Originally posted by bdog14
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Hey Oilfield Guys!!
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Originally posted by kyle1974 View Postthis is the one I was going off, but I was wrong on what I posted... gives a range for the plays. When I first saw this back in November, I remember thinking... "there's still a long way it has to fall"... and now we're lower than that.
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Originally posted by willwork04 View PostThat could happen, but I personally don't see it. There is a huge glut of natural gas right now. But who knows! I definitely hope you are right....
Originally posted by oktx View PostBig winter storm moving into the NE. This may help NG prices.
Our ng has been a by product of the oil we produce. When we slow production of oil we also slow production of ng therefore the price should go up. Oil companies will start drilling again because all of the sudden oil becomes by product of ng and the cost of oil production is offset by the ng prices.
I read an article yesterday saying that our larger companies like eog and anadarko have hedged their funds anticipating opecs move to dump oil on the market. They are prepared for the long-term oil prices to stay low. If that's the case we will suffer short term but ng prices will soon rise. Opec has no position on ng that they can dump a billion mcf ng to drive prices down so I believe we have the upper hand. Basically our larger oil companies are calling opec's bluff because they prepared themselves for this.
Jmo!
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Originally posted by bdog14 View PostBack of the napkin calculations:
COSTS: Leasing @ $1000/ac and spending $7.5mm per well = $7.6mm per well -based on 100 acre spacings.
REVENUE: If the estimated ultimate recovery of 300k bbl/well @ $48 oil = $14.4 mm revenue per well
LESS: 25% to royalty owners = $10.8mm per well
LESS: Original costs of $7.6mm = $3.2mm over the well's entire life
This leaves very little margin for error/dry holes/mechanical/title issues. Not to mention you have to factor in the time value of money after the flush production period slows down.
Basically, it doesn't work at this price.
Who knows how long this game of chicken goes on for...we need some good ol' fashioned collusion!!!Last edited by JMalin; 01-06-2015, 06:16 PM.
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Originally posted by txoutdoorsman24 View Postthat's why it's good to be in production right now. I know still ain't 100%safe but it helps to ease the mind a lil bit
I'm in refining and to my surprise, we can't sell gasoline. Diesel is moving at the dock, but our gasoline tanks are filling up.
Does look like a good secure future though. We don't rely on oil price near as much.
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