VBIN's oil stock thread.

[EricL]

From the energy board I follow.

Quote:Not sure if anyone else is at the DUG Permian and Eagle Ford conference, but I figured I add some tidbits that I pick up. I’m typing this from my phone, please excuse the typos.
 
First Speaker was Mark Mills. His talk was about how much the “transition” away from fossil fuels (100%) is a physically impossible. He had a bunch of interesting charts, but the most interesting to me was his chart on battery growth. We currently have enough battery storage in the US to power the grid for 20 seconds. With a growth rate of 10,000%, we will attain 20 minutes of storage by 2050. Also spoke at length about the transition is really about going from liquid fuel to solid. Physical material extraction from the Earth is 10x fossil fuels (by weight) to go in this direction.

Diamondback’s CFO spoke. He was the first speaker to say “return capital to the shareholder” and “capital discipline”, which have been repeated at least 50 more times from the rest of the speakers. My interesting takeaway from his talk was that their drill times are down to 11 days for a 2 mile lateral. Put another way, the drill time is less than the completion time. That’s pretty wild. Here is where capital discipline comes in. Instead of running their planned 9 rigs with the improved efficiency, they dropped down to 7 rigs to drill the same quantity of wells.
 
Last speaker of note for this board was Marshall Adkins from Raymond James. Main gist of his talk was oil price is going higher (supply/demand fundamentals, fed policy, capital starvation). My biggest take away from this talk was this Saudi - UAE spat is meaningless. By mid-2022, OPEC will need to be producing at max capacity to meet demand. There will be 0 spare capacity, and that will be with no hiccups.