Author Archives: tshields
Investopedia defines “Barrel of Oil Equivalent (BOE) as the amount of energy that is equivalent to the amount of energy found in a barrel of crude oil. There are 42 gallons in one barrel of oil, which will contain approximately 5.8 million British Thermal Units (MBtus) or 1,700 kilowatt hours (kWh). (The use of BBOE is the same… Read More »
When is too low really “too low”? With predictions that oil may go to $20, there is a real question if the oil companies are suicidal or not. When the typical stripper well costs $20 – 30 a bbl. to simply pump, maintain, and operate, how long can you sell oil for less than you spend selling it?… Read More »
There is going to be a huge shake out in the oil industry both at the service level and at the explorer level, even among some of the larger independents. People ask me how to “play” this market and I say like cobras. Very very carefully. Do not depend on the notion that all these companies have huge… Read More »
It’s not the OIL price. It is the GAS price that is killing Chesapeake and other similar shale players. Yes, that is right. Natural gas prices are less than $2 an MCF. As bad as the oil price is, natural gas is the main asset of the early shale players who drilled up tremendous reserves in the early… Read More »
Low prices lead to waste. My next car may be a natural gas car. We’ve got several stations now in the region. No more towing you to Joplin to fill up if you run out. NG will be cheap, possibly for decades to come. By this time next year I suspect about 50% of all oil companies will… Read More »
The song says it all. The idea that the oil business will simply wait out the current crisis and simply pop up like a punching clown is a silly idea. The oil business is down for the count. Road to Hell – Chris Rea Can we talk? Rigs are going to be cannibalized, scraped and hands who were… Read More »
As an appraiser of mineral rights, it is surprising how few of us actually track our mineral properties. We lack even a rudimentary understanding of the legal description. Often these minerals are transferred on hand written documents with really bad legals. This leads to serious problems. You may have deeds that are in conflict with what is actually… Read More »
LOVE LETTER TO MY FAMILY FROM: ______________________________________ (effective: _____________________) Dear Loved Ones: In an attempt to simplify matters for you, I have written this letter to provide you with information that will be necessary for you when the time arises: ADVISORS: Some of the people you will need to contact are listed below: Attorney: Insurance Advisor: Name: ________________________… Read More »
Time and chance taketh us all. That came home this week as I lost a cousin who was two months younger than me. Now the royalty owner has to just “tough it out”. It is not the time to panic or to think that your mineral rights are suddenly “worthless”. I have been watching in Arkansas as folks… Read More »
Was there a relationship between the San Francisco Earthquake of 1906 and the Panic of 1907 when J. P. Morgan had to step in and save the financial world after Knickerbocker Bank collapsed? The Southern Pacific and Union Railroads and the Insurance companies that had to pay out millions in claims were forced to sell stock in their… Read More »