Another example of COP conservative culture. The Willow reservoir is composed of shoreface, wave-dominated deltaic sands that are discontinuous. Ask any geologist and they’ll tell you there will never be confidence about individual sand layers. This fact is illustrated nicely on Alaska DOG website. These low permeability reservoir sands will be frac’d anyway so this appears more about COP management wanting to delay the decision rather than gaining more geologic confidence.
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I thought that the Austin Chalk was the last chance for this exploration regime to redeem themselves?!?
The problem is our compensation system: we reward results rather than long-term value creation; we reward smooth talkers and great Power-Pointers rather than folks with insight; We skip Post-audits to identify root causes of failures and penalize liars. It’s what we do and don’t do.
Our new leadership and culture does not support any type of trend setting, calculated risk taking, or true wildcatter approaches to doing business. We are always late to the game and then we damn sure have very little chance of winning!
When we should move fast we don’t; when we should move slowly we don’t, when we should stop we don’t. It’s not slow decision making, it’s biased decision making.