You mean to tell me you've been posting all these articles to tell us the credit crisis will lead to an oil and gas non-crisis???

Ya, sure!!

overall drilling activity was down 46 percent between the second quarter of 2009 to the same period last year

Natural gas production was said to suffer the worst decline in at least a decade, with activity falling 43 percent in the past year.

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for the millionth time AP, cause there is a GLUT.


Yet production keeps rising despite less wells! this is GOOD news!

There are always many problems with the use of electricity. It is certainly costly. Duncan notes that, according to the International Energy Agency, the worldwide investment funds required for electricity from 2003 to 2030 will be about $9.66 trillion. That sort of money is simply not available. In the 2000 version of his essay, Duncan adds that electric power systems are "complex, voracious of fuel, polluting, and require 24h-7d-52w maintenance and operations."

Energy Cycle Set To Move Higher In 2010
Posted: Nov 13, 2009 14:22 PM by Eric Fox

The exploration and production industry is planning a major ramp in drilling activity in 2010, as it positions itself to take advantage of anticipated higher demand due to an improving economy and hopefully higher natural gas prices.

Many of the companies have not yet set official capital budgets for 2010, but a look at management commentary during third-quarter earnings season indicates that a higher level of activity is in the works.

[...]

Energy Cycle May Accelerate In 2010

The energy industry is deeply cyclical, which many investors found out the hard way last year. The latest evidence suggests that the cycle is moving from a tepid recovery to one that may accelerate sharply in 2010.

Exxon, Chevron Likely to Lift 2010 Capital Spending
by Isabel Ordonez | Dow Jones Newswires | Friday, November 13, 2009

Oil giants ExxonMobil Corp. and Chevron Corp. are expected to inch up their capital spending in 2010 and continue their massive investments in major projects in an effort to lift production.

The increases, which would come amid an improved outlook of the global economy and hopes of sustained higher commodity prices, would sharply contrast with rival ConocoPhillips' decision to reduce 12% its next-year capital budget. Some analysts said this reduced level of spending will make it difficult for the Houston-based company to maintain production or continue with projects that require intense capital allocation.

[...]

Baker Hughes: US Oil, Gas Rig Count Up 23 to 1,101 This Week
by Christine Buurma | Dow Jones Newswires | Friday, November 13, 2009

The number of rigs drilling for oil in the U.S. climbed this week, but the gas rig total slipped as producers curbed output in response to low prices.

The number of oil and gas rigs climbed to 1,101, up 23 rigs from the previous week, according to data from oil-field services company Baker Hughes Inc. The number of gas rigs was 728, a decrease of six rigs from last week, while the oil rig count was 361, an increase of 29 rigs. The number of miscellaneous rigs was unchanged at 12 rigs.

[...]

Pertamina plans 77% capital spending increase
Nov 13, 2009
Eric Watkins, OGJ Oil Diplomacy Editor

LOS ANGELES, Nov. 13 -- Indonesia’s state-owned PT Pertamina, aiming for an 11% boost in oil production, expects to increase capital expenditure to $4.15 billion in 2010—a 77% increase over spending in 2009, according to a company official.

“The increase in capital expenditures was made to meet the increasing number of new projects and preparations to build a number of refineries,” said Pertamina financial director Frederick Siahaan.

"This is our prediction, but we still need approval from the shareholder meeting," said Frederick, who noted that as much as $2.5 billion would be secured from loans, including $1 billion in dollar-denominated bonds and 1 trillion rupiah in rupiah-denominated bonds.

[...]

Suncor revives Firebag oil sands expansion
Nov 13, 2009
By OGJ editors

HOUSTON, Nov. 13 -- Suncor Energy Inc. will resume investment in the 50%-complete third stage of its Firebag in situ development in the oil sands of Alberta.

The company has approved capital spending of $5.5 billion (Can.) in 2010, including $900 million for the next step in Firebag expansion and $50 million for the fourth stage. With other projects, the “growth capital” part of Suncor’s investment plans for next year totals $1.5 billion.

The company suspended work on the Firebag third stage early this year, along with plans for expanded upgrading capacity for its mining operations. Resumption of the upgrading investment is not part of the 2010 capital budget.

[...]

>>> LINK <<<

Newfield offers $223M for TXCO assets


Published: Nov 9, 2009
Mikaila Adams
Associate Editor, OGFJ

After filing for bankruptcy earlier in the year, San Antonio-based TXCO Resources Inc. has agreed to sell a large portion of its assets for $223 million to Houston-based Newfield Exploration Co. The purchase price is to be paid in cash at closing with no financing contingencies. Newfield has agreed to an earnest money deposit of $20 million. Read OGFJ's November 2007 interview with TXCO's chairman and CEO James Sigmon.

In February, TXCO retained Goldman Sachs & Co. to review strategic alternatives and, on August 27, retained the investment banking firm of Global Hunter Securities LLC to help market its assets.

Newfield initially bid $211 million in mid-October to acquire substantially all of TXCO's assets. An offer from another third party to purchase all of the company's assets prompted Newfield to increase its bid to $223 million.

The San Antonio-based oil and gas exploration company was focused on the Maverick Basin in South Texas and holds nearly 630,000 net acres in the block.