I have said before that I love graphs, and the Energy Information Administration has nifty interactive graphs of energy production and consumption. Here is one (click on image to enlarge): You can revise the graphs to cover any time period. For example: Here’s another interesting one: All the graphs and…
With OPEC’s announced reduction in crude production, it might be good to take the long view. Below is chart of crude prices since 1985. The period between 2005 and today has seen a revival of the US oil industry. Companies have now bet that they can make money at $50/bbl,…
One of the speakers at our firm’s recent oil and gas seminar for land and mineral owners was Chris Atherton, President of EnergyNet, Inc. EnergyNet is an online auction site for oil and gas assets- mineral and leasehold interests. It now controls 75% of the online auction business for oil…
Here’s a great interactive graphic from Bloomberg, “Watch Five Years of Oil Drilling Collapse in Seconds,” that illustrates the relationship between oil price, rig count and U.S. oil production. The U.S. rig count has dropped from a high of 1930 in late 2014 to 502 last month. U.S. crude production…
Flint Hills Resources, LLC, a refiner owned by Charles and David Koch, offered to pay $1.50/bbl for North Dakota Sour crude, from the Bakken shale. Flint Hills originally posted a price of -$0.50/bbl (that’s right, minus fifty cents) for the sour crude, but later said that was a mistake and…
EIA issued its 2nd quarter financial review of the E&P industry, found here. Highlights: Production is declining for the first time since the beginning of 2014 (click to enlarge). Companies are losing cash (click to enlarge): Profit is down to zero (click to enlarge): Debt increased (click to enlarge):
Last week, the US Energy Information Administration provided a summary of states’ severance tax revenue (click on image below to enlarge): With the precipitous decline in oil prices, Alaska, North Dakota and Wyoming will be hurting. According to EIA, Texas collected $931 million in severance tax revenues in the first…
This graphic from Bloomberg article, US Fracklog Triples as Drillers Keep Oil from Market (click to enlarge): Bloomberg says that these uncompleted wells, if completed (that is, hydraulically fractured), would produce 322,000 bbls/day, equivalent to the current production of Libya. Total drilled but uncompleted wells, according to Bloomberg: 4,731.
In a special section of the January 17 edition of The Economist, Edward Lucas gives a broad overview of the world energy outlook and the future for renewable energy. His is an optimistic forecast for cleaner, cheaper and more plentiful energy. His article can be found online here. First, the…
The news is filled with stories predicting the effect of falling oil prices on US production. Good news for the economy, bad news for the Texas oil and gas industry. Will the rig count fall? Will companies go into bankruptcy? Only time will tell. The answer may depend on OPEC. OPEC…