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PPROA Pipeline ~ May 2015
FROM THE WELLHEAD
By the time you are reading this, the Texas legislative season will be coming to an end
(no way there is an extension, right?). Hopefully the bills affecting our industry have
brought no new heartaches!
The dramatic decline in oil & gas prices has slowed down, but there is no consensus on
whether we will see continued declines in prices, or when we might see a price recovery.
The drilling rig count in the Texas panhandle is about one third where it was one year
ago. I bet we all agree that this down cycle has to reverse at some point.
While the impact of a down energy market definitely has a negative impact on our region, PPROA President
Greg Graham
our local economies are diversified enough to survive and even thrive. However, several
OPEC and non-OPEC producers rely heavily on oil revenue to finance their national budgets. If crude oil
prices fall further or are sustained at current levels, these oil-dependent producing countries will face tough
decisions; decisions that could spark civil unrest or worse. Global geo-political risk could have a very
significant impact on our industry.
Many analysts believe that lifting the U.S. crude export ban could help mitigate the impact of any extreme
decisions by other oil producing nations. Lifting the ban could possibly bring about a greater balancing of
world-wide crude supplies. Countries heavily dependent on OPEC for their energy would have an
alternative for at least some of their energy needs. The resulting stabilization of world-wide energy prices
would actually help the U.S. The resulting reduction in extreme high and low prices would allow U.S.
producers to have greater confidence in their exploration budgets. This would then actually help the U.S.
come closer to energy independence. Definitely food for thought.
On a lighter note, we are having a “first ever” summer networking event on Saturday, June 13th at the Piehl
Ranch in Bushland. PPROA will be serving up some FUN FOOD & FESTIVITIES! Feel free to bring
your friends and family for a barn dance along with prizes for horse shoe pitching, prairie golf and best
dressed cowboy and cowgirl contests! I believe it will be a great time to enjoy time with old friends and
make new ones. I hope to see you there. (P.S. cowboy attire is not required.)
Plans are well in motion for the 2015 PPROA Annual Meeting. Please mark your calendars for September
22 thru 24, because Judy and Cynthia are working hard and planning to “shake things up a bit”.
Thank you to these advertisers!
Amarillo National Bank
Brown, Graham & Company, P.C.
Connor McMillon Mitchell & Shennum
CRL Pump & Supply
EnergyNet
Grammer Land & Exploration Corp.
Happy State Bank & Trust Company
Kenai Drilling
Kimrad Transport, LP
Unit Texas Drilling, LLC
Please let these fine businesses know you saw their ad in the PIPELINE.