Thinking, Fast and Slow is a book everyone should read.
But, only 7% of people who’ve started it ever made it to the end.
21 insights from the best book you never finished:
A combination of being pressed by investors to grow production and overforecasting both single well production and spacing detriment. Overforecasting isn’t isolated to oil and gas. Many solar and wind farms fail to meet underwriting forecast as well. It’s systemic human bias.
The real reason US producers aren't ramping production like they once did
$320 billion of defaults 2015-2021 culminating w/ worst default year in history in '20 = investor penalty box
Figure another $500-700 billion of equity wiped out so $1 trillion +/- of capital destruction
