# End of year drilling slowdown?
**URL:** https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199
**Category:** Reeves County, TX
**Created:** [November 15, 2019, 9:46pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199 "2019-11-15T21:46:53Z")
**Posts on this page:** 8
**Page:** 1
### Author:  [@M\_B](https://www.mineralrightsforum.com/u/M_B)
#### Post date: [November 15, 2019, 9:46pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199/1 "2019-11-15T21:46:53Z")
I had been in talks with a landman about my property in Reeves County. Once I was ready to review a contract, the leasing company decided not to move forward with the lease. They stated that this had to do with the 2019 budget being nearly tapped out and cited concerns over the 2020 election.
My question is, do new budgets typically open up in the New Year? Additionally, if companies are concerned about the 2020 election, can we expect a general slowdown in leasing offers? Does anyone have any ideas or insights into this?
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [November 17, 2019, 6:02pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199/2 "2019-11-17T18:02:07Z")
I cannot speak to Reeves County in particular, but my experience in a major oil company over the years is yes, things do tend to slow down at the end of the year as the end of the budget cycle is looming and no one wants to overspend. Our budget usually opened up in the near year as money became available again.
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### Author:  [@Tali\_Boudreaux](https://www.mineralrightsforum.com/u/Tali_Boudreaux)
#### Post date: [December 4, 2019, 10:17pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199/3 "2019-12-04T22:17:16Z")
A man answered the same type question for me. He said capital has dried up because oil and gas is not considered a profitable investment at the moment. They can’t borrow the money they need for well production.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [December 4, 2019, 10:25pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199/4 "2019-12-04T22:25:51Z")
The capital question is not overarching. Some companies are doing quite nicely at raising capital and some that are not as healthy are not.
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### Author:  [@Tali\_Boudreaux](https://www.mineralrightsforum.com/u/Tali_Boudreaux)
#### Post date: [December 4, 2019, 11:15pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199/5 "2019-12-04T23:15:58Z")
My company must’ve been one of those that was not as healthy. Several that made huge acquisitions this year have subsequently had trouble raising capital.
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### Author:  [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [December 4, 2019, 11:19pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199/6 "2019-12-04T23:19:02Z")
The general consensus right now is that operators have to stay within their cash flow to drill new wells. The ones that already had a good line of credit, are cutting costs and staying within or close to within cash flow from production have a better chance at getting new credit since they have proved themselves.
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### Author:  [@Tali\_Boudreaux](https://www.mineralrightsforum.com/u/Tali_Boudreaux)
#### Post date: [December 4, 2019, 11:53pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199/7 "2019-12-04T23:53:28Z")
Interesting and hopeful.
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 5:04pm UTC](https://www.mineralrightsforum.com/t/end-of-year-drilling-slowdown/53199/8 "2025-01-11T17:04:57Z")