VH states we have to have a climate change story. But why can’t that story involve shelving of the carbon projects until the company is in good shape again? They are the reason our cash flow is still challenged and the company can’t even afford appropriate VSPs anymore. Rumor is it doesn’t work anyway. Let’s get back to our core business. What could happen? Don’t cancel the projects just pause them. We still have a “story”...
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CO2 molecule is NOT 1000 times larger than pore throats in Wolfcamp (or other shakes).
CO2 is rod-shaped with long axis of 2.32 Angstroms or 0.23 nanometers (nm).
Pore throats in shales range mostly from ~2 nm to 50 nm, very small but from 10 to 200 times the size of CO2 molecule.
That being said, CO2 EOR in shales has not been solved by Oxy. Might work with oil prices north of $120/bbl.
Big problem is getting CO2 into the very low permeability matrix and then getting oil & CO2 out again.
Lots of other problems on all scales (micro-, meso-, macro- and megascopic) with any injection process in shales. Heck, we have problems getting the oil out under simple depletion process!
@zde+15fzLHD3 Sure - I'm not arguing the money is being well spent by resources, but that doesn't mean that a fancy sounding vague unit is necessarily a good one either. Remember RIO?
Maybe little or no money upfront for LCV projects, but Oxy will end up holding the bag when JV partners fail and the Oxy guarantees kick in - that’s the real cost because we know how VH excels at risk management! Sad really.
Pennies at a company level, I am sure he also uses Toilet Paper if you want to add that extra cost to this calculation, people here make it sound the big bucks are beind spent on LCV and that is just not true... just one of the wells resources overspends and underperforms will pay for that, do a lookback on the actual jobs vs. AFE. Unconventional: the Ponzi scheme of the 2000's done to trap investors that know nothing about oil, like bitcoin...
@jmv+15fzLHD3 So Richard Jackson is not paid by Oxy?
How many dumb people on this forum!!, just quit Oxy and leave the company, the avg IQ will increase. LCV is funded separately from 3rd party investors, NO MONEY FOR LCV comes from Oxy. What a waste of salary on people like you, just quit and go work on a McDonalds like you should.
Technically it only works as huff-puff process. Like a cleaning of the nearby well-bore. This is because there is permeability created around it after the Frac. It is physically impossible to flood nanodarcy shale with a big CO2 molecules that is 1000 larger than the pore-throat. But who I am to be listened to, just another Petro scientist! “Suppouse we hit the wellbore with a tremendous ultraviolet just very powerful light. You brought the light inside the wellbore, which you can do either through the liner or casing or in some other way” “ and the I hear about the desinfectant”. Just like POTUS, VH has ignored the scientist and preferred tuning into to the Apache talking heads. Her personality blocks constructive criticism and encourages cronyism. Don’t rock my boat while I am trying to sink it.
Sounds like Oxy is banking their future on CO2 working in shale. They claim they have proof it works. 2 questions. 1. Is that claim true? 2. If the answer to the first question is yes, is it economical to execute in the Permian and/or the DJ?
This is the problem. The choice to use the $ saved from dividend to fund the carbon program instead of funding salaries or paying debt. Defund the carbon program.
We just funded the entire carbon program by cutting our dividend to a penny. At least we're taking steps to survive. As bad as it is right now, it seems that Oxy might actually be able to make it's way through this.