Geology

Producer pioneers in the Tuscaloosa Marine Shale (TMS) are finally figuring out how best to wring large volumes of Light Louisiana Crude from the oil-rich play’s notoriously complex geology. But are they “cracking the code” at just the wrong time, when crude prices are crashing and investors are shifting their focus to shale-play sweet spots with low drilling costs? Some say no; that fine-tuned completion formulas, declining drilling costs and a favorable tax environment make the TMS a “go”, even in these tough times. But others say yes; that it’s time to move on from the TMS, at least for now. Today we revisit the still-promising TMS in central Louisiana and southwestern Mississippi, and assesses whether the play many consider to be the next big thing needs to wait for higher oil prices to shine.

At the Platts Oil and Gas Conference in Denver last week, one of the best presentations was from David Stone, Director Portfolio and Business Strategy with Marathon’s Onshore Exploration group.   His presentation was titled The Bakken System and the Vision For growth, and covered the resource potential, projections, and Marathon’s position in the play.  I’ll hit the high points from my notes taken during the presentation.  I’ll also reference a few of the slides included as an attachment at the bottom of this blog posting.