What If...

What if, as many are predicting this is the end of the oil and gas industry? Nonsense!

Over the last year, on this site, there have been an overabundance of negative posts about the economic viability of the Utica and Marcellus Shales. From my perspective these posts have been short sighted and actually are no more than fear mongering.

The oil and gas business is historically cyclical. ups and downs etc. Companies involved in the industry come and go. Yet the industry survives.

And now, here we are in 2016, and the industry is still here; a little beat up but still here. Again, from my perspective, this period in time is only one of those down periods. Certainly not a siren's call of the end for ever or the "DOOM" of the industry as one person posted.

So, what does that mean for the land owner? It's not over.

Sit back, and if you are inclined, pour yourself an adult beverage, if you aren't inclined then just take a deep breath. Time rules all; and time is on the side of the oil and gas industry. It will rebound.

The negative posts you read on this site are just fear mongerin,g and as FDR once said - all we have to fear is fear itself.

.Better times to all.

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Replies to This Discussion

Permalink Reply by Robert Bond on January 10, 2016 at 3:31pm

Well said and you are correct in you assessment of the situation.

Permalink Reply by Barry D on January 10, 2016 at 3:32pm

Bob

Just tired of the negativity.

Permalink Reply by Robert Bond on January 10, 2016 at 3:42pm

I think some thought that there would be no bumps in the road but, it is unrealistic to expect that.  Things look a lot better here in Ohio for the landowners than they did five years ago.  The good times will return I am confident of that, Now the Utica is a proven formation and it will be  a low cost producer.  Lets hope that infrastructure development continues because that is what we are lacking.

Permalink Reply by Barry D on January 10, 2016 at 3:58pm

Bob,

What I find interesting is that the fear mongers on this site believed the tales from the land men and the companies they represented about quick riches for land owners. Now these merchants of negativity wish to vindicate themselves by pretending to be the voices of reason.

They troll the internet searching for negative articles disregarding the predominate positive nature of what is occurring in the oil and gas industry of our nation.

They are equal to the anti oil and gas folks that post here. Always negative.

I have been involved in this industry for over 30 years. I am now tired of these newcomers that spread their misinformation; as if they truly know anything (which they don't).

Nabobs of Negativity

As I said before, take a breath.

Permalink Reply by Joe Bezel on January 10, 2016 at 4:29pm

I agree.  Whenever a valuable natural resource is found, producers will extract it when it makes economic sense.  When it makes sense to ramp up production in the Utica, it will happen, to everyone's benefit.  Chesapeake is not the industry; they are just one player. It they fold, another company will purchase the assets and leases. It's not the end of the world.

I don't want my minerals extracted and sold at today's prices, anyway.  Over the years, the fluctuation in the oil market makes the stock market look stable by comparison.  Good times will come again, as surely as spring follows winter.

In the meantime, I'm enjoying the flip side of the current state of the market.  Filling up my gas tank at $1.79 per gallon and my propane tank at $1.25 per gallon is a sweet thing.

Permalink Reply by Barry D on January 11, 2016 at 12:16am

Joe,

Always look for the silver lining, it's there.

Permalink Reply by Billy Park Whyde on January 11, 2016 at 3:04am

With oil prices so low gasoline has shown a change accordingly but what about a quart of motor oil at $4 dollars a qt, what about transportation cost has it dropped not really. When the price went up companies told drivers hey its tough take a pay cut, lose benefits well many drivers did but with the oil prices back to the 80s the drivers pay has not changed for their labor. In 2000  was paid 40 cents a mile for every mile I drove today you are lucky to see 40 cents a mile and then its not all miles driven! Reason for factory employment now instead of using my CDL

Permalink Reply by bo boboski on January 10, 2016 at 11:18pm

I agree with the optimists view O&G industry here in the Utica. Good Times are coming, once the infrastructure is built to handle it,and the prices rebound. May not be as quick as we like, but inevitable,like saying it wiil get dark tonight,and tomorrow it will get light again,when the sun comes up, and,so far, it has;everyday!  Right now,we're all saving thousands on fuel costs!  Only negative that I will agree with,is the fact that the GasCo's are getting away with theft,and will continue unless our Gubment officials grow some balls.,And hopefully,by the time the prices rebound, that will be taken care of?

Permalink Reply by Barry D on January 11, 2016 at 12:17am

bo,

I agree, something has to be done about the interpretation of royalty language.

Hopefully, the lawsuits that have been filed will resolve the issues.

Permalink Reply by Joseph-Ohio on January 11, 2016 at 9:11am
Thinking they couldn't have screwed things up more even if they tried.

When that happens it always causes me to question if whether or not that may actually be what might have happened ? ?

Seems to me there's an abundance of monkey wrenches flying around.

J-O
aka :   'the cynic's cynic'
Permalink Reply by Barry D on January 11, 2016 at 12:32am

Joseph,

Keep your head down, I would think a monkey wrench to the head would hurt.

Permalink Reply by Joseph-Ohio on January 11, 2016 at 12:41am

Oh yeah !

I know it would !

Been there !

Done that !

Didn't like it !

Recommending all of my friends to avoid it too !

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