I know much as been made about the impact of the drilling ban on federal lands, etc. But could what is happening in NM potentially benefit Reeves County, at least in the short haul. Couldn’t it spark some renewed interest in drilling in our area, particularly for natural gas? When Apache was looking at our family property they indicated that several more wells could be drilled on our 1.5 sections. They drilled 6 and currently 4 are producing (natural gas). So the hopeful in me wonders if perhaps some others could come back pickup some well opportunities. If I am not mistaken, Apache is out of the drilling business in the Alpine High, which we our property is a part of.
The answer is probably in why aren’t the other 2 wells being produced?
Good question whether President Biden’s opposition to drilling federal lands will benefit Texas royalty owners. Short answer: Its impossible to know the future, there are too many moving parts.
New Mexico may experience a mini-boom as the half-dozen E&P companies with stockpiled permits rush to drill before permits expire, possibly overproducing O&G for 2-3 years. Environmentalists are waging all-out successful war on pipelines, which will raise gas prices and improve Texans’ royalties … unfortunately OPEC will happily increase production to capture market share from American producers. Possibly Biden is cynically “sabre rattling” to satisfy environmentalists, and comprehends that war on fossil fuels & pipelines will hurt America in many ways and result in Republican gains in future elections … unfortunately his picks for cabinet and agency leaders are so vocally hostile to fossil fuels, pipelines and capitalism that I don’t think Biden is politically posturing.
Also, when you stop leasing and “review” permitting, instead of just announcing potential reviews of leasing and permitting practices, I think it tips their hand that their intent is for something more permanent. I realize Biden had the throw some bones to the anti-fracing crowd, the problem is I am seeing a lot of meat on the bones being thrown that way.
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