Chapter 1706： Ready to move
Lao Tan also wanted to lose his mind. Yes, oil is indeed profitable, but extraction is also costly, especially shale oil. Although the output is large, it is well known that its high mining cost far exceeds that of traditional crude oil.
This is both an advantage and a disadvantage. The ancient army rushed into battle, wearing heavy armor did have higher protection, but it was inevitable that it could slow down the marching speed and lose flexibility.
Since the United States has used shale oil to stir up the big pie of OPEC countries led by Saudi Arabia, it is bound to bear the disadvantage of the other side's high cost of using shale oil, and to combat the consequences of shale oil development by increasing oil production and lowering oil prices!
Unfortunately, even if Lao Tan succeeds in extracting oil, he will have to suffer losses. An ultra-small shale oil extractor like him will definitely become the cannon fodder for the two giants. , Not to mention he hasn't dug out a tour.
The fact is also true. After the plunge in oil prices, the U.S. shale oil industry has indeed suffered a major blow. A large number of shale oil companies have suffered losses, layoffs, and bankruptcies. Most of them are young people like Lao Tan who have become rich overnight. For retail investors, people at least died after digging up the oil, and it is understood that they died, while Lao Tan died without even watching the spectacular scene of the blowout, which is called a dead end.
It is foreseeable that recently oil prices have continued to fall, and shale oil production will inevitably slow down and continue to decline. By that time, it will not be small retail investors who have died, but those who have a certain scale of medium-sized players, and the scene is full of grief. Maybe it's coming soon.
However, among the several major shale oil producing areas in the United States, there is one place where production is still stable and has not been beaten, and that is the Permian Basin.
In fact, Lao Tan’s choice is not wrong from a common sense. People want to make money and all want to make a lot of money. For this reason, betting on an oil field with a much higher oil yield than other regions seems to be justified.
You must know that starting from the middle of this year, international oil prices have rebounded slightly, the number of active oil rigs in the United States has begun to increase, oil production has rebounded, and many oilfield service providers have even reversed the layoffs and started hiring.
The Permian town, which was depressed because of the decline in oil production, is now prospering again because of the outbreak of the shale revolution. Because the oil industry in the Permian Basin is booming again, it seems to reproduce the grand occasion of the San Francisco gold rush.
It can be said that as long as Lao Tan successfully produces oil, even if the final result is still death, is it worth it?
Of course, it is not so much that the entire oil industry is picking up, as it is that the Permian Basin is picking up. At present, most of the increase in oil drilling operations is concentrated in the Permian Basin, and the recovery in production is also in the Permian Basin. The employment rate of the oil industry is The growth is mainly in the Permian Basin.
Except for the Permian Basin, most of the oil fields are still suffering today. The current short-term recovery of the global oil industry looks more like a one-man show in the Permian Basin.
But even under such circumstances, Lao Tan couldn't produce any oil. It was really puzzling. Yang Cheng still couldn't believe that he would be unprepared and just buy and gamble his life.
Faced with his repeated questioning, Liu Yun pointed to the guest room and said, "When your Aunt Qiu wakes up, ask her!"
Yang Sen looked at his son with a strange look in his eyes, which made him feel uncomfortable, "Why do you look at me that way?"
"You won't be tempted, are you?"
Yang Cheng touched the back of her head awkwardly, not admitting it was a default.
Yang Sen stared, "Are you crazy? Want to bet your life too?"
Yang Cheng shook his head, "No, I just think of the ultra-low mining cost of the Permian Basin, and I feel a little itchy."
The reason why the Permian Basin can be so strong is largely due to its ultra-low shale oil extraction cost.
Yang Cheng didn’t notice it before because he didn’t think about it. Because of Aunt Qiu’s incident, he remembered the information he had read before. The break-even point of the Permian oil field can be less than $40 per barrel, which is comparable. Traditional crude oil.
Moreover, the development cost of many blocks in the Permian is even less than $30/barrel.
The reason is actually very simple. In addition to the cost reduction brought about by the continuous progress of drilling and other technologies, the geological conditions of the Permian itself are too suitable for shale oil extraction activities. This is a decisive factor. Many blocks in the Permian, p. The burial of rock oil is very shallow, and the oil can be produced at about 3,000 feet. Compared with other oil and gas fields that are tens of thousands of feet, the cost of mining is not one or two.
Not only that, the Permian stratum is very thick, the target layer is densely packed, and some blocks can be divided into 10-15 layers, or even more. Such geological conditions are very conducive to overall development.
To put it another analogy, the Permian underground oil storage layers are stacked like layers of cakes. Just by finding the exact location, a straight well can penetrate multiple reservoirs, so the drilling efficiency is extremely high, which makes The break-even price of a barrel of oil is much lower than in other regions.
Regardless of the geological conditions, the Permian Basin has a history of nearly 100 years of oil exploration and development, and there is a very mature system in terms of personnel, technology, capital, and even laws and regulations.
For example, the early exploration was the sandstone of the Permian strata, and the current exploration is shale and limestone. That is to say, the waste mines that have been exhausted can be purchased at a very cheap price for re-exploration, and the infrastructure on the ground Even old wells are likely to be reused, plus there are many small service companies throughout the Permian Basin, which are of great significance to cost control.
Yang Cheng suspected that the land bought by Lao Tan was a waste mine from which crude oil had been mined. Otherwise, with his wealth, he would not even be able to buy the land, let alone prospecting.
Furthermore, because of the long history of the petroleum industry, the Permian Basin has a complete oil and gas pipeline network system, and it is also close to the US oil consumption and inventory center, and there are many petroleum equipment manufacturers around, and the climate in this area is warm and basically It can work 365 days a year around the clock.
Take a step back and say that Texas land is all private property. Is there a piece of land even if it doesn't help? This is not a barren land in Alaska. Even if it is full of desert, it is also land in Texas. It can be sold for more or less money.
Yang Cheng estimated that if there was no such land, Lao Tan would have committed suicide.
Didn’t Jansen know that mining costs in the Permian were low? He certainly knows that, as the CEO of a capital management company, although he does not directly invest in the energy industry, real estate and energy are inevitable. No matter what he wants to mine, as long as it is on land, he must buy land?
Therefore, not only did he know, but like Yang Cheng, he had a deep understanding of the Permian.
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This is both an advantage and a disadvantage. The ancient army rushed into battle, wearing heavy armor did have higher protection, but it was inevitable that it could slow down the marching speed and lose flexibility.
Since the United States has used shale oil to stir up the big pie of OPEC countries led by Saudi Arabia, it is bound to bear the disadvantage of the other side's high cost of using shale oil, and to combat the consequences of shale oil development by increasing oil production and lowering oil prices!
Unfortunately, even if Lao Tan succeeds in extracting oil, he will have to suffer losses. An ultra-small shale oil extractor like him will definitely become the cannon fodder for the two giants. , Not to mention he hasn't dug out a tour.
The fact is also true. After the plunge in oil prices, the U.S. shale oil industry has indeed suffered a major blow. A large number of shale oil companies have suffered losses, layoffs, and bankruptcies. Most of them are young people like Lao Tan who have become rich overnight. For retail investors, people at least died after digging up the oil, and it is understood that they died, while Lao Tan died without even watching the spectacular scene of the blowout, which is called a dead end.
It is foreseeable that recently oil prices have continued to fall, and shale oil production will inevitably slow down and continue to decline. By that time, it will not be small retail investors who have died, but those who have a certain scale of medium-sized players, and the scene is full of grief. Maybe it's coming soon.
However, among the several major shale oil producing areas in the United States, there is one place where production is still stable and has not been beaten, and that is the Permian Basin.
In fact, Lao Tan’s choice is not wrong from a common sense. People want to make money and all want to make a lot of money. For this reason, betting on an oil field with a much higher oil yield than other regions seems to be justified.
You must know that starting from the middle of this year, international oil prices have rebounded slightly, the number of active oil rigs in the United States has begun to increase, oil production has rebounded, and many oilfield service providers have even reversed the layoffs and started hiring.
The Permian town, which was depressed because of the decline in oil production, is now prospering again because of the outbreak of the shale revolution. Because the oil industry in the Permian Basin is booming again, it seems to reproduce the grand occasion of the San Francisco gold rush.
It can be said that as long as Lao Tan successfully produces oil, even if the final result is still death, is it worth it?
Of course, it is not so much that the entire oil industry is picking up, as it is that the Permian Basin is picking up. At present, most of the increase in oil drilling operations is concentrated in the Permian Basin, and the recovery in production is also in the Permian Basin. The employment rate of the oil industry is The growth is mainly in the Permian Basin.
Except for the Permian Basin, most of the oil fields are still suffering today. The current short-term recovery of the global oil industry looks more like a one-man show in the Permian Basin.
But even under such circumstances, Lao Tan couldn't produce any oil. It was really puzzling. Yang Cheng still couldn't believe that he would be unprepared and just buy and gamble his life.
Faced with his repeated questioning, Liu Yun pointed to the guest room and said, "When your Aunt Qiu wakes up, ask her!"
Yang Sen looked at his son with a strange look in his eyes, which made him feel uncomfortable, "Why do you look at me that way?"
"You won't be tempted, are you?"
Yang Cheng touched the back of her head awkwardly, not admitting it was a default.
Yang Sen stared, "Are you crazy? Want to bet your life too?"
Yang Cheng shook his head, "No, I just think of the ultra-low mining cost of the Permian Basin, and I feel a little itchy."
The reason why the Permian Basin can be so strong is largely due to its ultra-low shale oil extraction cost.
Yang Cheng didn’t notice it before because he didn’t think about it. Because of Aunt Qiu’s incident, he remembered the information he had read before. The break-even point of the Permian oil field can be less than $40 per barrel, which is comparable. Traditional crude oil.
Moreover, the development cost of many blocks in the Permian is even less than $30/barrel.
The reason is actually very simple. In addition to the cost reduction brought about by the continuous progress of drilling and other technologies, the geological conditions of the Permian itself are too suitable for shale oil extraction activities. This is a decisive factor. Many blocks in the Permian, p. The burial of rock oil is very shallow, and the oil can be produced at about 3,000 feet. Compared with other oil and gas fields that are tens of thousands of feet, the cost of mining is not one or two.
Not only that, the Permian stratum is very thick, the target layer is densely packed, and some blocks can be divided into 10-15 layers, or even more. Such geological conditions are very conducive to overall development.
To put it another analogy, the Permian underground oil storage layers are stacked like layers of cakes. Just by finding the exact location, a straight well can penetrate multiple reservoirs, so the drilling efficiency is extremely high, which makes The break-even price of a barrel of oil is much lower than in other regions.
Regardless of the geological conditions, the Permian Basin has a history of nearly 100 years of oil exploration and development, and there is a very mature system in terms of personnel, technology, capital, and even laws and regulations.
For example, the early exploration was the sandstone of the Permian strata, and the current exploration is shale and limestone. That is to say, the waste mines that have been exhausted can be purchased at a very cheap price for re-exploration, and the infrastructure on the ground Even old wells are likely to be reused, plus there are many small service companies throughout the Permian Basin, which are of great significance to cost control.
Yang Cheng suspected that the land bought by Lao Tan was a waste mine from which crude oil had been mined. Otherwise, with his wealth, he would not even be able to buy the land, let alone prospecting.
Furthermore, because of the long history of the petroleum industry, the Permian Basin has a complete oil and gas pipeline network system, and it is also close to the US oil consumption and inventory center, and there are many petroleum equipment manufacturers around, and the climate in this area is warm and basically It can work 365 days a year around the clock.
Take a step back and say that Texas land is all private property. Is there a piece of land even if it doesn't help? This is not a barren land in Alaska. Even if it is full of desert, it is also land in Texas. It can be sold for more or less money.
Yang Cheng estimated that if there was no such land, Lao Tan would have committed suicide.
Didn’t Jansen know that mining costs in the Permian were low? He certainly knows that, as the CEO of a capital management company, although he does not directly invest in the energy industry, real estate and energy are inevitable. No matter what he wants to mine, as long as it is on land, he must buy land?
Therefore, not only did he know, but like Yang Cheng, he had a deep understanding of the Permian.
txt download address:
phone-reading:
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