Dallas Fed Survey: Oil And Gas Activity Continues To Dip, But At A Slower Pace
Oil and gas business activity is declining at a slower rate than earlier this year, according to the Dallas Fed Energy Survey of about 150 companies in Texas, southern New Mexico, and northern Louisiana.
The four-year-old survey measures the health of the region’s oil and gas industry. In March, the survey’s business activity index dropped to what was at the time its lowest reading ever. As oil prices fell, so did the index, dropping to a new all-time low in June.
However, survey responses collected in early September show things are slowly getting better.
Deepest, Highest Pressure Well in America
Kurt Mire, Mire Petroleum Consultants, gives an update on the deepest, highest pressure gas well in America. According to Mire, the well took about two years to drill, which was twice as long as projected. The well is located in the Tuscaloosa Sandstone, Louisiana, and the depth is 30,000 feet. The cost was upwards of $350M, much over the original estimate.
To listen to the full length interview
Report Shows Permian Positivity
Tracee Bentley, Permian Strategic Partnership, discusses their recent report “The Permian Basin: Unlocking The Full Potential“. She explains how the Permian Basin contains more than 92 billion barrels of proven oil reserves and enough natural gas to meet U.S. household energy needs for the next 60 years.
In addition Bentley cites impacts in economic development, job growth, tax revenues, renewable partnerships and infrastructure developments. Here are some bullet points from the report:
State Benefits:
- 203,000 industry jobs in Texas
- 22,000 industry jobs in New Mexico
- $2.42 billion towards education in Texas in 2019
- $1.52 billion towards education in New Mexico in 2019
- 10.89 percent of Texas GDP
- 18.31 percent of New Mexico GDP
Click here for the full length interview
Living The Crude Life
“There are so many ways to invest in the oil and gas business as far as oil wells go. From going out and acquiring leases to buying interest in wells, to buying interest in partnerships that own interest in wells and, in some cases, you can buy partnerships that have interest in partnerships that have interest in wells. There is something out there for everyone, which is great. The risk tolerance and the level they are willing to take is important. Our typical investments run around $100,000 so it’s not for everyone and we generally advise people that if they can’t afford to lose that money, don’t do it. A lot of opportunity in East Texas and Haynesville right now. They are longer, though. When you are looking at gas heavy fields, which are really good, it’s just the price has been down for so long and I don’t think it’s going to change anytime soon. I think it will take four to five years, which seems like an eternity in this business right now. It’s just a different look at it.” – Brandon Davis, CEO, Swan Energy
People Discussing 2021 Investments Now
“I was reading some sort of article the other day and they mentioned on there if a Ferrari was 50 percent off, would you buy it? And obviously the consumers, everyone says, Yeah, heck yeah, you know, if I can get a 300,000-dollar Ferrari for 150, why not? Right now, at the same time, when oil and gas is down, or Apple is down, or any of these these different commodity items that are out there are down, and they fit down 50 percent, do you buy it? And everyone really thinks twice about it and it’s no different.” – Imran Khan, Swan Energy
To listen to the full length interview
Africa Is The Undeniable Final Frontier For Oil
The pandemic has been devastating for the oil industry globally. Explorers suspended drilling, producers idled wells, Big Oil majors put up assets for sale. But the world continues to need oil, albeit lower amounts of it than a year ago, and it will continue to need it. Exploration is not dead. It is especially not dead in Africa—a hot spot in oil and gas before the pandemic.
To listen to the full length interview
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