« Aren't You Glad She Ain't YOUR Royalty Owner? | Main | P. Diddy Needs You To Drill Faster. »

August 29, 2008


Choke, very good post. When you write about the business of oil and gas, you are always remarkably insightful.

In my opinion, the difference between 1980 and 2008 is the credit crunch. I thought conventional lending may have loosened up a little bit based upon the run up in oil prices. A recent visit with Amegy Bank set me straight on that issue. It seems credit is tight, no matter what the collateral.

In 1980, independents had borrowing power, and the $ was spread around among the independent world. Today, it seems Wall Street is driving the finance, and small independents are excluded from the party. Wall Street types seem to embrace the resource plays, or myth, as the concept is easily understood and the volumes of $ are high. I agree there will be a reckoning in some of the resource plays. The axiom I am hearing today is “The Barnett Shale covers fifty counties, but is only commercial in four counties”.

The comments to this entry are closed.

Drillinginfo Wireline

December 2011

Sun Mon Tue Wed Thu Fri Sat
        1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

Become a Fan