Is there still a viable market for Tellurian’s Haynesville assets?
Dear Subscriber,
This week, we bring you our latest analysis report, "Between Bad Rock and A Hard Place," offering an in-depth exploration of Haynesville's assets and their impact on the Gulf Coast gas market.
Also, we bring you the next episode of the Weekly Workflow with Scott Iceton. Join Scott as he looks at viable zones, operator performance, and projecting production on a bench level to get a sense for acreage for sale.
Expanding on the theme from previous weekly newsletters, our VP of Product Management, Ted Cross, has crafted two must-reads: "Texas: More Oil, Less Jobs?" and "Consolidation Improving Performance?"
In case you missed it, we've shared a special an interesting insight from our analysis on "The State of AI Adoption in Reservoir Engineering." To access the complete report, simply download it from this link: https://novilabs.com/resources/2024-state-of-ai-adoption-in-reservoir-engineering/
Moreover, we're excited to present a snippet from a recent podcast featuring Ted Cross. He delves into how Novi is reshaping analytics by incorporating unique, proprietary well-level data.
[Report] Tellurian Analysis: Between Bad Rock and A Hard Place
We're excited to share our latest analysis report, "Between Bad Rock and A Hard Place," offering an in-depth look at the current challenges and opportunities Tellurian's Haynesville assets are facing.
Key Takeaways:
[Weekly Workflow] Acreage Evaluation
Diving Deep into Acreage Evaluation at the Weekly Workflow
Join Scott Iceton this week as we navigate through viable zones, operator performance, and projecting production on a bench level to get a sense for acreage for sale. We used EnergyNet's Government Resource Listings as a starting point and examined in Novi.
Texas: More Oil, Less Jobs?
Over the past decade, the number of jobs in the Texas oil and gas industry has collapsed at the same time that production has soared.
Let’s look at the numbers. Back in November of 2014, there were over 300,000 jobs and production of 7.4 million barrels of oil equivalent per day. Fast forward to the end of 2023, and 30% of those jobs have been lost while production has risen 45% to 10.7 million barrels of oil equivalent per day.
From one perspective, this is an incredible story of innovation. What other industry has had worker productivity more than double in just 10 short years? (one wonders what the overall country’s productivity numbers would look like without O&G included).
With individual wells producing more plus drilling and completions improvements, oil and gas operators have managed to do more with less. Over this same period, the number of rigs running in Texas has fallen roughly by half.
But the unspoken side of ‘more with less’ is the oil and gas workers themselves. There’s no way to sugar coat it: this is a lot of jobs lost. Depending on the workers’ specialty, there are other industries to lateral into, though those jobs often come with lower pay. I have seen this firsthand with many of my geologists friends and classmates moving into tech, environmental, or academia.
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These numbers aren’t exactly precise, with much of the Texas oil and gas office workers supporting the rest of the country and world. But however you look at, the industry here has become much more productive while shedding jobs. We often talk about “energy returned on energy invested”, but these must be amongst the highest numbers around for “energy returned per job”, to the benefit of the rest of the country and world. An undercovered story!
h/t Christine Guerrero and Texas Oil & Gas Association for the data.
[Report] The State of AI Adoption in Reservoir Engineering
60% of Reservoir Engineers predict AI will standardize in the next decade! Don't get left behind.
Dive into the details with our State of AI Adoption in Reservoir Engineering 2024 Report. Download your copy today
Consolidation Improving Performance?
Productivity declines in the US unconventional oil plays have been big news over the past two years. But looking at the data, one basin bucks the trend: the Denver-Julesburg, home to the Niobrara play.
Unlike the Permian, Eagle Ford, and Williston, the DJ has seen a new record of well performance so far in 2023, with the wells for the first time breaking 100k barrels of oil equivalent 6-month cum production.
The significant productivity jump comes on the heels of mega-consolidation: the basin is now almost entirely operated by just three companies: Chevron, Oxy, and Civitas. So far, production has grown modestly in 2023, but not as significantly as this ramp in productivity.
Using our machine learning models to study the impact of design choices over the past few years, we see that the DJ productivity jump has come about through a combination of longer laterals, wider spacing, and more intense completions. Interestingly, average rock quality drilled has been pretty consistent over the past five years, in contrast to the Permian where operators intensely high-graded in 2020 & 2021 before returning (in aggregate) to lower-tier rock in 2022 & 2023.
It's worth following these developments as consolidation continues in other basins. Will the long-term focus of the consolidators drive performance gains elsewhere? We'll be paying close attention.
You can have a more in depth analysis of this in our SPE Denver Section presentation; "Deciphering the DJ Basin: A machine learning-driven analysis and comparison with the Permian"
[Podcast] EnergyBytes Podcast
Is relying solely on public data the only option? Absolutely not.
At Novi, we’re changing the game by integrating exclusive proprietary well-level data into our analytics, revolutionizing how production forecasting, asset valuation, and development optimization are approached.
Ready to see what’s under the hood and how Novi Labs can help you get valuable insights?
Book your personalized demo with our team: https://novilabs.com/request-for-demo/
Exploring Haynesville's assets shows the transformative power of obstacles. Reminds me of Nietzsche's belief in growth through challenges. ???? Insightful analysis!