What caused it ?
Here is a good article about Cushing.
http://www.businessweek.com/articles/2012-05-16/unlocking-the-crude…
The price of oil is set by the international market. Because the price for WTI, Brent and other indexes is so high we now have 1,974 rigs working in the U.S., 70% of which are drilling for oil. Nat gas which the U.S. mostly does not trade internationally has gone from the $12 range to today’s $2.50 due to oversupply.
Notice the price of oil up to 2008 under Bush was less than $60.00 per barel. Since a Crackpot took office and implimented his anti-oil policies, oil has averaged over $100.00 per barel. Of course drillers are going to drill more when they can get $40.00 dollars a barel more! “Its the economy stupid.” Basic economics doesnt factor into liberal thinking. When presented with the facts they resort to name calling and race baiting, oh and taking credit for things that the other side actualy did while completely ignoring the truth.
Saddam had a relative in the military nicknamed Chemical Ali. You don’t need a huge stockpile of chemical weapons, they are WMD’s after all, and when you tell someone we are coming for so long, it’s not too big of a stretch that someone could drive about 5 to 10 tractor trailers to Syria. Iraq used chemical weapons against Iran for certain and reportedly against the Kurds. After 6 months, I’d have been more surprised if we had found any WMD’s. I think it highly likely that Iran has more than energy on their mind with their nuclear program. I’d be surprised if their wells weren’t producing enough natural gas to fuel all the electric power plants they need.
I have not seen any new power plants or new power grid for all of Iran’s nuclear program.
Iraq blew up its own oil wells. Caused a massive net loss of oil on the market. Drove up the price worldwide. Want to see 145.00 oil again? Bomb bomb bomb Iran 
We went into Iraq in 2003. By 2008 we had found all the WMD and the few well fires had been out for years. Compare to Kuwait in 1990, that was some well fires, but look at oil prices on your chart for 1990. We have to get Iran’s WMD like we did Iraq. Don’t we ?
Thanks again Don U. for your common sense perspective.
Lanny-I’m just looking back over 50 years in the industry and havng seen major changes in the way the industry really works and the way the world is changing you begin to get some prespective. Some good, some bad. But, we have to live with all of it whatever it is.
Cushing Pipeline Opens This Weedend
http://fuelfix.com/blog/2012/05/17/cushing-to-gulf-coast-pipeline-r…
Weekend! I need spell check!
Concerning well decline: Initial test results were 152bbl oil, 3.6 MMcf gas in December 2010. March 2012 production = 135bbl oil, 2.8 MMcf gas. The math: 11% decline in bbl oil, and a 22% decline in gas. Not quite the decline we were told about. Or at least not the typical decline eh Michael?
Francis,
Thanks thats encouraging, although on mine its been a little more in the first 4 months. About 19% on oil 247 to 200bopd & gas about 25% from 7 to 5.2mmcft. Still a pretty good well.
Yes, Carnegie, OK range a bell and I looked at my files and I was contacted by Adam Johnson back in 2010 to buy my 5 acres for $1,200 or $6,000 total. I am in a pool and that 5 acres produces about $500 a month or $6,000 per year.
I’ve already made more money from production than from selling.
If they are interested, there must be something there, so don’t sell. You will probably get more and better offers the longer you wait.
Oops that is 3250/NMA
Can anyone tell me about how much royalty owners are getting paid per mcft of “wet gas”. I have heard that gas in the 1300-1400 btu range is getting $5-6 per mcft. Thanks for any info on this.
11 north 9 west sections 34/35. Have 80 NMA in 35 and 67 NMa in 34. Acerage in 35 is HBP by zephyr, Acerage in 34 is not leased own from the top of Chester formation down
There have been three drilling permits for your sections since the first of the year. The two I have already shown and in Feb. 2012 one in section 34 14N 9W, Eagle Rock Mid-Continent.
With horizontal drilling, the Bottom Hole Location is what is important, not the Surface Hole Location.
That means you should also be interested in what is happening in the sections around your 34 and 35, i.e. sections 33,36, 26, and 27. As well as 2 & 3 of 13N 9W.
Sounds like 34 could be a commingle well. Look up commingle well on Google and it will give you a good explaintion.