• 5 minutes Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 9 minutes Will We Ever See 100$+ OIL?
  • 13 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 2 mins Platts says if Iran's 2 mm bbls exports comes back on market oil goes to $40 . . . What about new Permian pipelines 2.47 mm bbls coming ? . . . WHAT IF BOTH IRAN AND PERMIAN TOTAL 4.47 mm added bbls . . . OMG !
  • 23 hours Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 8 hours Today President Trump Questioned U.S. Policing the Straits of Hormuz for Rich Asian Countries. Allies Britain and Japan were asked to participate. Said NO. US spends $100 Billion/year Protecting Mideast Shipping Lanes!
  • 15 hours Renewables provided only about 4% of total global energy needs in 2018
  • 4 hours So You Think We’re Reducing Fossil Fuel? — Think Again
  • 1 hour Millions of Barrels of Iranian Oil Are Piled Up in China’s Ports
  • 12 hours Oil Giant Saudi Arabia Is Set to Start First Wind-Power Plant
  • 8 hours N.Y. Governor Signs Climate Bill
  • 12 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 1 day Berkeley becomes first U.S. city to ban natural gas in new homes
  • 5 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 1 day How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 1 day Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

IEA: Don’t Expect Oil Prices To Go Much Higher

Slowing oil demand growth and…

Alt Text

A New Gasoline Glut Is In The Making

Gasoline prices could fall in…

Alt Text

U.S. Shale Is Doomed No Matter What They Do

With financial stress setting in…

David Messler

David Messler

Mr. Messler is an oilfield veteran, recently retired from a major service company. During his thirty-eight year career he worked on six-continents in field and…

More Info

Premium Content

An Offshore "Scavenger" Too Enticing To Ignore

W&T Offshore, (WTI) is a "scavenger" of assets that have been poorly or under-developed in the past. It reaps a benefit of typically of not having to do much in the way of facilities infrastructure-type development, as these have been put in place by prior operators. This helps to keep capex pointed toward well construction, which is the very end of the line in field development.

The Gulf of Mexico's-GoM, Continental Shelf (the areas in blue blocks) has largely been abandoned by the big guys, the Shell's, the BP's, the Chevron's and so on. The reason is largely these companies are so huge that finding a million or two barrels of oil just doesn't move the needle. Periodically these companies "high grade" their portfolios, which means to auction off assets that no longer fit into their core strategy. The shelf largely quit being "core" to the supermajors about twenty years ago, and was high graded away to other companies.

Source

One man's table scraps, becomes another's meat and potatoes, as the saying goes, and smart operators like WTI move in. They pick over the logs, take a new look at seismic data with modern processing algorithms, and find substantial new reserves (substantial to them anyway), and set to work on development plans.

It should also be noted that some deepwater acreage in the GoM is being high-graded now as well. An example would be ExxonMobil, (XOM) putting their deepwater GoM stuff on the block.

Recently WTI's stock…


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play