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World Oil Snapshot: Big Picture and Investable Advice

carolinacoast,

GET OVER IT !!!

Where's the Oil?

SteveB,
You seem to believe that if it is leased, it is productive. Most oil companies hold excess acreage that is worthless and never plan to drill it. A lot of "goat pasture" invariably gets leased during trend plays. If the acreage had any merit, it would get drilled.
The media loves to talk about this acreage like the majors are sitting on the mother lode... The public is too ignorant to understand that along with the good leases come the bad in many instances.
When I see that famous 67 million acre number, I think about all that money the government embezzled from the oil companies when leasing the "good" acreage to the oil companies.

When I see people use that number as an argument like yours, I immediately recognize that they are either uninformed or just plain ignorant.

Where's the Oil?

The dramatic decline in development of oil properties is exacerbated by the relative high cost of development.

When crude and nat gas prices went to historical highs, so did the vendors that supply all the services for development. The vendors took advantage of the high prices, almost to an excess.

Now with the crash of oil prices, the vendors are reducing their prices but at a much slower pace than the crude price collapse.
Developers are trying to reassess ROI calculations with higher costs and lower crude prices.

The volatility of the market is very detrimental to budgeting for any long term period, and creates disparities that slow development even more than the simple drop in crude prices.

For those of us, that are trying to continue to develop properties, volatility is our worst enemy.