The Permian shale oil basin has drilled its best wells
The Permian oil basin, the largest oil play in the US, mostly composed of shale oil fields, is something of "the last resort" of the global oil industry, where most of the recent growth of oil has come from. The rest of the oil world is pretty much stagnating or declining. But now even this saviour is slowly beginning to fail, and we can only wait for Jesus. Waiting for Jesus, not for the mirages of technology, will definitely increase, when people begin see how hollow this techno salvation story really is.
Irina Slav on www.oilprice.com writes:
"The more important factor over the longer term is well inventory. As the Wall Street Journal reported earlier this year, there has been concern among industry executives that the best inventory has been drilled through. It is, indeed, a concern that has been voiced repeatedly by Scott Sheffield, Pioneer Natural Resources' CEO.
"Most companies are drilling tier two and tier three inventories now," having tapped their best prospects, Sheffield told Reuters in an interview in January. "Less quality production is coming out of the Permian, out of the Bakken." "
(from the article "U.S. Shale Slowdown Weighs On Oilfield Services", on www.oilprice.com, b
Think about the fact that up until now, the shale oil industry hasn't made any money, but has instead lost a LOT of money (at the heights of the shale boom in America, in 2018, right before the "All Liquids" peak, when shale oil was still relatively cheap, and its rise steep, Steve St. Angelo made this Youtube video): How will it then be when the best days are over for this industry? It will maybe suck even more enormous amounts of debt money into its black hole, and try, till the bitter end, to persuade investors to invest in it, with lies and Ponzi scheme deception.
I don't buy the story that the shale oil industry recently has begun to make money (see this article). They are catching a straw, it's hopium and wishful thinking, someone hasn't done the math, it's deception to keep investors attracted. If the EROEI (Energy Returned on Energy Invested) is all the time declining in shale, and has done so from the very beginning, how could they finally begin to make money, right now when they have already drilled their best inventory and have begun to go after poorer inventory? It's absurd. Do you really think Tier 2 inventory has a higher EROEI than Tier 1 inventory?
