Wisdom in a Down Market

I got to attend the Shale Resource Workshop hosted by the TCU Energy Institute in January. Over the two-day workshop, several of the speakers offered advice for operating in a down market:

1. Plan for setbacks.  The poorest results in a development program are likely to occur in the initial wells.
2. Continuously invest in good science and R&D. Especially in a down market.
3. Don’t manage costs by cutting corners in your drilling budget. Accounting and cost considerations shouldn’t drive your drilling program.
4. Risk. Don’t spend capital, invest it.

Richard Moorman, who is the Manager of Strategic Analysis for the Economics, Planning, and Acquisitions Division of Southwestern Energy Company, closed the conference by saying, “Think long-term.  Don’t give up too early.”

Great advice in an uncertain market.