If you noticed in the WSJ report . It looks like all the gas is in north Ft. Worth. But in reality it is much cheaper to transport your product thru existing pipelines. Guess where? In north Ft.Worth but don’t worry most of the big pipeline companys are working 7 days a week to bring a pipeline to your local. Contractors such as PUMPCO, EAGLE, QUANTRA,DRIVER, MASTEC,NORTH TX COMPRESSOR,FLINT,HOLLAMAN,MOMENTUM, are busting ass, mostly thru T&M contracts to get it in and on line.

An excellent article about the Barnett Shale from the Wall St. Journal about the difficulties of drilling in urban and suburban areas. You can find it all* in the extended entry. Here’s a good excerpt:

Urban drilling has never been undertaken on such a giant scale. Oil and gas wells still dot neighborhoods in Oklahoma City and Los Angeles but those fields were discovered in the 1920s and developed when local opposition was minimal. Drillers also left many oil-free neighborhoods untouched. By contrast, Fort Worth’s gassy rocks lie under the entire city and stretch underneath 16 counties. Any open field in the area is a potential well site.
[Beyond the Shale]

There are now 90 natural-gas drilling rigs poking holes in and around Fort Worth, more than one can find in either Africa or Europe. The Barnett Shale, all by itself, is having a significant impact on the U.S. energy sector. It’s arresting steep declines in domestic gas production and tempering near-record prices for a fuel critical for generating electricity and home heating.

At first, energy companies concentrated on a small section of the Barnett Shale about 30 miles north of downtown. But the pace of drilling accelerated after word got out about good wells on the other side of the city. That has created some new challenges.

It took 18 months of negotiations to hammer out plans to drill wells on the site of a proposed 8,900-home community named Sendera Ranch. The property’s developer, Centurion American Development Group, originally wanted to build baseball diamonds on the four-acre well sites.

* The Wall St. Journal’s website is subscription-only, but I’m reproducing the whole thing here as an example of what you’ll get. I won’t do this again. Best $50 you’ll ever spend.

Read the rest of this entry »

Don’t kid yourself every Rig out there is Looking for Oil, They will settle for Gas in lew of a Dry Hole. Why do you think the Salt water Disposal wells have Skimmers.

Three Roughnecks are pissing in a Mud pit,1st guy says, man that water is cold, the 2nd guy says boy it’s deep ,and the 3rd say’s I think I found a spool of cable.

Typical Friday night at the MK…Buck is about to fall asleep, OFT is laughing at his own joke, and a random drunk ponders what the heck he’s doing here and how soon he can go back to his RV.

Monkeys are always funny.

An historic day : OFTP2’s first blog-link! Eric Siegmund of Midland talking about the Valero acquisition of Premcor. I was interested in this statement:

Specific to Valero, whose return to shareholders over the past five years has been tops in the S&P 500…can it continue in its strategy of focusing on heavy/sour crude* for its refining feedstock, thereby enjoying the higher margins that come from buying that lower-priced oil? Some of Exxon’s [think he means Valero's] competitors (notably, ExxonMobil) don’t think it’s a viable long-term strategy, as supplies of lower-quality crude will decrease over time.

Anyone out there know if heavy-sour is really being depleted? The ExxonMobile contention is the first I’ve heard of it. I’d expect heavy-sour stocks to go up (and definitely up as a percentage), not down, just because those fields might not have been previously profitable but would be today, in light of gasoline prices.

Anyone care to enlighten?

PS Sorry I'm not very funny...OFT, step in here and get some funny going.

If you’re gasfield trash, you might be interested to know a little something about the economics at play that are driving the Barnett Shale hubbub:

Oil prices are through the roof. OPEC is sitting pretty. Could things get any worse for energy buyers? You bet. There are troubling signs that natural gas producers are moving toward forming their own version of OPEC. While not an immediate threat, such a move could eventually drive up prices for an indispensable element of the U.S. long-term energy supply: In January, the Energy Dept. predicted that gas imports from outside North America will increase more than 700% and account for a quarter of U.S. consumption by 2025.

Of course, that report is from MSNBC, which specializes in writing big, scary stories that only rarely stand up. You read this and you wonder why there’s not a rig every 20 acres, but we know why not. Still and all, rising energy demand means Good Times for owners, operators, investors, and lessors. So, tell your friends and families to get their money into this play now.

I met today with NHC about loaning me bunchs of moneys,when I told them I was Oilfield Trash they couldn’t stop talking about their friends in the Energy bussiness, so it seems that lenders are not scared shitless of us anymore. One of them got me off to the side and ask me if I knew any Gas Production Companys to invest in? I told Him to Drive to Decatur Tx. head south on 51 and take your pick, all the way to Walnut Springs. Shoot 2 years ago gmac wouldn’t lease my a Geo.

You smell Diesel fuel and it reminds you of the best job you ever had.

Your Children make Back up Alarm sounds when they play