Natural gas prices rose 3.6% for the front-month contract March 14th 2013 in the NY futures market and crude rose 0.6%. This was caused by a rapid decline in US natural gas storage levels. With uncertainty in the world Continue reading →
It’s a good news for oil and gas investors,
US oil production is on the rise expecting to exceed imports later in 2013. The bulk of the rise in production is coming from drillers in North Dakota and Texas mentions OGJ (Oil and Gas Journal). “Texas, for example, which has permitted more wells than any other state, has more real knowledge about the Continue reading →
In the early days of petroleum, late 1800’s, prospecting in Texas most oil finds were the result of digging or drilling near known oil and gas seeps (seeps – A spot where water or petroleum trickles out of the ground to form a pool). Because of abundant seeps, guesswork and good luck were sufficient for finding oil at this time period. Most prominent salines and salt domes had been recorded by the 1890 Geological Survey of Texas. Amateurs in geology, such as Pattillo Higgins called by some the “prophet of Spindletop”, used geological hunches and knowledge of Continue reading →
“US Land Drilling is Surging”
Due to the volatility of the stock market and concerns over new governmental tax policies, investors are flocking to long term producing hard assets like oil and gas drilling investments. The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons will average 11.4 million barrels per day in 2013 compared to Saudi Arabia’s typical output of 11.6 million barrels. This increase is primarily due to a surge in private land based drilling ventures.
Most accredited investors choose to partner with small land based drilling companies due to reduced drilling cost and more favorable tax benefits. CBS news released an article about this surge in oil production last October in 2012 called “U.S. may soon become world’s top oil producer”. It looks as though investors are changing their investment portfolio for 2013 to include oil and gas drilling investments.