Lol. Talk about shooting yourself in the foot every time. Surprised he has any feet left .....
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The price assumed in shells business plan were a lot lower as they had strategy of "lower for longer". Sure the price increases in future years but due to discounting it was worth less now. Ya inventory of prime acreages was low but mid and lower tier were plenty. The prime acreage took the burden of putting the infrastructure in place so the mid to lower tier didn't have that burden. Shell was a horrible operator and took too long to reduce costs to do basic things. So I agree shell would never be a profitable operator. BUT other companies are ki----g it and making it work. Operators are still squeezing service companies. Yes escalation of costs will creep in whenever oil prices go up but plenty of margin at high oil prices. It was a good deal for shell to sell to Conoco as they are a terrible operator and never had their heart set to fully commit, but money will be used to do stupid things like share buy backs or pay off debt (stock still underperforming) BUT for any other operator, this is an absolute gold mine.
What blunt are y’all smoking? When Shell was operating in the Permian, they were breaking even at 40. Now the cost of each well is 75/bbl. You think spending a boat load of capital on wells that last 18 months is a good idea?
Also, the Wolfcamp in the acreage is close to depleted. It’s been produced from for 15 years.
You laid off bitterheads need better hobbies than speculation. Maybe talk to your managers on how the assets are doing. Trust me … it’s not kissing a-s. It’s adult communication
By next year CoP will have made enough profit from the asset to pay for the entire purchase. Imagine that, all paid down in under two years!
What is it with Shell and recruiting leaders that have been kicked out from other companies for being poor performers. Gretchen got paid heaps from Marathon because they were desperate to get rid of her because of the sh---y decisions she made and Shell welcomed her with open arms thinking she would change….
The Permian and Appalachia sales will go down as the biggest mistimed sales ever ....Not sure who was advising them on it but clearly they need to go look for another job .
Haha, what's her name that is running the sinking ship? She also told us there would not be severances but there was.
"Great time for them to sell US Deepwater."
Nah they will wait until it is clear their new developments are underperforming and oil price is declining ......
Great time for them to sell US Deepwater.
"The bitter losers here know more about the asset than people making the decisions I guess."
Hard to lose when you really understand this business. Otherwise you guessed right ....
Did you check COP vs SHEL share price since the sale ?
Don't cry :)
The bitter losers here know more about the asset than people making the decisions I guess. You probably don’t have the slightest clue on production data from the asset. The Permian acreage was lemons. That’s why Anadarco sold it to suckers… that’s why Shell sold it to suckers.
"That land was lemons" .....
Lol. You probably was one of the advisors ? They would have made more than they got for it by 2025 and still could have sold it for the same amount then .....
That land was lemons… Scheduled for exits in 2025 best case. Wolf camp and Bonesprings were starting to show signs of depletion in certain areas.
Conocophillips has already made 3 billion of the 8.5 billion they paid Shell.
The Permian and Appalachia sales will go down as the biggest mistimed sales ever ....Not sure who was advising them on it but clearly they need to go look for another job .....
Exactly. Wait until Brazil announces a windfall tax .....