Even with increased infrastructure, Chevron believes global supply base isn’t enough to support future demand and significant new supply is needed for the long term. The report below is 50 pgs, but the Sept 2015 supporting charts are on pg 5.
http://investor.chevron.com/phoenix.zhtml?c=130102&p=irol-calendar
"EIA expects US production declines generally to continue through August 2016, when total production is projected to average 8.7 million b/d.
Goldman Sachs analysts said this week that they expect US oil production will fall 225,000 b/d in 2016 vs. 2015 levels (OGJ Online, Oct. 6, 2015)."
Debbie, I can not tell you what to do, but I never lease when oil prices are so low. In my opinion, you are receiving low ball offers from those who know oil prices will going back up in late 2016-2017.
St Louis Fed’s reports showing oil and gas prices and inflation. More reports at bottom of pg.
https://www.stlouisfed.org/on-the-economy/2015/october/predicting-i…
I was hoping someone can help me with a lease offer we got this week in Payne Co. The landman would not tell me who they are leasing for but the offer was for $100 per acre and a 3/16 interest. It was for sec 33-19n-5e.
I am wondering if anyone else got the same offer and if it is a good offer considering how down the oil business is right now. Thanks
Hi Debbie, that seems low. Look back and see my post on Oct 1 and Oct 8th ref leasing amounts in Payne County.
If they won’t improve on their offer is it better not to lease and just wait to see what happens?
The next major oil pricing event will be OPEC meeting on Dec. 4th. Maybe, they will decide to decrease oil output and price will start to rise.
Two new Bloomberg reports on oil price predictions.
http://www.bloomberg.com/news/videos/2015-10-22/why-crude-oil-price…
http://www.bloomberg.com/news/videos/2015-10-23/bold-call-barclays-…
I’m not selling but would like to lease but not at those rates. Thanks
Jay, They may be wanting to lease for CO2 storage in the karst terrain. You will need a lease that addresses that possibility.
Jay your minerals are in a karst system. Big Mississippian potential. What ever you do, don’t sell your minerals and/or land. Sometimes, there is gold in the karsts.
Got another call from the leasing company on Payne 2-17N-5E
I have not talked to him yet. They sure are being persistent.
Any offers for this location? Thanks
RE: Comment by Jay Pruitt on October 1, 2015 at 4:52pm
Received an offer to lease again 2-17N-5E
150 & 1/8 or 100 & 3/16. Seems low…
Karsts are underground limestone caves. U.S. Karst Map
I see in today’s paper that Shell/Exxon and Chevron are giving up on the deep sea drilling and going after Shale reserves to save some cash.
Re: Drilling Shell, Chevron etc…They say in Texas and Oklahoma…
Bob, If oil stays at $40 -$50 Saudi Arabia will be bankrupt by 2020. Right now, Saudi’s are not blinking, because they can drill at $20. Exxon and Chevron know shale is the only way to drill below $40. I just had ‘trick or treat’ drinks with the Exxon boys on my block and we are going to get this job done. God bless the USA.
Thanks Martha. I wonder how large the field is and how long production can last? Also, will they just be going after gas?
Jimmy, It’s not really a field. It’s a reservoir called the Mississippian and it covers thousands of miles. The area you are in just happens to have some nice faults for the gas to travel up and collect in. You have the Miss and the Woodford and Woodford shale holds oil in your area. Eventually, you will get gas and oil. Once they start the massive drilling, they may drill for both.
Martha, thanks so much for the information. I guess now just sit and wait for AEW to contact all of us after hearing? Also where could I find more details on the massive drilling? Sorry for being a pest but I never thought anything would come from the rights I inherited so I’m rather excited.
Jimmy