You all are able to adeptly focus on the government actions as it affects your respective places in the energy business but I hope you deep thinkers will think of your families and future generations and focus also on the deeper problem that directly effects energy and that is the US Economy. Its growth is not keeping up with inflation, is enemic at best and has no chance of recovering (in my opinion) unless we DEMAND that our representatives reduce inefficient government spending and taxes on those who would take the risk to enhance their lives and thereby grow the economy. If Mike and Larry, and even Wade would add up ALL the taxes that are collected and assessed from their income, they will find that it is closer to 50% of their gross. That is too much for us to bear and still grow our economy.
For at least 6 decades, politicians have been collecting taxes from those of us who work hard and take risk and used the taxes in "part" to buy votes that will get them reelected. I'm afraid that the "part" of our taxes used to garner votes has grown and grown through the promise of more to come and is near the tipping point at which the risk takers will not be able to sustain another net tax increase and the house of cards that the politicians have built will come crashing down. Yes, Larry. Taxes are the root of all economic evil. They are symptomatic of a disease eating away at our economy and our heretofore Wonderful American Lifestyle so strongly built and nurtured by our ancestors. Taxes serve to promote inefficient spending, lifestyles of politicians, questionable bureaucracies, and political leaning regulators. Certainly we need taxes to defend our country, promote infrastructure, and make our markets strong, pay our debts and educate our young. (Seems we have been going in the wrong direction for years)
Today, the politicians have mortgaged out future in the name of applying taxes to the above and done a poor job of it. The frightening part is that Americans don't own the debt generated, foreigner's do. Because of all the inefficient spending programs and politician job support, there is very little left to service the debt we have generated. I invite all of you to get a copy of the federal budget that we can not balance, and see for yourself. A fiscal cliff may be coming but it isn't the Bush tax cuts and spending limits or Trillion dollar debt, It is coming when we can no longer borrow from foreigners without devaluing the dollar.
But alas there is a solution. A growing economy is like a rising tide. It floats all boats that have run aground. Focus on what will allow a growing economy, lower government spending, lower taxes on the risk takers profits, reduction of debt, protection of our declining markets, movement of money out of the banks and into industry, and renewal of the work ethic that made this country. Now, demand that your elected officials support the growth of the economy or fire them. It is our country to rebuild and enjoy not the politicians county. We have allowed them to make our economy support their job security. It doesn't work that way as all of you know.
Gary,
I am a 5th generation McMullen county surface and mineral owner. I agree with every word in your response, almost. However, we voted and we lost, now is not the time to wax poetic about the idealistic way to go forward. Like it or not there are tough times ahead, I take umbrage at your comment about " taking care of our families". I want to assure you I have taken care of mine.
I see you offered no solutions, only rhetoric, I don’t think people come here for that. I think people come here for information, solutions , and to try and communicate with other people in the " same boat" .
If you think I owe you an apology after this post then please contact me. You, sir touched a nerve with your comment “think of your families”, it was pompous, arrogant, and out of line.
Mr. Hutchinson, I think we are all indeed deep thinkers least we would not be willing to engage each other in healthy debate about the future of our country. On this forum, a mineral forum, we chose to engage each other about political policies and how they might affect short term drilling activity, mineral values, and what to do, if anything about the next 4 years. I understand the bigger picture regarding our economy, government, more taxation and less representation and I think everybody else does too. For some of us, like Mr. Laguanroy, the minerals under our land are part of who we are, who are great grandfathers were. I have great respect for that and I know that you do also. I appreciate that you are worried about your grandchildren. We all are. I do not know how my grandchildren will warm their cold homes or how they will be able to travel to town to buy supplies when gasoline and other fuels are horrifically expensive and hard to find. That day I believe is coming. I teach them horsemanship with purpose in mind.
If I may say, I think we are all simply expressing the same worry, just in different ways. Let us bless Texas and hope for the best, together.
Our mineral rights are a hard asset. As long as that stuff is in the ground we have something. Maybe it is time to re think leasing and wait out the next four years. If our country goes through a currency collapse like Germany and Zimbabwe we still will have something. The money we would have received for signing bonuses could be worthless.
The next presidency and congress in 2016 might be more reasonable in their tax policies. The President's "We are coming after you" speech the other day made his intentions clear.
The big question here is "the next presidency and congress in 2016". If things don't change, we could be looking at a more serious situation in 2016.
Robert V. Gill said:
Our mineral rights are a hard asset. As long as that stuff is in the ground we have something. Maybe it is time to re think leasing and wait out the next four years. If our country goes through a currency collapse like Germany and Zimbabwe we still will have something. The money we would have received for signing bonuses could be worthless.
The next presidency and congress in 2016 might be more reasonable in their tax policies. The President's "We are coming after you" speech the other day made his intentions clear.
or.. the other side of the coin?? Harvest it while it's still ours. Nationalization of oil assets very much fits into the 'needs of the collective' mindset. As well as the bully with an anti-fossil fuel agenda we're all seeing released.
Robert V. Gill said:
Our mineral rights are a hard asset. As long as that stuff is in the ground we have something. Maybe it is time to re think leasing and wait out the next four years. If our country goes through a currency collapse like Germany and Zimbabwe we still will have something. The money we would have received for signing bonuses could be worthless.
The next presidency and congress in 2016 might be more reasonable in their tax policies. The President's "We are coming after you" speech the other day made his intentions clear.
I guess everyone has to make up their own mind on this issue. Frankly, I don't foresee a happy outcome for our nation if we don't put our fiscal house in order. As individuals, our ability to manipulate this problem is very limited. When China and some other nations stop buying our bonds and start dumping dollars, the US government will go to the printing presses and monetize our debt. That will be the end of the US dollar.
We who can foresee the disaster need to take steps to preserve what little assets we still have.
Do you really believe that Obama really gives a s___ about jobs now that he's been given a free pass to destroy everyting in our banks during the next four years? The more people that are out of jobs, the more free "stuff" can be passed out, thus the more votes in the next election for Democrats in the future.
Wade Caldwell said:
Mike,
Understand your concern, but that is alot of ifs there, and alot of pretty pessimistic assumptions, even if the ultimate advice you give is sound. Drilling has done pretty well since 2008, albeit mostly due to technological advances. I think we will have pretty healthy drilling activity as long as oil stays in the $80-120 range, and gas stays in the $4-6 range. I especially doubt they will gut the drilling incentive because of the jobs it is creating, and that is the primary driver from a tax policy standpoint.
Not a big believer in the government boogeyman arguments, regardless of who is in power. I have been following this a long time. Commodity prices drive activity. Tax policy, labor costs, capital availability, government regulation - have always been secondary considerations. In my view the biggest danger to drilling activity is overproduction, as has already happened in natural gas.