WTI went over $99 today, Brent at $110. Most think oil will weaken but not sure I agree, if we get an improving global outlook, which it appears that we do. Seems DNR will follow the commodity moves. The average co will probably increase prod next year 10%, DNR, 8%. But not much downside with proved developed reserves probably $12 least.
WTI $99, Brent $110, nat gas $4.40. Healthy commodity prices. Feels like the sector can go higher. MPO is waiting an announcement.
Agree with you on the transcripts, read a couple this am. And SA occasionally has a good piece, did read one on CRK today. It was actually well done and balanced.
Nat gas draw 285 bcf, a huge no. '14 prices pushing $4.30, should give a boost to rev, could add $20mm to ebitda, hypothetically could add a $1 to stock price. Hard to say that nat gas is moving longer term but $4.30 is healthy compared to the recent past.
280 bcf nat gas draw, a huge no, Don, turn your thermostat down.
SA is ridiculous, and should be ignored. I have never read an article that was ahead of the curve. Not sure which is worse, SA or Motley Fool. Anyone who wants exposure to infrastructure of one of the world's great oil and gas plays should buy Markwest and forget about it for 5 to 10 years. The Marcellus is changing the flow of hydrocarbons in this country.
Below is from the q call, as I understand it, they don't case and frac the wells that maybe look substandard. I believe he mentioned in the last pres that it saves $1.5 million per well, out of a potential $3mm per well, that's significant. Think it was 18 wells, that would have less volumes but the economics for the wells were improved, would haver reduced the average He did mention the effect on prod but wasn't specific if I remember correctly. Believe SD said the same thing about their completions, guess it's neg for volumes but improves returns, at least that's the hypothetical result. Still the variability of the Miss Lime is an issue.
Yeah, I didn’t talk a lot about it and I guess I’m somewhat love to get too carried away because this is a pretty early experiment. I will tell you, we feel pretty good about what we’re seeing and I think what it’s pointing to is we don’t understand everything we’d like to understand about the Mississippian in general. So this is going to help us quite a bit in getting our arms around some of the technical details. Ultimately, the way we kind of see this is there will be some wells that we could kind of look at and say, I wouldn’t want to waste a fracture stimulation on a well that’s already making pick a number 5,000 barrels water and 50 barrels of oil. So that’s the way we kind of started looking at this as we have some areas that produces high gas cuts and higher water cuts and perhaps the way to make those look better economically is not spend the money on fracture
stimulation, because we don’t know that it’s actually improving the overall takes on those.
He didn't mention anything in the pres last week, so assume no effect, did mention the open hole completions had an effect on production volumes, think it was 18 wells. Haven't heard of other producer mentioning OK issues, the Permian did.
That is a factor. The Exxon guy I talked to mentioned he had heard of cos dismantling foreign plants to move them to the US, haven't heard that it but has to have an impact. Have heard that in the so Tx with the EF boom, hard to find qualified operators/technicians. I am very bullish right now, trying to not get carried away because who knows if this plays out. But the potential could be great for the country.
cbd, you probably have already looked at Noble's pres today, but they lead with the Niobrara/Wattenberg. Incredible resource, the returns for normal hz wells in the 70% range, go to 170% for the extended laterals. Noble sees mid 20% per yr increases in prod from the play for next five years. Doesn't hurt to have one of the best operators in the sector leading the way. Anadarko says it is there best asset and they have some of the best operations globally.
Should help, we don't have refining capacity for more light sweet crude in the short run. Not sure why we wouldn't allow export, we didn't want Canadian crude. Our policies don't make sense to me. It will take care of itself over time but the diff of WTI to Brent could continue. We will continue to back out imports if we increase prod a million + bs /yr for the next few years. This is a bigger story than social media or Apple products imo.
Thinking about the Nobel announcement today, why would you invest in DNR increasing prod 8% per year when you can buy NBL, increasing prod 18% per year for the next 5 years. Still think DNR execs may be coasting. Talked to an exec with Exxon, talking about the DNR assets they traded for in the Bakken, they are very happy with the result. DNR needs to revisit their strategy again.
Saw a comment on the growth of US/NA production, the rate of growth over the past two years is the greatest since 1940. Virtually all of the world growth outside of Opec is No America. Said it before but what's going on in energy is as big as the digital revolution. This story should be on the front page continually, and not the dangers of fracking or the demonization of the Canadian oil sands. Contrary to what DC does/say, the energy revolution just might give us a global advantage. Noble Energy out with 5 yr projections, they will increase prod 18% /yr for 5 years, and they are a big co. And they lead with the Niobrara and Marcellus.
Williams up 5% on this I guess, wonder what they want the co to do. Seems management has been fairly shareholder friendly. Not sure what they could do except sell out.
Williams Cos. (NYSE: WMB) 2.6% HIGHER; In a 13D filing hedge funds Corvex Management LP and Sorban Capital formed group, together disclosing a 8.82%, or 60,305,766 share, stake in the company. They seek talks with management and the board.
Canada will find a market for their oil.
Kinder Morgan Canada said it submitted the application for approval to the National Energy Board in hopes of starting construction in late 2015 on the $5.4 billion Trans Mountain expansion project. Completion is expected by late 2017.
The company first announced the project in 2012 and filed a project description with the NEB in May of this year. It would boost the capacity of the existing pipeline to 890,000 barrels from 300,000 barrels a day.
This seems amazing to me, in a year, the forecast has been boosted by 2 mm bs/year three years earlier. Could this be understated also. Not sure forecasts to 2040 are very useful if you're that far off in a year. Energy has the potential to change the course of our economy for the better.
Domestic output will grow annually by 0.8 million barrels a day to 9.5 million in 2016, nearing the record level
of 1970, according to the U.S. Energy Information Administration’s Annual Energy Outlook for 2014. Natural gas production will grow 56 percent to 37.6 trillion cubic feet by 2040, boosting liquefied natural gas exports to 3.5 trillion, EIA said today.
The report “shows that advanced technologies for crude oil and natural gas production are continuing to increase domestic supply and reshape the U.S. energy economy, as well as expand the potential for natural gas exports,” EIA Administrator Adam Sieminski said in a statement.
The EIA last year forecast production would rise to 7.5 million barrels a day in 2019 before gradually declining to 6.1 million in 2040. U.S. output reached an all-time high 9.6 million in 1970.