Quote:
Originally posted by Botnst
Invest offshore rigs. We still have stacked land rigs between here and New Iberia.
At fifty a barrel, deep drilling near-shore will become increasingly attractive and shallow drilling far offshore will aslo be increasingly viable. Also, smaller pockets that were capped will now be worth rpoducing. Also rehabing old low production fields will become more interesting. Oil field services, in other words. You know, Halliburton!
Look for speculators offering to buy your inherited interest in a non-productive field.
B
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Hey Bot,
Bet you don't know much about this, do you? Hehe.
I'm not
intimately connected to the awlbiz like I used to be so this is sheer speculation but, it seems like some fairly extensive infill drilling is taking place on the coastal plains east of Austin...I've always viewed that as the thin end of the rig count wedge because is the cheapest, least risky way to get more oil out on a near-term basis. It also fits in with your scenario above of reentering low production holes for rework (not actually drilling).
Remember in the late 80s , early 90s when there was alot of coil tubing work going on with contractors using old Trinity sands holes and whipstocking out at the level of the Austin chalk? I wonder if all that's gone now?