The main thing is that OPEC+ announced that they were going to cut production by 1MM bpd. Then a representative from the United Arab Emirates said that American producers should not try to make up the difference or the price of oil would not go up. I guess there's some hope that American producers will limit themselves? Even if they don't, the cut takes place immediately and it takes some time to ramp up production, so at least for a little while there will be less oil on the market.
Thanks Kyle and do you think the new administration in D,C, affect the oil and gas market and exploration please be specific as I afraid it will.
There's a lawsuit that's been filed that claims the President doesn't have power to completely stop development on federal lands. Congress made the law that controls federal lands, and that law directs that the lands be developed. Also, there have been permits and leases issued since the ban was made, so maybe the Biden administration isn't quite as serious about banning development as they say they are. Regardless, the President can only directly control federal lands. That won't affect the Marcellus/Utica. The President can create regulations through the EPA that can severely hamper the development of natural gas, but if they do too much of that they will drive the price of natural gas (electricity producing natural gas) through the roof. That would be a real political problem for the Biden presidency.
For whatever it is worth..... Lu Ann and I received our royalty check yesterday. We were not expecting it until about the sixth of the month. Now the thing of it is that it is from a completely different company. SWN PRODUCTION COMPANY LLC is the new outfit. But this time there was no statement as to the production of the two gas wells in the unit. Up until yesterday there has always a statement included with the royalty check. However I did find out how the check amounts were determined. I punched up the 'SWN' outfit and they have a list of information a person access by computer. But in order to access the statement, you have to request it. Granddad Ladd
So they just sent you a check? That's different. Definitely cheaper than printing out all that data. They'll save reams upon reams of paper. You should see some of the "check stubs" that come to some people with their monthly check. Can't fit them in a regular envelope, that's for sure. I wonder if we'll see more companies moving to this?