Friday, July 14, 2006

Will Oil Reach $80.00 a Barrel?

With increasing violence in the Middle East oil has reached a record high of $78.00 per barrel. Much better than the dismal prices in the mid 80's and again in the mid 90's when an operator couldn't break even with $9.00 per barrel oil.

How are the high oil prices reflected in Midland? For one an increase in drilling permits. The Texas Railroad Commission issued 1779 original drilling permits in May 2006 and 1491 of the drilling permits were for new oil and gas wells. In the state of Texas there have been 5422 well completions in 2006.

279 Oil and Gas Drilling Permits were issued in May 2006 for District 8 (Midland).
138 Oil Completions in May 2006 for District 8 (Midland).
11 Gas Completions in May 2006 for District 8 (Midland).

April 2006 Midland County ranked 9th in Texas for oil production with 759,964 barrels. Ector County ranked 5th and produced 1,497,835 barrels.

Preliminary April 2006 total oil and gas production for the state of Texas
26,639,514 barrels
412,147,107 MCF

The price of oil is also reflected at the gas pump. Gas reached $2.97 per gallon this week which is a record high, second only to September 2005 when gas prices reached $3.05 following Hurricane Katrina.

I leave you with this thought:
Some analysts predict oil will reach $100 per barrel if the tensions in the Middle East continue as the hurricane season approaches!


Anonymous Anonymous said...

I sure hope Crude Oil reaches way past $80 a barrel and deep into the 3 figures.
Besides being long on crude oil futures into next year, I feel this country and others waste oil and the only way - period - to temper it is to raise the prices.
Have you looked out the window while driving across this country? The majority of vehicles are huge. This shows that gas is too cheap.
I will certainly be happy to pay $100-200 a month more to have much less traffic on the road.
Also, if oil were much more expensive, it would be prohibitive to the expansion in China and India which is going to ruin the future.

12:26 PM  

Post a Comment

<< Home