Time for the First Friday Q&A for August 2016. We dig into your questions about drilled but completed wells, ethylene crackers, and more.
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#076: DUC Hunting – How to Find Drilled but Uncompleted Wells
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Andrew Krasnov, Valuation Manager at Ernst & Young
Hi Mark, I’ve heard you talk about standardization in the O&G industry and provide some examples of how complex (and high cost) the operations of the major O&G companies is due to their lack of standardization.
I’ve also seen studies that show the smaller, focused O&G companies that concentrate on a core region/strategy often outperform their larger ears. Is this because they are better at standardization? If not, what is the major driver of the independent’s ability to perform?
Thanks in advance, appreciate all of your great insight.
Andrew Fager, Exa Corporation
Hey Mark & James,
Greetings from San Francisco! Big fan of the Oil and Gas This Week podcast! Thanks for all the work you do keeping us up to date. I started listening a few months back to learn more about the status of the Oil & Gas industry. I’ve been wanting to send a note to say hi and maybe ask a question or two. When I heard Mark was vacationing in my town of SF (episode 75) I thought I would use this as an excuse to write.
My question: being a mechanical engineer with little knowledge of the industry I’m interested in getting a broader picture of the Oil & Gas industry. Do you have any recommendations for resources (books, videos, websites, etc ) that you think accomplish this? I ask for both for my own edification but also for the future of our business. I think our simulation technology could be applied to many area’s within the industry and having a broader picture would help us identify potential areas.
Ahmed Ali, Semi-Retired
Mark, James great podcast with solid content and loving the interviews with folks from the industry and LinkedIn experts…keep it going.
I’m not an expert in economics or trade policy but in order to support the domestic O&G industry would it make sense and what are the implications of placing a tariff on imported oil from places such as Saudi Arabia?
Would this provide a boost and help domestic company’s compete or would this do more harm? Thanks and look forward to your response.
Patrick Beauchamp, Retired
Real simple question: is it possible to power a drilling rig using solar panels? If not, are there any applications for solar panels within the O&G industry and what are some examples if you know of any?
Great show and a big fan of the Friday Q&As…very insightful and informative!
Chris McHale, Retired
First off, great show and thank you for providing your views into issues around O&G. Before I start I’m not an O&G veteran so it helps folks like myself when you explain O&G concepts and issues in layman terms. A few questions below:
1. If you had to predict which commodity do you think will rebound first–crude or natural gas? I’d like to think gas simply because developing countries, once they have infrastructure in place need to supply electricity which is true in rural places such as India where it is lacking. Thoughts?
2. If there is such a push in petrochemical and products made from feed stock is it safe to say that once the global economy picks back up and consumer demand increases we will naturally see a rise in oil and gas prices or do we need more people to drive and fly in order to see a much more profound impact?
3. I hate to bring politics up but do you see a major impact on O&G should Clinton win? What about Trump? Mark can you run for President with James as your VP and help out my friends and neighbors in the O&G industry?
Thanks and keep doing what you do!
Robb Watters, Mountaineer Keystone
By 2020, the Appalachian Basin is set to have three cracker plants in the region. The Greater Pittsburgh Area is beaming with hopes of a tremendous economic ripple effect from the recent confirmation of the Shell Ethylene Cracker plant in Beaver County (about 30 minutes from downtown). There are already plans for hotel construction, new home development and a revitalization of the area surrounding the site (formerly a zinc smelter). Recent estimates show that construction should create 6,000 jobs, which will result in 600 permanent positions once completed.
What economic effects have been realized in areas with existing cracker facilities, and is there inherent risk in Shell’s singular focus on ethylene?
Eddie Schroder, Antero Resources
I have always been a huge fan of Apple products, especially Macs. I started to realize that they aren’t very common in the office. Is this because of programming issues, or is it because Macs are so expensive? Also, do you see Macs becoming more popular for the industry in the near future?
Howard, President at PermianLide
James and Mark, first I want to thank you for your weekly podcast. There is something new in our industry every week and you guys are ready to discuss it!
Second, our company provides storage and processing equipment for basically the upstream market with some midstream and downstream penetration. My question is regarding tracking DUC (drilled but uncompleted wells) activity. There are several companies touting reports on where they are and who has them but what I have seen is very general and not actionable. Where is or what is the best source for actionable information on who has DUC’s and who is bringing them online?
Thanks, I look forward to hearing your response.
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Do you have your DUC’s in a row? Drilled but Uncompleted Wells Made Visible
The Field Guide to North American DUCs
DUC Hunting: Drilled and Uncompleted Wells
Learn the Oil and Gas Industry
7 Free Resources for Newbies in Oil and Gas
The Weekly Onion
Events On Deck
What: Summer NAPE
When: August 10-11, 2016
Where: George R. Brown Convention Center | 1001 Avenida De Las Americas, Houston, TX 77010
First Friday Q&A
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