OIL PRODUCERS PREPARE FOR SECOND-HALF SLUMP AS RALLY SPUTTERS - GoHaynesvilleShale.com2024-03-28T12:43:03Zhttps://gohaynesvilleshale.com/forum/topics/oil-producers-prepare-for-second-half-slump-as-rally-sputters?commentId=2117179%3AComment%3A3617201&feed=yes&xn_auth=noAs long as non-domestic oil p…tag:gohaynesvilleshale.com,2016-07-19:2117179:Comment:36172012016-07-19T19:27:54.415ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>As long as non-domestic oil production maintains current volume or rises gradually, I would agree. However the current conditions that complicate the supply demand balance are a large glut of refined products chiefly gasoline on the supply side and a general trend of declining global demand.</p>
<p>As long as non-domestic oil production maintains current volume or rises gradually, I would agree. However the current conditions that complicate the supply demand balance are a large glut of refined products chiefly gasoline on the supply side and a general trend of declining global demand.</p> Looks like the Saudis have to…tag:gohaynesvilleshale.com,2016-07-19:2117179:Comment:36171102016-07-19T16:31:11.024ZP.G.https://gohaynesvilleshale.com/profile/PG
<p>Looks like the Saudis have tossed the price control ball to the Frackers...</p>
<p>I mean it used to be the Saudis had some control of price by controlling supply but now it is up to the Frackers....if Frackers produce more...prices fall...if they produce less..prices rise...</p>
<p>Looks like the Saudis have tossed the price control ball to the Frackers...</p>
<p>I mean it used to be the Saudis had some control of price by controlling supply but now it is up to the Frackers....if Frackers produce more...prices fall...if they produce less..prices rise...</p> Why would you think that, Mar…tag:gohaynesvilleshale.com,2016-07-19:2117179:Comment:36171692016-07-19T01:27:29.920ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>Why would you think that, Martin? Chesapeake, and in fact most Haynesville operators, didn't stop drilling because prices dropped. Basically companies can't stop doing what they do although the must adjust to cycles. If you drill wells you just drill fewer wells or wells in specific limited areas when the cycle turns down. Mineral/royalty buyers are the same. They may reduce their budget or become very limited in the areas they target to acquire mineral interests but they don't stop…</p>
<p>Why would you think that, Martin? Chesapeake, and in fact most Haynesville operators, didn't stop drilling because prices dropped. Basically companies can't stop doing what they do although the must adjust to cycles. If you drill wells you just drill fewer wells or wells in specific limited areas when the cycle turns down. Mineral/royalty buyers are the same. They may reduce their budget or become very limited in the areas they target to acquire mineral interests but they don't stop buying. In fact many find the occasional downturns to be good times to acquire minerals. Actually minerals are still considered to have long term value by those with long term investment horizons.</p>
<p>I occasionally assist mineral owners in sales and have a pretty good grasp of the pros and cons. I happen to think that the price of natural gas, which is the hydrocarbon of interest in the parishes you list as opposed to the subject of the article - oil, will remain depressed for many years yet it has long term value as demand should increase steadily but modestly over the next 20 plus years. Every mineral owner is a specific instance with varying needs and long range goals. I really like the current tax advantages gained through a sale. I don't know if they will be the same next year or five years from now but I think it likely that the price of natural gas will be little changed next year and five years from now. The question is the amount offered and whether it makes sense: based on remaining proven reserves for a buyer, and how it accomplishes financial goals for a seller.</p> Skip --
Thanks for the ma…tag:gohaynesvilleshale.com,2016-07-19:2117179:Comment:36169442016-07-19T01:10:43.286ZMartinhttps://gohaynesvilleshale.com/profile/jcmagness
<p>Skip --</p>
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<p> Thanks for the macro market view. Just a note on the micro view, I received a solicitation "Cash offer for sale of Mineral and royalty interest located in Desoto, Red River, Caddo, Bienville, Bossier, and Sabine parishes, Louisiana". As a layman, with a lease, I would have guessed that this activity would have died out a few months past. </p>
<p>Skip --</p>
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<p> Thanks for the macro market view. Just a note on the micro view, I received a solicitation "Cash offer for sale of Mineral and royalty interest located in Desoto, Red River, Caddo, Bienville, Bossier, and Sabine parishes, Louisiana". As a layman, with a lease, I would have guessed that this activity would have died out a few months past. </p>