Thanks Steve, We may have more good news tomorrow on 9/17 when the US Energy and Commerce Committee votes on HR 702 to lift the 40 ban on US oil exports and the new N American Energy Security and Infrastructure Act or 2015. OSU’s my alma matter too, so I’ll bet we beat OU and see $60 oil by end of 2015. Of course, as a OSU football fan, I’m used to losing. http://energycommerce.house.gov/press-release/week-committee-will-l…
I’ve got my fingers crossed for $60+ this year & to lift the ban. Any thoughts on what affect McClendons deal in Australia might have on the incentive to continue to produce/explore in Payne??
We’ve got several weeks before OU vs OSU and I wouldn’t rule out an upset - all I really care about is if OSU can qualify for a bowl so I can see one more game!
Steve, It’s the Cushing area where they shut down and curtailed the AEP wells. I don’t know the sections, but know they are protecting Cushing Oil Hub from earthquakes, so OCC is creating new rules for that area. Originally, they thought 1 SWD per section, but they will do what the seismic data shows is necessary even if sections have to share SWD wells. The EPA is very much involved. A state has the option of requesting primacy for Class II wells under either section 1422 or 1425 of the Safe Drinking Water Act: http://water.epa.gov/type/groundwater/uic/class2/
OK Energy Today reported that 2 AEP injections wells (Louis 6-3/Wilson 11-15) were ordered shut in & 3 were ordered reduced (no location given). It caused me to look into my files to see to my surprise that injection wells were identified a bit differently from the production wells (in my case the SWD well is Hildebrande 6-1 while the production well is Hildebrande 6-2mh). Anyway, it made me wonder if production wells share injection wells either from one site to another or, if there are two wells in the same sec/tn/r would they use the same SWD? I’m also curious where OK Energy got their info. This is O&G 101 to most of you but I’m still learning and why I love this forum. Thanks
Crown Energy applied for a Drilling and Spacing 9 18N 6W. I contacted them by phone and welcomed any horizontal drilling and fracking in the carbonate formation in Cushing. We may see high dollar oil sooner than the Saudi’s predict!
Venezuela proposes summit between OPEC & Non-OPEC aimed at increasing oil to $70.
http://shipandbunker.com/news/world/998954-proposed-summit-between-…
I certainly can understand protecting the hub & keeping the water safe. OPEC is entirely driven by their own self-interest, I’ll be pleasantly surprised if anything results that doesn’t mostly benefit them. Interesting reading on injection wells, thanks again Martha
Things are heating up in the Middle East. China is stockpiling huge amounts of oil for the first time ever, Putin is advancing in Syria, the head of OPEC’s 33 yr old first born son dies from ? heart attack, and Obama is revamping his Middle East Strategy.
Received an offer to lease again 2-17N-5E
150 & 1/8 or 100 & 3/16. Seems low…
Obama’s Press Secretary said the P would veto it. Not sure what happens after that, maybe a republican President is needed…
Bob, A Middle East crisis could necessitate lifting the ban. Today, Netanyahu delivered this promise to the United Nations General Assembly: “Israel will not allow Iran to break in, sneak in or walk into the nuclear weapons club,” he declared, suggesting that a military option is still available to Israel." http://www.msn.com/en-us/news/world/netanyahu-warns-that-iran-is-bu…
Yeah that’s what I thought and told the Landman.
“Crude export ban bill sponsors expect movement soon in Senate, House” (article says it could happen in 2015) http://www.ogj.com/articles/2015/09/crude-export-ban-bill-sponsors-…
Jay, That offer is ridiculously low.
Jay, You could lease part of your interest and participate with a percent or two. Your lease bonus will help fund the participation.
Last week, global oil taker rates increased 13%, because tankers can’t keep up with demand.
Regarding the lease offer in Payne, leasing company is offering all our unleased minerals between $100 to $150 as of last week. Story is, “low price of oil, drilling a well is near 4K.” Whether that’s the current going rate or not, I don’t know. Haven’t talked to anyone. But, my understanding is they’re buying cheap and selling - mostly to AEP/AEW. Both companies win, and mineral owners tie up their land for 3-6 years. I’d be interested to know if anyone has different information.
Jodean. It’s the same old story over and over I’ve heard for more than 30 years. My advice is: Don’t sign leases when oil prices are low, because we’ve seen oil go way down overnight and way up overnight in less than 2 years later. Dec 06 is was $70 and July 07 it was $140. Dec 08 it was $38 and Dec 09 it was $70. Then, it stayed $80 to $100 for 5 years. Some think it will be 4 years before we see $100 again, but a Middle East Crisis could change that overnight and Putin is working on it.
Thank you two for your comments. I have information here from 2 sources showing Payne Co High 1427 Avg 300 and 1300 high, 350 Avg… I quoted both of those to this landman and he just acted like all that information was wrong. I told him I would be shopping around somewhere else.
Below data could be the reason for the recent increase in Payne activity.
EIA reports daily oil demand is expected to rise by 1.4 million barrels per day to 95.198 million barrels per day in 2016. The current so called ‘oversupply’ is less than 1 million barrel per day and Russia has agreed to meet and discuss cutting output.