Kathryn Wood

Big news this morning with XCL's Uinta Basin assets being acquired by SM Energy! This deal should put a spotlight on a remarkable basin: wells in the Uinta perform as well or better than the Permian or Williston. Looking at 2021+ well results, XCL's wells outperform SM's by an average of 30%. Of course, the asset is still relatively early in development, but this is performance worth paying attention to. In our discussions with clients on the Uinta, we have often referred to it as a "mini-Delaware" with extreme overpressure and stacked pay, and XCL's asset covers much of the deep, overpressured window. In the press release, SM quoted potential of 17 benches (!!) for development. Last week, we coauthored a paper with XCL on Uinta Basin production drivers (from which the bottom chart is taken). For more on that, follow the link in the details of the image. #oilgas #uinta #permian

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Time to move on, and I mean now. When your plates and coffee cups start falling off the table the public will demand change. With a 5.1 seismic activity, the plates and coffee cups are falling off the table. The industry does not have a Frac problem, a drilling problem or an air quality problem. The energy industry has a water benefical use problem. There is a distinct difference between recycling and calling it beneficial use and actual beneficial use. It is not even a disposal problem, they (midstream) is excellent at what they do. Profitably paying share holders, generating income, assuming liability for producers. Reality is, that is not enough. I can not imagine a world without oil and gas which would lead to the disruption of our agriculture system, because we can not feed our world. The green new deal is about more than solar, or wind energy and we may get there and it is no sin to try. It is a lack of good stewardship practices to continue a current disposal process without expediting treatment trains and agricultural beneficial use. In closing at the last conference (I was on a panel) I stated, I see the exit sign from here, I’ll show myself out. I stated and will restate, “I look out over this audience and I see Oxy/ Saudi Aramco/ Exxon/ EOG/Devon/and hundreds of smaller producers, but what I see is enough net worth to cure World Hunger and you expect me to believe this industry can not figure out how to treat water and put it to beneficial, use for agriculture and industrial use?” Truth is at this time the industry has not yet figured out how to own, profit, remove liability, and several other obstacles and challenges. Enter a patent process from a most unusual source. A prescriptive approach Inventor Marvin Nash Patent #11844316 Type Grant 307-287-6711 Be glad to help as you go forward with Conservation by Design. It’s the right idea at the right time!

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About a week from now Spears & Associates will start sending out our quarterly reports on a couple dozen oilfield service and equipment markets. Cementing is my responsibility (I was once upon a time a moderately skilled cementer for Halliburton in what is today called the SCOOP/STACK). This particular report will show that the two US Land market leaders - HAL & SLB - focus on the largest, most active E&P companies...a fact that we all know, but here's the math: 15 E&P companies represent HALF the spending on cementing services this year (EOG, Exxon, Chevron...). Of these top 15 customers, HAL + SLB win 70% of their cementing work. Of the next 1000 customers HAL + SLB win 45%. As the top end of the E&P world consolidates, SLB + HAL cementers will benefit. PS: Each cementing service company has excellent cementers and engineers and we think that most cementing service companies have the people and the equipment to cement the toughest of horizontal wells. The differentiation is this: SLB and HAL are particularly good at working inside the major oil companies' operations and procurement groups.

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Diamondback Energy stands as a premier independent oil producer in the U.S., boasting prime Permian acreage across the #Midland, #Delaware, and #Central #Basin. Last year's production hit 263,000 bbl/d, with a projected 2024 full-year guidance of 275,000 bbl/d. February saw Diamondback's announcement of a $26 billion merger with Endeavor Energy Resources, LP, expanding their net #Permian acreage to 838,000 and potentially elevating combined production to 816,000 bbl/d. Don't miss this operator spotlight featuring Kaes Van't Hof, President and CFO of Diamondback Energy, where you'll gain insights on: • The Endeavor merger's strategic benefits from an insider's perspective. • Analysis of the merger's implications for Diamondback. • Diamondback's operational roadmap for 2024 and beyond. • Potential future M&A prospects. Register now to secure your spot! https://ow.ly/wjsF50R9uVa #SUPERDUG24

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With money being expensive, high ROI & IRR projects are in demand. Check out EAG's recent study on ReFracs in the Haynesville.

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#upstream #midstream #downstream #oilgas #energy we are all dependent on objective advocacy at the state and national level. Join the Oil and Gas Workers Association to help preserve the pipeline of human labor, families, and infrastructure the world is reliant on. #LinkedIn #networking #energystrong https://lnkd.in/ecD2D9yE

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Last week SM Energy made a splash by jumping into the Uinta Basin and picking off XCL Energy. A few thoughts: A) XCL has done an impressive job of applying great technical work to operations and improving results. Their wells rival Permian producers (and in cases out pace SM's own results). B) Permian locations are expensive, and SM ultimately decided that paying ~$2M per location in the Uinta was a better choice than paying double or more that in the Permian. C) Entering a basin they currently don't operate in means no synergies/efficiencies. And they have to pick up and carry the technical torch XCL had applied so well // can they do it? Also the Uinta is famous for waxy crude that has huge deducts once it transports out of basin. Bottom line SM Energy overpaid. BUT the next few years will truly tell. Would they have been better off to stay Permian? Add more Eagleford? Touting 2.9x EBITDA at $78/bbl and $3.25 MMBtu is aggressive. Paying that much for locations in a basin you don't currently know is a lot. Having to bring in a non-operator to share risk is interesting (Freaking love that play by $NOG though 👏🏼 )... You have to be willing to make bold moves at times, and this is BOLD. Will this deal be the new rule, a one-hit wonder, or a dud? Below is a great look at the deal courtesy of Ted Cross & Novi Labs

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The Permian Basin has two primary segments: The Midland Basin and the Delaware Basin. For the calendar year 2024 in JUST the Delaware Basin, here's some approximate OFS metrics: Contract Drilling: $2.3B. H&P + PTEN have about 50% of the market. Drilling Fluids: $0.9B. AES + HAL have about 65% of the market. Cementing: $0.9B. SLB + HAL have about 65% of the market. Frac: $5.7B. LBRT + PTEN/NexTier have about 40% of the market. My brother John Spears just told me that the most recent Dallas Fed survey reported that people in the oil industry said that there are now too many oilfield service companies given the amount of E&P consolidation that has occurred. If this is true and if we can use the Delaware Basin as a surrogate for the entire US Land OFS sector, then Drilling Fluids and Cementing appear consolidated, but Drillers and Frac are still too fragmented.

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At the recent SUPER DUG conference, Nick McKenna of ConocoPhillips spotlighted the Permian Basin as the cornerstone of growth within their Lower 48 portfolio. With significant investments in drilling efficiency and a strong commitment to sustainable practices, including a 52% use of recycled water in operations, the company is setting new standards in resource development. This strategic focus aligns perfectly with our core acreage and operational objectives at Fairfield Geotechnologies, enhancing sustainability and driving robust cash flow growth. #EnergySector #Sustainability #PermianBasin This strategic focus enhances operational sustainability and drives robust cash flow growth. #EnergySector #Sustainability #PermianBasin https://lnkd.in/gGCvr672

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Finally making steps to get this project started.

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Newly released data from the Texas Workforce Commission indicates upstream oil and gas employment fell again in June, with a decline of 2,000 jobs compared to May. That’s what industry body the Texas Oil & Gas Association (TXOGA) said in a statement sent to Rigzone, noting that “this marks five out of six months this calendar year that the job count has dropped”. “Operational efficiencies are driving strong production with fewer rigs, which can translate to declining industry job numbers,” TXOGA President Todd Staples said in the statement. _______________________________
 Follow Atlantic Petroleum for more energy updates.
#fuel #oilandgas #wholesale #lubricant #diesel #TheAtlanticDifference

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Newly released data from the Texas Workforce Commission indicates upstream oil and gas employment fell again in June, with a decline of 2,000 jobs compared to May. That’s what industry body the Texas Oil & Gas Association (TXOGA) said in a statement sent to Rigzone, noting that “this marks five out of six months this calendar year that the job count has dropped”. “Operational efficiencies are driving strong production with fewer rigs, which can translate to declining industry job numbers,” TXOGA President Todd Staples said in the statement. _______________________________
 Follow Atlantic Petroleum for more energy updates.
#fuel #oilandgas #wholesale #lubricant #diesel #TheAtlanticDifference

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Permian Resources is making notable strides in the oil and gas industry, particularly in the Delaware Basin of Texas. We review the Permian Resources drilling program related to the following Texas blocks of land. - Block 50T7: Two drilling rigs (HP 493 and HP 489) are active, focusing on the Wolfberry trend. The block has a saltwater disposal facility transferred from Oxy. - Block 48: Features two rigs (Noram Fleet 28 and 25) with activity starting in late spring, targeting the Strawberry trend at a depth of 7,700 feet. - Block 5: Has one well pending with rigs H&P 602 and H&P 615, targeting two different fields at a depth of 11,000 feet. - Block C3: Licensed and pending drilling in the Phantom Wolfcamp, also targeting a depth of 11,000 feet. Increased permit activity is expected in the next 30 days. https://lnkd.in/gjxWhEzB

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We're thrilled to share that ClearBakk, represented by Les Johnson, will be attending the upcoming SPE Improved Oil Recovery Conference from April 23-25 in Tulsa, Oklahoma. Hosted by the Society of Petroleum Engineers, this conference is a pivotal gathering for industry leaders and innovators, providing insights into the latest advancements and challenges in the Improved Oil Recovery (IOR) sector. We at ClearBakk are always looking for opportunities to learn and improve. and we're eagerly looking forward to engaging with experts and thought leaders to explore the latest developments, particularly in the enhanced chemical oil recovery (cEOR) sector. Some of the key topics of interest include how companies are overcoming the challenges with surface equipment design, selection, and operations essential to moving from lab to pilot and pilot to commercial field development. We're eager to delve into discussions on the critical considerations involved in these processes. IOR doesn't start (and end) down hole... What are your surface equipment and process needs? With a dynamic agenda featuring insightful topics and discussions, we're excited about the opportunities to gain valuable knowledge, forge meaningful connections, and contribute to the advancement of the industry. Stay tuned as we share highlights and key takeaways from the conference! If you're attending, we'd love to connect and exchange ideas. See you there!  #enhancedoilrecovery #ceor #eor #improvedoilrecovery #ior www.clearbakk.com clearbakk@alsys-group.com 403-295-8054

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How much inventory is left in the Permian? In the Midland Basin, we come up with nearly 25,000 locations left -- but the economically viable locations drop dramatically with price. Let's dig in. For this study, we used a data-driven approach to fill in undrilled locations around the Midland Basin. We included infill above and below existing zones, while maintaining at least 500' from parent wells. We covered everything from the Wolfcamp D to the Middle Spraberry, so this doesn't include Barnett/Woodford or other deeper zones (not yet!). Taking into account parent-child relationships and local geologic variation is extremely important. We found our machine learning-based forecasts come up with an average breakeven of $74/bbl, compared to $58/bbl that a traditional type curve area approach would generate. So use caution with type curves! We found less than 10,000 locations with a two-year breakeven below $60/bbl WTI. Of course, driving down costs improves breakevens, but we found huge geologic variation around the basin. The average Tier 1 rock breaks even on average at $60/bbl, but that number for Tier 4 rises to $96/bbl. Surprisingly, emerging zones like the Jo Mill had the lowest breakevens in our study. This likely reflects the relatively limited drilling compared with the Wolfcamp A and B. This study is one of six papers we have at URTeC this year -- you can find more details at the bottom of the image. Big thanks to Brandon M. for leading this study! #oilgas #permian #energy

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An interesting look at the electrification of fracturing.

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It's been a little while since my last update, so here's a flavor of things that have been going on here at ROSEN Integrity in Houston. This is going to be a little RIN focused as it's very zeitgeist. The enacted RIN 2 requirements have been a very hot topic in recent months and have led to a lot of development. Corrosion assessments were impacted greatly by new pressure ratios and anomalies outside of HCA's; the new rules forced us to look at all the layers of conservatism and and find solutions. For dents, ECA's continue to be widely used despite the uncertainty, ask us about the tools we've developed to meet §192.712(c)(4) for comparing dent profiles. We are also still highly engaged on RIN 1 work too, particularly with the ECA for MAOP reconfirmation 50% deadline approaching in 2027. That work has really started in earnest for many operators. Our ability to interrogate and integrate tool data from several technologies provides significant advantages. As for myself, I have been very busy in three subject areas: verification per API STD 1163; since the incorporation of this standard into the gas regulations there has been a lot of work, particularly in closing of level 1 assessments. We developed a really good process last year which is serving some of our operator partners well. Assessment of non-piggable pipelines due to RIN 3 covering gathering assets and §192.710. We developed a predictive data analytics approach to assess non-piggable segments, and aligned that with new technologies and approaches to direct assessment to create a new framework to manage these assets in a cost effective manner. And finally, facilities integrity; with increased scrutiny on pipeline related facilities we developed a series of options that align to API RP 1188 going all the way up to risk based inspection. Best wishes to all, and a speedy recovery to anyone impacted by the severe weather in Houston last week.

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Has the market fully grasped the potential of the Uinta Basin? On Friday, we're running a webinar that dives into why the Uinta Basin is poised to deliver Permian-level results at a comparable development density, with promising early indicators of its growth trajectory. Additional topics include an exploration of demand and egress dynamics for Uinta's waxy crude, comparative operational expenditures across different plays, and an analysis of the play's upside potential. Register HERE: https://lnkd.in/g5sJu5Xu

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