SPE New York & New England- Member to Member Talk
This Talk Will be Held in New York City
Wednesday June 14, 2017
Continental Breakfast Will Be Provided at 7:30 AM
“Drilling Down on the Tail that Wags the Dog”
RSVP is required!
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US tight oil represents a small percentage of global crude supply, but it’s intrusion into world markets has been profound. This “short-cycle” source of supply has been far more responsive to market price signals than conventional, “long-cycle” oil from OPEC or non-OPEC sources, which cannot be turned on-and-off as quickly or easily. Thus, short-cycle oil serves as “peaker wells” that delay longer-cycle conventional projects on the economic margin. And with “paper markets” now many times larger than the underlying physical barrels, market signals get amplified many times over. While not the same as Saudi Arabia’s spare capacity in the strictest sense, the axis of supply has shifted westward and the marginal barrels of supply now come from Texas. World markets have taken notice and grown fixated on admittedly problematic indicators, like Permian rig-count. An understanding of the Permian’s technical attributes and challenges is important for all.
Permian basin development has been underway for many decades, but unconventional development in the Permian is a more recent and increasingly significant phenomena, now representing about one-half of all US drilling activity. But the Permian is one of the largest and most structurally complex regions in the US – operators face very high levels of produced water (i.e., water cuts range from 30% to 90%, versus only 30% in the Eagle Ford) and its subsurface complexity and heterogeneity complicate the optimal number, location and orientation of wellbores, as well as the number, placement and design of fracture stages.
Mr. Pettit entered the oil and gas industry in 1992, as a senior business planner with Norcen Energy Resources, after working as a process technology and development engineer in the US, Canada, and West Germany. He went on to a successful career on Wall Street.
Mr. Pettit holds a BASc (Mechanical Engineering) from University of Toronto and MBA from Western University, with continuing education in Petroleum Geology (TU Delft) and Reservoir Geomechanics (Stanford University), and is an active member in the New England Chapter of Society of Petroleum Engineers (SPE).
Mr. Pettit is the author of the new book, The Final Frontier: E&P's Low-Cost Operating Model, plus two previous books, Merge Ahead: Mastering the Five Enduring Trends of Artful M&A (McGraw-Hill 2009) and Strategic Corporate Finance: Applications in Valuation and Capital Structure (Wiley 2007)
His latest book is here:
According to Society of Petroleum Engineers policy, embargoed country nationals will not be admitted to the meeting.