While the US and the world are gnashing their teeth over the current economic crisis, I’m here to remind those of you in the exploration business that it’s been worse. Much worse.
Pundits have their benchmarks as to the success of the oil and gas industry, and I have mine. One of the most obvious is the size (we call it “slap factor”) of E&P. When times are good, more folks advertise, and the folio goes up accordingly.
But other benchmarks exist as well. I once wrote a column that attempted to gauge the general health of the industry by tallying the increase in Cadillac sales in Midland, Texas. I’ve lived in oil towns most of my adult life, and the size of the telephone directory is also a pretty good indicator.
The most recent benchmark is the show paper we produce for the Society of Exploration Geophysicists every year. It was not too long ago that we were lucky to have enough ad support for an 8-page daily. Then we ooched up to 12, then 16. The past couple of years they’ve each been 24 pages long.
This year is exciting because it’s not just the ads that have been strong; it’s also the editorial support that we receive from exhibitors. Since we have a small staff and can’t possibly fill 24 pages on our own, we invite folks from industry to contribute articles about their technologies. This year has seen such tremendous support, and the technologies being described are truly ground-breaking. For those of you going to the SEG annual meeting this year, be sure to spend some time on the exhibit floor. It’s going to be a great show.
US Shale Basins Boast $54/bbl Average Breakeven Price
2023-03-24 - The average full-cycle breakeven for U.S. shale basins is approximately $54/bbl, while the average for public E&Ps and private operators is $53/bbl and $58/bbl, respectively, Wells Fargo said, citing Rystad Energy data.
Dawson Geophysical Purchases Seismic Firm Breckenridge Geophysical
2023-03-24 - Wilks Brothers-controlled Dawson will purchase Breckenridge Geophysical — owned by Wilks Brothers — in an all-stock deal worth more than $10 million.
Oil is Sticking Around, Rystad and WoodMac Say
2023-03-24 - Rystad Energy and Wood Mackenzie executives said during an AAPG-Energy Opportunities event in Mexico City that oil will still be needed through 2050 and that the energy transition will take time.
Investors Waiting Out AMLO’s Tenure, Eyeing Future Mexican Leader
2023-03-24 - Energy investors in Mexico continue to wait out the tenure of President Andrés Manuel López Obrador, which comes to an end next, with an eye on a new leader and potential policy changes.
Wave of New LNG Export Plants Threatens to Knock Gas Prices
2023-03-14 - "When you hear people say 'there is no way we will overbuild this,' that's when things get over-built," said Alan Armstrong, CEO of U.S. gas pipeline operator Williams Cos., which supplies gas to LNG exporters.