TRUTH ALWAYS COMES OUT

Happy new year to all the American Oilmen out there.

 

I wanted to let you guys in on a story about a certain famous person.

He was touted as a hero and a savior.  He had a rough upbringing in Hawaii

and went to school at the Punahou private school.  He met hardship

head on and persevered against the odds. 

But, it turns out it was all a lie.   Just a lie………………..

 

Oh, and then, there is that Notre Dame football player too.

 

Over

Of Presidents and NFL

For the good of the country. 

 

For the good of the American Oilmen. 

Lets get a real president back.  

Enough of the replacement president. 

If the NFL can do it - America can do it too.

Over

Federal Oil Production Vs. Private

This graph says it all.

Is our president really responsible for the
increase in oil production in America?

UH,.....NO.

GAS PRICES AND THE ELECTION

The federal government cannot manipulate the price of gas at the pump, because they cannot do anything about the price of oil.  If this administration could, they would print oil like they print money.   But electronic oil does not run the internal combustion engine.

The only thing that can bring down the price of oil is universal peace on earth and a contraction of the national debt.   Does anyone think either of these two things will see the light of day any time soon?

You see, the price of oil is set on the world stage.  It is too big for the US government to manipulate.   There are two things that this administration can’t do – raise the price of homes in the US and reduce the price of oil.

The home mortgage meltdown that caused the Great Recession led the Fed to inject record amounts of money into the economy.  With home prices falling, the massive increase in money supply has not lead to overall inflation, yet.   But, the inflation that really counts – the things we all have to buy – is going up.

We have to buy food, clothing, health insurance, medicine, schooling, gas, stamps, air travel.   All of these are going up.   Computers and big screen TV’s are not going up.  Big deal.

So, this administration was able to prime the pump and get the stock market to increase in value.   Happy days are here again right?

Wrong.   For every dollar that is printed (or electronically created) all the existing dollars are worth less.  Worth less means it takes more to buy something – when that something is oil – we pay more at the pump and the average guy suffers.

The average guy suffers.   He does not like to suffer and he will get off his butt and try to do something about it.  That something will be vote – vote for whomever is not currently in charge.

Hugo Chavez knows this relationship of oil/gas price and political survival.   That’s why he just makes the price of gas artificially low.  Low gas price = happy people = reelection. 

The question is, will this president try to do something drastic about the price at the pump.  Well, how about the release of the oil in the SPR.  That would be an attempt at a cheap fix and no president would consider putting our energy security ahead of his political ambitions – would he?

THE END OF ACADEMIA IN AMERICAN POLITICS

Why is it that the academic elites are believed to be the answer to everything political? Obama, Geithner, Holder, Bernanke, Chu - they are all Ivy League award winning intellects. What makes them any different than most other college professor types. Long on theory and short on practical application. 

It's as if we in the business world come up with an idea and apply it and see if it works in the real world. The academic elites actually take the real world and see if they can apply it to their theory of how they think things should work. Backwards.

We are in the oil business. I mean, I love my college professors. That doesn't mean I will drill a well that they propose - well, maybe one of them. I would not want one of my college professors to be telling a tool pusher where to set casing in a geopressured well.

So, why do we think the professor types have any of the answers? Well, we don't any more. Two years in the US Senate does not equal experience enough to be prepared for the Oval Office. Everyone knows this now. Even the media - they kind of know that they got it wrong.

We need more people like Herman Cain to get involved in politics. He is a throwback to the business man politician that sacrificed his time for service to his country. Not one of the current guys that sacrifices this great country so it can service him.

Over, Jack

THE BEST KEPT SECRET IN THE OIL BUSINESS

THE BEST OIL PRICE IN THE WORLD
South Louisiana Sweet Crude (SLSC) is the best oil in the world. The world is paying more for SLSC than for any other oil - so it must be the best.
It is also the best kept secret in the oil business. Take a look at the three charts below. The charts are a snapshot of today's price for South Louisiana Sweet, Brent and West Texas. Which oil would you like to be exploring for and selling?

All the talk in the industry is about the spread between Brent and West Texas. All the talk in Louisiana is about the LSU football team. We are not talking about the best kept secret in the oil business.

SHALE PLAYS

The Haynesville shale play of Northwestern Louisiana is the darling of the gas industry. To some, it is the savior of the energy future of America and will lead the energy industry into the next generation.
The measuring stick of a successful well in this play is as follows:

Bad well = 2 BCFG

Good well = 6 BCFG

Are you kidding me? Are they really paying $8 million to $9 million for a well that has reserves of up to 6 BCF and may be as low as 2 BCF?

I am not going to go into the merits of frac stages and the amount of water used and waste created. Not going to mention the hazards of fracing into the shallow fresh water aquifers.

The frac thing I want to talk about is this - just what are you fracing? My belief is that you are fracing, and thereby, interconnecting the small stringers of sand that are interbedded in the shale. This may be why the "sweet spots" of the various shale plays are getting smaller the more they are drilled. It ain't just about shale - it's about the sand. It has always been about the sand. (Sorry limestone, I never really liked you anyway).

Could the future bring us the incredibly shrinking shale play?

Jack

Over