Hey Oil Barons.......

[Storm the Field 5294]

WTI diving on the grenade today so natty can catch a breather. 

[Storm the Field 5294]

And that my friends is why I recommend you not buy interests out from under your own clients.

An Oklahoma lawyer accused of using ill-gotten confidential business information to defraud oil and gas company Continental Resources Inc. pleaded guilty to conspiracy to commit honest services wire fraud just days before his trial was set to begin.

Federal prosecutors indicted Blaine Dyer, along with his cousin, James Dyer, a landman by trade, in the US District Court for the Western District of Oklahoma in May 2022. James, also known as “Jimmy,” Dyer pleaded guilty to the same charge.

Blaine Dyer had been hired by a former Continental employee, Justin Biggs, to perform title work for the company in 2011. The scheme allegedly started a couple of years later, after Dyer took Biggs hunting and offered to pay him kickbacks in exchange for Continental’s confidential drilling and leasing plans. Once they had the proprietary information, they used it to acquire valuable lease interests before Continental got to them, according to the government.

I remember reading this story when it first came out a few years ago. I imagine this happens significantly more often than reported. Buddy of mine that used to work in-house has told me stories of mineral buyers and attorneys trying to ply him for confidential info. 

[Guest]

19 minutes ago, Storm the Field said:

And that my friends is why I recommend you not buy interests out from under your own clients.

An Oklahoma lawyer accused of using ill-gotten confidential business information to defraud oil and gas company Continental Resources Inc. pleaded guilty to conspiracy to commit honest services wire fraud just days before his trial was set to begin.

Federal prosecutors indicted Blaine Dyer, along with his cousin, James Dyer, a landman by trade, in the US District Court for the Western District of Oklahoma in May 2022. James, also known as “Jimmy,” Dyer pleaded guilty to the same charge.

Blaine Dyer had been hired by a former Continental employee, Justin Biggs, to perform title work for the company in 2011. The scheme allegedly started a couple of years later, after Dyer took Biggs hunting and offered to pay him kickbacks in exchange for Continental’s confidential drilling and leasing plans. Once they had the proprietary information, they used it to acquire valuable lease interests before Continental got to them, according to the government.

I remember reading this story when it first came out a few years ago. I imagine this happens significantly more often than reported. Buddy of mine that used to work in-house has told me stories of mineral buyers and attorneys trying to ply him for confidential info. 

This is my exact business. It is filled with shady characters like this. Our issue is dealing with squirrelly “brokers” who have no money and lay claim to a particular deal, inexplicably. One guy in particular was trying to shake us down for a “broker fee”. Not only did he do zero work for us, but he withheld vital data from us. Well we successfully bought the asset because I’m personal friends with the prior owner. Once this broker found this out, he tried to extort $900k from us. And he wouldn’t go away. We finally paid him $150k to go away, because we knew litigation was around the corner. 

[Angry Gorilla 1768]

That business model is all over the place

[Storm the Field 5294]

Your exact business is paying kickbacks to in-house landmen to get a sneak peak at their drilling schedule so you can take leases and then flip them for a profit?

[Guest]

Buying minerals. To your point, we buy cash flow and sell a portion to a group for a premium. We don’t so much buy ahead of the drillbit as the guys dealing with Continental were, so “exact” was a poor word choice. However, those brothers, in this little sun-space, are pervasive. This is a VERY common practice. 

I just reread what was posted. Were these guys buying working interests?  In their own name?  

[YGIFS 19450]

On the face of it, kinda sounds like non-op working interests in a GP.  But lotsa guys in deep shit throw up smokescreens like this during legal discovery.  Kinda sounds a bit, on the surface anyway, like that Anadarko story a few years back.  Only thing that moves slower than tax court is untangling energy deals in court.  Maybe for good reason.

[Guest]

23 minutes ago, Porterhouse said:

Buying minerals. To your point, we buy cash flow and sell a portion to a group for a premium. We don’t so much buy ahead of the drillbit as the guys dealing with Continental were, so “exact” was a poor word choice. However, those brothers, in this little sun-space, are pervasive. This is a VERY common practice. 

I just reread what was posted. Were these guys buying working interests?  In their own name?  

*sub-space. After rereading it is apparent they’re buying WI or leasing such acreage, and not NMA. And, probably in some entity where they clearly were members/partners, and that was easily traceable.  How moronic. Offering kickbacks (that apparently were accepted?) and it was likely pretty quickly discovered that CLR was losing to the same group repeatedly. 

[Storm the Field 5294]

4 hours ago, Porterhouse said:

I just reread what was posted. Were these guys buying working interests?  In their own name?  

From what I recall, dude in the article was a title attorney writing opinions for CLR. CLR landman started feeding him confidential info regarding their drilling plans. The attorney's brother was a title broker who would then go out and start buying up leases on specific tracts (probably through thinly-disguised LLCs) where they knew was CLR was planning to head, but before CLR could send their guys out to start leasing. The LLC would then sell their leases to CLR for far more than they had paid. Landman would then get a kickback of a share of the profits. 

As you mentioned, I'm sure it eventually occurred to CLR that they somehow coincidentally kept getting beat to the punch by random, newly-created LLC's with no operating experience and always in prospects that a certain one of their landman was involved in. 

Not saying this was your point or that you do this, but I don't see any distinction that would make it any less fraudulent if a person was utilizing confidential proprietary info to buy mineral/royalty acres instead of taking leases in an area he'd been tipped off to by an insider ahead of time. 

Edited February 23, 2023 by Storm the Field

[Guest]

4 minutes ago, Storm the Field said:

From what I recall, dude in the article was a title attorney writing opinions for CLR. CLR landman started feeding him confidential info regarding their drilling plans. The attorney's brother was a title broker who would then go out and start buying up leases on specific tracts (probably through thinly-disguised LLCs) where they knew was CLR was planning to head, but before CLR could send their guys out to start leasing. The LLC would then sell their leases to CLR for far more than they had paid. Landman would then get a kickback of a share of the profits. 

As you mentioned, I'm sure it eventually occurred to CLR that they somehow coincidentally kept getting beat to the punch by random, newly-created LLC's with no operating experience and always in prospects that a certain one of their landman was involved in. 

Not saying this was your point or that you do this, but I don't see any distinction that would make it any less fraudulent if a person was utilizing confidential proprietary info to buy mineral/royalty acres instead of taking leases in an area he'd been tipped off to by an insider ahead of time. 

Happens all the time. Bane of my existence - sometimes. 

[BTW 370]

I'll echo that this seems to be a common practice.  Here are two examples that come to mind and they are both incredibly brazen:

A landman I knew used to do some contract work for an independent operator here in Midland.  They would assign his group sections of land to go run title and lease for them.  During the process of being in and out of their office working for them, he got a look at their maps indicating the full scope of their areas of interest.  So he took it upon himself to go ahead and run title and buy leases under his own LLC for some of the sections of land they hadn't assigned to him yet.  He then reserved an override and tried to sell the leases to the client at a premium to what he paid.  Needless to say, they demanded he assign the leases over at his cost and without any overrides.  At his refusal to comply, attorneys were hired and when he realized he wasn't going to win they ended up settling and he was reputationally blacklisted.

 

Example two is about two young and very successful guys who are now household names in the Texas oil and gas scene.  They knew a landman who was employed at a publicly traded Oklahoma based E&P.  The version of the story I was given is that while the landman was employed at the E&P, these guys began paying him on the order of $10k/month to feed them legal descriptions for areas his official employer was interested in leasing.  They would then take the leases and offer them for sale with subsequent mark-up and overrides attached.  After a while, the E&P thought they had identified the information leaker so they set up a sting.  They picked two random sections of land out in the middle of nowhere and provided that information only to this one landman.  When they were approached by these guys with an offer to buy the leases on those two sections they knew they had their man.  I believe he was only terminated and they did not pursue criminal or civil action. 

[Guest]

2 hours ago, BTW said:

I'll echo that this seems to be a common practice.  Here are two examples that come to mind and they are both incredibly brazen:

A landman I knew used to do some contract work for an independent operator here in Midland.  They would assign his group sections of land to go run title and lease for them.  During the process of being in and out of their office working for them, he got a look at their maps indicating the full scope of their areas of interest.  So he took it upon himself to go ahead and run title and buy leases under his own LLC for some of the sections of land they hadn't assigned to him yet.  He then reserved an override and tried to sell the leases to the client at a premium to what he paid.  Needless to say, they demanded he assign the leases over at his cost and without any overrides.  At his refusal to comply, attorneys were hired and when he realized he wasn't going to win they ended up settling and he was reputationally blacklisted.

 

Example two is about two young and very successful guys who are now household names in the Texas oil and gas scene.  They knew a landman who was employed at a publicly traded Oklahoma based E&P.  The version of the story I was given is that while the landman was employed at the E&P, these guys began paying him on the order of $10k/month to feed them legal descriptions for areas his official employer was interested in leasing.  They would then take the leases and offer them for sale with subsequent mark-up and overrides attached.  After a while, the E&P thought they had identified the information leaker so they set up a sting.  They picked two random sections of land out in the middle of nowhere and provided that information only to this one landman.  When they were approached by these guys with an offer to buy the leases on those two sections they knew they had their man.  I believe he was only terminated and they did not pursue criminal or civil action. 

Latter example - CC and JS?

[T’Boo Ted Marshall 2732]

One would assume.

[Dr Fear 1268]

Any lawyers on here write title opinions for a firm or on contract? I got some salary questions.

[Dr Fear 1268]

Any lawyers on here write title opinions for a firm or on contract? I got some salary questions.

And lol, I just caught up on the last few days of this thread and this in no way has anything to do with the hijinks being discussed above.

[Storm the Field 5294]

4 minutes ago, Dr Fear said:

Any lawyers on here write title opinions for a firm or on contract? I got some salary questions.

Sure. Send me a PM.

[Dr Fear 1268]

Sure. Send me a PM.

PM sent. Thanks!

[MoJames 8244]

On 2/23/2023 at 11:09 AM, Porterhouse said:

Latter example - CC and JS?

[YGIFS 19450]

Still rocking his gold VIP bracelet from the night before?  Much respect.  

[Guest]

6 hours ago, MoJames said:

Good dudes. The pulling guards, as Texas legend Ted Collins called them. 

[billfromlaketravis 11480]

On 2/23/2023 at 10:01 AM, BTW said:

I'll echo that this seems to be a common practice.  Here are two examples that come to mind and they are both incredibly brazen:

A landman I knew used to do some contract work for an independent operator here in Midland.  They would assign his group sections of land to go run title and lease for them.  During the process of being in and out of their office working for them, he got a look at their maps indicating the full scope of their areas of interest.  So he took it upon himself to go ahead and run title and buy leases under his own LLC for some of the sections of land they hadn't assigned to him yet.  He then reserved an override and tried to sell the leases to the client at a premium to what he paid.  Needless to say, they demanded he assign the leases over at his cost and without any overrides.  At his refusal to comply, attorneys were hired and when he realized he wasn't going to win they ended up settling and he was reputationally blacklisted.

 

Example two is about two young and very successful guys who are now household names in the Texas oil and gas scene.  They knew a landman who was employed at a publicly traded Oklahoma based E&P.  The version of the story I was given is that while the landman was employed at the E&P, these guys began paying him on the order of $10k/month to feed them legal descriptions for areas his official employer was interested in leasing.  They would then take the leases and offer them for sale with subsequent mark-up and overrides attached.  After a while, the E&P thought they had identified the information leaker so they set up a sting.  They picked two random sections of land out in the middle of nowhere and provided that information only to this one landman.  When they were approached by these guys with an offer to buy the leases on those two sections they knew they had their man.  I believe he was only terminated and they did not pursue criminal or civil action. 

It happens more than you think. A friend was a landman in business development at a mid major. He was leasing adjacent tracts under his LLC. It was very obvious and he got busted. He wasn't blacklisted. He just took a job at a smaller company. 

I think he was fortunate in that his mother was connected in the land world, and he has deep UT networking connections.

[jeevsie 3734]

On 2/24/2023 at 3:55 PM, MoJames said:

Hey, I heard that dude on the left speak at the conference last week!

[Guest]

https://www.linkedin.com/posts/sheridandoug_capitalmarkets-esg-investing-activity-7035750394135814144-O137

[Loop 1604 227]

nm

Edited February 27, 2023 by Loop 1604

[Storm the Field 5294]

Buncha dang furners are buying up the Eagle Ford.

In the last week:

Ineos, a British chemical conglomerate, bought up a large chunk of CHK's South Texas acreage for $1.5B. First foray into domestic E&P. 

Baytex Energy, from Calgary, announced it was buying Ranger Oil (the merged company of Penn Virginia and Lonestar) for damn near $3B in cash and debt assumption. Deal includes about 160K acres in Lavaca, Gonzales, and Dewitt.

Damn, I really should have tried to get in with a company amassing EF acreage on the cheap 3-4 years ago. I'd be contemplating retirement at this point.

Edited March 1, 2023 by Storm the Field

[Eastwood 4394]

That’s always the dream, isn’t it? Ground floor of a startup using other people’s money to build an acreage position, get a couple of wells flowing so you can show PDP and advertise some PUDs, then ride off into the sunset after acquisition until you get bored and do it all over again. 

[Guest]

58 minutes ago, Eastwood said:

That’s always the dream, isn’t it? Ground floor of a startup using other people’s money to build an acreage position, get a couple of wells flowing so you can show PDP and advertise some PUDs, then ride off into the sunset after acquisition until you get bored and do it all over again. 

Meh. Those stories are very few and far between. Ask Frank Bracken and the PV folks how they fared. I’ll give you a hint: not well. 

[HamsterHookah 112]

This is an interesting read from WSJ:

Quote

 

Frackers are set to plow more cash into oil fields this year compared with last, but it isn’t expected to unleash the flood of crude that past spending binges in the shale patch have. 

EOG Resources Inc. EOG 4.60%increase; green up pointing triangle said it would spend about $1.4 billion more than last year, but that its oil production would rise by only about 3% in 2023. Pioneer Natural Resources Co. PXD 2.38%increase; green up pointing triangle said it would augment its budget by nearly $1 billion, but its production would increase by less than 7% from 2022. And Marathon Oil Corp. MRO 2.50%increase; green up pointing triangle said that although its expenses would jump by up to 35%, its production would remain flat. 

The disconnect between spending and production gains makes for a murky outlook for oil and gas producers in 2023, analysts said. It comes after many producers rode high oil prices following Russia’s invasion of Ukraine to record profits in 2022, but suggests their ability to grow is limited.

 

https://www.wsj.com/articles/frackers-increase-spending-but-see-limited-gains-e71fa76a

[Guest]

2 minutes ago, HamsterHookah said:

This is an interesting read from WSJ:

https://www.wsj.com/articles/frackers-increase-spending-but-see-limited-gains-e71fa76a

This is common knowledge amongst us (not trying to be a dick). It’s a depleting asset and we’ve drilled our best locations in just about every basin. It’s the entire thesis of my investments. 

[HamsterHookah 112]

1 hour ago, Porterhouse said:

This is common knowledge amongst us (not trying to be a dick). It’s a depleting asset and we’ve drilled our best locations in just about every basin. It’s the entire thesis of my investments. 

Understood-- I'm definitely a noob so no offense taken, but very interested and curious to learn more.

That said, what is your thesis because I missed it? Do you think demand in China will pop? M&A and consolidation will be heavy this year (especially as flush with cash?)

Those were the more interesting parts of that article that stood out:

Quote

 

Because shale companies are chewing through their top inventory, they have few choices other than acquiring rivals to beef up their reserves, analysts said. Executives and industry experts say they expect the oil patch to see more M&A this year as a result, especially now that producers are flush with cash. 

But the combination of a nearly 40% drop in U.S. oil prices since mid-2022 with inflation and new taxes means that shale’s returns have likely peaked, analysts said. Now that shale companies are profitable, they can no longer defer taxes, which the companies did when they were losing money. 

Companies still expect to derive healthy profits from crude sales this year, with some executives such as Pioneer Chief Executive Scott Sheffield expressing hope that demand from China will help push back oil prices to $90 to $100 a barrel this summer. 

 

and

Quote

 

Some buyers might also find that shopping options are limited. In the Permian Basin, the most active U.S. oil field in New Mexico and West Texas, much of the premium acreage has already been consolidated, according to a recent report by consulting and accounting firm Deloitte Touche Tohmatsu LLC. Even with oil prices averaging more than $90 per barrel last year, operators paid under $15,000 per acre in 2022, down from more than $20,000 in 2021, according to Deloitte. 

“A lot of these companies are now in a position where they can’t grow,” said Doug Leggate, an analyst at Bank of America Corp.

 

 

[Guest]

5 minutes ago, HamsterHookah said:

Understood-- I'm definitely a noob so no offense taken, but very interested and curious to learn more.

That said, what is your thesis because I missed it? Do you think demand in China will pop? M&A and consolidation will be heavy this year (especially as flush with cash?)

Those were the more interesting parts of that article that stood out:

and

 

I don’t do anything like investing in companies. I buy oil and gas assets directly, knowing that oil prices will remain high for the next 10-12 years. Demand will be there but is not really a consideration. The biggest consideration is that the only source of growth in the last 10 years - US Shale - is in irreparable decline. It will become painfully obvious for everyone when the Permian goes terminal in about 18 or so months. 

[Guest]

ESG in general was dealt a major blow in the House and Senate. Good. 

https://www.bloomberg.com/news/articles/2023-03-01/republicans-anti-esg-bill-on-track-to-pass-senate-prompt-biden-veto

[babysdaddy 2724]

18 hours ago, Porterhouse said:

I don’t do anything like investing in companies. I buy oil and gas assets directly, knowing that oil prices will remain high for the next 10-12 years. Demand will be there but is not really a consideration. The biggest consideration is that the only source of growth in the last 10 years - US Shale - is in irreparable decline. It will become painfully obvious for everyone when the Permian goes terminal in about 18 or so months. 

could you give me a bit more detail on the "permian goes terminal"?  Does that mean you think PXD/OXY/EOG should be avoided at this time?

[Guest]

7 minutes ago, babysdaddy said:

could you give me a bit more detail on the "permian goes terminal"?  Does that mean you think PXD/OXY/EOG should be avoided at this time?

At some point the Permian will be in irreversible decline, just as all shale drilling. The earliest shale plays, the Barnett and Fayetteville, hit their peak production in 2011 and 2014, and 9-12 years later, each basin’s production has reduced by 70%. The Bakken and Eagle Ford are at their peaks, and will act the same way. Marcellus is nearing its peak. Haynesville and Permian may have 1-2 years of growth before they decline. 

Unlike any of the prior 15+ years, there are no new basins / shale plays domestically. Conventional oil discoveries (globally) over the last 20 years have been abysmal. Demand has returned and increased pre-Covid levels despite China shutting down much of the last two years.  

Oil and gas prices are going MUCH higher MUCH faster than the consensus thinks.  Of course, this presupposes there are no technological advances that can extract reserves more efficiently. After all, 20 years ago, shale drilling was a foolish prospect. But, with the dearth of capital going into this industry, we’re probably not gonna have such advances. 

I don’t know what to make of oil heavy independent stocks. I don’t invest in them. If I did I would stick to those that have strong CEOs like Pioneer and Oxy (yes, Vicki). I would shift to gas heavy producers like EQT and Range. And majors like XOM and Chevron - not Shell and certainly not Beyond Petroleum. 

[Storm the Field 5294]

Freeport is finally back up and running. Startup on their 2nd unit has commenced and they just filed for approval to begin restart operations on the 3rd unit. Should be back to taking in over 1.5Bcf/day soon.

 

[Guest]

45 minutes ago, Storm the Field said:

Freeport is finally back up and running. Startup on their 2nd unit has commenced and they just filed for approval to begin restart operations on the 3rd unit. Should be back to taking in over 1.5Bcf/day soon.

 

This was the much bigger factor in the drop in prices (versus the warm winter). This, coupled with more LNG capacity coming on this year and the next few, will only accelerate gas price tailwinds. 

[Guest]

https://www.linkedin.com/posts/sheridandoug_alaska-oil-energy-activity-7036854292548366337-1wsO

[HamsterHookah 112]

2 hours ago, Porterhouse said:

At some point the Permian will be in irreversible decline, just as all shale drilling. The earliest shale plays, the Barnett and Fayetteville, hit their peak production in 2011 and 2014, and 9-12 years later, each basin’s production has reduced by 70%. The Bakken and Eagle Ford are at their peaks, and will act the same way. Marcellus is nearing its peak. Haynesville and Permian may have 1-2 years of growth before they decline. 

Unlike any of the prior 15+ years, there are no new basins / shale plays domestically. Conventional oil discoveries (globally) over the last 20 years have been abysmal. Demand has returned and increased pre-Covid levels despite China shutting down much of the last two years.  

Oil and gas prices are going MUCH higher MUCH faster than the consensus thinks.  Of course, this presupposes there are no technological advances that can extract reserves more efficiently. After all, 20 years ago, shale drilling was a foolish prospect. But, with the dearth of capital going into this industry, we’re probably not gonna have such advances. 

I don’t know what to make of oil heavy independent stocks. I don’t invest in them. If I did I would stick to those that have strong CEOs like Pioneer and Oxy (yes, Vicki). I would shift to gas heavy producers like EQT and Range. And majors like XOM and Chevron - not Shell and certainly not Beyond Petroleum. 

From what I’ve been reading, most of the new oil and investments are coming from deep sea. Brazil, Guyana, that area of the world and Atlantic. Thoughts there? Also companies that focus on deep sea rigs etc?

[Hate 20108]

@porterhouse, what are your thoughts on LNG for the next 10 years?

[Guest]

19 minutes ago, HamsterHookah said:

From what I’ve been reading, most of the new oil and investments are coming from deep sea. Brazil, Guyana, that area of the world and Atlantic. Thoughts there? Also companies that focus on deep sea rigs etc?

Guyana has been all over my radar. Other than that my thoughts are generally negative when it comes to foreign investment, particularly in developing countries with historically corrupt governments. I think companies that are involved in offshore drilling (E&P companies and rig companies, in that order) are going to have a renaissance. But it’s a risky game and I’ve always shied away from water. 

14 minutes ago, Hate said:

@porterhouse, what are your thoughts on LNG for the next 10 years?

It’ll be a massively growing part of the industry. I’m really surprised it’s taken us this long to get where we are. I thought we’d be here 15 years ago. Adding terminal capacity is insanely expensive, and a major barrier to investment. If I had a spare trillion, I might pour it all in here. 

[HamsterHookah 112]

21 minutes ago, Porterhouse said:

Guyana has been all over my radar. Other than that my thoughts are generally negative when it comes to foreign investment, particularly in developing countries with historically corrupt governments. I think companies that are involved in offshore drilling (E&P companies and rig companies, in that order) are going to have a renaissance. But it’s a risky game and I’ve always shied away from water. 

It’ll be a massively growing part of the industry. I’m really surprised it’s taken us this long to get where we are. I thought we’d be here 15 years ago. Adding terminal capacity is insanely expensive, and a major barrier to investment. If I had a spare trillion, I might pour it all in here. 

Who are the big players that have the terminal capacity today to take advantage? Would that be like a Kinder Morgan or Williams companies? Who has the ability to invest in terminal capacity today that isn't quite there? an up and coming?

Sorry for the really basic and noob questions and thanks for your input.

[Horns99 155]

Who are the big players that have the terminal capacity today to take advantage? Would that be like a Kinder Morgan or Williams companies? Who has the ability to invest in terminal capacity today that isn't quite there? an up and coming?
Sorry for the really basic and noob questions and thanks for your input.

Here in the states, Kinder has a small terminal @ Elba. Cheniere (LNG) is the biggest player, followed by Sempra that are public.

[Guest]

1 hour ago, Horns99 said:

Here in the states, Kinder has a small terminal @ Elba. Cheniere (LNG) is the biggest player, followed by Sempra that are public.

This. Not my world; I can’t speak about up and coming players. Cheneire has always been the alpha for 15 years. Sempra another big player. 

[Hornbeliever 712]

I built a financial model for an LNG facility a Long, Long Time ago that, to be Frank (see what i did there), made me learn the deep underlying nature of a facility like that.  

At the time, you needed massive contracts with folks wiling to guarantee they would buy the LNG.  No private company on earth could finance it without an offtaker or two that would guarantee a minimum revenue stream.

Hence why there aren't more LNG facilities built even though the need was evident 20+ years ago.

[Guest]

29 minutes ago, Hornbeliever said:

I built a financial model for an LNG facility a Long, Long Time ago that, to be Frank (see what i did there), made me learn the deep underlying nature of a facility like that.  

At the time, you needed massive contracts with folks wiling to guarantee they would buy the LNG.  No private company on earth could finance it without an offtaker or two that would guarantee a minimum revenue stream.

Hence why there aren't more LNG facilities built even though the need was evident 20+ years ago.

Yep. It’s like a midstream facility, but on exponential steroids and you can’t merely rely on Acreage Dedication Contracts.

I think the lack of government vision in helping fund such massive capital projects, combined with really high prices until the early 2010s, combined with really low prices thereafter, have all been investment deterrents. But now, the economics are clearly different and favorable. 

Edited March 2, 2023 by Porterhouse

[Spaceman Spiff 402]

Well, it turned out some of those midstream companies couldn't rely on acreage dedications quite as much as they thought they could anyway.

[Captainant 27669]

10 hours ago, Porterhouse said:

ESG in general was dealt a major blow in the House and Senate. Good. 

https://www.bloomberg.com/news/articles/2023-03-01/republicans-anti-esg-bill-on-track-to-pass-senate-prompt-biden-veto

Could you elaborate more why you think it's negative to incentive corporations to plan more long term and consider all the negative external factors their business may induce?

[Guest]

1 hour ago, Captainant said:

Could you elaborate more why you think it's negative to incentive corporations to plan more long term and consider all the negative external factors their business may induce?

No. Understand the bill better and go fuck yourself while you’re at it. 

[Storm the Field 5294]

WTI just needed a few more nickels and we could have ended the week at nice round numbers of $80 and $3 for natty. 

[Guest]

Quite the rally from low $70s and damn near $2.00.