tshields

20 years Petroleum Geology, 25 years Appraiser, author of "Appraisal of Mineral Rights" - found on Amazon.

Author Archives: tshields

Cheap Gasoline isn’t Going to Hurt Renewables

Let me disabuse you of a notion. Cheap gasoline isn’t going to “hurt” renewables. No renewable is really standing on its own. It is directly subsidized unlike drilling for oil or even refining…Depletion Allowance is not a “subsidy” for big oil. It is simple depreciation. Grandma pays taxes on her mineral rights and the only deduction she gets… Read More »

Will 2021 Be Better for the Oil Industry?

2020 was a rough year for the oil business. The bloated natural gas production associated with attempting to extract oil from wells better defined as gas wells created a glut of natural gas while making the nation a net exporter of oil.  That disappeared into the abyss when gas prices in west Texas collapsed into negative territory followed… Read More »

The Perverse Inverse Relationship of Politics and Oil

There is a weird but fundamental relationship between politics and oil. The Democrats hate oil and believe that it should basically be eliminated permanently in favor of ‘green’ energy (whatever that is.) The Republicans promote the oil business as necessary and vital to the economy. Yet the industry often benefits from Democratic policies while Republican policies often end… Read More »

Too Early to Declare the Death of the Oil Industry

We have such a glut in natural gas I do not see a return to the prices of fifteen years ago. Oil, on the other hand, will necessarily be in high demand. With the so-called “Tier 1” acreage being oil doesn’t mean it is all oil. From my calculus for a number of wells, it seems that these… Read More »

Biden Will Kill the Industry but Not the Cost of Energy

What does Biden promise the oil business? It is hard to say explicitly since he talks out of both sides of his mouth. He said he’d ban fracking. In debate with Trump, he denied it, challenging Trump to prove it. So Trump did, and posted his exact words. Biden otherwise claimed a slow “transition” away from oil and… Read More »

The Green New Deal is Coming & You Will Pay For It

The Green New Deal (GND) is coming and with it the poorest in the nation will suffer. Simple fact. Market forces rule. They always rule. Stifle competition and pick winners and losers and everyone suffers. The GND will pick electric vehicles over gas driven ones without recognizing the problems it creates and it will, once again, be blamed… Read More »

All Energy Comes from Mother Earth

Today it is argued that the fossil fuel industry is “dirty”. Perhaps but all energy sources will be extracted from the earth or those extracted from the sun will rely heavily upon materials that are mined, such as lithium and silica. Construction requires the use of heavy machinery, almost all of which is fueled by diesel or gasoline… Read More »

The Over-Riding Royalty Interest Dilemma

Geologists, landmen, and engineers often work for an over-riding royalty interest (ORRI.) As one geologist recently told me, “If I can ever get rid of this ORRI, I’ll never sign another.” What is an “over-ride”? In lieu of a direct payment, the owner of an ORRI may elect to earn a percentage of the well. This used to… Read More »

The Life & Death of the Fayetteville Shale

The Fayetteville Shale was the second shale gas play to succeed. The Barnett Shale proved the technology to work. And in doing so, opened a Pandora’s Box of horizontal shale plays dependent upon the slick water frack; or early in the play, nitrogen and carbon dioxide fracks. Some failed while others succeeded spectacularly. The Caney, a shale situated… Read More »