That came from an article:
"...in the Bakken enjoy a $73/boe price advantage compared to about $14/boe for the shale gas operators."
It is relevant today because the numbers are not too different and it explains the value difference based on heat content of the two (gas & oil) and the aprox. finding costs in the Bakken.
It is going to vary slightly but it does get the point understood....if you take the time to understand what he explained.
Gas is actually a little worse then when that interview and article came out, and the oil is a little better price so the ratio is a little higher but that is close enough to make the point even though the advantage for oil is slightly more now than when the article was written.
That post has numbers that are pretty close to todays prices for BOTH gas & oil and it was posted merely to illustrate a point which is the price advantage of BAKKEN oil over natural gas in this low natural gas price environment. That was explained by Bud Brigham in detail.
It was talked about at the Enercom conference and described by Bud Brigham when he was interviewed and it is very worthwhile to listen to him explain it.
It is why there has been a rush towaed oilier plays.
RLP does not like that because he likes COG....good for him.
He is about to do again what he did when he posted about the 1 million EURs for Bakken wells which Hess is NOW getting that RLP said was just a fantasy....he is about to speak again without knowing what he is talking about....just watch.
The rest of the industry who can shift toward oilier plays like the Bakken or the Hogshooter or a few others have made that shift because of the economics.
If you listen to RLP, he says that he thinks that the Bakken is not the place to develop oil because he does not like the decline curve ........
......................but for some reason he does not seem to want to share his concerns with Mr. Hamm, or Bud Brigham, or Lynn helms....
The only object RLP has is to discourage all viable domestic energy. He runs around all day throwing stuff at the wall and that is the extent of its engagement in the subject. Under handed tossing is all the poor creature can manage.
I understood fully as all Americans attempting to be good stewards of our savings need to. American natural gas is selling for the same BTU value as $20 oil. WTI is what $88?
The reality remains the same even though natural gas is up over 50% of course. But RLP just has to go bah bah bah. That is the limit of his base nature.
The strangest thing of all is RLP made a big issue our of what actually made Bakken production more valuable no that the infrastructure is catching up. But conceptualizing economic realities is not what any member of the OLB does. Including when they try to call themselves GDP.