I work on conventional assets and will probably be in the next round of layoffs after the asset sales are completed. Seems we are placing all our eggs in the shale play basket. Keep hearing unconventional has not been commercial to date. Have spent more than the revenues. Is this true?
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The goal is to take the money the oil sands divestures, buy some high quality shale oil assets, and then divest the existing loses which are substantial. First goal accomplished, second goal in progress, third goal begins in 2018.
Somebody will operate San Juan just fine.
You are missing the point! San Juan is mature, it is used up, they are plugging 10 times more wells and they are drilling. Pressures are down due to depletion, water is up, corrosion is up, scaling is up, chemical cost are up, tubing failures are up, wellbores failures are up, cost to produce is up, production is down.
Hedging by EOG and the rest has allowed them to keep and plan for a known level of activity - this increases efficiency.
There would be nk reason to sell San Juan if COP had hedged.
pxt, are you stupid, a company a$$-kisser, or "yes"? EOG did not sign long term leases on drillships, offices, and unneeded company aircraft. EOG did not declare the dividend inviolate then cut it 5 weeks later.
EOG runs its drilling like a factory, not a training ground for no-work company inbreds. Are you aware that internal studies document the average COP field employee actually works only 7% of his time? And it's worse for HQ!!!
pxt, it's better to remain silent and have people think you are stupid than write and remove all doubt. EOG drills Wells at one-third our cost, their operating costs are low, and they don't have a huge overbuilt infrastructure to amortize forever. That's why it's embarrassing that their market capitalization is now greater than ours. Are you stupid or drinking the Koolaide? Even our glorious leader's COST project reported our costs and people count out of control, and this was before the other companies cut.
The shale plays have been a money black hole. Historical expenditures, CAPEX and expenses, have greatly exceeded historical revenues. It will be difficult to impossible to dig out of this hole. Best locations have been drilled, fairways or sweet spots have been drilled. Now in a period of reduced pricing and poorer grade of well opportunities. Niobrara shale has been the unmentioned disappointment. Service companies already increasing pricing driven by increase drilling activity by the recognized shale leaders EOG and Pioneer. Both are more efficient at drilling, completion and production. Both have hedged production at prices significantly higher than posted.
Misinformation, many people love to misinformed or downgrade a company that they dislike for one reason or another. ConocoPhillips is a top tier player in Eagle Ford having developed technology ahead of its competition in many areas. There have been many articles written about Conoco keeping their drilling and production cost in Eagle Ford below competitors.
This is an ignorant question. The response is always, "at what price?"
That said, our "leadership" vastly overspent on Eagleford, gold-plated everything, and built in operating costs assuming $150/BBL oil. Our Wells cost three times as much as our competition. So Eagleford is not profitable and we lose earnings for each BOE we produce.
That said, Eagleford is actually our best unconventional asset. So draw your own conclusions about the others.
Stupid question troll!