User 161473

Pay Attention to Oil Decline Rates

Jim,

Another good article!

When we talk about technology in the oil business it usually revolves around technology to get the oil out of the ground faster. We have gotten much better at bringing production up from new wells quickly. Additionally, much of the technology is involved in keeping production from declining. I think most people are under estimating the decline rates by a wide margin. This issue has the potential to catch people off gaurd. Look at Cantrell and the North Sea. As you mentioned Saudia Arabia has gone from 3% to 13%....what happens when you get to 20%-30%.

Thanks,
Don