Dr. Daniel Fine: Oil at halftime, 2016

The full article is here->http://www.daily-times.com/story/opinion/columnists/2016/05/28/fine...

"Without the freeze of OPEC production, $50 a barrel prices are here nevertheless. Does the rig count recover — only 15 working in New Mexico from over 100 just 18 months ago?

Yes and no. Companies should start stimulating (fracking) the heavy inventories of uncompleted wells. A boom again? Hardly. With more drilling of uncompleted wells at $50, American Southwest unconventional production rises. Saudi Arabia and the Gulf nation producers would see once more the threat to market share which started the bust in the first place.

Higher oil prices equate to more production and energy-related banks and funds might find new borrowers. Is this the constraint of lower and longer oil prices? It doesn't matter what supply forecasts come from traders’ prattle on cable TV. The final half of 2016 will be negative on price and oil demand. The price war with Saudi Arabia/OPEC continues.

There are three counter-strategies to Saudi Arabia and OPEC from American shale oil producers and communities:"

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on June 1, 2016 at 9:01am

During Half Time, this might be a good time to estimate how much those of you have lost who have ALOV, SURE or Williams leases, or other leases that read "No Deductions & Gross Royalty".

Pick an amount from the past that the Newspapers used for the price to drill a well and put it under production. The News said that this amount was paid for in the first year of production.

I remember the cost as being $13,000,000. The stories have stopped since no one wants the Land Owners to know what is going on at their wells.

Multiply this amount by your Ownership Fraction or Decimal Fraction from your Division Order (the figure that is rarely used on your Royalty Statement) and your rough Royalty will appear.

Here is my rough figure, 0.0007 times $13,000,000 = $9,000 per year.

I received $900 last year so I'm only being shorted 90% of my royalty payment. Some Landowners are not being paid a Royalty.

How could this theft be allowed to continue in the Land Of The Free, Home Of The Brave?

We have a lot of work to do, using the laws and remaining rights to replace all who run our governments in attempt to find those who are without GREED who want a Democracy For The People, By The People and will work towards that goal.

Permalink Reply by Joseph-Ohio on June 1, 2016 at 10:23am

Wondering if production is being throttled as the industry awaits infrastructure such as NGL Storage Facilities / Cracker Plants, Pipelines, Reduction of the 'Glut' / Surplus Production, Price Improvements and etc. ?

Are all of those things contributory to the seemingly abject neglect of Land / Mineral Owners / Lessors ?

If so, could it all be by chance / natural evolution or conspiratorial ?

Does anyone who can say for sure / permitted to say know ?

Let us know.

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