Scott, we have a similar situation in 2N/4W. The wet gas makes up the majority of our royalty income.
ISIS has disappeared from the news. Her story is a little biased because of her passion toward gas & oil wars; but I believe there is some truth to that story!
It seems Chevron has been busy plugging wells 1S 5W for awhile now. I sure hope that means what I think it means!
Bob, I received a call today from Turner Oil & Gas who leases for Continental wanting to lease some acres I have in Caddo county. I mentioned to the guy that I have a couple acres in 3n-6w in Grady county that are open for lease and he said Continental has stopped leasing in 3N for now.
The acreage I have in Caddo county is near a horizontal Springer well that Continental drilled earlier this year. The well came in at 7 million gas and no oil with only a 1500 foot lateral. Maybe Continental will be focusing more on drilling gas wells? who knows.
Today I was at the Grady County courthouse doing a title search and the place was like a ghost town compared to a normal day there. There were still landmen in there but it was not elbow to elbow like it usually is. Was it a off day or is this the new normal for now?
Hogwash.
Bob, you are absolutely right way too complex, and to say this is a gift to the American people is crazy! A gift of supply? We are over supplied. Gosh what should I buy with that $1 a day I save on fuel? A cup of coffee? Nope, not at Starbucks or even Duncan Donuts. Guess I’ll just stay home and save on fuel and coffee both! So much for stimulating the economy.
That’s right Stephen, I did simplify a bit, shooting for an average. My point is it’s not enough of an economic stimulation to start laying down rigs and laying off workers. The column sounded like a hodgepodge of ideas that the author got from other people and then she threw in some EIA graphs to make it look official. To call it a gift or a Christmas present from the Saudis sounded stupid to me.
P.S. my name is not Mitch.
Michael total agreement here
I heard on CNBC yesterday that the reason oil is going so low is to put the squeeze on Russia for invading Ukraine. The Saudi’s and US in a back room deal decided not to cut production. Just wondered if anyone else heard that. I guess it makes sense. I prefer that scenario over the Saudi’s trying to hurt US Shale production.
That rumor has been going around, not sure if it’s true. Either way it will hurt us. Cutting off our nose to spite our face?
Where can I find activity for Sec 11, T1S, R7W?
Anybody picked up on leasing activity suddenly cutting back? I got an email in Garvin County from a landman withdrawing all offers…they received an email from Continental yesterday stopping all lease activity in their souther OK area, which for them covered 2 counties.
On what caused the price collapse…there are multiple possible factors…declining global economy, increased U.S. Shale production, economic warfare with Russia (Syria, Iran and Russia on one side, U.S. and Saudi on other. Who knows how far the impact will reach through the economy if this is sustained.
I called JF today and asked them if I needed to shred the leases I received yesterday and the land man I spoke with said “absolutely not, we will honor those leases.” We’ll see…
I think supply and demand and pricing is way too complex to point to any one reason. It may be more of a perfect storm kind of situation: Slowing global economy, financialization of oil, Global geopolitics (which may include Isis, but more likely Russia, Syria, Iran), oversupply from Shale development. Any or all of these could be contributing factors.
Am posting this article not because I’m trying to sell anyone on NF stock (even though I do own a little) but because I think it is interesting about their drilling in the Anadarko Basin and the good hedging they seem to have done for oil prices! Am wishing at this point that CR had kept theirs too!
http://seekingalpha.com/article/2752155-newfield-exploration-hedges…
Mitch, you are at the other extreme of the spectrum; over simplification. Not good for us mineral owners, but think of how it applies to the average person who commutes to and from work 20 miles or more five days a week not to mention the impact on interstate and intrastate commerce in general. That’s a bit more than a buck.
Thanks Billy.
Sorry Michael, I am not arguing that the article has any merit. However, even with your last statement it seems that you have a narrow focus on the economy. I don’t anticipate large scale layoffs; a slowdown probably. The gathering clouds of doom is not at even the most distant horizon. But for some folks at this time of year it puts a few bucks that they would not have had to spend in their pockets. Short term stimulus? Probably…Sucks for us but a blessing for others…just a bit complicated to judge.