Super notes from Super DUG: tight oil meeting takeaways
Panelists and attendees at Super DUG 2023 discussed and debated four main tight oil topics: 1. Exploration – Risk capital is severely lacking in Lower 48, stunting exploration activity. E&Ps are uncomfortable with this reality and its impact on long-term business sustainability. But leadership’s unease isn’t sparking any budget changes. 2. Growth & efficiencies – E&Ps aren’t viewing growth as a potential differentiator, even for those with the strongest balance sheets and best inventory. But efficiencies have more room to run. 3. Gas and infrastructure – Processing and gathering buildout is slow. What was 16 months is now 24. Combined with no flaring strategies, this puts downward pressure on rig activity. But there’s little concern about supply growth meeting added Gulf Coast LNG demand in the 2030s. 4. M&A – Opportunities need to be proven and assets partially developed before a sale. PUD inventory quality is paramount and must be better than what the buyer already holds.