PXD - Interview with Scott Sheffield, CEO

[dan_s]

You should all watch the interview at the link below.
http://www.bloomberg.com/news/videos/20 ... -oil-price

1. It will tell you why PXD and the other pure plays on the Permian deserve to trade at high multiples.
2. It will tell you why recent acquisitions in the Permian should draw more attention to SM and PDCE.
3. It will tell you why I am so bullish on frac sand demand coming back strong in 2017 (look at charts for HCLP, EMES, FMSA and SLCA)
4. Keep in mind that although Permian Basin oil production may go up 300,000 BOPD per year, it will not be enough to offset declines in the Bakken, Eagle Ford and the Gulf of Mexico if oil stays under $50/bbl. SCOOP/STACK is the only other area where well level economics are good at $50 oil.

I agree with Scott that we won't see much of an increase in drilling and other oilfield services prices until oil tops $60/bbl.