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Page added on March 27, 2020

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Hold My Beer, I Can Fix This

Hold My Beer, I Can Fix This thumbnail

The yahoos in the photograph above are tired of cutting their respective country’s oil production only to watch the US shale oil industry grow its production and steal their market share. The world is swimming in crude oil, the price is headed for $15, or worse, and the EIA says the American shale oil sector is set to bring on another 18,000 BOPD in April. Look at the chart below and you’ll get a better understanding of why these two guys are pissed off.

But low oil prices are killing OPEC and Russia, just like America. With any conciliatory gesture and ensuing agreement from the United States to take oil off the market to help raise oil prices, OPEC and Russia would cut production and oil prices would rise. I’ll bet the ranch on that.
That gesture of cooperation is NOT going to come from an administration in Washington that believes $30 oil is good for America and that is trying to get re-elected in November with cheap gasoline.

Texas is the 3rd largest oil producing country in the world. The Federal government does not control oil and gas production in Texas, the people of Texas do thru our State Constitution and by reliance on the Railroad Commission of Texas to uphold laws that prevent resource waste and promote resource conservation.

Last week lame duck Texas Railroad Commissioner, Ryan Sitton, proposed that Texas re-implement a proration plan that would allow wells to be produced so many days per month thereby reducing production in Texas and allowing prices to rise. OPEC invited Mr. Sitton to its meeting to discuss this plan.
The US shale oil industry immediately started whining like little

girls about having to shut wells down. The Chairman of the Commission, Mr. Wayne Christian, immediately poo-poo’ed the

idea, accordingly. The shale oil lobby in Texas is strong and has lots of money; Scott Sheffield, for instance, recently said on CNBC that Exxon owns the American Petroleum Institute. The Chairman suggested the Commission no longer has the manpower to implement a proration plan and before Sitton’s plane landed in Vienna, the proration idea was DOA.

Shutting in frac-induced horizontal wells is probably not a good idea; it might lead to near wellbore skin damage, proppant embedment and fracture closure. It might hurt those wells in the long term; I get that. I say let them produce. Half the HZ wells in the Permian Basin already produce less than 50 BOPD and are at their economic limits (shaleprofile.com) and 80% of all Eagle Ford shale oil wells now make less than 50 BOPD. Mother Nature will sort all out that part of the oversupply problem soon enough; the terminal decline rates on shale oil wells after year five and six is stunning.
Approximately 38% of America’s current light tight oil production is less that a year old (shaleprofile.com). The far better way to show cooperation with the rest of the world to raise and stabilize oil prices, to save Texas jobs, bring capital back to a capital intensive industry, stop the waste of associated gas, preserve reservoir pressure and increase recovery of oil in place…

is to slow the frantic pace of drilling new wells on uneconomic spacing.

TRRC Map of Eagle Ford Shale Oil Wells Drilled on 330 foot spacing
That’s easy to do. I could fix that in a Midland minute but I need help from Austin. Lets resend all existing, applicable field rules that have previously been granted as exceptions to Texas Statewide Rule 37, immediately. The Texas Railroad Commission can do that; it will require less Commission manpower and fewer tax dollars. The basis for that rule can be found in the Texas Administrative Code, 16 TAC 3.37
(a) Distance requirements.
(1) No well for oil, gas, or geothermal resource shall hereafter be drilled nearer than 1,200 feet to any well completed in or drilling to the same horizon on the same tract or farm, and no well shall be drilled nearer than 467 feet to any property line, lease line…

Statewide Rule 37 is the law. We can mandate that no exceptions to Rule 37 even be heard at the Railroad Commission for at least 18 months. In the Permian Basin, where most of America’s oil future lies, that Wolfcamp oil is 300 million years old, it’s not going to “escape,” or disappear; when world oil prices stabilize, when infrastructure gets caught up and we don’t have to waste natural gas, we can go back in between these 1200 foot spaced wells and drill more wells. The short investment cycle of US shale oil, the time from spud to first production, makes it a perfect resource for helping control worldwide product prices and stable long term employment.
Continuous drilling provisions in Texas leases and other forms of mineral conveyances must follow Statewide spacing rules. Lenders that demand continuous drilling in their loan covenants can take a hike, as can hedge pledges. They’ll get over it, or they won’t; who cares? They made their own bed.
For all you ‘let-free-market-principles-prevail’ space cadets, nothing’s free about free enterprise when you are up to your ass in long term debt you can’t pay back. Cutting 2020 budgets will reduce drilling and lower production rates but as soon as prices recover, if they ever do recover, the shale oil industry will resume its out of control fiscal irresponsibility and we will be right back into an oversupply situation again. Russia and OPEC both know that. Waiting for budgets to reduce production output puts 70% of the shale oil industry at risk of bankruptcy and 1,000,000 people at risk of losing their job (Bloomberg).
If OPEC and Russia don’t get meaningful cooperation from Texas, they’ll destroy not only the US shale oil industry but the entire oil industry in Texas, and in the rest of America. And what Texas does the rest of the country will do; Commissioner Christian is wrong about. Following conservation law in Texas should not be dependent on what other states in the nation do.
Texas has always been a leader in the worldwide oil and natural gas industry. For 47 years, from 1930 to 1977, the Railroad Commission of Texas controlled the worldwide price of oil and it ensured the conservation of Texas resources for the benefit of our future. Ninety years later Texans are still enjoying the rewards of proper resource management. Its time once again for the Texas Railroad Commission to step up. For Texas and for America.

Re-implement Texas Statewide Rule 37 For America’s LONG TERM energy security !!
oilystuffblog by Mike Shellman


132 Comments on "Hold My Beer, I Can Fix This"

  1. makati1 on Sun, 29th Mar 2020 6:30 pm 

    “Dear Clueless America: You Are Now Living Under The Tyranny You Deserve”

    “You created your own Hell, in other words, and now you are living in it. And it’s going to get far worse from here.
    Soon, you will be microchipped, then euthanized, and everything you ever produced will be confiscated or stolen by the very system that you demanded be given absolute power. …if you somehow manage to survive all this, you will continue to demand authoritarian tyranny because you still don’t understand freedom, even after you’ve lived as a slave”

    https://www.shtfplan.com/headline-news/dear-clueless-america-you-are-now-living-under-the-tyranny-you-deserve_03292020

    Soon, it will be difficult to deny what I have been saying here for years. The US is a Police State, worse than Nazi Germany. No real freedoms left. Money becoming worthless paper. An oligarchy/plutocracy/dictatorship, not a democracy. Well deserved since few Amerikans are willing to fight for their freedom and future, just toilet paper. So be it.

  2. Davy on Sun, 29th Mar 2020 6:37 pm 

    “Soon, it will be difficult to deny what I have been saying here for years. The US is a Police State, worse than Nazi Germany. No real freedoms left. Money becoming worthless paper.”

    We are way better off than your Asia, makato. You are just jealous and resentful. That is a bad combination

  3. JuanP on Sun, 29th Mar 2020 6:44 pm 

    Delusional Davy “No cases in my county”

    You would have expected that if you weren’t a moron, poor people don’t travel and traveling people don’t go there. It’s not for nothing they call it flyover country, fool! LOL! Being behind of the curve will end up being a disadvantage later on, as cases in all those places will spike after the healthcare system has been completely overwhelmed, leading to much higher mortality. In this epidemic it is better to be first than last. I may get tested next week as tests are available to anyone now down here in the Sunshine State.

  4. JuanP on Sun, 29th Mar 2020 6:46 pm 

    Delusional Davy “You are just jealous and resentful. That is a bad combination”

    You are projecting again, lunatic! LOL!

  5. makati1 on Sun, 29th Mar 2020 6:58 pm 

    Davy, you might be in ‘flyover country’, but the collapsing US economy doesn’t notice that or you.

    If things proceed as are currently evolving, the US will be like the Great Depression soon and never recover. The market casino is not at the bottom, nor is the increase in new COVID-19 cases. The trillion$ dumped on the economy will not save it, or you.

    Your lock-down has just been extended to …? Would that happen if things were improving? Panic is setting in to the Amerikan lifestyle. How long before the looting, shooting and riots start?

    Meanwhile, I am comfortable, healthy and retired. You? LMAO!

  6. Davy on Sun, 29th Mar 2020 6:59 pm 

    “You would have expected that if you weren’t a moron, poor people don’t travel and traveling people don’t go there. It’s not for nothing they call it flyover country, fool! LOL!”

    Who is the dumb fuck with the virus? Yea “maybe” you “I hope”

    “Being behind of the curve will end up being a disadvantage later on, as cases in all those places will spike after the healthcare system has been completely overwhelmed, leading to much higher mortality.”

    Great health care around here, sorry wrong answer.

    “ In this epidemic it is better to be first than last. I may get tested next week as tests are available to anyone now down here in the Sunshine State.”

    Miami will be an epicenter city. Too many idiots like you down there.

  7. makati1 on Sun, 29th Mar 2020 7:01 pm 

    BTW Davy. There seems to be a lot of rain in the Mid-west…again. Another year of bad/no crops? More farmers committing suicide? Who is going to feed you? Your goats? LOL

  8. Davy on Sun, 29th Mar 2020 7:03 pm 

    ‘Davy, you might be in ‘flyover country’, but the collapsing US economy doesn’t notice that or you.”

    WTF, I don’t think you even know what you just said. Typical senility from the makato

    “If things proceed as are currently evolving, the US will be like the Great Depression soon and never recover.”

    Worse is coming to Asia and you 4.5BIL idiots can’t feed yourself

    “The market casino is not at the bottom, nor is the increase in new COVID-19 cases. The trillion$ dumped on the economy will not save it, or you.”

    I am in great shape probably better than anyone else on this forum. LMFAO

    “Your lock-down has just been extended to …? Would that happen if things were improving? Panic is setting in to the Amerikan lifestyle. How long before the looting, shooting and riots start?”

    No lock down here makato

    “Meanwhile, I am comfortable, healthy and retired. You? LMAO!”

    You are senile, stupid, and poor

  9. makati1 on Sun, 29th Mar 2020 7:06 pm 

    Demented, Delusional Davy, do you read the bullshit you post? I don’t think so. You project yourself every time. LOL.

  10. Davy on Sun, 29th Mar 2020 7:07 pm 

    “BTW Davy. There seems to be a lot of rain in the Mid-west…again. Another year of bad/no crops? More farmers committing suicide? Who is going to feed you? Your goats? LOL”

    The grass is beautiful here makato. More of your poor situational reality. You think I am a grain farmer or something. You are not the sharpest tool in the tool box. I mean you could not even complete a semester in college without quitting. You will wish you had animals when you are starving.

  11. JuanP on Sun, 29th Mar 2020 7:07 pm 

    Delusional Davy “Great health care around here, sorry wrong answer.”

    ROFLMFAO! Your delusions know no limits, Exceptionalist! Do you even know how many ICU beds and ventilators per thousand people there are in your county? You are surrounded by trailer parks and white trash, of which you are a perfect example! LOL!

  12. Davy on Sun, 29th Mar 2020 7:08 pm 

    “Demented, Delusional Davy, do you read the bullshit you post? I don’t think so. You project yourself every time. LOL.”

    Translation: Davy kicked my ass, where is the lunatic juanPee to protect me with his ID theft and hostile socks. You are both total losers.

  13. Davy on Sun, 29th Mar 2020 7:09 pm 

    “Do you even know how many ICU beds and ventilators per thousand people there are in your county? You are surrounded by trailer parks and white trash, of which you are a perfect example! LOL!”

    We have better per capita health care here than in your 3rd world Miami, stupid.

  14. JuanP on Sun, 29th Mar 2020 7:10 pm 

    Delusional Davy “You are not the sharpest tool in the tool box.”
    You are projecting again, Exceptionalist! Mak has managed to live a normal life and support himself all his life while you are still living in your daddy’s place in your old age. You are as dull as tools come! LOL!

  15. Davy on Sun, 29th Mar 2020 7:16 pm 

    https://peakoil.com/forums/viewtopic.php?p=1443687#p1443687
    this is from juanPee:
    “Good points regarding sexual perversions and diminishing returns.”

    Is that why you have all those perverted socks juanPee?

    “I also totally agree that you can’t buy happiness and consuming more won’t make you happier after your basic needs are satisfied.”

    Bullshit, stupid, it depends on the person. You are such a mindless idiot

    “I grew up surrounded by very rich, mostly very unhappy people, and learnt as a teenager that most of the middle class in Uruguay led happier, more fulfilling lives than those of us that were wealthier.”

    You grew up mentally ill and stupid. You migrated to Miami and are now a leach.

    “ But, as ASG, pointed out that understanding is probably a consequence of my privileged upbringing, and it may be harder for those who’ve always struggled economically to learn that lesson.”

    You were shunned by your family. There was no privilege??

    “That’s why I’ve always sought to be useful to others rather than wealthier; I know it makes me a happier person.”

    LMFAO, you do nothing for people. You are a psychopathic prick. I have dozens of comments how you boast about your egotistical behavior. You are a complete fucking liar.

  16. Davy on Sun, 29th Mar 2020 7:19 pm 

    You are projecting again, Exceptionalist!

    Hey retard, do you have anything else to say but projecting. LOL. Youa re a low IQ fool.

    “Mak has managed to live a normal life and support himself all his life”

    This is the internet fool you know nothing about Mak and if he is even real but in your mind you think all kinds of lunatic shit.

    “while you are still living in your daddy’s place in your old age. You are as dull as tools come! LOL!”

    I am a success and you a failure so I can understand why you have stalk me for 3 years now. That is the evidence, dumbass. You are a failure and want to be successful like me.

  17. Davy on Sun, 29th Mar 2020 7:24 pm 

    “COVID-19 Is Saving Lives”
    https://tinyurl.com/rfgsz6g scribd

    “Since coronavirus concerns have increased as US spread has become more evident, the decline in deaths in recent weeks suggests that the fall in deaths might be an ‘un-intended’ consequence of the COVID- 19 due to people adjusting their behavior to avoid getting and spreading COVID- 19. Comparing the deviation with the COVID- 19 confirmed cases in the US, we see a high negative correlation of 0.9271. One suggestive mechanism is that as people stay at home more, crime and accidental deaths may decrease. As the CDC continues to update the data, the data for the week ending March 14 and March 21, 2020 will be useful in understanding this behavioral aspect – however, after that, the behavioral effect may be harder to disentangle, as deaths due to coronavirus will become more prominent in the aggregate data.”

  18. world grater supremacist muzzies jerk on Sun, 29th Mar 2020 7:30 pm 

    Atlanta *Sun 8:29 pmPassingclouds.Warm. 77 °F
    churches in canada open in spite of orders to close
    world supremacist muzzies lovin supertards would have a fit
    in this case it’s not churches but it’s muzzies

  19. makati1 on Sun, 29th Mar 2020 7:36 pm 

    Davy is in very Deep Denial JuanP. The strain of real life is frying his last two functioning brain cells. Meanwhile, we go on and enjoy life. He is so jealous, he could explode. Well, if we were lucky…

    Good luck on your test, but I’m sure you are fine.

  20. Davy on Sun, 29th Mar 2020 7:40 pm 

    No cases on my farm

    “Coronvirus having less of an impact on low-income, low-IQ dumbasses in rural shit-holes, report finds”
    https://tinybrain.dav/imanasshole

    “Coronavirus cases in the U.S. have surged in recent weeks but remain comparatively low in lower-income shithole areas, according to a new analysis from The Associated Press. Which being a newswire service, are first ones you’d go to for such a study. Among more than 3,100 shithole counties in the U.S. many in Missouri, nearly 1,300 had no confirmed cases of COVID-19, data compiled by Johns Hopkins University showed. Of the counties without positive tests, 85 percent were in rural areas that consist of single-dwelling shacks inhabited by dumbass hillbilly’s that have little or no everyday contact between people, which could help transmit the virus.”

  21. makati1 on Sun, 29th Mar 2020 7:46 pm 

    Goats don’t get the virus, Dumbed Down Davy. That is all that is on you “farm” except weeds, IF you have a “farm”.

  22. makati1 on Sun, 29th Mar 2020 7:47 pm 

    “Don’t look now but you’ve been screwed again. The Wall Street bankers are again able to borrow at 0%, while charging you 17% on your ever-increasing credit card balance. Why aren’t these scumbag bankers announcing a three-month moratorium on credit card and mortgage payments, with no interest accruing? Because their goal is to further enslave you in debt, while enriching themselves. They will run patriotic commercials, while sticking a red white and blue dildo up your ass.”

    https://www.theburningplatform.com/2020/03/29/p-for-pandemic/#more-215171

    Says it all.

  23. world grater supremacist muzzies lovin and bag day feb12021 on Sun, 29th Mar 2020 9:41 pm 

    Houston Sun 9:37 pm clouds. Mild. 76 °F
    superatards please love supremacist muzzies more
    it’s the highest love. muzzies are soft and cuddly just look up pictures of muzzie al baghdadi and youll be mesmerized.

    muzzie baghdadi is not a muzzie but was burried at sea as a muzzie but it’s not a muzzie but as a PhD in muzzin

    mind boggles

    muzzies need love they never have enoug love.muzzies are innocent. if muzzie jihadin’ and blowing up kufar, we fear “backlash”.
    if muzzie are roasted muzzies are victims

    soudns familir
    customers are always rite
    if customer rong refer to #1

  24. world grater supremacist muzzies lovin and bag day feb1202 on Sun, 29th Mar 2020 10:19 pm 

    Las Vegas *Sun 8:17 pm sunny. cool. 62 °F
    the idea being a global crisis our supertards will better positioned to solve it.
    but iwth supremacist muzzies in our mist it remains to be seen

    did muzzie illinoise conquer america get amputated? no

    did muzzie al asqua said conquer word get amputated? NO

    amputated all muzzie imams

    did muzzie said karamchen tunisia conquer america get amputated no

    it’s difficult for our supertards to win if we have muzzies within the gates, the enemies are here.

  25. I AM THE MOB on Mon, 30th Mar 2020 3:54 pm 

    A Fox News host “Todd Starnes” went to one of in NYC hospitals . The media described as “War Zone”. And there was a hashtag trending on twitter yesterday called “Filmyourhospital & EmptyHospital”. And now CBS has been caught red handed using footage from Italy saying it was in the US.

    This is beyond the pale of anything I could ever imagine.

  26. FuelShortageComing on Mon, 30th Mar 2020 4:01 pm 

    Where are the body bags.

    twitter EmptyHospital

    https://twitter.com/hashtag/emptyhospital?src=hash

  27. FuelShortageComing on Mon, 30th Mar 2020 5:11 pm 

    Why Are Canadian & American Hospitals Empty?!

    https://www.youtube.com/watch?time_continue=10&v=s0d65xV65AE&feature=emb_logo

    Doctors are doing interviews and saying this is being exaggerated, and it takes other complications to make this a lethal situation. This is about collapsing the economy and usher in the new world currency. Digital money only coming to a town near you!!!! Blessed is he that takes shelter in the Lord!!!!

  28. FuelShortageComing on Mon, 30th Mar 2020 5:36 pm 

    Hiarious. Still pretending there is a pandemia in New York.

    New York governor Andrew Cuomo calls for unity in US coronavirus fight
    https://www.youtube.com/watch?v=Hv_vP-Vd50I

    I try masturbation to relax, did not work. I tried smoking cigarettes to relax, not working either.

  29. I AM THE MOB on Mon, 30th Mar 2020 6:30 pm 

    Fuel

    This is just so beyond the pale. I can’t even believe they tried this.

    Pass the popcorn!

  30. FuelShortageComing on Mon, 30th Mar 2020 6:32 pm 

    I know. I agree. Unreal that for sure

  31. I AM THE MOB on Mon, 30th Mar 2020 8:09 pm 

    Fuel

    When you go to a grocery store. There are tons of people in mask, rubber gloves. Young people, all kinds. Just everywhere. People standing way behind others. Looking like weirdos.

    Just full blown retards everywhere. lol

  32. world grater supremacist muzzies lovin and bag day feb1202 on Tue, 31st Mar 2020 2:34 pm 

    Florida, Missouri Sunny.] 61 °F
    why whitey supertard deceased christopher hitchens said “god is not grate”. this is muzzie lovin. everyone and his bf and husband know muzzie are supremacists and they say “allah the pedifile is grater”.
    why was this whitey saying grate, he’s hiding something

    not good at all

    he’s a teacher of whitey supertard tom holland who is a muzzie lover

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