Shale was part of the Lean In Value Added Chain strategy. Remember that, the Value Added Chain? Never hear that BS anymore, it d–dwith the Lean In strategy. The Wink terminal we bought and improved is at 1/3 or less capacity, the Wink to Webster pipeline after we spent millions and millions on pipe/engineering is never going to be built as there is a ton of midstream capacity already in the market, and the Beaumont Refinery 350 thousand barrels per day expansion had been canceled and we will most likely sell Beaumont. XTO was never able to drill and produce at the costs and volumes they advertised, except on manipulated PowerPoint decks, and the Saudis are not going to let the US shale producers steal their market share. Shale is done for XOM before it even began, it is the Kearl of the South.
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Just look at how much Delaware built versus how much they are actually using today. That can’t be profitable.
Of course it’s not true. Very little of it. The trolls post false info and then upvote their own posts over and over. And put new posts up complimenting their own original false posts. Just a handful of trolls pretending to represent EM workforce. Easy to spot the repetition. It’s gotten quite boring actually.
This is not true
Now the hood old UIS sends low class worthless PhDs to Midland. With such “yes boss” employees with low intellect and zero field aptitude, is the future really bright?
Wink to Webster is not yet complete in many sections and connections not yet completed. And the many, many owners have pulled back on their future CAPEX plans for this basically empty line. The line is pumping maybe 200 thousand barrels per day, which is well below the designed and advertised capacity of 1.5 million barrels per day. With so much spare pipelime capacity in the market currently, and no money being invested by any producer to how volumes, highly unlikely this line will ever be completed and operate at the planned and designed capacities. This was and is a huge waste of money and agree with OP, the Permian/Delaware Basins are quickly becoming if not already there, the Kearl of the South. The return on investment thus far has to be highly negative when you include the $5 billion we spent for drilling rights, the pipeline/terminal infrastructure, all the facilities we built, the equipment to drill and produce, and the fact that we found less oil and more gas than expected, which was by design and then flared so much gas, what a waste. Add in all the Houston and XTO Ft. Worth overhead (yeah some of rhe big shots are still there, it is like EM's Irving) and you have another failed investment, big time. As one poster mentioned, we are sending money to Houston, and I am sure you are. But after the money we have already invested, the long term outlook for shale, we will never see a positive return on our investment and that is not how you properly run a business. If this shale play was so great, then we would not be treating our experienced employees in Carlsbad and Midland so poorly and we would be investing in the business, but instead we have drastically cut OPEX and CAPEX as had everyone else in the Basins. If you are an employee there, leave now, by whatever means possible.
Permian is making cash and sending it back to the company and will continue to do so unless company wants to ramp up volumes quickly again. Better check your facts.
Shale oil does have a bright future. Question is will we be a part of it. If company keeps kicking their Midland employees in the teeth then the resignations will accelerate. Competitors are paying better salaries with bonuses and 401k. Meanwhile XTO dropped its cost of living adjustment, 401k and education reimbursement.
Delaware development was ExxonMobil style and has paid the consequences. Global projects came in and built big infrastructure to support volumes which due to the downturn weren’t brought on. As a result lots of idle equipment and overcapacity was built destroying value by spending so much CAPEX on facilities that won’t be needed for years if ever. Also to reach oil equivalent barrels goals gassy formations were targeted rather than oil rich zones. Money was spent to bring in volumes without considering how much value was being destroyed to get the volumes. It was wild to watch. I tried to push back and point out issues and was told I wasn’t a team player and then PIPd. Midland seemed to be better run but I don’t know details as I was in Carlsbad the whole time. Was awesome to be fired after uprooting my family to go live in the pathetic town that is Carlsbad. I am happily employed now closer to where my parents and siblings live.
I mean W2W is complete... so you’re automatically not reliable.
Repost of old troll lies. Pitiful creatures aren’t they?
Or not.