Texas Oil Production Remains Strong Despite Saudi Price Pressure

1508 permits for new wells issued in November...Wait, I thought the Saudis had killed off new fracking in the U.S.?

Guess not.

Total well completions for 2014 to date are more than 4,000 above the completions for this time in 2013.Texas crude oil production in October averaged 2.25 million barrels per day, significantly higher than the 1.75 million barrels per day average in October of 2013.

Throughout the month of October, Texas fracking fields cranked out 68,675,000 barrels of crude oil, up more than 14 million barrels from October of 2013, hardly a picture of an industry shaking in its boots at the Saudi strategy.

www.woai.com..." target="_blank" class="postlink">w oai
Brand new 25,000 Bbl per day refinery getting built right now in Corpus Christi just to receive Eagle Ford crude.

a reply to: quercusrex

Texas fracking fields cranked out 68,675,000 barrels of crude oil, up more than 14 million barrels from October of 2013, hardly a picture of an industry shaking in its boots at the Saudi strategy.

Imo, its the same strategy, over production to drive down prices. Wreaking more sanction style havoc primarily directed at Russia and others. Desperate measures from a desperate empire.

Kind of puts a hole in the we really need the Keystone pipleline to go through argument huh? here's the link yours is broken.
Texas Oil Production Remains Strong Despite Saudi Price Pressure

Still can't get the link to work. www.woai.com..." target="_blank" class="postlink">w oai.

www.woai.com...

a reply to: quercusrex

Saudi Arabia actually has no much to influence on how the prices of oil are driven, is the Wall street speculators the ones that controls how the prices goes up and down.

We most consider also that Saudi Arabia is not US number one seller of oil also but Canada, so if we are to try to find out what is going on with prices of gas getting cheaper we most turn our eyes to Canada first.

a reply to: buster2010

I don't know if we need Keystone to go through or not. But, if and when the oil companies decide they want it to go through, it will.

originally posted by: buster2010
Kind of puts a hole in the we really need the Keystone pipleline to go through argument huh? here's the link yours is broken.

Texas Oil Production Remains Strong Despite Saudi Price Pressure

No, no it absolutely does not. Even with this newly tapped production boom, the US is only producing half of what the country's demand is. Keystone would further shove OPEC out into the cold. I'm somehow not at all surprised that the Democrats have exerted so much effort to block it at Obama's insistance.


www.dailyinterlake.com...-comment-area

a reply to: quercusrex

It`s normal to start producing as much as you can to compensate the loss of revenues from existing wells, just wait till it ends.

It won`t last for long...

The Dangerous Economics of Shale Oil

Source

a reply to: quercusrex

Price of oil per barrel has to be at a certain point for most fracking companies to turn a profit. Many of these new companies grew faster than they should have and as a result have enormous debt. When oil prices go down as they have, these smaller companies are at great risk for going under as they are not able to meet their obligations.

If the price per barrel goes back up, which I personally believe it will after the turn of the year...they will be fine. It's when the oil prices stay at a low suspended status that you will see issues within this sector. Bigger companies such as Haliburton and Weatherford are large enough to where they will more than likely be able to weather the storm. It's mostly the little guys that have issues when these sort of lows are seen.

Could it be that they know that they will cause Europe to cease acquiring gas and oil from Russia and will have to meet their demand ? a reply to: quercusrex

a reply to: OrphanApology There are no "little guys" in this business. They're making their money now off of wells fracked years ago at the start of this new boom. Once a well is in production they don't get fracked again to continue pumping.

The continued issuance of new original well permits shows that the Eagle Ford could care less about the Saudi issue. That whole episode is orchestrated to jack with our old friend Putin and his buddies.

originally posted by: OrphanApology

If the price per barrel goes back up, which I personally believe it will after the turn of the year...they will be fine. It's when the oil prices stay at a low suspended status that you will see issues within this sector.

Alaska's OMB (budget office) is projecting sub $60/barrel prices through 2015. I've seen that North Dakota is projecting the same.

a reply to: burdman30ott6
Projections are based on historical data. I stated it is my belief that oil per barrel will go back up in first quarter. Might be wrong, might not be. We'll see.

yes first or second quarter or a strange year ahead, I suppose

a reply to: OrphanApology

Projections are base on speculations that are base in futures, a nice way that Wall street uses to manipulate the markets for specific reasons in their favor and while it should be illegal is never been questioned to the point of congress inquiring, because it seems to benefits those with deep pockets in the oil markets.

Still this is all different and something doesn't seem right when oil is getting cheap, the last time this happen US was getting back to the middle east for holding back production, with the scaremongering of pursuing alternative fuels during the early 90s.

Something big is going on.

a reply to: quercusrex

I may have the number off a little bit, but it is generally considered that drilling happens when oil is at/above $100bbl.

The government is willing to subsidize $60bbl

We still have some downward movement to make.

The bottom line of the whole situation: without oil production, America really doesn't have much economy to speak of. Outside of the money laundering that the banks do for the cartels.

Driving down US 87 between Lamesa and Ackerly, I saw no fewer than 7 drilling rigs at all times. The boom is 100% full force right now. Folks worry about a bust because of the low price of oil....but oil field service will still be a big employer in the area. There are an aweful lot of volatile wells producing prodigious amounts of gas. The natural gas treatment infrstructure is growing fast, but still not fast enough.

The US Government will prop up oil until summer, I think, and then let the natural travel peaks bring oil prices back up.

a reply to: burdman30ott6

And I heard or read that prices won't go back up much for a year or more.

a reply to: quercusrex

Maybe the US government is rigging the game just like they do with agricultural subsidies. Truth be told the longer oil remains cheap the more worried I become.




Cheap oil is a pretty clear warning sign of world economic health. If demand is low that means the world economy is not doing very well. And TPTB are flat out selling a lie.

a reply to: SubTruth

That sounds plausible, but I also see it as a manipulation, to force oil producing countries that had been targeted to do what they are been told to do or else.

Is just that we don't get to know the specifics.

originally posted by: bigfatfurrytexan
a reply to: quercusrex

I may have the number off a little bit, but it is generally considered that drilling happens when oil is at/above $100bbl.

The government is willing to subsidize $60bbl

We still have some downward movement to make.

The bottom line of the whole situation: without oil production, America really doesn't have much economy to speak of. Outside of the money laundering that the banks do for the cartels.

Driving down US 87 between Lamesa and Ackerly, I saw no fewer than 7 drilling rigs at all times. The boom is 100% full force right now. Folks worry about a bust because of the low price of oil....but oil field service will still be a big employer in the area. There are an aweful lot of volatile wells producing prodigious amounts of gas. The natural gas treatment infrstructure is growing fast, but still not fast enough.

The US Government will prop up oil until summer, I think, and then let the natural travel peaks bring oil prices back up.

Saudi Arabia Ready For $20, $30, $40 Oil

$20! Yea, most wells that aren’t financially backed heavily/govt deals will have no other choice but to shutdown operation(s).

I’ve always had a feeling that the Sauds/U.S. were slitting each others throats “back-stage”.