{"id":49442,"date":"2019-11-06T08:12:51","date_gmt":"2019-11-06T13:12:51","guid":{"rendered":"https:\/\/olduvai.ca\/?p=49442"},"modified":"2019-11-06T08:12:55","modified_gmt":"2019-11-06T13:12:55","slug":"trouble-at-mighty-exxonmobil-record-number-of-shale-wells-while-permian-oil-production-remains-flat","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=49442","title":{"rendered":"TROUBLE AT MIGHTY EXXONMOBIL: Record Number Of Shale Wells While Permian Oil Production Remains Flat"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/srsroccoreport.com\/trouble-at-mighty-exxonmobil-adds-record-number-of-shale-wells-in-the-permian-while-production-plateaus\/\">TROUBLE AT MIGHTY EXXONMOBIL: Record Number Of Shale Wells While Permian Oil Production Remains Flat<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s trouble brewing in the U.S. largest oil company while most investors remain in the dark.&nbsp; ExxonMobil added a record number of wells in the Permian during the first three quarters of 2019, only to see the company\u2019s oil production plateau.&nbsp; What a difference in a year when Exxon bragged that its Q4 2018 Permian oil production had surged 93% from the same period in 2017.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, an investor reading ExxonMobil\u2019s latest presentation would believe the company\u2019s Permian oil production continues to increase significantly by the announcement that output is up 72% since Q3 2018.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dizgpp7sc1t8t.cloudfront.net\/wp-content\/uploads\/2019\/11\/Exxon-Permian-Update-Investor-Presentation-Q3-2019.png\" alt=\"\" class=\"wp-image-20976\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Let me explain how these oil companies \u201cBUFFALO\u201d investors with the numbers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, the nice chart above is stated in Koebd, or 1,000 barrels of oil equivalent per day.&nbsp; Exxon\u2019s Permian production shown in that chart includes natural gas.&nbsp; So, unless you do a bit of digging and research, the typical investor will believe that Exxon\u2019s Permian oil output continues to surge higher in 2019.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Second, while Exxon\u2019s Permian production continues to increase in 2019, the majority of the gain is from natural gas.<\/strong>&nbsp;According to Shaleprofile.com, Exxon\u2019s Permian oil production rose slightly since January, but natural gas was the clear winner.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dizgpp7sc1t8t.cloudfront.net\/wp-content\/uploads\/2019\/11\/Exxon-Permian-Oil-Production-Aug-2019.png\" alt=\"\" class=\"wp-image-20973\"\/><\/figure>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dizgpp7sc1t8t.cloudfront.net\/wp-content\/uploads\/2019\/11\/Exxon-Permian-Natgas-Production-Aug-2019.png\" alt=\"\" class=\"wp-image-20972\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(charts from Shaleprofile.com)<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Third, ExxonMobil added 133 wells from Jan-Aug 2018 to increase overall Permian oil production by 84%.\u00a0<strong>However, when ExxonMobil added 149 wells from Jan-Aug 2019, oil production only increased by a mere pittance of 3% during the same period.<\/strong>\u00a0The reason for the plateauing of Exxon\u2019s Permian shale oil production has to do with the massive decline rate taking place in its 2018 production.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We can see this occur in glorious 3D Technicolor in the chart below:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/dizgpp7sc1t8t.cloudfront.net\/wp-content\/uploads\/2019\/11\/Exxon-Permian-Production-AUG-2019.png\" alt=\"\" class=\"wp-image-20975\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>TROUBLE AT MIGHTY EXXONMOBIL: Record Number Of Shale Wells While Permian Oil Production Remains Flat There\u2019s trouble brewing in the U.S. largest oil company while most investors remain in the dark.&nbsp; ExxonMobil added a record number of wells in the Permian during the first three quarters of 2019, only to see the company\u2019s oil production [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[1041,595,27506,15726,12073],"class_list":["post-49442","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-exxonmobil","tag-oil-production","tag-permian-oil","tag-shale-wells","tag-srsrocco-report"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49442","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49442"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49442\/revisions"}],"predecessor-version":[{"id":49443,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49442\/revisions\/49443"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49442"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49442"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49442"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}