What do you all think will be the effect, if any, on activity with the value of oil going below $80?
Negligible
Dorrie:
I believe it will be drilling as usual as operators in the various plays stay on schedule in order to beat lease expiration dates.
North Dakota sweet is selling at the well for $55/b. I am worried about my job.
Joe
Joe:
As I stated earlier, I predict that the drilling will continue but some operators may not be able to stay on a roller coaster of prices. This might possibly become a case of the big fish eating the little fish. The well financed companies with solid backing could possibly began buying out the holdings of the less financed companies. Again, I think that the drilling will continue on an even pace for the time being as lease expiration dates get closer. Also, there are so many variables that could change such as the Iranian situation along with the world economies.
Joe Jackson said:
North Dakota sweet is selling at the well for $55/b. I am worried about my job.
Joe
Joe. I think drilling will continue until the current leases are held by production. The mineral acres still have value even if the wellhead price dropped to $30 per barrel and the leases have to be drilled, so the operator can hold them for the future. The truly marginal areas may not get drilled as it may be cheaper to lease them again later. There are core area spacings that still do not have a well, I have acres in one of these spacings in NE McKenzie county. It's not over yet.
Joe Jackson said:
North Dakota sweet is selling at the well for $55/b. I am worried about my job.
Joe