Webinar that Dan spoke at on December 8

[dan_s]

Here is the link to the U.S. Energy Development webinar that I was part of on December 8: https://usedc.com/u-s-energy-the-oil-ma ... in-energy/

After you go to the link above, type in the Password: 2020DrillingFund

I speak for ~20 minutes and then a much smarter guy comes on to tell you that well level economics in the Permian Basin are outstanding at today's oil price. This is true because completed well costs have come down so much. In the Tier One areas of the Permian and the Eagle Ford, horizontal wells payout in less than a year at $45/bbl oil. The Permian will also benefit from much higher natural gas and NGL prices than they got paid in 2019 thanks to adequate pipeline takeaway capacity.

Q&A at the end has some good stuff.

Two important questions that I was asked today:
"Do the big impairment charges upstream companies had to record this year mean they abandoned those assets"? Answer is NO.
"If the assets aren't abandoned, do the companies get to reverse the impairment charges so their balance sheet more accurately reflect their value?" Answer is NO, IMO several of the accounting rules for upstream companies are very misleading to investor. Impairment and Mark-to-Market adjustments on hedges are at the top of the list.

[dan_s]

As I point out during Q&A: The reason U.S. oil production will not bounce back quickly.

"The U.S. oilfield services sector lost 91,680 jobs since the market downturn started last March."