Monthly Archives: February 2016

Nationally the media is telling us how the downturn in oil & gas production has effective the markets globally resulting in layoffs of the workforce. In Midland TX the Sunday Morning show interviewed a gentleman who has worked in the industry for 20 yours.   He said ‘….I’m used to the cycle of drilling the ups and downs- but this time is longer than before’. He lives in a modest three bedroom house with his wife and two kids; his wife is a stay at home mom, a two car family with one being his two year old truck. Now this is more than a truck, it’s his office too. Like many of you, he traveled for hours a day in his truck with safety manuals, tools, colleagues, and food and drink. When asked ‘if the industry is so unpredictable why not change professions?’ Without hesitation he replied, ‘ I love what I do. Overall it’s been good to me and my family’.   How can you argue with that?  But this may answer a question I’ve had for years – Why does the industry al


The $2.06 billion write-down of the value of its oil and gas assets due to low O&G prices was the major force behind Chesapeake Energy’s $2.23 billion fourth-quarter loss, the independent producer reported this morning. For all of 2015, the Oklahoma City, Oklahoma-based company reported a net loss of $14.86 billion, with again the write-down of the value of its oil and gas assets due to prices contributing the bulk of the red ink, $14.53 billion for the year. Chesapeake s profit in 2014 s fourth quarter was $586 million, while the full-year profit was $1.27 billion. In light of the challenging commodity price environment, our focus for 2016 is to improve our liquidity, further reduce our cost structure and address our near-term debt maturities to strengthen our balance sheet,” Chesapeake CEO Doug Lawler said. Chesapeake s fourth-quarter daily production averaged roughly 661,100 barrels of oil-equivalent (BOE), a year-over-year increase of 1% adjusted for asset sales, Kallanish Ene

Crude oil and natural gas production in the Lower 48 States’ seven most prolific drilling areas will fall only slightly from February-to-March, the U.S. Energy Information Administration projects. The EIA’s February Drilling Productivity Report expects oil production to drop just 92,000 barrels per day (BPD), to more than 4.9 million barrels per day (MMBPD) in March, from 5.02 MMBPD in February. On the gas side, production from February to March slips 451 million cubic feet per day (MMcf/d), to 44.71 billion cubic feet per day (Bcf/d), from 44.26 Bcf/d in February, Kallanish Energy reports. The drilling report concentrates on the Bakken, Eagle Ford, Haynesville, Marcellus, Niobrara, Permian and Utica drilling areas which, combined, represent 92% of domestic oil production growth and all domestic natural gas production growth during 2011-14. Five of the seven drilling regions ae expected to report a drop in crude production, with the biggest drop, more than 50% of the total decreas