Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (21253)	12/2/2014 10:36:20 AM
From: JimisJim	1 Recommendation Recommended By Jurgis Bekepuris Read Replies (1) \| Respond to of 34328

I have spent most of my time in offshore and know it fairly well. Can't make the same claim onshore. However, it's still early days of the price collapse and I doubt there's been significant reductions in onshore drilling in the shales. As for actively drilling rig counts from one shale compared to another, I'd have to look at the data to get a clue to be up to date, but it seems to me that what I have seen doesn't reflect much drilling reduction to this point in any of the shales. I don't know how accurate it is, but here's a chart showing break-even costs for every project in the world, and specifically, a chart for US shale field break-even costs, i.e., what it costs per bbl of oil to produce a bbl of oil in the various US shales: businessinsider.com Just like any field onshore or off, whether current prices negatively impact drilling activities right now would depend a lot on which field, whether a company's leases are in the heart of the field or the fringes, and a number of other lease and production details that would vary from operator to operator even within the same overall fields. The cost to make horizontal holes and multi-stage frac them depends on how deep and long the hole is and how many fracs, but the ballpark would be in the $3million to $10 million range and would also be a function of the type of equipment used and how many holes can be drilled from the same pad.

To: robert b furman who wrote (21253)	12/3/2014 11:53:27 PM
From: lightfoot	1 Recommendation Recommended By Thehammer Read Replies (1) \| Respond to of 34328

I heard today that Whiting let 3 of 6 drilling rigs go in their newest shale play in Colorado. In North Dakota the KOG rigs go after the closing of the deal. They have some star performers that are drilling these wells in 9.5 to 13 days per well to 20,000 feet, these will keep working. Oasis is going to cut 5-6 rigs from their current level. Continental, Hess, and others are going to trim their fleets as well. It might be a trying few years like 2008 to 2010, depending on how the price holds $60