Comment

Comment by Bob Rock on December 22, 2015 at 1:18pm

so this well was never completed?

Authorization ID:	1101558
Permit number:	085-24652
Site:	SHANNON ESX
Client:	SWEPI LP
Authorization type:	Drill & Operate Well Permit Drill Deeper
Application type:	New
Authorization is for:	FACILITY
Date received:	12/15/2015
Status:	Pending

Comment by Samuel J. Orr on December 11, 2015 at 7:40am

There is one old adage about markets that invariably proves true over time. It is "GLUTS TURN INTO SHORTAGES AND SHORTAGES TURN INTO GLUTS". The vast majority of us tend to assume that current market conditions will continue at least for a reasonably long time into the future. Who, if any of us, would have said 3 or 4 years ago when oil was $80-$100 / barrel that we would ever see $36 /barrel oil in our lifetime?  What went down fast can go up just as fast, Att current prices, many of the smaller high cost producers (HK being just one of many) are unlikely to survive. The political turmoil in the Middle East makes it entirely uncertain what may happen there. Certainly the current OPEC strategy, especially that of Saudi Arabia, of producing rather unlimited amounts of oil is a good strategy in the short run. The Saudis can do this longer than other OPEC members because they are the lowest cost producer. In the longer run, even the Saudis want oil Prices to be high. After many US producers are forced into bankruptcy, the Saudis and at least some other OPEC nations are likely to decrease production. At such point as Demand exceeds Supply at any particular price, prices naturally go up. They are especially likely to go up rather drastically once the Saudis have caused many of the US shale oil producers into Bankruptcy. It is always a good strategy for a producer of a commoditywho has a lower cost of producing a commodity than many of its competitors to radically increase production thereby causing a fall in the price of said commodity to levels that its competitors can't make any money at the depressed price, and to keep the price of said commodity artificially low for long enough to cause many competitors out of business. After those higher cost producers have failed, the pricing power of the surviving producer or producers will be increased in the extreme. In such a situation, could oil go to $2.00 per barrel, or even $3.00 per barrel?  The immediate answer that comes to mind is "Assuredly Not". The better answer is "Possibly Yes". The answer "Yes" seems even more plausible given the ever increasing influence of ISIS in the Middle East and its current control of significant amounts of oil producing acreage; acreage which is likely to increase given that the US seems to have no will to stop ISIS. Either of two scenarios could increase the price of oil. Significant military force is used to defeat ISIS, but  in the process Oil Production Facilities in territory controlled by ISIS are destroyed. (ISIS might also destroy some Oil Production Facilities in areas of the Middle East which it does not control.) Either or both would decrease the world's total oil production capacity which would cause prices to rise. Oil is going to go up and it is going  to go up substantially. When is the question,. It is likely going to happen a lot sooner than most of us think. But before that happens it is very possible that it may go down at least a bit more, though I do not envision the $20 / barrel price that the author of a recent article suggests as a possibility. 

Comment by Dexter on December 3, 2015 at 2:16pm

Anyone have any info on the Wengerd wells? The rigs left a few weeks ago and all has been quiet since. Has the James pad been fracked and is it producing? Any info on Wengerd would be appreciated. Thanks!

Comment by Dexter on December 3, 2015 at 2:14pm

?

Comment by JohnL on November 24, 2015 at 11:39am

Both Zigo wells just came on line in August. The decline curve for Utica wells is pretty steep so I doubt it will last. It's hard to tell by the reports if these wells are choked back or not. I would expect things to remain quiet for a while. Hilcorp is privately held so information about their plans is hard to come by. They are still recording new leases near the Zigo well, so they must be satisfied with what they found. Only time will tell.

Comment by Lilly on November 24, 2015 at 7:15am

I see Hilcorp and probably the rest of the companies are taking a break on any new drilling, even with permits to drill.  The Zigo wells seem to be producing decent with permits for at least two more and no drilling!!  I would think until prices go up drilling will stop??

Comment by Lilly on November 23, 2015 at 8:33am

Thank you!!  I see some of them are doing fairly well.  To bad the price of gas is so low.  This may put a halt to drilling anymore of even the permitted wells!!  Time will tell I guess!!

Comment by JohnL on November 21, 2015 at 2:49pm

Lilly- you can find that information on the website below or on the DEP website. There are several wells in production in Mercer County and others that are fracked and waiting to come online.

https://www.marcellusgas.org/

Comment by Lilly on November 20, 2015 at 7:44am

Are any of the latest wells producing in Mercer County?  Don't hear much of anything anymore!

Comment by JohnL on November 7, 2015 at 4:42am

Typically these wells run NW/SE which would put these Rt.19 leases on the wrong side of Jorgensen. I'm thinking there may be a new pad between Rt.19 and Rt.58. Somewhere East of Zigo. At the rate of drilling in Mercer County it may be 5+ years from now. I heard Hilcorp was waiting on the results from the Zigo wells before moving ahead with the Jorgensen pad.

• ‹ Previous
• 1
• …
• 5
• 6
• 7
• 8
• 9
• …
• 93
• Next ›
• Page