Lebanon has a problem...

https://oilprice.com/Latest-Energy-News/World-News/Lebanon-Suffers-Grid-Collapse-As-Power-Plants-Run-Out-Of-Fuel.html

AustinAg008 said:

---

Cyp0111 said:

---

When Diversified blows up it will be epic.

---

P&A liabilities are massive.

---

Bloomberg came out with an article on Diversified and their liability. 69,000 wellbores! It didn't say if that was only operated or not, but it implied that was the operated well count. Lots are old small volume wells with gas leaks. An ESG nightmare.

When I looked into buying some old stripper wells, that was one thing that scared me; I felt the largest risk to the whole business. And these were late 70's, early 80's drilled wells to 4k feet depth.

I have a feeling that P&A costs for wells in Texas is going to become a major sticking point for the future. Especially if a lot of companies either go bankrupt or walk away. State is going to go after a pound of flesh. Even more so if a leaking well starts royally messing up something (someone dies from an explosion, poisons water for a water district, etc.)

~egon

Drillbit4 said:

---

AustinAg008 said:

---

Cyp0111 said:

---

When Diversified blows up it will be epic.

---

P&A liabilities are massive.

---

Bloomberg came out with an article on Diversified and their liability. 69,000 wellbores! It didn't say if that was only operated or not, but it implied that was the operated well count. Lots are old small volume wells with gas leaks. An ESG nightmare.

---

Bruh

Wait, what?

The Chief Operating Officer of Diversified Oil and Gas, a company that has acquired 69,000 (potentially leaky) wells, is coming off an 8 year stint working for a coffee roaster that distributes tea and other beverage products.

Excuse me? pic.twitter.com/0Yy4RaZGZB

— NextWave EFT (@NextWaveEFT) October 13, 2021

Drillbit4 said:

---

Comeby! said:

---

Who's got the scoop on Tapstone?

---

Diversified continues its buying spree. 763,000 net acres? Was this where they smashed several scoop companies together?

---

Diversified acquired Tapstone for $419MM in cash.

They are trading off 20% today after the scathing Bloomberg article.

Dr. Doctor said:

---

When I looked into buying some old stripper wells, that was one thing that scared me; I felt the largest risk to the whole business. And these were late 70's, early 80's drilled wells to 4k feet depth.

I have a feeling that P&A costs for wells in Texas is going to become a major sticking point for the future. Especially if a lot of companies either go bankrupt or walk away. State is going to go after a pound of flesh. Even more so if a leaking well starts royally messing up something (someone dies from an explosion, poisons water for a water district, etc.)

~egon

---

Not saying those won't be a problem, but there's wells in texas from spindletop onward with just terrible completions. One bad frack job is going to pop those bad boys. Wells from the 1940s with drill plans that are half napkin, half smudge, and aren't even accurate about whats in the ground.

Not fracking near old wells has to be the only real mitigation strategy you can do until they start leaking.

I've also seriously looked into this. A few hurdles, but the one about working for RRC is that they competitively bid out the P&A jobs making it low margin work.

Would not want to be net 60 days for Diversified or anyone with serious P&A expenses.

Skillet Shot said:

---

I've considered starting up a P&A business many times in the past. No matter what the oil price is, there are plenty of old wells that need to be plugged. I can handle the engineering work. Just need someone who has good RRC contacts so we can get a steady supply of abandoned well work. And someone to fund the capital. Maybe a few drunken salesmen that can chase customers at the conference after-hours bar tabs.

F57 Pluggers Inc, who's in?

---

Where will the money come from to pay the real cost to p&a the well?

Well the turnkey price* is $25,000. The thing about turnkey prices is that they aren't turnkey. At least that's been my experience with pluggers in the past.

Skillet Shot said:

---

Well the turnkey price* is $25,000. The thing about turnkey prices is that they aren't turnkey. At least that's been my experience with pluggers in the past.

---

Uh, run.

Skillet Shot said:

---

Well the turnkey price* is $25,000. The thing about turnkey prices is that they aren't turnkey. At least that's been my experience with pluggers in the past.

---

Haha, $25M for rods coming apart in pieces or tubing that looks like Swiss cheese. Oh yeah, and scaled up ESPs with the cable wrapped. These operators hurting for money definitely aren't pulling their equipment.

Lol

White House asks U.S. oil-and-gas companies to help lower fuel costs -sources

Quote:

---

The White House has been speaking with U.S. oil and gas producers in recent days about helping to bring down rising fuel costs, according to two sources familiar with the matter.

---

Quote:

---

"We are closely monitoring the cost of oil and the cost of gas Americans are paying at the pump. And we are using every tool at our disposal to address anti-competitive practices in U.S. and global energy markets to ensure reliable and stable energy markets," a White House official said.

---