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<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>Aresco</title> <atom:link href="http://www.arescotx.com/feed/" rel="self" type="application/rss+xml" /> <link>http://www.arescotx.com</link> <description></description> <lastBuildDate>Wed, 11 Mar 2015 18:44:42 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod>hourly</sy:updatePeriod> <sy:updateFrequency>1</sy:updateFrequency> <generator>http://wordpress.org/?v=4.1</generator> <item> <title>Office Closed – March 5th</title> <link>http://www.arescotx.com/office-closed-march-5th/</link> <comments>http://www.arescotx.com/office-closed-march-5th/#comments</comments> <pubDate>Thu, 05 Mar 2015 15:08:04 +0000</pubDate> <dc:creator><![CDATA[Amy Knickerbocker]]></dc:creator> <category><![CDATA[Uncategorized]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=5708</guid> <description><![CDATA[Due to inclement weather in the Dallas Fort Worth Metroplex, our office will be closed Thursday, March 5th. The office will reopen Friday, March 6th, weather-permitting.]]></description> <content:encoded><![CDATA[Due to inclement weather in the Dallas Fort Worth Metroplex, our office will be closed Thursday, March 5th. The office will reopen Friday, March 6th, weather-permitting. ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/office-closed-march-5th/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Crude Oil Export Ban the Talk of the Industry</title> <link>http://www.arescotx.com/crude-oil-export-ban-the-talk-of-the-industry/</link> <comments>http://www.arescotx.com/crude-oil-export-ban-the-talk-of-the-industry/#comments</comments> <pubDate>Wed, 04 Mar 2015 21:21:49 +0000</pubDate> <dc:creator><![CDATA[SEOadmin]]></dc:creator> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Crude Oil Export Ban]]></category> <category><![CDATA[Crude Oil Prices]]></category> <category><![CDATA[Domestic Oil Production]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=5667</guid> <description><![CDATA[As hearings began on Tuesday for the Energy and Commerce Committee, the oil industry is abuzz with talk of Congress lifting the crude oil export ban that has been in place since the 1970’s. Here are highlights of some of the articles flooding the internet. Crude exports key to U.S. success in 21st century energy […]]]></description> <content:encoded><![CDATA[<a href="http://www.arescotx.com/wp-content/uploads/crude-oil-exports.jpg" rel="lightbox-0"><img class="alignleft size-medium wp-image-5679" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/crude-oil-exports-300x200.jpg" alt="Crude Oil Exports" width="300" height="200" /></a>As hearings began on Tuesday for the Energy and Commerce Committee, the oil industry is abuzz with talk of Congress lifting the crude oil export ban that has been in place since the 1970’s. Here are highlights of some of the articles flooding the internet. Crude exports key to U.S. success in 21st century energy market – API.org “Today’s hearing is not the first to explore U.S. energy exports, but it marks a fresh opportunity for a new Congress to move quickly this year and harness the wide-ranging economic benefits free trade. Our competitors overseas are working hard to lock-in their economic advantages as exporters, and we must act now to ensure U.S. producers can compete effectively for a share of the global market. It’s the smart thing to do for U.S. consumers, for U.S. workers, and for the energy security of America and its allies.” <a title="Crude Oil Exports Key to US Success" href="http://www.api.org/news-and-media/news/newsitems/2015/mar-2015/crude-exports-key-to-us-success-in-21st-century-energy-market" target="_blank">Read more…</a> U.S. shale producers get no relief from rising Brent: Kemp – Reuters.com (Reuters) – More than ever before, U.S. shale producers are becoming the victims of outdated restrictions on the export of crude oil from the United States. Export controls have ensured the most oversupplied part of the global oil market is at home in the United States. The main beneficiaries are rival producers in the Middle East and elsewhere able to obtain higher international prices thanks to the export ban. U.S. shale producers have received almost no benefit from the improvement in international oil prices since the middle of January. <a title="US Oil Prices" href="http://www.reuters.com/article/2015/03/02/us-usa-oil-prices-kemp-idUSKBN0LY22J20150302" target="_blank">Read more…</a> <a href="http://www.arescotx.com/should-i-invest-in-oil-gas/"><img class="aligncenter size-full wp-image-5412" src="http://www.arescotx.com/wp-content/uploads/why-now-is-the-time-to-invest-in-oil.png" alt="Why now is the time to invest in oil..." width="600" height="40" /></a> Oil Producers Make Pitch to Congress – FuelFix.com The slumping oil prices that have prompted energy companies to lay down rigs and lay off workers hit domestic producers harder than their international counterparts because of the U.S. crude export ban, Pioneer Natural Resources CEO Scott Sheffield is expected to tell a House panel on Tuesday. “Price cycles come with the territory, and we will navigate this downturn as we have in the past,” Sheffield says in prepared testimony filed with the House Energy and Power Subcommittee, ahead of a Tuesday afternoon hearing on “world energy markets.” “Producers of domestic oil are especially disadvantaged compared to foreign producers, however, because they cannot receive global prices.” Pioneer is just one of dozens of oil companies that are pressing the Obama administration and Congress to undo the 40-year-old ban on exporting raw, unprocessed crude. <a title="Oil Producers Make Pitch to Congress" href="http://fuelfix.com/blog/2015/03/03/oil-producers-make-pitch-to-congress/" target="_blank">Read more…</a> Crude exports in spotlight as House leaders urge slow approach – FuelFix.com “Congress needs to be aware of all of the impacts before considering any modifications to energy policy,” said House Energy and Commerce Chairman Fred Upton, R-Mich., suggesting lawmakers should use the same “careful and deliberative approach” previously applied to liquefied natural gas exports. “We again are undertaking a thorough review and will consider all perspectives – including producers, refiners and consumers.” And Rep. John Shimkus, R-Ill., noted that the political stakes are high for lawmakers who could face recriminations from voters if they support lifting the ban and gasoline prices later climb for unrelated reasons. “It’s very hard for politicians without a five-second soundbite to examine the macro and micro economic issues,” Shimkus said. “It’s probably why we’re not going as fast on this as we’re doing with LNG (exports), which is an easier argument.” <a title="Crude Exports in Spotlight" href="http://fuelfix.com/blog/2015/03/03/crude-exports-in-spotlight-as-house-leaders-urge-slow-approach/" target="_blank">Read more…</a> <a href="http://www.arescotx.com/wp-content/uploads/oil-tanker.jpg" rel="lightbox-1"><img class="alignleft size-medium wp-image-5682" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/oil-tanker-300x168.jpg" alt="Oil Tanker" width="300" height="168" /></a>Lift the ban on U.S. oil exports? – OrlandoSentinel.com In 1973, Middle East oil suppliers declared an embargo on sales to the U.S., creating a spike in gasoline prices and backups at the pump. Congress responded, in part, by banning exports of U.S.-produced crude. Since then, <a title="Domestic Oil Production" href="http://www.arescotx.com/tag/domestic-oil-production/" target="_blank">U.S. oil production</a> has surged — especially in recent years. But the export ban remains. Now, many U.S. oil producers are calling for the ban to be lifted, and finding some sympathetic ears in Washington, D.C. In fact, there’s a hearing in the U.S. House next week to consider the idea. <a title="Lift Crude Oil Export Ban" href="http://www.orlandosentinel.com/opinion/os-ed-front-burner-lift-crude-export-ban-intro-20150226-story.html" target="_blank">Read more…</a> Majority of Americans support lifting 40-year-old ban on oil exports: poll – WashingtonTimes.com Most Americans support lifting restrictions on oil exports to countries that are trade partners, saying that the change would have a positive effect on the U.S. economy. A poll conducted for the Producers of American Crude Oil Exports (PACE) released Tuesday found that 69 percent of registered voters surveyed favor allowing oil exports to “customers in countries who are trading partners,” while 25 percent oppose the policy. Given a choice between the two policies, 65 percent supported allowing producers to sell crude oil to trading partners, while 31 percent favored only selling to U.S. customers. <a title="Americans Support Lifting 40 Year Ban on Crude Oil Exports" href="http://www.washingtontimes.com/news/2015/feb/10/majority-americans-support-lifting-40-year-old-ban/" target="_blank">Read more…</a> About Aresco LP Aresco LP is a privately held Dallas-based exploration and production company actively engaged in developmental drilling, mineral leasing, and production acquisitions in conventional and unconventional oil plays throughout Texas, Oklahoma, and New Mexico. The company specializes in production-driven projects designed to provide income stability and strong growth potential. Aresco’s asset portfolio provides a strong balance of ownership positions in rapidly developing conventional formations and development projects in proven oilfields with decades of active drilling and production. ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/crude-oil-export-ban-the-talk-of-the-industry/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Has Shale Disrupted Oil Investment Metrics?</title> <link>http://www.arescotx.com/has-shale-disrupted-oil-investment-metrics/</link> <comments>http://www.arescotx.com/has-shale-disrupted-oil-investment-metrics/#comments</comments> <pubDate>Mon, 23 Feb 2015 19:18:26 +0000</pubDate> <dc:creator><![CDATA[SEOadmin]]></dc:creator> <category><![CDATA[New Mexico Oil and Gas Investing]]></category> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Permian Basin Oil News]]></category> <category><![CDATA[Texas Oil and Gas Investing]]></category> <category><![CDATA[Bakken Shale]]></category> <category><![CDATA[Eagle Ford Shale]]></category> <category><![CDATA[Energy Information Administration (EIA)]]></category> <category><![CDATA[OPEC]]></category> <category><![CDATA[Permian Basin]]></category> <category><![CDATA[West Texas Intermediate]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=5616</guid> <description><![CDATA[Oil price slide disruptions won’t last much longer. So says the International Energy Agency. Though oil production development in the U.S. is in the throes of a contraction—rigs are shutter down faster than expected—the IEA says prices should come back sharply by 2017 as production growth slows. Total U.S. rotary rig counts have plunged over […]]]></description> <content:encoded><![CDATA[<a href="http://www.arescotx.com/wp-content/uploads/oil-investments-600.jpg" rel="lightbox-0"><img class="alignleft size-medium wp-image-5619" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/oil-investments-600-300x235.jpg" alt="Oil Investments in Permian Basin Shale" width="300" height="235" /></a>Oil price slide disruptions won’t last much longer. So says the <a title="International Energy Agency" href="http://www.wsj.com/articles/plunge-in-oil-prices-unlikely-to-last-much-longer-iea-says-1423530032" target="_blank">International Energy Agency</a>. Though oil production development in the U.S. is in the throes of a contraction—rigs are shutter down faster than expected—the IEA says prices should come back sharply by 2017 as production growth slows. Total U.S. rotary rig counts have plunged over the last several weeks: from a high of 1,931 for the week ending September 26, 2014 <a title="Oil Rig Counts Over View" href="http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-rigcountsoverview" target="_blank">to just 1,358 by February 13, 2015</a> according to Baker Hughes. That’s a dive of 30 percent. The year over year figure saw totals shed 406 rigs, a drop of 23 percent. Recent week over week rig count declines have been the <a title="Oil Rig Count Declines" href="http://www.bloomberg.com/news/articles/2015-01-30/u-s-oil-rig-count-declines-for-eighth-consecutive-week" target="_blank">sharpest in decades</a>. Shale Agility It’s clear that shale producers have feverishly focused on restructuring operations to conserve resources until supply and demand realigns and prices rebound. The rapid response among shale producers has nudged prices up over the last few weeks from their January lows. Prices (<a title="West Texas Intermediate" href="http://www.arescotx.com/tag/west-texas-intermediate/">West Texas Intermediate</a>) dipped to their 52-week low of $43.58 per barrel in latte January before edging up to the 50-dollar range in mid February, <a title="Crude Oil" href="http://www.marketwatch.com/investing/future/crude%20oil%20-%20electronic" target="_blank">hitting $53. 53 on February 17</a>. The 52-week high of $100.52 was struck in late June 2014. Prices appear to be responding to production shifts more rapidly than the U.S. <a title="Energy Information Administration" href="http://www.arescotx.com/tag/energy-information-administration-eia/">Energy Information Administration</a> had predicted in its <a title="U.S. Energy Information Administration Oil Outlook" href="http://www.eia.gov/forecasts/steo/archives/feb15.pdf" target="_blank">February short-term outlook</a>. That’s because both shale producers and conventional producers put on hold many new drilling projects and temporarily delayed existing well completions until prices rebound. However, shale developers must focus more intensely on current prices and short-term outlook than do conventional developers because of the higher cost of <a title="Hydraulic Fracturing" href="http://www.arescotx.com/tag/hydraulic-fracturing/">hydraulic fracturing</a> or <a title="Fracking" href="http://www.arescotx.com/tag/fracking/">fracking</a>. The result is that both the shale industry and conventional producers will have surplus production capacity in the form of uncompleted wells ready to be activated. Rapid production decline expresses an agility to swiftly ramp-up of production when prices rebound. Shale areas such as the <a title="Permian Basin" href="http://www.arescotx.com/tag/permian-basin/">Permian Basin</a>, <a title="Eagle Ford Shale" href="http://www.arescotx.com/tag/eagle-ford-shale/">Eagle Ford Shale</a>, and the <a title="Bakken Shale" href="http://www.arescotx.com/tag/bakken-shale/">Bakken</a>, are well positioned to reap the benefits from a price recovery. In fact, the EIA is projecting that U.S. crude production will average 9.5 million barrels per day in 2016—the second highest production level in U.S. history after 1970, which hit 9.6 million barrels per day. <a href="http://www.arescotx.com/should-i-invest-in-oil-gas/" target="_blank"><img class="aligncenter wp-image-5412 size-full" src="http://www.arescotx.com/wp-content/uploads/why-now-is-the-time-to-invest-in-oil.png" alt="Why now is the time to invest in oil..." width="600" height="40" /></a> Barrels at Two Benjamins? But downward price pressures may severely dampen global production. OPEC’s Secretary General Abdallah el-Badri says prices have already bottomed out. He sees a real possibility that <a title="OPEC sees $200 per barrel oil" href="http://www.usatoday.com/story/money/2015/02/03/opec-sees-oil-prices-exploding-to-200-a-barrel/22800331/" target="_blank">oil will hit $200 per barrel</a>. As oil companies have made deep cuts in capital spending, he says, production growth will be throttled. He warns the industry is putting future oil supplies at risk with its current anemic investment levels. Might the deft responsiveness of shale producers rend this warning—at least partially—moot? Back in November, <a title="OPEC" href="http://www.arescotx.com/tag/opec/">OPEC</a> elected not to shore up prices by slashing production. Instead, it embarked on a strategy to defend its market share. Lower prices have exacted a severe toll on the oil cartel in terms of economic impact. But demand for its output edged up to 29.3 million barrels per day—just below its quota of 30 million barrels per day. The market share strategy appears to have paid off. Either way you slice it, U.S. shale production will be a major source of new supplies through the end of the decade. It may even gain ground, as other sources of non-OPEC production take longer to recover from price plunge disruptions. ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/has-shale-disrupted-oil-investment-metrics/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Bradley Winton Joins Aresco as VP of Exploration!</title> <link>http://www.arescotx.com/bradley-winton-joins-aresco-as-vp-of-exploration/</link> <comments>http://www.arescotx.com/bradley-winton-joins-aresco-as-vp-of-exploration/#comments</comments> <pubDate>Thu, 19 Feb 2015 05:00:41 +0000</pubDate> <dc:creator><![CDATA[SEOadmin]]></dc:creator> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Permian Basin Oil News]]></category> <category><![CDATA[Bradley Winton]]></category> <category><![CDATA[Oil Exploration]]></category> <category><![CDATA[Oil Production]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=5587</guid> <description><![CDATA[Bradley G. Winton joins Aresco LP, a privately held oil and gas exploration and production company, as Vice President of Exploration (Dallas, Texas) –– Aresco LP, a Dallas-based energy exploration and production company, today announced Bradley G. Winton has joined the company as Vice President of Exploration. Winton will lead the company’s domestic acquisition and […]]]></description> <content:encoded><![CDATA[<a href="http://www.arescotx.com/wp-content/uploads/bradley-winton.jpg" rel="lightbox-0"><img class="alignleft size-medium wp-image-5588" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/bradley-winton-300x300.jpg" alt="Bradley Winton, VP of Exploration" width="300" height="300" /></a>Bradley G. Winton joins Aresco LP, a privately held oil and gas exploration and production company, as Vice President of Exploration (Dallas, Texas) –– Aresco LP, a Dallas-based energy exploration and production company, today announced Bradley G. Winton has joined the company as Vice President of Exploration. Winton will lead the company’s domestic acquisition and divestiture efforts, providing complete prospect appraisals, including geologic modeling, log analysis, seismic interpretation and economic analysis, to help identify and evaluate prospect opportunities. In addition, Mr. Winton will oversee Aresco’s growing portfolio of producing assets in the <a title="Permian Basin" href="http://www.arescotx.com/tag/permian-basin/">Permian Basin</a>, <a title="Eagle Ford Shale" href="http://www.arescotx.com/tag/eagle-ford-shale/">Eagle Ford Shale</a>, <a title="Anadarko Basin" href="http://www.arescotx.com/tag/anadarko-basin/">Anadarko Basin</a>, and <a title="Woodbine Sands" href="http://www.arescotx.com/tag/woodbine-sands/">Woodbine/Eaglebine</a> section of east Texas. “Having access to in-depth and accurate geologic analysis is critical to making smart decisions in the oilfield. The addition of Brad brings a host of analytic capabilities in-house, making our company more competitive and responsive to opportunities,” said Brandon Laxton, President and CEO of Aresco LP. “Going forward, Bradley will play a key part in helping expand our operations into profitable project opportunities across the Southwest.” Prior to joining Aresco, Winton worked for Denbury Resources, developing CO2 EOR properties within several Gulf Coast fields, and for Jura-Search Inc., exploring Jurassic Age sediments of the Gulf Coast. One project of note was improving production in a 1,700-well prospect in the historic Conroe Field in southeast Texas. With a budget of $6 Million, Winton and his team developed and implemented a rework and secondary recovery strategy that delivered increased production, resulting in a $40 Million profit. Winton cultivated his passion for geology, geophysics, petroleum engineering, and the E&P industry while pursuing a Bachelor of Science in Geology from Millsaps College in Jackson, Mississippi. Winton attended Millsaps on a Presidential Scholarship and graduated magna cum laude with honors. He holds a Master of Science in Geosciences from the University of Texas at Dallas, where he graduated summa cum laude at the top of his class. Winton is currently completing his Master of Business Administration degree with a focus in Energy Leadership from Texas A&M University (at Texarkana). About Aresco LP Aresco LP is a privately held Dallas-based exploration and production company actively engaged in developmental drilling, mineral leasing, and production acquisitions in conventional and unconventional oil plays throughout Texas, Oklahoma, and New Mexico. The company specializes in production-driven projects designed to provide income stability and strong growth potential. Aresco’s asset portfolio provides a strong balance of ownership positions in rapidly developing conventional formations and development projects in proven oilfields with decades of active drilling and production. To learn more, please visit <a title="Oil Investment Opportunities at Aresco LP" href="http://www.arescotx.com">www.arescotx.com</a>. <hr /> ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/bradley-winton-joins-aresco-as-vp-of-exploration/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Crude Oil Price Plunge Ripples Will be Short Lived</title> <link>http://www.arescotx.com/crude-oil-price-plunge-ripples-will-be-short-lived/</link> <comments>http://www.arescotx.com/crude-oil-price-plunge-ripples-will-be-short-lived/#comments</comments> <pubDate>Mon, 26 Jan 2015 22:22:45 +0000</pubDate> <dc:creator><![CDATA[SEOadmin]]></dc:creator> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Permian Basin Oil News]]></category> <category><![CDATA[Uncategorized]]></category> <category><![CDATA[Crude Oil Prices]]></category> <category><![CDATA[International Energy Agency]]></category> <category><![CDATA[OPEC]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=5467</guid> <description><![CDATA[With the jarring jolt unleashed from grinding tectonic plates, plunging oil prices have rocked and rolled the energy boom. “Texas Freaking Out About the Oil Crash,” blares the Business Insider. “Oil boom heading for a bust in a hurry,” worries the Dallas Morning News. U.S. Steel is idling plants and laying off workers in Ohio […]]]></description> <content:encoded><![CDATA[<a href="http://www.arescotx.com/wp-content/uploads/crude-oil-price-plunge.jpg" rel="lightbox-0"><img class="alignleft size-medium wp-image-5471" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/crude-oil-price-plunge-300x225.jpg" alt="Crude Oil Price Plunge" width="300" height="225" /></a>With the jarring jolt unleashed from grinding tectonic plates, plunging oil prices have rocked and rolled the energy boom. “<a title="Texas Freaking Out About the Oil Crash" href="http://www.businessinsider.com/dallas-fed-manufacturing-december-29-2014-12" target="_blank">Texas Freaking Out About the Oil Crash</a>,” blares the Business Insider. “<a title="Oil boom heading for a bust" href="http://www.dallasnews.com/business/energy/20150115-texas-oil-boom-heading-for-bust-in-a-hurry.ece" target="_blank">Oil boom heading for a bust in a hurry</a>,” worries the Dallas Morning News. U.S. Steel is <a href="http://www.reuters.com/article/2015/01/22/ussteel-plant-idUSL1N0V030V20150122" target="_blank">idling plants</a> and laying off workers in Ohio and <a href="http://www.usatoday.com/story/money/business/2015/01/06/us-steel-layoffs/21346405/" target="_blank">Houston</a> as oil industry demand for pipe, tubing, and well casings dries up. Houston-based oil field services provider Baker Hughes Inc. <a href="http://www.bizjournals.com/sanantonio/print-edition/2015/01/23/falling-crude-prices-prompt-layoffs-at-baker.html?iana=ind_energy" target="_blank">will trim 7,000</a> from its ranks. Houston-based Shlumberger Limited, the world’s largest oil field services firm, answered the price crater <a href="http://www.wsj.com/articles/schlumberger-profit-falls-on-lower-oil-prices-1421358734" target="_blank">with 9,000 layoffs</a>. Plus production infrastructure is declining. Rig counts have seen their steepest declines in years. According to Baker Hughes, total <a href="http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-rigcountsoverview" target="_blank">oil and gas rig counts stood at 1,676</a> as of January 16, down 74 from the prior week and a drop of 101 from the same period last year. It’s the steepest decline since March 2009. Is the energy industry entering a dark age? Not so fast. Ray Through the Price Clouds The sudden price plunge will sting at first, but most experts believe these price levels will be short-lived. And the energy sector as a whole will come out stronger, as efficiencies and improvements reverberate across the industry. Shale developers will strategically drive oil services contracts down. Drilling companies will drop rates to keep their rigs active. Energy boomtowns, which have been outrunning their headlights since the boom took off after 2009, can now catch their breath and focus on infrastructure such as roads, housing, and public works. Transportation costs will plummet. Equipment, service contracts, and acreage holdings could turn into bargain investment opportunities for companies seeking long-term energy strategies. And the window for those opportunities could suddenly slam shut within months. <a href="http://www.usoilinvestments.com/"><img class="aligncenter size-full wp-image-5412" src="http://www.arescotx.com/wp-content/uploads/why-now-is-the-time-to-invest-in-oil.png" alt="Why now is the time to invest in oil..." width="600" height="40" /></a> Surging Oil Prices Months Away? Oil’s sudden nosedive has a fairly simple explanation. Supply is on the upswing because of the U.S. shale oil boom. Sustained high prices have gradually eroded demand. Low-cost Middle East producers withdrew support for $100 prices because they were losing market share to feisty new North American suppliers. The supply-demand equation was ripe for correction. But those dynamics work in the opposite direction too. Plummeting oil prices could spark sustained demand, once the holiday spending hangover recedes. That calculus may be helped along by flattened or reduced production. Most of the large producing OPEC nations, after all, need oil to hover around $100 per barrel to balance their fiscal budgets. Drilling projects worldwide are being delayed or cancelled, and less drilling spells less supply. Plus: <a href="http://oilprice.com/Energy/Oil-Prices/Be-Prepared-For-An-Oil-Price-Spike.html" target="_blank">historical patterns show prices inevitably rise</a> after dramatic slumps. Triple digit prices look like they are in the offing—sooner rather than later. The latest <a title="Oil Market Report" href="https://www.iea.org/oilmarketreport/omrpublic/" target="_blank">Oil Market Report</a> issued by the International Energy Agency suggests the price tide may already be turning. World demand is expected to increase in the second quarter, and year-over-year demand is predicted to jump by 910,000 barrels per day. Supply and demand will work their way into balance over the next several months. Seventy-seven dollar barrels by August would not be unexpected. And the industry will meet the upswing in leaner, meaner form. <div id="content"> <hr /> About Aresco LP Aresco LP is a privately held Dallas-based exploration and production company actively engaged in developmental drilling, mineral leasing, and production acquisitions in conventional and unconventional oil plays throughout Texas, Oklahoma, and New Mexico. The company specializes in production-driven projects designed to provide income stability and strong growth potential. Aresco’s asset portfolio provides a strong balance of ownership positions in rapidly developing conventional formations and development projects in proven oilfields with decades of active drilling and production. <a title="Oil Investment Opportunities" href="http://www.usoilinvestments.com/" target="_blank">Click here</a> to request info on our current investment opportunities. </div> ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/crude-oil-price-plunge-ripples-will-be-short-lived/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>What determines crude oil prices?</title> <link>http://www.arescotx.com/what-determines-crude-oil-prices/</link> <comments>http://www.arescotx.com/what-determines-crude-oil-prices/#comments</comments> <pubDate>Mon, 19 Jan 2015 04:00:49 +0000</pubDate> <dc:creator><![CDATA[SEOadmin]]></dc:creator> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Oil and Gas Interesting Facts]]></category> <category><![CDATA[Permian Basin Oil News]]></category> <category><![CDATA[Uncategorized]]></category> <category><![CDATA[Crude Oil Prices]]></category> <category><![CDATA[OPEC]]></category> <category><![CDATA[U.S. Oil Production]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=5406</guid> <description><![CDATA[Ask any U.S. citizen what they notice first as they are driving to work and you can bet most will say “how much is it going to cost me to fill up my tank today”. Predicting daily fluctuations in gas prices with some degree of accuracy can make even the most seasoned gas and oil […]]]></description> <content:encoded><![CDATA[<a href="http://www.arescotx.com/wp-content/uploads/crude-oil-prices-barrel.jpg" rel="lightbox-0"><img class="alignleft size-medium wp-image-5408" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/crude-oil-prices-barrel-300x225.jpg" alt="What determines crude oil prices?" width="300" height="225" /></a>Ask any U.S. citizen what they notice first as they are driving to work and you can bet most will say “how much is it going to cost me to fill up my tank today”. Predicting daily fluctuations in gas prices with some degree of accuracy can make even the most seasoned gas and oil expert a little crazy, especially with political instability occurring in oil-rich countries and uncertainty about what OPEC is going to do. However, some basic factors do influence the price of crude oil and can be used as relevant variables to determine whether we start the day paying a reasonable $2 or a painfully high $5 for a gallon of gas. OPEC (Organization of the Petroleum Exporting Countries) <a href="http://www.arescotx.com/wp-content/uploads/opec.jpg" rel="lightbox-1"><img class="alignright size-medium wp-image-5414" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/opec-300x184.jpg" alt="OPEC (Organization of the Petroleum Exporting Countries)" width="300" height="184" /></a>Established in 1960, OPEC’s primary mission is to “unify and coordinate petroleum policies of OPEC members” and “ensure the stabilization of oil markets…to secure a regular, efficient supply of petroleum to consumers as well as a fair return on capital for petroleum industry investors.” (<a title="OPEC" href="http://www.opec.org/opec_web/en/about_us/23.html" target="_blank">http://www.opec.org/opec_web/en/about_us/23.html</a>). Twelve nations comprise <a title="OPEC" href="http://www.arescotx.com/tag/opec/">OPEC</a>, with the United Arab Emirates and Saudi Arabia having the most influence. Since OPEC is responsible for setting production goals for its members, they control a large part of what determines <a title="Crude Oil Prices" href="http://www.arescotx.com/tag/crude-oil-prices/" target="_blank">crude oil prices</a>. When OPEC reduces its output, oil prices rise; when it increases output, oil prices drop. The original function of OPEC was to prevent extreme fluctuations in gas prices that may negatively affect global economies. However, ongoing political and societal instability in many OPEC nations combined with interest disparities have made it difficult for other countries to predict why and how this cartel will manipulate crude oil prices from one day to the next. Commodity Traders By selling and purchasing <a title="Oil Futures Contracts" href="http://www.investopedia.com/terms/f/futurescontract.asp" target="_blank">oil futures contracts</a>, hedgers and speculators impact oil demand which directly affects crude oil prices. Trucking and airline companies are examples of “hedgers” that buy and sell oil futures contracts as a way to protect them against paying higher oil prices in the future. Alternately, speculators buy and sell oil futures contracts for enhancing their ability to enjoy future profits as well. <a href="http://www.usoilinvestments.com/"><img class="aligncenter size-full wp-image-5412" src="http://www.arescotx.com/wp-content/uploads/why-now-is-the-time-to-invest-in-oil.png" alt="Why now is the time to invest in oil..." width="600" height="40" /></a> U.S. Oil Production Renaissance <a href="http://www.arescotx.com/wp-content/uploads/horizontal-drilling-hydraulic-fracturing.jpg" rel="lightbox-2"><img class="alignleft size-medium wp-image-3697" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/horizontal-drilling-hydraulic-fracturing-300x151.jpg" alt="Hydraulic Fracturing or Fracking" width="300" height="151" /></a>Technological advances including <a title="Hydraulic Fracturing or Fracking" href="http://www.hydraulicfracturing.com/#/?section=energy-and-opportunity" target="_blank">hydraulic fracturing</a> and horizontal drilling have significantly impacted global supply, vaulting the United States into first place in worldwide liquids production. In 2006, the U.S. was importing ~13MMBOPD; today it imports ~6MMBOPD. This evaporation of the U.S. market has stunned OPEC, pushing its members to keep pumping oil, which depresses overall pricing, in an effort to drive U.S. shale producers out of business so that it can maintain market share. U.S. Monetary and Fiscal Policies Through selling and purchasing U.S. Treasury Securities, the Federal Reserve Board of Governors establishes U. S. monetary policies by increasing or decreasing money supplies. Printing more U. S. currency weakens the dollar against foreign currencies and ultimately lowers crude oil prices. Fiscal policies set by the federal government (how the government spends money) may stimulate economic policy and contribute to further weakening of the dollar–and even lower crude oil prices. Natural/Human-Caused Disasters Massive oil spills, hurricanes, tornado outbreaks and nuclear reactor disasters typically impact crude oil prices due to loss of oil manufacturing facilities, broken gas pipelines and the demand for oil to effect repairs. An example of how a natural disaster immediately influences oil prices is the case of <a title="Hurricane Katrina" href="http://www.history.com/topics/hurricane-katrina" target="_blank">Hurricane Katrina</a> and Rita. Collectively, they destroyed over 100 offshore gas and oil platforms and damaged nearly 500 gas and oil pipelines, drastically reducing supplies of crude oil and causing gas prices to exceed $4.50 a gallon. <hr /> About Aresco LP Aresco LP is a privately held Dallas-based exploration and production company actively engaged in developmental drilling, mineral leasing, and production acquisitions in conventional and unconventional oil plays throughout Texas, Oklahoma, and New Mexico. The company specializes in production-driven projects designed to provide income stability and strong growth potential. Aresco’s asset portfolio provides a strong balance of ownership positions in rapidly developing conventional formations and development projects in proven oilfields with decades of active drilling and production. <a title="Oil Investment Opportunities" href="http://www.usoilinvestments.com/" target="_blank">Click here</a> to request info on our current investment opportunities. ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/what-determines-crude-oil-prices/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Will OPEC-Fueled Price Crater Spell Permian Extinction? Not a Chance</title> <link>http://www.arescotx.com/will-opec-fueled-price-crater-spell-permian-extinction-not-a-chance/</link> <comments>http://www.arescotx.com/will-opec-fueled-price-crater-spell-permian-extinction-not-a-chance/#comments</comments> <pubDate>Tue, 09 Dec 2014 22:52:00 +0000</pubDate> <dc:creator><![CDATA[SEOadmin]]></dc:creator> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Permian Basin Oil News]]></category> <category><![CDATA[Bakken Shale]]></category> <category><![CDATA[Crude Oil Prices]]></category> <category><![CDATA[Domestic Oil Production]]></category> <category><![CDATA[Drilling Technology]]></category> <category><![CDATA[Eagle Ford Shale]]></category> <category><![CDATA[Fracking]]></category> <category><![CDATA[Horizontal Drilling]]></category> <category><![CDATA[Hydraulic Fracturing]]></category> <category><![CDATA[Oil Production]]></category> <category><![CDATA[OPEC]]></category> <category><![CDATA[Permian Basin]]></category> <category><![CDATA[Saudi Arabia]]></category> <category><![CDATA[Texas Oil Production]]></category> <category><![CDATA[U.S. Oil Production]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=5215</guid> <description><![CDATA[Much has been made of the recent per barrel oil price plunge, currently hovering below $70. Some speculate OPEC’s recent decision to keep the crude spigot flowing is the cartel’s play to smother America’s great oil boom. Keeping prices low by steadily flushing the market with crude—the thinking goes—makes production via fracking and horizontal drilling […]]]></description> <content:encoded><![CDATA[<a href="http://www.arescotx.com/wp-content/uploads/permian-oil-field-roughnecks.jpg" target="_blank" rel="lightbox-0"><img class="alignleft wp-image-5219 size-medium" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/permian-oil-field-roughnecks-300x242.jpg" alt="Permian Oil Field Roughnecks" width="300" height="242" /></a>Much has been made of the recent per barrel oil price plunge, currently hovering below $70. Some speculate OPEC’s recent decision to keep the crude spigot flowing is the cartel’s play to smother America’s great oil boom. Keeping prices low by steadily flushing the market with crude—the thinking goes—<a title="OPEC won't stop US oil production growth" href="http://www.cnbc.com/id/102234051#." target="_blank">makes production via fracking and horizontal drilling less viable</a>, triggering a cascade of capital pullback in the oilfield. Sure, there’s room for worry. Oil prices have plummeted more than 30 percent over the last several months. Add in the conventional wisdom that says “tight” oil production from shale ceases to be economical once the $80 per barrel price floor is breached. Question: How low can prices go before North American unconventional investment is throttled and projects start shutting down? Follow-up: Is the conventional wisdom on price even relevant? <iframe src="http://player.theplatform.com/p/gZWlPC/vcps_inline?byGuid=3000335934&size=530_298" width="530" height="298" allowfullscreen="allowfullscreen"></iframe> <h2>Birth of a Oil Boom</h2> Back in 2008 the big worry was peak oil and steady declines in global output. Enter the fracking and horizontal drilling boom. Extracting oil deep underground by rupturing and penetrating shale seams propelled U.S. oil production to its highest level in three decades. The impact of the shale breakthrough is breathtaking. U.S. output surged 80 percent to 9 million barrels per day, mostly from plays such as the <a title="Permian Basin Shale Oil" href="http://www.arescotx.com/tag/permian-basin/" target="_blank">Permian</a>, <a title="Bakken Shale" href="http://www.arescotx.com/tag/bakken-shale/" target="_blank">Bakken</a>, and <a title="Eagle Ford Shale" href="http://www.arescotx.com/tag/eagle-ford-shale/" target="_blank">Eagle Ford</a>. By itself that production spike <a title="The Global Shakeout From Plunging Oil" href="http://www.wsj.com/articles/daniel-yergin-the-global-shakeout-from-plunging-oil-1417386897" target="_blank">trumps the output of every OPEC member nation</a> save for Saudi Arabia. The peak oil myth was put to bed. But what wasn’t factored into conventional wisdom on price is that <a title="rillers Continue To Innovate In Face Of Oil Price Downturn" href="http://oilprice.com/Finance/investing-and-trading-reports/Drillers-Continue-To-Innovate-In-Face-Of-Oil-Price-Downturn.html" target="_blank">technological advances</a> have been surging right along with the production boom. In some cases costs have plummeted 50 percent in the last two years alone. They could dip another 15 percent by 2016. Bottom line: <a title="U.S. Shale Oil Output Seen Growing Even as Prices Drop" href="http://www.businessweek.com/news/2014-10-14/u-dot-s-dot-shale-oil-output-growing-even-as-prices-drop-eia" target="_blank">Producers are generating more oil per dollar invested</a>, driving down costs by as much as $30 per barrel since 2012. <a href="http://www.txoilinvestments.com/" target="_blank"><img class="aligncenter wp-image-4787 size-full" src="http://www.arescotx.com/wp-content/uploads/permian-basin-investing-questions.gif" alt="Permian Basin Oil Investing Questions?" width="600" height="40" /></a> According to the Energy Information Administration, each rig in the Permian added a record 176 barrels of new oil per day in November. That’s a 20 percent spike over the previous year. Similar spikes were seen in the Eagle Ford Shale area and across Texas. In fact, technological finesse has progressed to the point where many sections of these unconventional plays might be viable right down to $50 per barrel. No wonder <a title="Iran Wary of Oil ‘Shock Therapy’ as OPEC Vies for Market" href="http://www.bloomberg.com/news/2014-11-30/iran-wary-of-oil-shock-therapy-as-opec-vies-for-market-share.html" target="_blank">OPEC is worried</a>. <h3>Conventional Production Still Vital</h3> But that’s just the beginning of <a title="Permian Region Drilling Productivity Report" href="http://www.eia.gov/petroleum/drilling/pdf/permian.pdf" target="_blank">Texas oil vitality</a>. Though the fracking boom has transformed the production landscape over the last couple of years, there is still a strong and vital conventional production element in Texas and in other areas throughout the U.S. With costs starting at $2 million and running up to $5 million, higher producing (thus deeper) vertical wells can be much less expensive to drill than many horizontal wells, which may demand investments of between $6 million to $10 million or more in the bigger shale plays. Long a lynch pin in Texas oil production, particularly in the Permian Basin, economical <a title="Vertical Drilling Projects" href="http://www.arescotx.com/permian-basin-canyon-sandstone-project-begins/" target="_blank">vertical drilling may become even more crucial</a> as West Texas Intermediate (WTI) crude prices hover below $70 per barrel. Flexible integrated production strategies that include a good mix of conventional vertical drilling will keep savvy operators thriving and the Permian Basin a vital energy producing powerhouse for decades to come. <hr /> <h3>Investing in Permian Basin Oil</h3> <iframe width="500" height="375" src="http://www.youtube.com/embed/P86ItCa_U1s?feature=oembed" frameborder="0" allowfullscreen></iframe> About Aresco LP Aresco LP is a privately held Dallas-based exploration and production company actively engaged in developmental drilling, mineral leasing, and production acquisitions in conventional and unconventional oil plays throughout Texas, Oklahoma, and New Mexico. The company specializes in production-driven projects designed to provide income stability and strong growth potential. Aresco’s asset portfolio provides a strong balance of ownership positions in rapidly developing conventional formations and development projects in proven oilfields with decades of active drilling and production. <a title="Texas Permian Basin Oil Investment Opportunities" href="http://www.txoilinvestments.com/" target="_blank">Click here</a> to request info on our current investment opportunities. <hr /> <a href="http://www.txoilinvestments.com/" target="_blank"><img class="alignleft wp-image-4720 size-full" style="border: 0px none; margin: 5px 50px;" src="http://www.arescotx.com/wp-content/uploads/investing-in-permian-basin-oil.jpg" alt="investing-in-permian-basin-oil" width="600" height="200" /></a>   <hr /> ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/will-opec-fueled-price-crater-spell-permian-extinction-not-a-chance/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>We have moved!</title> <link>http://www.arescotx.com/we-have-moved/</link> <comments>http://www.arescotx.com/we-have-moved/#comments</comments> <pubDate>Mon, 24 Nov 2014 15:43:29 +0000</pubDate> <dc:creator><![CDATA[Amy Knickerbocker]]></dc:creator> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Uncategorized]]></category> <category><![CDATA[Aresco LP]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=5007</guid> <description><![CDATA[We recently relocated our corporate headquarters to Prosper, Texas. This move marks a significant milestone for Aresco as we begin construction on our new building in the Prosper Energy Center as early as January 2015. During construction, which is anticipated to last 9-12 months, we will office in the same business center where our commercial developer is […]]]></description> <content:encoded><![CDATA[We recently relocated our corporate headquarters to Prosper, Texas. This move marks a significant milestone for Aresco as we begin construction on our new building in the Prosper Energy Center as early as January 2015. During construction, which is anticipated to last 9-12 months, we will office in the same business center where our commercial developer is located, which is a half mile away from the new office site. This way, we can stay focused on Aresco activities while staying close to the construction project. Our phone numbers and email addresses will remain the same, you’ll only need to update our address in your records. In the event you have recently mailed something to us, forwarding service is already in place so we should receive it soon. Until our new building is complete, our interim address is: 861 N Coleman Rd. Ste 105 Prosper Texas 75078 ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/we-have-moved/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>Permian Basin Oil Well Photos</title> <link>http://www.arescotx.com/permian-basin-oil-well-photos/</link> <comments>http://www.arescotx.com/permian-basin-oil-well-photos/#comments</comments> <pubDate>Wed, 12 Nov 2014 21:57:42 +0000</pubDate> <dc:creator><![CDATA[SEOadmin]]></dc:creator> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Permian Basin Oil News]]></category> <category><![CDATA[Texas Oil and Gas Investing]]></category> <category><![CDATA[Mud Pit]]></category> <category><![CDATA[Oil Exploration]]></category> <category><![CDATA[Oil Production]]></category> <category><![CDATA[Permian Basin]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=4964</guid> <description><![CDATA[Just in case you don’t know a lot about the oil rig setup and drilling process, it is quite an operation. It can take anywhere from fifteen to twenty semi-truck loads just to deliver all rig components to the location. Here are a few photos to give you an up-close look at our Permian Basin […]]]></description> <content:encoded><![CDATA[Just in case you don’t know a lot about the oil rig setup and drilling process, it is quite an operation. It can take anywhere from fifteen to twenty semi-truck loads just to deliver all rig components to the location. Here are a few photos to give you an up-close look at our Permian Basin oil project at Noodle Canyon. This oil well is in Jones County which is on the eastern edge of the Permian Basin shale area. <table border="0" width="100%" cellspacing="10" cellpadding="10"> <tbody> <tr> <td style="text-align: center;"></td> <td style="text-align: right;"><a href="http://www.arescotx.com/permian-basin-oil-well-photos/2/"><img class="alignright size-full wp-image-4967" src="http://www.arescotx.com/wp-content/uploads/aresco-next-button1.png" alt="aresco-next-button" width="170" height="51" /></a></td> </tr> <tr> <td style="text-align: center;" colspan="2"></td> </tr> <tr> <td style="text-align: center;" colspan="2" width="50%"> <a href="http://www.arescotx.com/wp-content/uploads/permian-basin-oil-well-00.jpg" rel="lightbox-0"><img class="aligncenter size-full wp-image-4968" src="http://www.arescotx.com/wp-content/uploads/permian-basin-oil-well-00.jpg" alt="permian-basin-oil-well-00" width="598" height="800" /></a> The image pictured above is a nice overview of the Noodle Canyon #1 rig. </td> </tr> <tr> <td colspan="2"></td> </tr> <tr> <td style="text-align: center;" colspan="2"><a href="http://www.txoilinvestments.com/"><img class="size-full wp-image-4787" src="http://www.arescotx.com/wp-content/uploads/permian-basin-investing-questions.gif" alt="Permian Basin Oil Investing Questions?" width="600" height="40" /></a></td> </tr> </tbody> </table> ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/permian-basin-oil-well-photos/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> <item> <title>BridgeTex: Relieving the Permian Basin Squeeze</title> <link>http://www.arescotx.com/bridgetex-relieving-the-permian-basin-squeeze/</link> <comments>http://www.arescotx.com/bridgetex-relieving-the-permian-basin-squeeze/#comments</comments> <pubDate>Tue, 21 Oct 2014 17:03:45 +0000</pubDate> <dc:creator><![CDATA[SEOadmin]]></dc:creator> <category><![CDATA[Oil and Gas Current Events]]></category> <category><![CDATA[Permian Basin Oil News]]></category> <category><![CDATA[Bakken Shale]]></category> <category><![CDATA[BridgeTex Pipeline]]></category> <category><![CDATA[Eagle Ford Shale]]></category> <category><![CDATA[Energy Information Administration (EIA)]]></category> <category><![CDATA[Oil Production]]></category> <category><![CDATA[Permian Basin]]></category> <category><![CDATA[Sweet Crude Oil]]></category> <guid isPermaLink="false">http://www.arescotx.com/?p=4806</guid> <description><![CDATA[Is the Permian Basin a victim of its own stunning success? Oil production in the Permian, that petroleum rich landmass straddling Texas and New Mexico, has been wrestling with takeaway capacity over the last 18 months. Production consistently outpaces the ability of Permian producers to deliver the commodity to shippers and refineries. That, coupled with […]]]></description> <content:encoded><![CDATA[<a href="http://www.arescotx.com/bridgetex-relieving-the-permian-basin-squeeze/bridgetex-pipeline/" target="_blank" rel="attachment wp-att-4845"><img class="alignleft wp-image-4845 size-medium" style="border: 0px none; margin: 5px 10px;" src="http://www.arescotx.com/wp-content/uploads/bridgetex-pipeline-300x229.png" alt="BridgeTex Pipeline" width="300" height="229" /></a>Is the Permian Basin a victim of its own stunning success? Oil production in the Permian, that petroleum rich landmass straddling Texas and New Mexico, has been wrestling with takeaway capacity over the last 18 months. Production consistently outpaces the ability of Permian producers to deliver the commodity to shippers and refineries. That, coupled with <a title="Refinery shutdowns" href="http://www.bloomberg.com/news/2014-09-25/refinery-shutdowns-threaten-to-raise-u-s-pump-prices.html" target="_blank">recent refinery outages</a>, has forced West Texas producers to swallow deep discounts whenever current pipeline capacity is squeezed. But that bottleneck conundrum may soon be lifting. On September 29 the <a title="BridgeTex Pipeline" href="http://www.clineshale.info/uploads/BridgeTex_pipeline_Colorado_City-Hou_121120.pdf" target="_blank">BridgeTex pipeline</a>, a 400-mile $1 billion crude conduit, went online. A joint venture between Tulsa, Oklahoma-based Magellan Partners and Occidental Petroleum, BridgeTex spans from Colorado City, Texas, to the Houston Gulf Coast. The pipeline has a robust capacity of 300,000 barrels per day. Launched in 2012, the project also includes 1.2 million barrels of storage capacity in Colorado City and another 1.4 million barrels in Houston. <a href="http://www.txoilinvestments.com/" target="_blank"><img class="aligncenter wp-image-4787 size-full" src="http://www.arescotx.com/wp-content/uploads/permian-basin-investing-questions.gif" alt="Permian Basin Investing Questions?" width="600" height="40" /></a> Permian Bottleneck Relief BridgeTex was designed to ship two grades of crude: West Texas Intermediate (<a title="Sweet Crude Oil" href="http://www.arescotx.com/tag/sweet-crude-oil/">Texas Sweet Light</a>) and West Texas Sour (medium-density, high-sulfur crude). BridgeTex connects via pipeline networks to refineries in Texas City as well as to the Houston Ship Channel. There are also connections to refineries in Beaumont, Port Arthur, and on the Louisiana Gulf Coast. The second of four major Permian pipeline projects, BridgeTex joins the <a title="Magellan Longhorn Pipeline" href="http://oilspot2.dtnenergy.com/e_article002758637.cfm?x=b11,0,w" target="_blank">Magellan Longhorn pipeline</a> (online 2013, 275,000 barrels-per-day capacity) running from Crane, Texas to East Houston; the <a title="Sunoco Permian Express II Pipeline" href="http://sxlpipelineprojects.com/wp-content/uploads/2014/03/permian-factsheet-jan30-2014.pdf" target="_blank">Sunoco Permian Express II pipeline</a> from Garden City, Texas to Corsicana (Q2 2015, 200,000 barrels-per-day capacity); and the <a title="Plains Cactus Pipeline" href="http://ir.paalp.com/profiles/investor/ResLibraryView.asp?ResLibraryID=61664&GoTopage=3&Category=117&BzID=789&G=549" target="_blank">Plains Cactus pipeline</a> (online Q1 2015, 200,000 barrels-per-day capacity) from McCamey, Texas to Gardendale. America’s Production Juggernaut The <a title="Permian Basin" href="http://www.arescotx.com/tag/permian-basin/">Permian Basin</a> is the leading oil-producing region in the U.S., generating some 1.75 million barrels per day (October 2014), according to the <a title="Energy Information Administration" href="http://www.arescotx.com/tag/energy-information-administration-eia/">Energy Information Administration</a>. In 2012 the Permian generated more than $137 billion of economic output and sustained more than 546,000 jobs, according to a study released by Texas Tech University and the Permian Basin Petroleum Association. Those figures have no doubt increased substantially. Of the 1,591 oilrigs operating in the U.S., the majority—or roughly 554—is located in the Permian. The <a title="Eagle Ford Shale" href="http://www.arescotx.com/tag/eagle-ford-shale/">Eagle Ford Shale</a> formation has 202 oilrigs, while the <a title="Bakken Shale" href="http://www.arescotx.com/tag/bakken-shale/">Bakken Shale</a> formation in North Dakota has 198 and the <a title="Mississippian Lime Formation" href="http://www.cnbc.com/id/47633423#." target="_blank">Mississippian Lime Formation</a> (Northern Oklahoma into southwestern Kansas) is home to 74. So far in 2014 the Permian Basin has added a whopping 95 oilrigs to the Bakken’s 13. Eagle Ford is actually down four rigs. Crunch Not Over But while the <a title="BridgeTex Pipeline" href="http://www.arescotx.com/tag/bridgetex-pipeline/">BridgeTex pipeline</a> will go a long way toward alleviating Permian takeaway bottlenecks, the area still <a title="Texas Pipeline Story" href="http://themilliondollarway.blogspot.com/2014/10/texas-pipeline-story-october-13-2014.html" target="_blank">has transport challenges</a>. Most new production lies in the Midland and Delaware basins—well to the west of Colorado City. This means crude supplies from these Western basins must get to Colorado City before they can enter the BridgeTex pipeline and on to shipping and refining outposts. Most of the existing pipelines that can accommodate transit to Colorado City are at or near capacity, meaning much Permian production is still constrained. These restrictions should be relieved in January 2015 when oil will begin flowing along the Plains Sunrise pipeline (250,000 barrels per day). The Plains Sunrise links Midland to Colorado City—and the Permian’s most robust basins to BridgeTex and beyond. <a href="http://www.txoilinvestments.com/" target="_blank"><img class="aligncenter wp-image-4720 size-full" src="http://www.arescotx.com/wp-content/uploads/investing-in-permian-basin-oil.jpg" alt="investing-in-permian-basin-oil" width="600" height="200" /></a> ]]></content:encoded> <wfw:commentRss>http://www.arescotx.com/bridgetex-relieving-the-permian-basin-squeeze/feed/</wfw:commentRss> <slash:comments>0</slash:comments> </item> </channel> </rss>