Small companies and independents hitting the gas hard in Midland. We going to ramp up and chase price or maintain our discipline?
8 replies (most recent on top)
After this Iran nonsense is done market is gonna swing back hard.
The longer it goes, the more demand destruction you’ve got. Money may be good now, but there will be pain on the other side.
Shows how little you know if you think any of our tech is actually improving recovery factors
Shows how little you know about Reservoir engineering and Geology, or how EUR works. It’s a trade off. Go faster now and recover less oil (recovery already in 5% range for Permian - so would get even less than that!), or develop the resource properly, implement tech over time and get closer to 10% recovery. Big companies do things differently than midcap companies. Not better or worse, just different.
@cx your reply shows just how much process and wrong thinking has burdened the company. The independents will aggressively ramp up to capture value. We used to be able to. Sad to hear people saying something we used to routinely do is impossible.
You can only develop the asset so quickly. You can’t really just a-s a ton of rigs and go a lot faster. Facilities, takeaway, water, etc all have to be in place. Expect approach to stay the same. Extra cash flow will be used to buyback more stock, pay off debt, and possibly buy other assets.
The strategy?? That’s funny
No one’s “hitting the gas hard”. Shows how much you really know.
We do not have strategy, much less, discipline.