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Texas Drilling Permits Fall in November
“Rigzone” reports that Texas, the leading oil producing state in the U. S., issued only about half as many drilling permits in November as in the previous month. While this decrease is widely attributed to the drop in oil prices, it still took several months to develop. Oil prices plunged in late June, but from… Read More
Crude Price, Rig Count and Production
A recent article in “Rigzone” cites several studies that deal with the relationship between crude price, rig count and production levels. The economic blog “Zero Hedge” contends that there is a 4-6 month lag between crude prices and their reflection in rig counts, and current experience seems to bear this out. However, a study by… Read More
Whiting’s Reserves Increase by Approximately 1/3
According to a recent article in “Rigzone”, Whiting Petroleum Corp. reports that its proven reserves increased by approximately one third to 780 million barrels of oil equivalent. This increase is largely the result of the company’s recent buy out of Kodiak Oil & Gas which had proven reserves of 167 million barrels. The purchase makes… Read More
U. S. Rig Count Drops
The drop in oil prices is taking its toll on the number of rigs drilling for oil and gas. According to a recent article in “Rigzone”, Baker Hughes announced that last week the oil rig count dropped to 1,536, the lowest since May. There has been a fairly steady decline since the record high of… Read More
Natural Gas Market Dynamics
With all the recent attention given to the oil price collapse, relatively little notice has been given to natural gas prices. While international geopolitics exert a major influence on oil prices, natural gas tends to be more domestically focused. As with any market driven price, supply and demand are the ultimate determinants. However, many factors… Read More
