$50-60 New Normal or U.S Shale Bubble?, page-775

Croasan,

to measure the value of oil companies - one has to "assess" how successful and at what cost, the company is at finding and replacing "reserves" .......

the cost of development (for a given type of "field") is close to uniform across the industry...........

the "F" part of the F&D is where the "value" is .........

its not simple to analyse - as "no1" well is the "discovery" while "no2 / no3 " are "appraisals ........(size dependant) - so you actually have to go throu numerous drilling rpts to get an idea of "what is expl" versus "what is development" inside any oil co. you then have to get an idea of size/well and cost/well to asses the "replacement cost".........this is "part" of the attraction to CSM / shale type plays versus conventional exploration (cookie cutter versus expl "risk") - however, even "cookie cutters" have risk which is not easily seen by outside analysis ......viz:

what is the distribution curve of a shale play or CSM play (ie min / max recovery per well) and what is the range of productive rates per well (000's of mcf vs's mm mcf) - basically the csm/shale have a wider range of outcomes - and hence the economics can be skewed (think mean median and mode).......

Pear - STO has actually done some of what you indicate - using "renewables" (solar panels) at remote sites to cut-down on the capex to bring a site on line .......I can also remember some data sharing with the world class geothermal resource that is deep in the Cooper Basin (see geodynamics history)......

renewables have been turned into "financial bonds" in this country - see ifn et al for rates of retrun ........

rgds
V-H