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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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DrCashFlow Champion Author Massachusetts Posts:7,059 Points:1,625,275 Joined:Jun 2008	Message Posted: Oct 31, 2012 7:33:35 AM Ignore DrCashFlow Report Abuse Long term projects are always subject to major macroeconomic changes
tomok Champion Author Portland Posts:32,962 Points:2,343,560 Joined:Aug 2006	Message Posted: Oct 31, 2012 2:26:06 AM Ignore tomok Report Abuse 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 Posts:3,759 Points:557,715 Joined:Apr 2009	Message Posted: Oct 31, 2012 2:02:30 AM Ignore Tomeboy Report Abuse 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 Posts:7,893 Points:1,542,360 Joined:Nov 2008	Message Posted: Oct 30, 2012 11:08:39 PM Ignore 1fulltank Report Abuse Some of these numbers appear slanted.
defiancegasman Champion Author Ohio Posts:7,080 Points:1,323,260 Joined:May 2006	Message Posted: Oct 30, 2012 11:08:37 PM Ignore defiancegasman Report Abuse 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 Posts:3,294 Points:1,640,955 Joined:May 2008	Message Posted: Oct 30, 2012 11:07:54 PM Ignore rawdog1313 Report Abuse 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 Posts:1,708 Points:386,025 Joined:Mar 2012	Message Posted: Oct 30, 2012 11:06:01 PM Ignore boatfloyd Report Abuse Wall Street at Work Again
rahcat Champion Author Grand Rapids Posts:2,458 Points:661,000 Joined:Jan 2010	Message Posted: Oct 30, 2012 11:04:23 PM Ignore rahcat Report Abuse Keep supply up.
mcmonsta Champion Author Honolulu Posts:3,218 Points:816,740 Joined:Sep 2009	Message Posted: Oct 30, 2012 10:58:34 PM Ignore mcmonsta Report Abuse yep...slow it down so less supply...less supply means higher prices...right?
NAVYHM All-Star Author Cleveland Posts:761 Points:1,384,205 Joined:May 2008	Message Posted: Oct 30, 2012 10:58:18 PM Ignore NAVYHM Report Abuse 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 Maryland Posts:9,930 Points:1,781,635 Joined:Aug 2005	Message Posted: Oct 30, 2012 10:56:48 PM Ignore mdskier Report Abuse So why do we have this "Drill baby drill" talk if nobody wants to drill ?
bullseye100 Champion Author New Jersey Posts:2,419 Points:582,630 Joined:Aug 2011	Message Posted: Oct 30, 2012 10:55:17 PM Ignore bullseye100 Report Abuse Prices should be much lower than they are.
bonzoonfmb Champion Author Florida Posts:1,772 Points:642,185 Joined:Feb 2010	Message Posted: Oct 30, 2012 10:54:43 PM Ignore bonzoonfmb Report Abuse Keep drilling - gas prices are still too high.
zantor Veteran Author San Bernardino Posts:258 Points:53,025 Joined:Jul 2012	Message Posted: Oct 30, 2012 10:53:20 PM Ignore zantor Report Abuse I thought that was the point of horizontal drilling- more natural gas, lower prices
postcard9 All-Star Author Massachusetts Posts:883 Points:514,695 Joined:May 2011	Message Posted: Oct 30, 2012 10:45:18 PM Ignore postcard9 Report Abuse Production!
abcdMA Champion Author Worcester Posts:7,917 Points:1,574,005 Joined:Nov 2008	Message Posted: Oct 30, 2012 10:39:48 PM Ignore abcdMA Report Abuse Keep demand down
OGW Champion Author London Posts:5,324 Points:1,530,400 Joined:Sep 2005	Message Posted: Oct 30, 2012 10:38:39 PM Ignore OGW Report Abuse That is the way it should be, more product, lower prices.
BizBombe Rookie Author Baltimore Posts:90 Points:189,100 Joined:Sep 2012	Message Posted: Oct 30, 2012 10:38:06 PM Ignore BizBombe Report Abuse k
DustyHorse Champion Author Virginia Posts:6,077 Points:1,389,895 Joined:Oct 2008	Message Posted: Oct 30, 2012 10:32:33 PM Ignore DustyHorse Report Abuse Good news for the consumer.
FlyNFool Champion Author South Carolina Posts:8,234 Points:1,683,250 Joined:Aug 2008	Message Posted: Oct 30, 2012 10:32:11 PM Ignore FlyNFool Report Abuse Sounds like supply and demand.
GAS1251 Champion Author Texas Posts:5,138 Points:1,624,280 Joined:Jun 2008	Message Posted: Oct 30, 2012 10:30:17 PM Ignore GAS1251 Report Abuse Sounds more like catch-22
bvrbill Champion Author Eugene Posts:3,201 Points:516,740 Joined:Jul 2011	Message Posted: Oct 30, 2012 10:27:47 PM Ignore bvrbill Report Abuse Keeping supply low to drive up prices and profits. Not concerned with the American consumer.
Dodge_Me Champion Author Atlanta Posts:2,214 Points:554,730 Joined:Mar 2006	Message Posted: Oct 30, 2012 10:27:27 PM Ignore Dodge_Me Report Abuse Hmm
gd83goldwinger Champion Author South Bend Posts:1,428 Points:503,480 Joined:May 2011	Message Posted: Oct 30, 2012 10:27:26 PM Ignore gd83goldwinger Report Abuse K.
libertyut Champion Author Utah Posts:1,344 Points:290,650 Joined:Mar 2012	Message Posted: Oct 30, 2012 10:27:06 PM Ignore libertyut Report Abuse Give me a break, gas prices still way up. Should be lower all across America.
TxMtb Champion Author Ohio Posts:1,530 Points:342,380 Joined:Feb 2012	Message Posted: Oct 30, 2012 10:26:02 PM Ignore TxMtb Report Abuse They don't want it to get too cheap, hurts the bottom line.
gumbyrex Champion Author Fresno Posts:3,291 Points:757,340 Joined:Mar 2011	Message Posted: Oct 30, 2012 10:23:50 PM Ignore gumbyrex Report Abuse Que sera sera.
Skimo2012 Rookie Author Cleveland Posts:85 Points:101,610 Joined:Jun 2012	Message Posted: Oct 30, 2012 10:22:13 PM Ignore Skimo2012 Report Abuse America can use their own oil but we have to be greedy
mstearno Champion Author Dayton Posts:8,061 Points:1,730,260 Joined:Jan 2008	Message Posted: Oct 30, 2012 10:17:37 PM Ignore mstearno Report Abuse 7 more days then he's a LAME DUCK
diesel8888 Champion Author Salt Lake City Posts:1,186 Points:357,565 Joined:Nov 2011	Message Posted: Oct 30, 2012 10:16:25 PM Ignore diesel8888 Report Abuse Ok
sickhp Champion Author San Antonio Posts:1,369 Points:515,180 Joined:Sep 2011	Message Posted: Oct 30, 2012 10:13:07 PM Ignore sickhp Report Abuse Drill in all of America not just private lands.
wayoung56 Champion Author Alabama Posts:2,795 Points:817,360 Joined:Oct 2006	Message Posted: Oct 30, 2012 10:07:41 PM Ignore wayoung56 Report Abuse Interesting article...
REKEY Champion Author South Carolina Posts:8,569 Points:1,697,465 Joined:May 2008	Message Posted: Oct 30, 2012 10:06:48 PM Ignore REKEY Report Abuse I like low prices in natural gas!
SavALot Champion Author Virginia Beach Posts:8,459 Points:1,709,660 Joined:Apr 2005	Message Posted: Oct 30, 2012 10:02:43 PM Ignore SavALot Report Abuse weakening doesn't necessarily mean hurting the prices
30mpg80 Champion Author Lexington Posts:10,014 Points:1,485,905 Joined:Nov 2008	Message Posted: Oct 30, 2012 9:58:18 PM Ignore 30mpg80 Report Abuse Higher price brings more drilling
crusty1 All-Star Author Chicago Posts:659 Points:412,755 Joined:Oct 2008	Message Posted: Oct 30, 2012 9:54:36 PM Ignore crusty1 Report Abuse 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 Posts:2,572 Points:598,595 Joined:Apr 2006	Message Posted: Oct 30, 2012 9:53:39 PM Ignore bevmill Report Abuse This effects everyone.
ectolle Rookie Author Indiana Posts:67 Points:19,440 Joined:Jul 2011	Message Posted: Oct 30, 2012 9:48:34 PM Ignore ectolle Report Abuse not good for where I work we sell engines for fraccing and drilling.
Blue48 Champion Author Illinois Posts:7,300 Points:1,636,970 Joined:Feb 2007	Message Posted: Oct 30, 2012 9:47:30 PM Ignore Blue48 Report Abuse UP..DOWN..UP..DOWN!
KhelbenArunson Champion Author Michigan Posts:4,436 Points:715,915 Joined:Apr 2008	Message Posted: Oct 30, 2012 9:41:28 PM Ignore KhelbenArunson Report Abuse 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 Posts:1,772 Points:720,675 Joined:Mar 2010	Message Posted: Oct 30, 2012 9:38:46 PM Ignore tco9436 Report Abuse Everyone is hurting
Lbro Champion Author Denver Posts:1,035 Points:442,020 Joined:Jan 2004	Message Posted: Oct 30, 2012 9:38:42 PM Ignore Lbro Report Abuse Yep...
Rei2012 Rookie Author Los Angeles Posts:84 Points:46,255 Joined:Oct 2012	Message Posted: Oct 30, 2012 9:37:27 PM Ignore Rei2012 Report Abuse Let's not be dependent on foreign oil. We have a vast oil reserves right here in the country.
dumba55 Sophomore Author Chicago Posts:142 Points:37,225 Joined:Apr 2011	Message Posted: Oct 30, 2012 9:36:29 PM Ignore dumba55 Report Abuse kk
clermont40miles Champion Author Cincinnati Posts:10,562 Points:1,770,920 Joined:Apr 2008	Message Posted: Oct 30, 2012 9:35:06 PM Ignore clermont40miles Report Abuse 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 Posts:959 Points:200,850 Joined:Jan 2012	Message Posted: Oct 30, 2012 9:35:00 PM Ignore DaisysMomNC Report Abuse OK
Jeeputtputt Champion Author Ohio Posts:3,002 Points:677,465 Joined:Aug 2009	Message Posted: Oct 30, 2012 9:33:45 PM Ignore Jeeputtputt Report Abuse understand, not
mobil1MN All-Star Author Minnesota Posts:664 Points:1,294,635 Joined:Sep 2007	Message Posted: Oct 30, 2012 9:31:56 PM Ignore mobil1MN Report Abuse ok
alkarn Champion Author Riverside Posts:1,124 Points:244,150 Joined:Jul 2012	Message Posted: Oct 30, 2012 9:26:46 PM Ignore alkarn Report Abuse Instead of all this drilling, big oil should have been looking into other means of fuel types.
DEG Champion Author Las Vegas Posts:17,615 Points:3,493,730 Joined:Jul 2003	Message Posted: Oct 30, 2012 9:26:28 PM Ignore DEG Report Abuse Big Oil manipulating supply in order to drive up prices in the long term.