Our Blog
DUCs to the Rescue
Approximately one-third of the cost of an oil well is land acquisition and drilling costs. Drilling contracts typically are long term and involve stiff cancellation penalties. Contracts for completion services are of shorter duration and penalties less severe. Consequently, when oil prices started collapsing, shale operators used scarce capital to keep drilling but left the… Read More
Dollar Bedevils Oil Price
The world-wide oil glut has been blamed for the collapse in oil prices and justifiably so. “World Oil” points out that Goldman Sachs has recently forecast $20 oil based on oversupply and the risk of running out of domestic storage capacity. According to the U. S. Energy Information Administration the major domestic terminal at Cushing,… Read More
Stripper Survival
Historically “stripper” wells have been defined as those which produce less than 10 barrels per day. The traditional wisdom is that the small operators who produce these wells are the most vulnerable to downturns in the oil market. However, a recent article in “Rigzone” points out that despite low production volumes, limited access to capital,… Read More
Mitigating Seismic Risks
“Rigzone” reports that the “States First” initiative has issued a primer on human induced earthquakes. “States First” represents a joint effort by the Interstate Oil and Gas Compact Commission and the Ground Water Protection Council. These groups represent academia, industry, and non-profits, as well as state and federal agencies. The primer is designed as a… Read More
LNG Startup
Times have really changed. This week the first crude exports in 40 years will leave Texas ports. “Rigzone” reports that the first Liquefied Natural Gas (LNG) cargo to leave the Lower 48 is scheduled for later this month as well. All of this is a result of the shale revolution. ING Capital LLC has announced… Read More
