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Oil Rig Count Rises as Prices Fall
According to an article in “Rigzone”, the Baker Hughes oil rig count rose last week for the fourth straight week. However, mobilization of these rigs was a result of plans developed back in May and June when it looked like prices were stabilizing. This disconnect between rig count and prices is primarily attributable to the… Read More
Silver Lining?
A recent article in “Rigzone” cites several sources which contend that “low oil prices will eventually cure low oil prices”. We all realize that in theory, as prices drop, demand rises, ultimately causing prices to increase. However, this assumes that all other factors are held constant and ignores the old saying that “Timing is everything”.… Read More
Exxon Sees the Bottom?
ExxonMobil is well known for financial conservatism and exhaustive analysis. The company announced that it has recently acquired 48,000 acres offsetting properties operated by its domestic subsidiary, XTO Energy, Inc. This acquisition, via two separate transactions, is not big news in and of itself. XTO already has 1.5 million acres in the Permian basin, which… Read More
Opportunities in Mexico
There is an old saying that as one door closes, another opens. According to a recent article in “World Oil”, this would appear to be the case with oil and gas opportunities in Mexico. The Mexican government has decided to allow foreign investment in energy projects for the first time in almost a century. Last… Read More
Record Texas Production
In a recent article in “Rigzone”, economist Karr Ingham, the author of the Texas Petroleum Index, points out the disconnect between the usual indicators and production levels here in Texas. In spite of decreases in oil prices, rig counts, drilling permits, and well completions, June oil production exceeded the 2014 level for the same month… Read More
