What $60 Oil Means for Shale Production

The video discusses the impact of $60 oil on shale production, predicting significant growth in rig count and production. It highlights long-term risks in the global oil market and the importance of the Permian Basin. The concept of parent vs child wells is explained, noting potential productivity declines. The high grading effect is discussed, with cost implications for less productive wells. Overall, the video emphasizes the need for strategic responses to geological and operational challenges.

What is the expected growth in oil production for the current and next year at $50 to $52 forecasts?

• 600,000 barrels this year and 500,000 barrels next year

• 500,000 barrels this year and 600,000 barrels next year

• 700,000 barrels this year and 800,000 barrels next year

• 800,000 barrels this year and 700,000 barrels next year

What is the main geological risk associated with the Permian Basin's production growth?

• Environmental regulations

• Depletion of oil reserves

• Parent versus child wells

• Increased oil prices

What is the expected decrease in productivity for child wells compared to parent wells?

• 10% less productive

• 20% less productive

• 30% less productive

• 40% less productive

What is the high grading effect in oil production?

• Drilling in less productive areas

• Reducing operational costs

• Focusing on the best parts of the play

• Increasing the number of rigs

How much higher could the cost of supply be for less productive wells by 2020-2021?

• $1 to $2 a barrel higher

• $3 to $4 a barrel higher

• $5 to $10 a barrel higher

• $11 to $15 a barrel higher