Cartoon Of the Week

March 5, 2020

 

Awaiting final revisions from the Railroad Commission of Texas, December 2019 light tight oil production from horizontal (HZ) wells in the Permian Basin will be something in the order of 4.0MM BOPD (shaleprofile.com, EIA).

 

Most of America's oil exports come from the Permian Basin (Platts). Those exports levels for February 2020 were 4.2MM BOPD (Department of Energy). In other words, 95% of all Permian Basin HZ shaley carbonate production, America's last refuge for oil production sustainability, is now being exported to foreign countries. To facilitate these exports it is necessary to flare, to waste, approximately 1BCF per day of associated gas in West Texas and New Mexico (TRRC, Rystad). Please make yourself aware of 2019 earnings reports from public Permian Basin HZ operators, the lack of free cash flow at $57 weighted oil prices for 2019,  and decide for yourself if that oil is profitable to extract. 

 

Regardless of what political idealism you embrace, red or blue, Republican or Democrat, exporting the last of America's oil resources is short sighted, poor energy policy.

 

America's oil needs to stay IN America, for America's long term energy security. Our kids deserve nothing less. 

 

 

 

 

 

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