What I don't hear from the daily wall street mouths is that there is a depletion of about 20%-30% of a well's production within the first twelve months it's production comes on line.
Why doesn't someone factor this into the extended forecasts? With new drilling down dramatically, and the natural declines of each well's production, within twelve months we should see a reduction of US production of somewhere around 1,000,000 BOPD, perhaps and probably more. Just thinking.
The media pundits and their interviewees seem to forget about depletion. Don't they know that a well that produces 1000 BOPD today doesn't produce but maybe 750 BOPD in twelve months. Yet they seem to think that just because some Iranian oil is going to hit the markets it is supportive of driving down prices. Surely they understand that most of that oil is not oil that US refiners want; by as much as 75%. So add that inclusion with the fact that the Iranian oil fields need a lot of work just to get them back to production and it is almost like an unevent, not the other way around. They also seem to think that just because there are a little over 600 rigs in service that will take care of the production needs in the future. Do they not read some history of what happened under the Jimmy Carter administration when there were long lines and it took America some 10 to 12 years to get production back to cover more of our needs. Sometimes it seems like Wall Streeters are like politicians who can only say what is on the teleprompter which is written by some back room writer, not someone who knows the oil patch, as they should. Cheers
In April they filed that they did not have the financial means to pay for their 10K filing. Uh, did anyone turn off those lights? They have no more money to pay the bills. This company is done. Over and out!
Is the stock only being issued for sale through smoke house brokers who tout it to unwary invetors, or what? Or are the shares simply being issued and shorted knowing they can be bought back later at a much lower value? Any ideas?