blank'/> Liberally Lean From The Land Of Dairy Queen: It's Over?

3.04.2009

It's Over?

The number of drilling rigs working in the big North Texas natural gas field has fallen by more than half, from a peak of 214 in October to 97 as of Friday. And XTO executives suggest that could fall to as low as 90 in coming months.

That means fewer wells, and nowhere is that more true than at Devon Energy, which announced that it expects exploration and production spending in 2009 to be less than half what it spent in 2008. Devon had resisted cutting back its Barnett Shale activity, but it now says it will drill something over 200 wells this year, or only about a third of the more than 600 it drilled in 2008.

Story.

Any news from the front lines out there?

36 comments:

Jarhead said...

At least Wise County will have more than enough shiny new hotel rooms for all the tourists who come to visit the former sites of the gas wells.

Double Fake Debbie Downer

mzchief said...

That is VERY old news. Devon made that announcement Feb. 4, 2009 after they cut production wells in 1/2 in January. The fact natural gas has been trading well below $5.MMBtu and the NG storage is at a high means it costs too much to drill. It is better to leave it in the ground until prices go back up around $8MMBtu. DVN has decided to drill and 1/2 complete wells in an attempt to keep leases and will complete the wells when prices raise to approx. $7.+ MMBtu.

Just to let you know how ugly it has been for DVN, they hit a 52 week low of $39.22 per share on March 2, 2009 after having a 52 week high of $127.43 on July 2, 2008.

Incidentally, do not buy into the lie that Obama is not responsible for the tanking of the Stock Market. The Stock Market is an indicator of what WILL happen. Obama has yet to figure out that Wall Street IS Main Street. The wealth that is evaporating in the Stock Market is the wealth and jobs of folks on Main Street.

MOST retirees have their money invested in the Stock Market and Obama has promised to raise their capital gains tax to 28%. FYI, most retirees do not have a household income of $250,000+ per year.

Anonymous said...

i know too many people in the pipeline industry out here, and yes, it is true. jobs are being cut left and right, and for now, you are lucky to be working a few hours a few days a week. the cheaper the gas prices are at local gas stations, the worse it is for those in the natural gas business frontlines...

Anonymous said...

where is the guy who was telling everyone about his GOLD? Me thinks the guy telling everyone about the chikens wasnt as looney as he sounded! Esp when chicken is more costly than steak these days.Remember when chicken was one of the cheapest meals you could make? Aint so anymore...just sayin

Anonymous said...

Good riddance. I'd rather be able to breathe and look across the landscape without the rusting hulks being out there.

Anonymous said...

I have a different view of why they are shutting down the fast and furious drilling here in North Texas. Keep in mind that most of the same companies operating here are still drilling and completing wells in LA,Pennsylvania, and a couple of other places in the US.

IMO they priced themselved out of the market due to competition and greed. When the price was so high they were getting these wells drilled, completed, and online faster than a blink of an eye no matter the cost involved. Now that gas isn't bringing record money they no longer can afford to pay the wages that they set in haste.

For example rig costs rose from eight to ten thousand dollars per day when this started almost ten years ago to 25 thousand dollars per day when this ended. Another thing to keep in mind is the price of natural gas is not that much out of line of when the Barnett Shale kicked off.

Anonymous said...

Wonder what it will be on December 21 2012?

Anonymous said...

So...do we get the Country Club back?.. Seriously I hate that someone would lose there job and it's unfair to the vast majority of the hard working people in that Buisness...But I cannot even begin to tell you how many times I have watched these guys stand at the CC Bar in RAB and slam drinks and say this will never end in our lifetime and spending Money hand over fist..NOW all of a sudden they are not so high and mighty..how many times did we hear, if it was not for the Oil and Gas guys this place would dry up..well News Flash we survied before and Damn sure will now..go buy some another Hummer..

Anonymous said...

When is Bush going to raise gas prices again?

Anonymous said...

Incidentally, do not buy into the lie that Obama is not responsible for the tanking of the Stock Market.

Uh! the stockmarket had tanked before Obama got into Office.

Phillip J Hubbell said...

Don't worry...Obama is going to raise taxes on the rich and give us universal health care...getting a new job should be easy for these oil and gas fellows. They can ask....someone for a job. Maybe get one of those high paying shovel ready jobs.

Anonymous said...

3:02 - now he has time to discuss such things with his oil buddies over lunch at a posh place in Big D.

Anonymous said...

1:58 tap your brakes on the chaape the gas at local stations, I just bought gas in Keller for $1.63, ain't no where that cheap in Wise Count

Phillip J Hubbell said...

"Uh! the stockmarket had tanked before Obama got into Office."

Yes but Obama intends to see to it that the stock market stays tanked.

Anonymous said...

3:31, I'm sure they're plotting to raise the price back up. I bet they are even counting their money they made when they bought short in the stock market. Not to mention the money they made when they bundled all those bad home mortgage loans and sold them.

Anonymous said...

2:02 & 3:02 I bet neither of you have ever been accused of having empathy.

Anonymous said...

Finally had time to research "And So It Goes" quote from Saturday.

As a UNT alum, I've got to be vigilant about such things (even though I wasn't an English major like Henley).

You were perhaps thinking of Vonnegut's "Slaughterhouse 5", which was "So it goes."

Alternatively, journalist Linda Ellerbe uses "And so it goes" as her sign off.

And there you have it.

Barry Green said...

You're exactly right. Kind of funny I got those two mixed up.

Anonymous said...

Does this mean the number of white pickups will be greatly reduced ?

Anonymous said...

Well, I'll be damned glad when EOG and their minions frac the hole they've had in one of our pastures since October.....our lawyer said they said they would start some time in March.....well, it's March, and I'm still waiting. Our cows and us would really appreciate getting that grazing pasture back. Evil bastards.

At least we have a close place to dump oil-change oil in for now..............it's pretty slippery climbing up that black plastic covered dam with a 5 gallon bucket of oil though. We usually drink some beers before we do that, and laugh as we make offerings to the great god of oil.

Motherf^ckers.

Anonymous said...

Oops! Lazy left hand...[Linda] Ellerbee has two 'e's on the end.

Also, Billy Joel recorded a song "And So It Goes". Apparently it was a coda to an episode of 'Boston Legal'. It's not on my CBS double CD of BJ's greatest hits.

BTW, am a big fan of Fahrenheit 451 (and not 9/11). The notion of people watching their walls seems prophetic in view of everyone's flat screen TVs today.

Stiks Forbs said...

PJ Hubbell made a lot of sense with his positive comment. Health care cost is a working man's financial killer, so if we get UHC, from the taxes on the rich that have buttloads of money, that is great. Buttloads even if their taxes are raised they still have plenty, things will get better. And hey, a shovel job is better than no job. Just like Dick H. Armey said, "just pull yourself up by your own bootstraps" and get a better one. I am looking for one of those jobs that pays so much that I can pay a lot more in taxes. And be very happy about it.

Anonymous said...

4:25PM, I have no sympathy for people that disregard the health and safety of others in the name of careless and downright criminal pursuit of energy. These people chose to work in this profession, they can choose another. Just pull yourself up by your bootstraps. Isn't that what Republicans are fond of saying? If you can't take it, don't dish it out.

Anonymous said...

6;54, written like a true non-energy user. It's good to know there others like me out there, who don't use electricity, gasoline, natural gas and don't get a paycheck from anyplace that does that either...after all, it would be hypocritical to demand that energy be available at your door, wherever you go and 24/7, but be offended by those who provide it. Indeed, isn't it great to NOT be any part of causing the problem you complain about?

epic said...

6:11
More prophetic was Bradbury's description of Mildred listening to her radio with the "sea shell" ear thimbles. Every time I see people walking around with ipods plugged into their ears, I think of Bradbury. Anyone who hasn't read Fahrenheit 451 lately should really pick it up and read it again.

Anonymous said...

Ahhhhh, poor babies.

Anonymous said...

Right on 6:06. They could give a damn how much money it is costing you when they tear up your property. "They pay damages". Sure. The guy that bales my hay said the first year I lost $4800 is hay revenue. Who is going to pay the damages for the next 50 years?

Anonymous said...

6:06, they said "some time in march"..last time i checked there
were 31 days in march.


10:05, blame global warming for the lost hay revenue....no rain have anything to do with that lost revenue ??


double fake joe roughneck

Anonymous said...

10:05 Bale smaller bales, it will look like you have more.

Sorry for your loss.

Anonymous said...

How the heck does a lease location cost you 4800 dollars in hay. I am pretty sure they didn't use 50 acres.

You people who piss and moan amaze me. Probably the first to gripe when energy prices soar too.

Anonymous said...

HI, this is Merle Haggard and the good times are really over for good.

Anonymous said...

10:05. Bale your own hay Or buy a cow.

Anonymous said...

1:56, he already sees your wife.

Anonymous said...

Hay: Lots of rain in 2007. The guy the bales it has been baling it for different owners for 30 years.

Anonymous said...

I don't have a problem with pastures or woods or anything else because I don't let them on my land. Is that so hard to figure out?

Anonymous said...

Hay, Stiks Forbs here, I must be the only one that wants a job that pays so good, I will have to pay more in taxes. I am not like the Republican Plant, Joe, the Plumber (he is not a real plumber) and blah blah yada why he is opposed to Obama making him pay more tax. Like counting eggs before the hatching looks like. Like those poor Right Wing souls that I have heard say: "I would not want to win the Texas Lottery, Because I would have to pay all those taxes." This is pure Republican Bullshit so pure that there should be a warning attached to it. Only a right-wing nut would want to make less money so they could pay less taxes. Hey you Righties making a shitload now-! Apply at Wal-Mart and save on those tax dollars. If you are one of the poor souls making more than 250 grand, it would be in your best interest to work somewhere for minimum wage to save that tax money. Come on now, that is what you want. Do it! Git-R-Done and save tax money and screw Obama and those "liberals" out of it. Do it now. If not for you, do it for your children, your grandchildren, and even you great-granchindren. OH God! Save them now and take a low paying job. Deny your country that tax money. Hell, it could benefit someone or something you don't want it to.