NARO-Texas

I’m still trying to process the announcement from Secretary of Energy, Chris Wright, at the recent CERA conference, where he stated that the US oil and gas industry could remain functional at $50 oil prices. To add shock to the statement, he also predicted a 2024 style collapse in the industry, which makes absolutely no sense, especially coming from someone who understands the intricate dynamics of this sector. As I’ve discussed in previous posts, the domestic oil and gas industry typically operates well when oil prices hover around $70 per barrel, which is where we've been in recent months. However, with the OPEC+ group now indicating an increase in production come April 2025, we’re seeing oil prices drop to their lowest levels in the past six months. Secretary Wright argues that the industry can remain viable at $50 oil, but he also predicts major disruption similar to the 2014 price war between OPEC and US shale producers, resulting in bankruptcies and a lot of pain. While that might be true in hindsight, I’m struggling to understand why he would go on record to predict the same disastrous outcome. If $50 oil were to become the new norm, that would mean a 29% drop from where we were recently (around $70 per barrel). To maintain the same profitability, we’d have to drastically cut capital expenditures, yet we’re already seeing significant cost increases due to factors like tariffs on steel. Right now, a lot of us are struggling with pipe costs that have risen by more than 20%, and that’s without considering any further economic disruptions. While I’m not directly involved in the shale sector, it’s clear to me that falling oil prices combined with tariff impacts could lead to the rapid shutdown of domestic drilling if this downward price trend continues, especially if oil hits the $50 mark. What’s particularly perplexing is the oil industry’s strong support for President Trump during the last election cycle. To hear that we may be heading into another 2014 style crisis is the worst news anyone in the industry could hear. I sincerely hope that more balanced, supportive statements will emerge to help the industry navigate this potential storm. But if not, it’s time to brace ourselves, because things could get really ugly, really fast. And now you know why Billy Bob Thornton drinks so much in Landman.... #cera #doe #trump #oilindustry #naturalgasindustry #thepermianfuelsamerica

Join us on Thursday, February 27, 2025, for a presentation on “Perpetuating the Oil & Gas Lease”. Our speaker, Rob Vartabedian, Partner at Vartabedian Hester & Haynes LLP, will dive into novel issues surrounding the perpetuation of oil and gas leases. Time: 11:30 AM - 1:00 PM Location: Petroleum Club of Houston, Total Plaza, 1201 Louisiana St., Floor 35, Houston, TX 77002 Registration is now open! https://lnkd.in/g48yviTs #HBAEnergyLaw #SaveTheDate #OilAndGasLease

'Landman' Knocks it Out of the Park Again Billy Bob Thornton's character on the hit Taylor Sheridan Paramount show #Landman, Tommy Norris, engaged in another epic pro-oil and gas diatribe in the show's season finale, which aired Sunday evening. In the clip below, Norris schools a young, very hot lawyer named Rebecca Falcone about why oil and gas companies just keep on doing what they do despite all the fantasies about an #energytransition to #renewables. It is truly epic, enough to give any climate alarmist a bad case of constipation. Here's a transcript: Rebecca Falcone:?Why new pumps? What's wrong with these? Tommy Norris:?You mean wells. Too shallow. Falcone:?How deep do they need to be, Dale? Dale Bradley:?Between 10 and 13,000ft. But you got to drill at an angle, and then you got to frac it. Falcone:?Frac it. Bradley:?You shoot a shit ton of salt water down hole, and you squeeze all that oil out of the fractures. Then you pump it up, separate the water with technology. It changed the game out here. Falcone:?Yeah. Isn't this the technology that's causing earthquakes in Oklahoma? Bradley:?There were earthquakes in Oklahoma before fracking, ma'am. Okay. That's correct. Falcone:?Tommy. Norris:?Yeah. Falcone:?Look, understand: I don't think anyone should be doing this. All right? I think it should be illegal. Norris:?Well, then you should have run for Congress instead of getting a job with an oil company. Falcone:?I just, I have a very hard time advocating for something that I believe is wrong. Norris: [rolls eyes]?Says the lawyer. Good and bad don't factor into this, Rebecca. Our great grandparents built a world that runs on this shit right here. Until it starts running on something else, we got to feed it, or the world stops. Hey. There is an alternative. You can throw your phone away and trade that Mercedes in for a bicycle or a horse and start hunting for your own food and living in a tent. But you'll be the only one and it won't make a damn bit of difference. Plus, I hear the moral high ground gets real windy at night. [End] Glorious.

First and foremost, I want to extend a heartfelt thank-you to Julie Woodard, CPL, CPL, and Drew Guntert for joining us on The Real Deal Landman Show. Julie’s wisdom and industry insight were nothing short of inspiring, and Drew shared some invaluable nuggets about NAPE Expo LP that every land professional should hear. It’s conversations like these that remind us why we started this podcast in the first place. If you haven’t already, do yourself a favor and check out this episode—you’ll walk away with something new, guaranteed. Now, speaking of checking out the episode, here’s a little holiday challenge for you. You know what would really make Jerris Johnson's Christmas merry and bright? Hitting that “Subscribe” to button on your favorite streaming platform for #TheRealDealLandmanShow. Jerris claims that getting to 5,000 subscribers by Christmas is “impossible,” but I’ve seen enough Hallmark movies to know that impossible doesn’t stand a chance against the holiday spirit. Sure, those movies often involve snow miraculously falling for the first time in a century or the heroine marrying the local single dad, but hey—subscribing to a podcast could be this year’s Christmas miracle. Let’s make it happen, people! And don’t miss next week’s episode with Jimmy Wright, CPL, CMM, President of J Dub Enterprises. Jimmy’s a wealth of knowledge and a great storyteller—we’re thrilled to have him join the show. Trust me, you won’t want to miss this one. Tune in, subscribe, and let’s keep this holiday momentum rolling! #RealDealLandman #GrowWithNovus #NAPE2025 #WhereDealsHappen #Landman

Today IPAA presented its?issue priorities?to the Trump Transition team. The memo details priorities including equitable tax policies for energy businesses, sensible environmental regulations, reform of the National Environmental Policy Act (NEPA)/#permitting reform, access to federal lands and waters, reforms to the Endangered Species Act, and lifting the pause on issuing permits for liquefied natural gas (#LNG) export facilities. Read here or at https://lnkd.in/gMD2qUWi #energyproduction #oilandgas #upstream #taxpolicy #energypolicy #environmentalpolicy

The Landman clip we shared a few days ago is the focus of this article on Fox News TV. We're happy to keep spreading the message: https://lnkd.in/gUQYmUMx #oil #petroleum #energy #economy #oilandgas #natgas #txenergy #naturalgas #txlege #permian #oilindustry #wind #solar