Good morning,

It is December 18th and the news is rife with reports that the republicans may finally, just for once, have their act together enough to do something worthwhile for the American people. 

Tax reform, for the first time since President Reagan in the mid 80's, appears to be a reality. This, in my  opinion, will be a help to royalty owners. Remember that not too long ago many feared and opined that we were stuck in a perpetual down market for oil and gas even though the markets had never in their history gone down in value without rebounding. We were stuck in the boosh/obama malaise, assured that 3% economic growth was a thing of the past and that renewable energy was leaving the fossil fuel market behind.

Amazing what a simple electoral change of direction can do for an economy. obama never had a single year of 3% growth in GDP, the first American president to not do so, even though he doubled the national debt in his 8 years in the White House.

American business collectively describes his presidency either as a waterboarding or a gun to the head hostage situation. Hard to argue with reality.

Well, all that seems to be in the past now. President Trump has steadily rolled back the anti-business regulatory morass left behind by obama and now appears to be set to sign tax reform into law by Christmas.

The New York Fed is reporting GDP in their sector at 4% for this quarter, the Atlanta Fed chimes in at 3.3%, we are pretty sure that this will mean the first 3 full quarters of the Trump administration will be consecutive with 3% or higher growth. Post tax reform it is not unlikely that by the middle of 2018 we could see healthy, widespread growth at 4%, despite nearly every obama friendly economist assuring us over and over that growth could never again be that high and that 2% was now the bench mark for a booming economy.

GDP growth coupled with tax savings for corporations AND individuals cannot help but spur energy consumption. American Shale now essentially guarantees expanding production. What was needed was a more disciplined production effort by American shale as well as a big uptick in consumption. The consumption increase was never going to be substantial in an economy of 2% growth.

All that has changed now. Watch the markets through to the summer of 2018 and I predict WTI will be in the $70-$75 a barrel range. I recognize that royalty owners are not paid  that figure, but the relationship between the price reported and the price paid to royalty owners exists, the more WTI goes up the more we should be seeing on our statements.

Of course I could be wrong, I am after all just some hick up on a Guernsey county ridge with a laptop and the internet. But economics are cyclical, as are politics, and we are undeniably in an upswing. I was one of the few saying 2017 would see WTI near $60 a barrel back when we seemed stuck in the low $40 a barrel range. We'll see soon enough.

Hoping everyone has a Merry Christmas and a happy, healthy and prosperous New Year !

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I sure hope President Pence gets here soon

Trey Gowdy for president

I'm interested in knowing the answer to this question as well. 

I am willing to take a cut in royalties if it means if it means bringing back someone who isn't a disgraceful human being and lies everyday of his life


Dave, please contribute something intelligent without calling names and perpetuating nonsense.  Anyone can see the economy is roaring forward, the stock market has gained 5,000 points in a year which has never happened before, and I think you will benefit from current policies unlike anything you experienced in the previous 8 years.  If you want to gripe, please do it somewhere else.  

I agree.   Say something productive or get off the board

Thank you for writing this David. I agree with what you write. While I am not aware of any specific traits in the tax bill, it will help in several ways. First of all , slightly lower federal personal tax rate. The biggest carrot is the lowering of the corp tax rate. This will put more money in the big O&G companies budget, allow them to spend more money on R&D, leasing and drilling. It could really give them a shot in the arm and indirectly benefit royalty owners. Trump has scaled back many of the Obama era business killing regulations, and this will help as well. Things looking up!

OK Dave

Ask the EPA about things looking up.

Then lets just find another planet to live on after we can't breath the air or drink the water

Thanks to Trump, the USA pulled out of the job killing and socialist wealth transfer scheme called the Paris Accord and the man made gobal warming nut jobs are leaving the EPA.

Yeah the air and water are sooo dirty in PA. The reality is that there has been no contamination of our water or air. I wont even waste my time with detailing the numerous studies supporting this fact. 


If you can't find another planet quickly, you can really do the world some good and commit suicide along with your fellow travelers.  Think of the air, water and resources you would not use and the pollution you could prevent if you and like minded people weren't here.  So save the world and commit suicide.


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