Bought today, page-83

PB,

mr Trump will be smart enough to recognise the difference between "cash opex" and "full cycle" costs........

to give you an example (which we have chatted abt previously)

there are a few "DUC" wells onshore usa (drilled, uncompleted). Once a well is drilled, the cost is sunk, so the economic decision becomes "will I recover the fracc and completion costs from production ?" - am sure you have noted that there hasn't been a huge rush to complete the wells that are "sitting there" ......this is telling me, that the oil co's know that the recovery wont cover the fracc / completion costs at "current forward oil prices" ........

given it is typically 45-60% of total well costs in tight oil / shale plays - this is giving you a further "tip" ......

there are a number of excellent papers by the big houses breaking out costs by plays in the onshore USA ........worth a search and read (imho).



all this is positive in the medium term for sunny STO (and equally sunny ORG) !

rgds
V_H