Monday, April 09, 2012

Monday Energy Links

1. Kansas Prepares for Gold-Rush Style Oil Boom. "It will enrich the area in a way it never has before economically," says independent oilman Robert Murdock. "It is going to change things forever in this part of the world."

2. "If the Tuscaloosa Marine Shale formation proves to be a honey hole for oil and gas companies, then southwest Mississippi could see a boost in business and an influx of oil workers and residents with new disposable income.  Britt Herrin, executive director of the Pike County Chamber of Commerce and Economic Development District, points to hundreds of new jobs and customers for existing businesses seen in communities in and around the Eagle Ford oil formation in Texas."

 3. "The combined forces of high oil prices and improved drilling technology have produced a gush of unexpected tax dollars from oil and gas wells across Texas. Six months into the state's budget year, taxes paid on natural gas production are up 73% over the same period last year, while revenue from the oil production tax is up 49%. 

Together, oil and gas taxes so far have brought in a total of $1.8 billion. That amounts to $684 million more than in the first half of last year, which was a blockbuster year in itself with $2.6 billion in oil and gas tax revenues. And the state's most important source of revenue — sales tax collections — has been far exceeding projections, due in part to oil and gas companies' heavy spending on equipment, supplies and services needed to drill new wells."

6 Comments:

At 4/09/2012 2:14 PM, Blogger Unknown said...

The well results I've seen from the Mississippi Lime have been good. And it might go all the way over to northwest Kansas.

 
At 4/09/2012 3:45 PM, Blogger Benjamin said...

As long as oil stays above $100, there is hardly a deposit on earth not worth developing.

As other major oil regions of the world are under control of monkey-thug nations--Russia, Nigeria, Saudi Arabia, Mexico, Venezuela, Libya, Iraq, Iran--US output should keep climbing.

In the long run, we may see an old-fashioned bust in oil prices. Held up artificially for so long by OPEC, corruption and speculators, we may see another collapse ala the 1990s. When?

Someday, baby. someday.

 
At 4/09/2012 5:00 PM, Blogger juandos said...

What?!?! No Obama pond scum development for Kansas?!?!

 
At 4/10/2012 6:28 AM, OpenID moneyjihad said...

But how long until state-level politicians start licking their chops and try to balance their budgets through energy taxation?

 
At 4/10/2012 7:18 AM, Blogger juandos said...

"balance their budgets"?!?!

Hmmm, something tells me that unless there are laws on the books that don't leave any wiggle room with regards to a balanced state budget politicos will continue in their collective headlong rush to buy more votes using energy taxation as their newest cash cow...

 
At 4/11/2012 9:14 PM, Blogger VangelV said...

As long as oil stays above $100, there is hardly a deposit on earth not worth developing.

You are still a joke. The fact is that you can't make much of a return even at $100 if your $7 million well is producing 150 bpd by the end of the first year and 75 bpd after 18 months. That is in the sweet spot of a decent formation. What happens when that limited amount of oil is gone and you have to start working the less desirable areas of the formations?

 

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