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GasBuddy News Article

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Drilling activity enters slow track Gas prices weaken; crude market slumps

TimesRecordNews -- Even though crude oil production in Texas continues to increase, drilling activity for future reserves has slowed because of weakness in natural gas prices and instability in crude oil markets.

Declines in the drilling rig count and drilling permit applications offset big gains in oil well completions and crude oil production. The divergent trends combined with price volatility to yield a Texas Petro Index (TPI) of 270.9 in September, 6.3 percent higher than in September 2011, but the TPI's third decline in the past four months.

After increasing at an annual rate of more than 2.5 percent through first quarter 2012 to 272.3 in March, the TPI has reached a plateau. Growth slowed to a rate of 0.2 percent in April and May. After reaching a high of 272.7 in May, the TPI declined 1 percent...


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Submitted Oct 30, 2012 By: 1studman
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Author Topic: Drilling activity enters slow track Gas prices weaken; crude market slumps Back to Topics
REPLIES (newest first) Post a Reply
DrCashFlow
Champion Author Massachusetts

Posts:10,308
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Message Posted: Oct 31, 2012 7:33:35 AM

Long term projects are always subject to major macroeconomic changes
tomok
Champion Author Portland

Posts:46,779
Points:3,169,435
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Message Posted: Oct 31, 2012 2:26:06 AM

Drilling activity enters slow track Gas prices weaken; crude market slumps and proifts are dropping. Huricanne Sandy will help raise prices at the pump and keep those Big Oil profits up.
Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money.
The price of fuel at the pump is too high!
XII/XXII/MMXII!
Tomeboy
Champion Author Twin Cities

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Points:1,367,390
Joined:Apr 2009
Message Posted: Oct 31, 2012 2:02:30 AM

Crude oil prices, have fallen by $12 per barrel since mid-September.

For those who continue with the mantra, "Drill Baby Drill" to lower oil and gas prices are living in a dream world. There is no such thing as cheap oil anymore.

Here's the reality that some of you cannot accept and would rather keep dreaming.

"Crude oil *price volatility* likely is feeding oil producers' concerns about a lack of upside support (higher demand) for crude oil pricing (higher prices)," Ingham said. "It would be *unlikely* for oil producers to begin expanding activity again until crude prices (higher prices) indicate that market demand is *rising* (higher demand)."

Oil and gas producers in Texas are dialing down activity. Drilling activity for future reserves has slowed because of *weakness* in natural gas *prices* and *instability* (demand) in crude oil markets.

Dream on or accept reality.

1fulltank
Champion Author Buffalo

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Message Posted: Oct 30, 2012 11:08:39 PM

Some of these numbers appear slanted.
defiancegasman
Champion Author Ohio

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Message Posted: Oct 30, 2012 11:08:37 PM

Get real. The rules of SUPPLY and DEMAND NO LONGER APPLY.

NOT when BIG OIL CONTROLS ALL THE OUTPUT AT THE REFINERY!!

Price goes down a little and there is a "FIRE", "explosion" or "LEAK" that drives the price up just enough to slow down the US ecomony!! Can't have things turn too good before the elections!!

BIG OIL wants to make sure their paid for REPUBLICANS are back in power, after all how else will they keep "AMERICA ADDICTED TO OIL" and the price above $4 a gallon (and HEADING TO $5)!
rawdog1313
Champion Author Lexington

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Message Posted: Oct 30, 2012 11:07:54 PM

If the Tea Bagging Congress would get off their Asses and Regulate Oil Speculation or better yet outlaw it, gas prices might be more stable!
boatfloyd
Champion Author Jacksonville

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Message Posted: Oct 30, 2012 11:06:01 PM

Wall Street at Work Again
rahcat
Champion Author Grand Rapids

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Message Posted: Oct 30, 2012 11:04:23 PM

Keep supply up.
mcmonsta
Champion Author Honolulu

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Message Posted: Oct 30, 2012 10:58:34 PM

yep...slow it down so less supply...less supply means higher prices...right?
NAVYHM
All-Star Author Cleveland

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Message Posted: Oct 30, 2012 10:58:18 PM

WHAT INSTABILITY IN CRUDE OIL MARKETS... CRUDE OIL HAS BEEN DOWN AROUND $85-$86 DOLLARS A BARREL FOR A MONTH NOW... THE NYMEX HAS BEEN STEADY...
mdskier
Champion Author Sacramento

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Message Posted: Oct 30, 2012 10:56:48 PM

So why do we have this "Drill baby drill" talk if nobody
wants to drill ?
bullseye100
Champion Author New Jersey

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Message Posted: Oct 30, 2012 10:55:17 PM

Prices should be much lower than they are.
bonzoonfmb
Champion Author Florida

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Message Posted: Oct 30, 2012 10:54:43 PM

Keep drilling - gas prices are still too high.
zantor
Veteran Author San Bernardino

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Message Posted: Oct 30, 2012 10:53:20 PM

I thought that was the point of horizontal drilling- more natural gas, lower prices
postcard9
Champion Author Massachusetts

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Message Posted: Oct 30, 2012 10:45:18 PM

Production!
abcdMA
Champion Author Worcester

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Message Posted: Oct 30, 2012 10:39:48 PM

Keep demand down
OGW
Champion Author London

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Message Posted: Oct 30, 2012 10:38:39 PM

That is the way it should be, more product, lower prices.
BizBombe
Sophomore Author Baltimore

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Joined:Sep 2012
Message Posted: Oct 30, 2012 10:38:06 PM

k
DustyHorse
Champion Author Virginia

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Message Posted: Oct 30, 2012 10:32:33 PM

Good news for the consumer.
FlyNFool
Champion Author South Carolina

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Message Posted: Oct 30, 2012 10:32:11 PM

Sounds like supply and demand.
GAS1251
Champion Author Texas

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Message Posted: Oct 30, 2012 10:30:17 PM

Sounds more like catch-22
bvrbill
Champion Author Eugene

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Message Posted: Oct 30, 2012 10:27:47 PM

Keeping supply low to drive up prices and profits.

Not concerned with the American consumer.
Dodge_Me
Champion Author Atlanta

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Message Posted: Oct 30, 2012 10:27:27 PM

Hmm
gd83goldwinger
Champion Author South Bend

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Message Posted: Oct 30, 2012 10:27:26 PM

K.
libertyut
Champion Author Utah

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Message Posted: Oct 30, 2012 10:27:06 PM

Give me a break, gas prices still way up. Should be lower all across America.
TxMtb
Champion Author Ohio

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Message Posted: Oct 30, 2012 10:26:02 PM

They don't want it to get too cheap, hurts the bottom line.
gumbyrex
Champion Author Fresno

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Message Posted: Oct 30, 2012 10:23:50 PM

Que sera sera.
Skimo2012
Rookie Author Cleveland

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Message Posted: Oct 30, 2012 10:22:13 PM

America can use their own oil but we have to be greedy
mstearno
Champion Author Dayton

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Message Posted: Oct 30, 2012 10:17:37 PM

7 more days then he's a LAME DUCK
diesel8888
Champion Author Salt Lake City

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Message Posted: Oct 30, 2012 10:16:25 PM

Ok
sickhp
Champion Author San Antonio

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Message Posted: Oct 30, 2012 10:13:07 PM

Drill in all of America not just private lands.
wayoung56
Champion Author Alabama

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Message Posted: Oct 30, 2012 10:07:41 PM

Interesting article...
REKEY
Champion Author South Carolina

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Message Posted: Oct 30, 2012 10:06:48 PM

I like low prices in natural gas!
SavALot
Champion Author Virginia Beach

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Message Posted: Oct 30, 2012 10:02:43 PM

weakening doesn't necessarily mean hurting the prices
30mpg80
Champion Author Lexington

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Message Posted: Oct 30, 2012 9:58:18 PM

Higher price brings more drilling
crusty1
All-Star Author Chicago

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Joined:Oct 2008
Message Posted: Oct 30, 2012 9:54:36 PM

I can understand this from a producers point of view. Why deplete a finite resource if isn't going to pay you what you want.
bevmill
Champion Author Georgia

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Message Posted: Oct 30, 2012 9:53:39 PM

This effects everyone.
ectolle
Rookie Author Indiana

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Message Posted: Oct 30, 2012 9:48:34 PM

not good for where I work we sell engines for fraccing and drilling.
Blue48
Champion Author Illinois

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Message Posted: Oct 30, 2012 9:47:30 PM

UP..DOWN..UP..DOWN!
KhelbenArunson
Champion Author Michigan

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Message Posted: Oct 30, 2012 9:41:28 PM

More like big oil is trying everything to prop up the price of gas through the election. They truly are scum bags.
tco9436
Champion Author Connecticut

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Message Posted: Oct 30, 2012 9:38:46 PM

Everyone is hurting
Lbro
Champion Author Denver

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Message Posted: Oct 30, 2012 9:38:42 PM

Yep...
Rei2012
Rookie Author Los Angeles

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Joined:Oct 2012
Message Posted: Oct 30, 2012 9:37:27 PM

Let's not be dependent on foreign oil. We have a vast oil reserves right here in the country.
dumba55
Sophomore Author Chicago

Posts:192
Points:60,025
Joined:Apr 2011
Message Posted: Oct 30, 2012 9:36:29 PM

kk
clermont40miles
Champion Author Cincinnati

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Joined:Apr 2008
Message Posted: Oct 30, 2012 9:35:06 PM

They are doing quite well. Price should be $40 per barrel, so take the exorbitant price and quite waiting for the wildly exorbitant price.

As long as speculators run things they will likely get the higher price so I can't blame them for maximizing profit.

Stop the speculator scum - make them take delivery of product and not just push paper. We call it the Casino -- it is not a market.
DaisysMomNC
All-Star Author North Carolina

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Message Posted: Oct 30, 2012 9:35:00 PM

OK
Jeeputtputt
Champion Author Ohio

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Message Posted: Oct 30, 2012 9:33:45 PM

understand, not
mobil1MN
All-Star Author Minnesota

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Message Posted: Oct 30, 2012 9:31:56 PM

ok
alkarn
Champion Author Riverside

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Message Posted: Oct 30, 2012 9:26:46 PM

Instead of all this drilling, big oil should have been looking into other means of fuel types.
DEG
Champion Author Las Vegas

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Message Posted: Oct 30, 2012 9:26:28 PM

Big Oil manipulating supply in order to drive up prices in the long term.
bobsalwaysmt
Champion Author Long Island

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Points:334,800
Joined:Oct 2007
Message Posted: Oct 30, 2012 9:24:10 PM

Very Elastic.
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