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This is Boots Hansen and Pat Campbell on one of the most significant blowouts in North American history, Lodgepole, Alberta' 1982. The well was making deadly percentages of H2S that killed four Wild Well Control hands before Boots & Coots, Inc. took over; it had to be capped while still on fire to keep the gas from killing everyone within 25 miles.
Stuff To Think About
No shit on this, Mr. President
Video Stuff
Folks NEED to watch this video ! Often the MSM will
report of comments made by, in this case, Diamondback, and leave out the most relevant parts. Eric does not. This is important.
Quote Stuff
" True, full cycle, all-in corporate breakeven prices of the U.S. shale oil sector are $90 a barrel. All long term debt must be paid back and the sectors
well inventory plugged, abandoned and decomissioned.
That is the cost of doing business and every barrel of oil produced by that shale sector bares the burden of those costs." Mike Shellman ​
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Please see oilystuff.com... Forum Stuff
Most people, particularly those that have never been in the oil and natural gas business, would say that the ability to borrow capital and carry debt is a normal, benefical aspect of business. Everybody does it. That may very very be true for companies with plant, property and equipment, and/or large inventories that can be maintained, not the oil and gas business and especially not shale oil. Those shale "assets" are here today, gone tomorrow (decline) and in the end there is nothing to"sell" other than depleted wells
and unsalvageable production equipment. In fact there is nore liability to bare with plugging & decommissioning.
Before the onslaught of shale oil I spent 60 years in an oil business whose golden rule was NEVER borrow money to drill wells.
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Exxon pays pretty close to $2B a year in interest on its long term debt. Nobody wants to do that, I don't care how big you are. If Exxon had the buisness model, and the revenue, to pay this debt off, it would. Its adding to debt to cover dividends and share buybacks instead of paying down debt. On strictly a dollar basis it is paying more interest on its debt that it is earning drilling shale oil wells below $60.
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Its CEO says Exxon "was built for these (low oil price) times." Yeah, right.
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I do this blog stuff for fun, not to make money. I am not trying to sell you anything.
The materials provided on this site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice. I may make data related mistakes occasionally; if you use my opinions about oil reserves or shale well economics for financial purposes, to buy or sell stocks, your nuts. Don't do that. If I have used a photograph incorrectly it was for educational purposes and I have done my best of to give credit where credit is due. My stories are all true, slightly embellished, perhaps, but true; I don't change names to protect the guilty. I am as accurate as possible about history and historical facts; I work very hard at that.All rights are reserved, whatever that means. Don't blame me, I didn't do it.