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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (108116)	10/24/2014 10:37:04 AM
From: KyrosL	Read Replies (1) \| Respond to of 219888

I suspect the cost for deep water/harsh environment has gone up, primarily because of environmental concerns, while the cost for shale oil has gone down because of improving technology and experience. But I don't have reliable figures to justify this belief.

To: elmatador who wrote (108116)	10/24/2014 1:09:15 PM
From: dvdw©	Read Replies (1) \| Respond to of 219888

2008 Costs…….there were no knowns regarding shale in 2008. Sample sizes from the emerging basins were largely non conformable. Costs are declining for experienced miners, and probably rising for late comers. There is a Huge variable in all five of these graphics placed on here in the last 48hrs, not one of the sources of information accurately told the shale story. Just know this; in the Bakken, EagleFord and Permian….for the most part, they are gathering particulate oil. Therefore the added benefit of NGL's is almost free or at the minimum is subtracting from total cost, these by products of oil drilling, can be as or more valuable than the oil itself to some market customers. Maximizing these revenue streams will take time, we see it in 3rd part willingness to build rail gathering facilities, gas processing facilities, and significant increase in pipeline infrastructure to help mineral owners art pricing at varying locations. There is a reason why all this capital continues to flow in….. Smart Shale players are taking steps, based on steep learning curves away from soda straw recovery to mining..the processes are distinct, the by products of the major reasons for undertaking the development are enhanced by the by products recoverable. Lots has been written about decline rates, but few understand that the longevity of production from some of these wells could be 20 or even 30 years. A well payback of 1 to 3 years is just the beginning of a long term revenue cycle for many shale wells in good areas.