Below is a bit from the article. Google the title to get the full article
"Now, Argentina, Brazil, and Venezuela have little choice but to track Mexico’s experiment closely, considering that they all compete for the same investment dollars and that Big Oil will go where it sees the best prospects with the best terms. What’s more, these countries have an even stronger, inescapable reason to follow Mexico’s lead: Resource nationalism is a long-term recipe for disaster.
Take Argentina. It has the world’s second-largest shale reserves but is currently a net energy importer after nearly a century of whipsawing between nationalism and an open market. Foreign capital created windfalls in the 1920s and 1930s, but greedy governments snatched back those oil wells in the 1940s, until production dwindled; they then returned, cap in hand, to wildcatters and oil majors just a decade later—a Groundhog Day pattern that continues today. Most recently, in 2012, Argentina lurched toward nationalism again, expropriating its former national oil company from Spain’s Repsol. Argentina now has the unenviable task of trying to lure foreign money and know-how to help tap Vaca Muerta (Dead Cow), a shale formation roughly the size of Belgium that it cannot develop on its own. The next wave of Argentina’s leadership is undeniably watching to see whether Mexico has found the formula to keep foreign investment steady and to maximize both production and the government’s cut."
NG is a major side component of shale oil drilling and shale drilling as we all know has dropped dramatically. At these low prices there is simple less activity and that is reducing NG supply from a number of key areas.
I am not saying MEP is a bad investment. I own it and believe the dividend is reasonable safe. Just pointing out one of the concerns.
I remain convinced that the over supply of oil is not near as large as reported
jazenevd, that is the first 100% true comment I have seen in some time. Good for a chuckle.
I am reminded with the old comment don't mess with city hall or put another way don't #$%$ of the building inspector. Thinking Mr Lalonde may have been very disrespectful of the ministry inspector over a difference of opinion on the nature of the problem and the fix required
Rockpile could move quickly on those wells Triangle has ready to complete if oil prices continue their rise.
What is Lalonde hiding here or did he hold out on the bad news hoping the news on the gold coming out of the mine would offset it?
If the company knows something and is holding back they best get it out NOW as they are already in deep dodo for with holding pertinent information
The Following partial article was published in Breitbart
FRACKING PRODUCTIVITY DOUBLING EVERY TWO YEARS
"It is now well known that the initial oil production from fracked wells has improved by over 800 percent in just six years. But what is not understood is that the decline in oil production in fracked wells has fallen by 80 percent over the same period. In 2009, production from fracked wells fell from 50 barrels a day to 25 barrels per day in 6 months, and was not commercially viable after one year. But for wells fracked in Texas’ Eagle Ford region in 2014, initial production only fell from 400 barrels a day to 250 after six months, and the wells are expected to continue to be commercially viable for 4 years.
Because of concerns with productivity, fracked wells in 2009 were required to have at least 500 feet of spacing. But recent trends are allowing fracking with just 100 feet of spacing,
This Moore’s Law-like tech driven productivity improvement explains why U.S. oil production has continued to remain high despite the U.S. price of oil falling to $45 a barrel over the last 15 months (about a 55 percent price decline). That is even more impressive, given that the number of oil rigs running in the U.S. fell from a peak of about 1,600 a day in October 2014 to about 675 today.
Most of the fracking boom was paid for with the issuance of junk bonds, and Moody’s credit rating service warns that about one in eight of those are at risk of filing for bankruptcy at current oil prices. Despite how much money bondholders may lose on financing all the fracking exploration and leasehold purchases, banks are still going to continue to fund fracking production on established wells sites until the cash flow turns negative."
TPLM stands on three legs with Caliber being the midstream component and in my opinion the most likely to be spun off.. Here is a quick look at their partner First Reserve. They are well capitalized and in for the long haul.
"First Reserve is a premier global energy-focused private equity and infrastructure investment firm with approximately $31 billion of raised capital since the Firm’s inception.
Throughout its more than 30-year history, First Reserve has developed a preeminent franchise by investing exclusively across the energy spectrum and utilizing its broad base of specialized industry knowledge to the benefit of its portfolio companies and investors.
First Reserve is an independently owned firm whose current management team, including leadership that has been in place since January 1983, collectively has more than 300 years of energy industry and investment experience. The firm has developed a global platform by investing in the energy industry, having invested over $20 billion in equity since inception. First Reserve has invested in over 100 platform acquisitions and First Reserve portfolio companies have completed more than 375 add-on transactions since inception.
First Reserve’s investor base is predominately institutional and consists primarily of corporate and public retirement funds, sovereign wealth funds, endowments and foundations."
Should a major like ExxonMobil with their own well completion capability could be very bad news for Rockpile as Whiting is a major client. Something to consider
Dormie, news is actually several days old. I think it came out friday. What is interesting is how little attention it has received. But interesting to see how it is addressed in tomorrows inventory report
January to May production revised down by 90,000 bbl per day. To add some clarity the total comes roughly to 20 million bbl of reduced production this year in the US due to the revision. Look for a big revision in the US inventory numbers
Oil production now down by 300,000 per day from peak. Production adjusted down by 144,000 bbl per day in July and august.
Oil Price has calling calling this for months.
Crichton, 5 is much better than 3 and $60 to $70 dollar oil may prove very advantageous to triangle and the shale plays. Most shale drillers can make decent money at those prices and they are proving adapt at lowering costs.
The problem for the Saudis is that the shale drillers can react very quickly to bring rigs back on line and benefit from oil at those prices. That will keep oil from rising much above those numbers for some time. Even better for Triangle the Caliber pipelines stay full and Rockpile is completing wells
The Saudis? Well they are still $40 under the amount needed to fund their generous benefits built into their budget. In the end their current move to gain market share may well spell doom for the Kingdom
Remember, and this is BIG, if oil only bounces back to $60 or $70 per barrel then the Saudis have LOST and lost big on their gambit.
The Saudis need over $100 per barrel to pay for their social programs and maintain their domestic spending. They must maintain that spending to keep the restive masses peaceful.
Remember like all shale wells the decline curve is fairly steep. This is the first well drilled with current technology so defining this curve will be important to gauge future reserves and production. My GUESS and that is all it is says it will take 5 to 7 years to drill those 40 locations if nothing changes. In the oil E & P world everything changes and quite quickly sometimes