Waiting to see what goes on with the government meeting on Dec. 11. Someone we know said he hoped they didn’t decide to export oil at that meeting but that they decided to stop importing it. He thinks that’s what they will decide. Hope it’s right. Just be interesting to find out!!!
I ask hubby to go down to the diggings this morning and see what he could find out. I thought he knew where all the Poteet wells were but when he returned he said they were not fracking anywhere around the Poteet rig that was still drilling and that there was a great lot of pipe in that derrick. Well, come to find out he only went down the road that lead to that rig and looked at those well around there. He didn’t know to go on past the compressor station to the north (which was the one I saw the fracking equipment around last time down or to section 8 where the Poteet number 2 was drilled. Sorry, I dropped the ball there. He did say there were still 5 rigs (Honeycutts I believe) on the south side of highway 29 and one on the north side. Said the McElroys were producing away with a small flare on one. Also a small flare was burning on the Jerrod. Was a large flare when I was down last. That’s all he found out. Better luck next time maybe. After my epidural tomorrow morning hopefully I’ll feel more like touring the diggins myself. Please pray for that if you will!
I think another thing to factor in is the change of the make-up of Congress. Perhaps the Republicans in charge will reverse some of the Obama Administration policies that have been harming the oil industry. I hope to see improvements in the US economy that will lead to a better world’s economy. That will increase the demand for energy which will fix everything for us holders of mineral interests.
K.Dawn, the crude from different areas have different characteristics. Much of the oil being produced in U.S. shale plays is very light compared to the heavier crudes coming from other countries. Many U.S refineries were built when we were very dependent on foreign oil. The percentage we import is much less today but we still have to continue imports to some extent. Some people are of the opinion that heavy crude that could have been imported from Canada on the (politically cursed) Keystone Pipeline would’ve helped alleviate the problem by importing oil from a friendly country. The Canadian tar sands oil can be diluted with U.S. produced condensate, much of which comes from Oklahoma.
It will take six months or so to whittle away the 1m barrels a day of excess oil on the market – with US crude falling to $50 - given that supply and demand are both “inelastic” in the short-run. That will create the beginnings of the next shortage. “We expect a pretty sharp rebound to the high $80s or even $90 in the second half of next year,” said Sabine Schels, the bank’s energy expert. - Citigroup
can someone please post the link to the OCC search engine that i can use to look at forms filed under particular sections and such. I know Hutch has posted it a few times. My browser updated and deleted all my favorites.
Posting this for the second time around. First time would not post when I hit “Add Comment”. Hate it when that happens!
No drilling that we know of on Section 34 2n4w (someone earlier wanted to know). They are getting mighty close with the new Honeycutts, Yandells and Boles wells but no cigar. I figure we’ll get some paperwork when and if they intend to start something there. They have been leasing again some of the mineral rights that were already leased. Some are calling it “top leasing” but hubby says that used to mean something different. Anyway seeing that in the county records seems to be a good sign to me.
Still sore and not feeling too well after the epidural so may be a few more days before I go back to the diggings. When I do I’ll report.
Linda, that’s right there have been some exports. If condensate has been “stabilized” it is considered a refined product and is legal for export. I don’t know about pricing but it’s probably too soon to tell if it will effect the price. Probably won’t trickle down to us. That’s probably when that enhancement clause kicks in.
Heard today that we are already exporting some condensate, is that right? Anybody? If that’s so it looks like it condensate would sale for more than oil but it doesn’t.
